Florida and the Housing Market
For years the Sunshine state has been home to coastal loving families, great retiree communities, fantastic vacation spots, and a property rich market. Florida offers all the fun in the sun that any family of any age can enjoy; and now the Florida home market offers a great opportunity to buy a new home. While the housing market is involved in a semi-recession, housing prices within the next few years will decrease by 10-15 percent. With a low unemployment rate and a relatively high-income rate, Florida's economy ought to be able to bare the grunt of the housing market. In other words, buying is an option for those who are looking at new Florida homes. New homes offer the best projection of retaining value or even appreciating within the next few years. And fortunatley the large baby boomer generation will help steady the market for years to come.

Best means of Financing
Choosing a suitable financing option depends upon your reason for financing. Are you looking at a second mortgage? Do you want a conventional fixed-rate loan? Are you expanding your house to build equity or are you interested in property investment? In the current Florida housing market, strategic home buying is a must. It is important to know that condominiums are not doing well. While their value is decreasing, their rates continue to increase. However, coastline homes are always a viable option. When looking for the right mortgage, be sure you can afford the projected payments.

Types of Loans Available
Researching lenders before choosing a loan will obviously help you find the best rate and loan available. However, it is important to be familiar with the different types of mortgage loans to ensure you select the most appropriate one for your financial situation.

A conventional loan offers homebuyers a fixed or adjustable-rate. The lender would provide the money up front and set up a monthly payment plan to reproduce the principal and interest. If borrowing on your equity, there are two possible loans. A closed home equity loan which would give the money up front or a home equity line of credit (HELOC) which opens a revolving line of credit through the lender. Your home equity loan would have the benefit of having tax-deductible interest. A HELOC is a popular choice for those interested in investment property (a prime choice for homes in Florida). The interest in a HELOC doesn't compound over time and it gives the borrower the ability to dictate when cash is needed. Be careful with this mortgage refinance home equity. Remember that the lender is using the equity you built as collateral. If you happen to default on your home equity loan, your house could be put up for foreclosure.

While the current housing market in Florida is in decline, it makes pricing for buyers a little bit easier. Central Florida boasts some of Florida's best attractions. Ask your local lender about current rates and possible financing opportunities.

Author Credit:

Houston Neal is a featured financial correspondent for online publications. He is a guest writer for Citylight Financial and works full time for 10-Spaces Consulting.

Citylight Financial is a resource for consumers interested in the mortgage process. They provide homeowners with tips about the home equity loan process, home mortgage refinance, and heloc vs home equity loan.