Mortgages in The Villages

[oldtimes]

If you have recently researched mortgages in The Villages who did you find to offer the best rates?

[petsetc]

I found best rate on line, for new construction or need quick close, Citizens First Bank. Their main downside was I found the Title Insurance a bit high.

FWIW

[biggamefish1]

Title Insurance is an unnecessary option if you buy directly through the Villages.

[Toymeister]

There are two things in play, the RATE and the FEEs.


The bank with the lowest cost in both are credit unions. Navy Federal and Pentagon Federal. With a donation to charity you qualify for membership to PenFed and you might already qualify for Navy Federal.

[CarlR33]

If you have recently researched mortgages in The Villages who did you find to offer the best rates?NOT an easy answer with to many variables involved. You can try Citizens but don’t drink the cool aid per se. Try your credit card company or a company you’re associated with already. Get at least three estimates.

[vintageogauge]

Title Insurance is an unnecessary option if you buy directly through the Villages.

On new homes but not resales

[oldtimes]

Thanks for these replies, they are most helpful.

[oldtimes]

On new homes but not resales

This is resale

[Rocksnap]

Yes, fees are the variable. But another variable, if you hope to refinance down the road.
Since TV, for some unknown reason simply will not accept a VA backed loan on new construction. All they need to do is fill out a 1 page paper about the builder, seems simple enough.
VA backed loans have a substantially lower APR. So I will be doing a refinance soon enough, within 1-3 years I hope. When I do, I want to minimize those fees.
I went with a mortgage broker that slashes their fees for future business with them, VA backed loan or not. So for me, that’s a win win. As I will be doing a VA backed loan hopefully after the election when things settle down, as those rates are a good half point lower.
Bank of America, whom a hate to do ANY business with, has a refi program with reduced fees. But you must have, on paper, $250,000 in assets tied with them.
My broker slashes their fees for future business. Paired with a VA loan, that will yield me substantial benefits for closing costs and the lower APR.

[bowlingal]

credit unions always have better rates than banks

[dcammel]

Yes, fees are the variable. But another variable, if you hope to refinance down the road.
Since TV, for some unknown reason simply will not accept a VA backed loan on new construction. All they need to do is fill out a 1 page paper about the builder, seems simple enough.
VA backed loans have a substantially lower APR. So I will be doing a refinance soon enough, within 1-3 years I hope. When I do, I want to minimize those fees.
I went with a mortgage broker that slashes their fees for future business with them, VA backed loan or not. So for me, that’s a win win. As I will be doing a VA backed loan hopefully after the election when things settle down, as those rates are a good half point lower.
Bank of America, whom a hate to do ANY business with, has a refi program with reduced fees. But you must have, on paper, $250,000 in assets tied with them.
My broker slashes their fees for future business. Paired with a VA loan, that will yield me substantial benefits for closing costs and the lower APR.

The reason TV will not accept VA loans for new construction is that during the building process, the VA requires progress inspections that would slow down the machine. Also, the cost per sq.ft. in TV includes the "added value" of The Villages, which is not in line with normal cost per sq. ft. of new construction. Refinancing with ALL fees paid is offered by RP Funding and they will send a closing agent to you to sign all the documents for a re-fi or resale. Rates were competitive before COVID, no idea of their programs now, but very easy to get started on-line. They have a large office complex in Maitland if you want to go in person.

[RoboVil]

If you have recently researched mortgages in The Villages who did you find to offer the best rates?
The credit unions, Mid-Florida and Suncoast, have some excellent "teaser rates". You can lock in a lower rate for up to 3 years with an ARM, but the catch is it will not decrease when interest rates decrease which they are expected to do. Just make sure you get all the details because the criteria changes. So, if there is a steep drop in interest rates over the next few years as expected then you should plan on refinancing at that time. Also, if you have a brokerage account they sometimes offer you a better deal than market.

[Marine1974]

Yes, fees are the variable. But another variable, if you hope to refinance down the road.
Since TV, for some unknown reason simply will not accept a VA backed loan on new construction. All they need to do is fill out a 1 page paper about the builder, seems simple enough.
VA backed loans have a substantially lower APR. So I will be doing a refinance soon enough, within 1-3 years I hope. When I do, I want to minimize those fees.
I went with a mortgage broker that slashes their fees for future business with them, VA backed loan or not. So for me, that’s a win win. As I will be doing a VA backed loan hopefully after the election when things settle down, as those rates are a good half point lower.
Bank of America, whom a hate to do ANY business with, has a refi program with reduced fees. But you must have, on paper, $250,000 in assets tied with them.
My broker slashes their fees for future business. Paired with a VA loan, that will yield me substantial benefits for closing costs and the lower APR.
Are you doing a VA streamline refinance or a first time VA loan ?
I have done both . On the original VA loan I had to pay a $15,000 funding fee which is refundable when the loan would be paid off $0 percent down payment, in additional the normal closing costs . In 2021 I did a VA streamline refinance at 2.399 % 30 year fixed . Approximately $4000 closing costs . Minimal if any documents were required .
Like free money

[BlueStarAirlines]

If you want a fast painless close with the rate and fees not being a concern then Citizens should be your choice.

