Purchasing a home in Tampa that fits your needs is very stressful, in addition to meeting with your mortgage broker and searching for the best mortgage rate. You have to sell your current home, unless you are a first-time homebuyer, find a new home, apply for a mortgage, and close.
So in this article, we want to give you some tips on finding the best mortgage rates in Tampa, Florida.
How Mortgage Rates Work
There are several factors that go into determining the monthly payment for your new home. One of the factors is your mortgage rate, which is the rate of interest charged by a lender for your mortgage.
Factors that go into calculating your mortgage rate is the term of the loan, how much you are borrowing, your credit score, the amount of your down payment, and other qualifying factors.
Knowing how to get the best mortgage rate can help you make changes in your finances to qualify for a lower rate and save a significant amount of money over the term of the loan.
As a matter of fact, getting a mortgage rate that is 1% lower can save you enough money to buy a new car with cash in just 15 years.
Amortization
To keep the principal and interest portions of your mortgage consistent from month to month, lenders use an amortization formula to create an amortization schedule.
Typically, during the beginning of your mortgage, your payment is applied more toward interest and less toward principal. But later in the mortgage term, your payment is applied more toward principal and less toward interest.
For this reason, you can same a great deal of money over the life of your mortgage by paying a little more every month that is applied to principle. You can do this by simply breaking your monthly payment into weekly payments, and thereby paying the principle more quickly. Or, you can save by making bi-weekly payments.
The important point is to pay your mortgage principle more quickly, and you will save money.
Fixed-Rate and Adjustable-Rate Mortgages (ARM)
Mortgage rates are broadly broken down into two types: fixed-rate mortgages and adjustable-rate mortgages (ARM).
With a fixed-rate mortgage, the interest rate is set when you take out the loan and will not change. The most common fixed-rate mortgages are the 15-year, 20-year, and 30-year fixed-rate mortgages.
With an adjustable-rate mortgage (also called a variable-rate mortgage), the interest rate paid on the outstanding balance varies according to a specific benchmark. The initial interest rate is usually fixed for a specified time, and then periodically adjusts.
Adjustable-rate mortgages can benefit some homeowners, but most homeowners are better off with a more predictable fixed-rate mortgage.
Mortgage Rate Projection
Historically, mortgage rates tend to reflect current economic stability, but economists have difficulty predicting future economic factors. Many experts believe mortgage rates are likely to trend slightly upward in 2016. But they are not in complete agreement, because of possible economic changes such as interest rates set by the Federal Reserve.
Monitor Mortgage Rates
It’s simple to monitor current mortgage rates while you are going through the process of looking for a new home and applying for a mortgage. Rates fluctuate constantly, and you can save a significant amount of money over twenty or thirty years by locking in a lower mortgage rate.
Most importantly, stay in close contact with your mortgage broker, who has the expertise to advise you as to changes in mortgage rates and the timing of locking in the best mortgage rate.
Marimark Mortgage
Marimark Mortgage is a Tampa mortgage broker serving all of Florida, Virginia, and Pennsylvania.
As a mortgage originator, we specialize in conventional home mortgages, FHA, VA and USDA mortgage options, refinance loans, and reverse mortgages. We’ve also worked extensively with a variety of refinancing options to help clients lower their payments on their home.
To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application, or contact us direct.

The Marimark Mortgage Newsletter will keep you informed with important events in the mortgage industry that could impact your finances.
We especially focus on ways to save money on your current and future mortgages. And, we continually share the information we share with our clients, because we believe informed consumers are the best consumers.
Real estate agents, and other professionals in the industry, will receive an ongoing wealth of information that will help them serve their clients.