More Bang for Your Buck: Mortgage

Wsvn--In South Florida, what was once a seller's market is slowly becoming a buyer's market.

But if you're like Mark Pasciak, before you make a deal, you're going to make sure the mortgage is feasible.

Mark Pasciak: "Sometimes people want to get you into a mortgage or a deal that's not right for you, that you might not be able to afford, or thats going to bring trouble down the line."

And since the average South Florida home is worth roughly 4 hundred thousand dollars, Claudine Wheeler of the home financing center knows there's a ceiling on how much her customers can spend.

Claudine Wheeler: "There are a lot of different options, probably more than people realize."

She suggests first looking at the length of your contract. While 15- and 30-year mortgages are most common, there's also a 40-year plan offering lower payments over a longer period of time.

Claudine Wheeler: "If they are really tight with cash and that's an issue then it's certainly something worth looking at."

It's also worth looking at how the mortgage is written.

For instance, a fixed payment is not the same as a fixed rate.

With a fixed payment, you'll pay the same amount each month, but your rate can still fluctuate - meaning you'll have to pay more when you sell the house.

Claudine Wheeler: "What happens is the payment is fixed but the rate is still being adjusted every month so thats it's actually coming out of the equity of the property."

And finally, when it comes time to seal the deal, don't open the door to added expenses.

Many home owners prefer procrastinating on the closing costs by tacking them on to the mortgage.

Claudine Wheeler: "Those fees aren't going away, somebody's paying those fees. Basically you are through your interest rate."

As for Mark, he's not only hoping to find the right place at the right time... He wants to make sure it's at the right price.

Mark Pasciak: "If you get a good deal on a place and can afford the financing and the numbers, I think it always helps.'

Also remember - before doing business, you want to find out the fees and penalties the lender is going to charge.

FOR MORE INFORMATION:

Claudine Wheeler
Home Financing Center, Inc.
5200 Blue Lagoon Dr.
Suite: 100
Miami, FL 33126
305 777-1100
800 700-3000
claudinew@homefinancingcenter.com