If rate and fees are something you care about, we went with Navy Federal credit union.

Most credit unions will rise near the top over a bank.

[KendallW]

I started with citizen then to a mortgage broker..the fees were very high and ended up using a online mortgage company affiliated with a out of state bank..lowest rate with .little or no fees

[nn0wheremann]

Title Insurance is an unnecessary option if you buy directly through the Villages.
Famous last words.

[SoCalGal]

Navy Federal Credit Union membership requirements
Membership Eligibility | Navy Federal Credit Union (https://www.navyfederal.org/membership/eligibility.html)

[SoCalGal]

With a donation to charity you qualify for membership to PenFed and you might already qualify for Navy Federal.

You don't need to donate to charity to qualify for PenFed.

https://home.penfed.org/help/s/article/How-to-Establish-Membership?language=en_US#:~:text=You%20can%20appl y%20online%20for,on%20the%20benefits%20of%20member ship.

[Biskopski]

Third Federal Savings out of Ohio is licensed to lend in Florida. They have an office near Tampa but you can do everything online and also be assisted by very accommodating loan assistants. If you need the loan for short term they have a wonderful adjustable rate and the loan product charges a loan fee of $395 total. And I mean total!! No gimmicks. Google them for the rates and programs.

[oldtimes]

I have been unsuccessful googling to find a site that lists not only rates but fees. Does anyone know of one?

[Mcnuke]

Citizens Bank offers a 0.25% Veteran discount on their mortgage rates. Other Mortgage Fees were reasonable.

Requires being a Veteran and opening a Citizens Bank account- I put $20 in to satisfy requirement.

[CoachKandSportsguy]

does it really matter? mortgages are pretty generic unless you are looking for something special.
We used citizens first the local bank, as it was planned to be paid off either when we moved down, or earlier, and earlier happened.

Went local due to buying a new build, and didn't want any issues. they took the electronic payment every month, and never had to visit them or call them, once the house was purchased.

[oldtimes]

does it really matter? mortgages are pretty generic unless you are looking for something special.
We used citizens first the local bank, as it was planned to be paid off either when we moved down, or earlier, and earlier happened.

Went local due to buying a new build, and didn't want any issues. they took the electronic payment every month, and never had to visit them or call them, once the house was purchased.

It matters if you are going to be paying it for the next 30 years. Rates make a big difference in the monthly payment.

[CoachKandSportsguy]

It matters if you are going to be paying it for the next 30 years. Rates make a big difference in the monthly payment.

not disagreeing with that, BUT that was not the question, the question was which bank had the lowest at the moment.

1) anyone can shop on a price basis, and going into retirement, the lowest rate, regardless of one time fees, is the best, given limited income growth opportunities, lower future payments are best.

2) the servicing of the mortgage is the commodity, who cares which bank

3) if the house purchase is temporary until relocating in the near future, the difference in cost to you is marginal between many mortgage originators' rates.

4) mortgage rates change frequently at the moment, will always depend upon the week of searching. So one may get the lowest rate this week, but next week, someone else may have a lower rate. . . but much? probably not, and at the end of the day, one can only lock in a rate for a specific period.

We missed the absolute low rates by a week when we refinanced, and didn't take the lowest rate, but the one with the quickest easiest cheapest paperwork to complete as the rate impact cost to us would not be for 30 years at the prevailing rates.

So if you can't purchase a house you want within the time period of the rate lock, you are starting all over again. . . with maybe a different bank given the new rates. .

So its less about the which bank/originator TODAY , which was the question, and more about the time of purchase and the current mortgage rate at the time of lockin prior to close within the lockin period.

.good luck to the OP

[oldtimes]

not disagreeing with that, BUT that was not the question, the question was which bank had the lowest at the moment.

1) anyone can shop on a price basis, and going into retirement, the lowest rate, regardless of one time fees, is the best, given limited income growth opportunities, lower future payments are best.

2) the servicing of the mortgage is the commodity, who cares which bank

3) if the house purchase is temporary until relocating in the near future, the difference in cost to you is marginal between many mortgage originators' rates.

4) mortgage rates change frequently at the moment, will always depend upon the week of searching. So one may get the lowest rate this week, but next week, someone else may have a lower rate. . . but much? probably not, and at the end of the day, one can only lock in a rate for a specific period.

