New Mortgage Options for Tampa Homebuyers

By Andrew Duncan

Andrew Duncan is the Founder, CEO and Co-Owner of Tampa’s Best Real Estate Agent Team, The Duncan Duo, the Host of The Duncan Duo Real Estate Show Sundays at 10am on 970AM WFLA. As the team’s Founder, CEO & Co-Owner, Andrew’s focus is on the growth of the company, marketing and promotion initiatives as well as motivating and coaching the team’s agents and leadership.

Could new mortgage options make it easier to buy a home in Tampa Bay? If you’ve been holding off on buying a home because the process feels complicated or out of reach, you’re not alone. Some recent changes and proposals from Washington might change the game for many buyers.

Let me break down these three big mortgage developments in simple terms to help you understand what could make homeownership easier this time around.

What is a 50-year mortgage, and why are people talking about it? Usually, when people get a home loan, it’s for 15 or 30 years. That means you make monthly payments for that long to pay off your house. But now there’s talk of a 50-year mortgage. Some people think this idea won’t matter much, while others believe it could help more people buy homes.

A longer loan means smaller monthly payments. That’s because you’re spreading out the total amount you owe over more years. For some people, this could lower their monthly mortgage payment by around $300. That extra savings could make it easier to afford a house.

“This opens the door for buyers who might have been turned down before.”

However, the longer you take to pay off a loan, the more interest you end up paying. But most people don’t stay in their homes forever. They usually move or refinance their loan after a few years, so it might not be a big deal.

Portable mortgage. Another idea being discussed is the portable mortgage. This one is a little tricky, but here’s the simple version: imagine you have an outstanding loan with a low interest rate.

If you want to move to a new house, you’d usually have to give up that loan and get a new one, possibly at a higher rate. With a portable mortgage, you could take that same good loan with you to your next house. You’d only need a new loan to cover any extra costs if the new home is more expensive.

That could be a big deal for people who want to move but are worried about getting stuck with a higher interest rate. This change could help more homeowners feel comfortable buying again.

Changes in credit score requirement. The third change is already underway. Fannie Mae, a primary mortgage lender, has removed the rule requiring buyers to have a certain credit score to qualify. That doesn’t mean anyone can get a loan now. It just means that people who may not have much credit history or have had a few issues in the past still have a chance to be considered.

Lenders will still look at things like your job, your income, and how you’ve handled money in the past. But not having a great score won’t stop you from applying. This opens the door for buyers who might have been turned down before.

Some of these changes could make a big difference in your ability to qualify and afford a home, especially if you’re a first-time buyer or have been sitting on the sidelines. If you’re wondering whether these updates could help you buy a home this year, let’s talk about it. Give me a call at (813) 359-8990 or email info@theduncanduo.com, and I’ll walk you through how these mortgage updates might work in your favor.