Owner Concerns: Florida Mortgage Insurance, Monthly Payments
For current Florida mortgage holders, various reasons for stress abound. There are numerous issues owners must deal with as the housing market changes. For instance …
The housing boom has lifted home values 51 percent over the past six years. For most of us, that means that if our house was destroyed, mortgage insurance would pick up only a portion of the cost to rebuild.
For the underinsured, the average shortfall is 21 percent, according to one firm that tracks building prices. Even if you bought a guaranteed replacement or an extended replacement policy, you could still face too-low coverage caps.
Remember: Water is your home’s biggest enemy, and your regular policy won’t cover all types of damage. If you live in a floodplain, you need flood insurance. You’ll pay $1,000 a year on average if you live in an area that’s susceptible.
Can I afford my mortgage?
Over the next few years, about countless adjustable-rate Florida home loans will reset. If yours is among them, you need to decide whether to refinance now or later. Check the fine print on your mortgage to see how bad it can get in the first reset and over the life of the loan.
While it may seem like a no-brainer to Florida mortgage refinance now, you may not need to rush because rates aren’t expected to climb sharply this year. What’s more, you could pay closing costs of 2 percent to 3 percent of the loan. Talk to our experts today to learn more about your options.
Am I paying too much?
Another nagging concern may be that you’re spending money on your house for no good reason. If you bought after July 1998 with less than 20 percent down and had to get private mortgage insurance, your lender must automatically cancel your PMI once you’ve paid off 22 percent of the loan. But price appreciation may help you hit the target earlier.
This annoying fee can run $16 to $50 a month for every $100,000 of debt. However, before you pay $300 or so for an appraiser to prove that your home’s greater value has pushed your equity higher, understand what it will take to waive PMI.