We missed the absolute low rates by a week when we refinanced, and didn't take the lowest rate, but the one with the quickest easiest cheapest paperwork to complete as the rate impact cost to us would not be for 30 years at the prevailing rates.

So if you can't purchase a house you want within the time period of the rate lock, you are starting all over again. . . with maybe a different bank given the new rates. .

So its less about the which bank/originator TODAY , which was the question, and more about the time of purchase and the current mortgage rate at the time of lockin prior to close within the lockin period.

.good luck to the OP

Yes, good point. I am new to this and appreciate all of the helpful replies.

[Craig Vernon]

Third Federal Savings out of Ohio is licensed to lend in Florida. They have an office near Tampa but you can do everything online and also be assisted by very accommodating loan assistants. If you need the loan for short term they have a wonderful adjustable rate and the loan product charges a loan fee of $395 total. And I mean total!! No gimmicks. Google them for the rates and programs.

Third Federal is as efficient as any lender when it comes to mortgages and has exceptional rates and service. Worth a look online!

[ltcdfancher]

On new homes but not resales

Can someone elaborate on this idea? It seems that every resale was-at one time-a new home. Another comment within this thread suggests title insurance is NOT necessary for new home sales. Why?

As we are barreling towards a closing date on a newly-constructed home, the title insurance company has found a blemish. Our parcel cannot be the only one that might be encumbered, can it?

[BrianL99]

Title Insurance is an unnecessary option if you buy directly through the Villages.

That is an all-time bad advice comment. There's nary a Lawyer in the USA who would agree with you.

[Normal]

Can someone elaborate on this idea? It seems that every resale was-at one time-a new home. Another comment within this thread suggests title insurance is NOT necessary for new home sales. Why?

As we are barreling towards a closing date on a newly-constructed home, the title insurance company has found a blemish. Our parcel cannot be the only one that might be encumbered, can it?

When you buy title insurance they research for past owners and possible liens against a home in its previous circumstances. New Builds don’t have a history yet. That is unless ancient seminoles all of a sudden claim the land your new home is on is on their land.

[Bill14564]

Can someone elaborate on this idea? It seems that every resale was-at one time-a new home. Another comment within this thread suggests title insurance is NOT necessary for new home sales. Why?

As we are barreling towards a closing date on a newly-constructed home, the title insurance company has found a blemish. Our parcel cannot be the only one that might be encumbered, can it?

A Title Search should identify issues with the title. Title Insurance protects the lender or possibly the lender and you against losses if the title search missed something.

The idea being proposed is that the Developer is absolutely sure he owns the land and obviously he constructed the home so there couldn't possibly be any title issues with new construction. If there cannot possibly any issues then there is no need for insurance against issues that cannot possibly exist.

With a resale the title has changed hands at least once and some time has passed. This means there have been more opportunities for problems with the title that the title search might miss. Therefore there is more need for title insurance with a resale.

You say the title company has found a blemish on your new construction. This would certainly argue against the proposal that insurance is not needed. Would it be possible to describe the blemish so others can watch out for similar issues with their homes?

[ltcdfancher]

I understand the idea of liens and such on structures. I’m guessing that the land might have changed hands a few times since Florida was founded and admitted into the union in 1845. Title insurance covers disputes in the ownership of the dirt on which the house sits, doesn’t it?

[ltcdfancher]

You say the title company has found a blemish on your new construction. This would certainly argue against the proposal that insurance is not needed. Would it be possible to describe the blemish so others can watch out for similar issues with their homes?

I am no expert, but from what I understand the deed for the land on which my parcel sits has some discrepancies dating from 1987. It seems that the blemish(es) are more clerical than substantive. After nearly forty years, though, I do not understand what remedy would be available.

[Bill14564]

I am no expert, but from what I understand the deed for the land on which my parcel sits has some discrepancies dating from 1987. It seems that the blemish(es) are more clerical than substantive. After nearly forty years, though, I do not understand what remedy would be available.

Thank you.

[vintageogauge]

Title Insurance is an unnecessary option if you buy directly through the Villages.
On new homes only, their could be un-disclosed liens on re-sales.

[vintageogauge]

That is an all-time bad advice comment. There's nary a Lawyer in the USA who would agree with you.



And you do know what the incentive is for any lawyer agreeing. The land was cleared of liens when TV purchased it, it's safe to not pay for title insurance on new homes sold by TV but not re-sales.

[ltcdfancher]

I will agree to disagree here. There might not be a lien on the dirt, but clear title for dirt is not guaranteed. My title insurance company found blemishes on the dirt.

[BrianL99]

And you do know what the incentive is for any lawyer agreeing. The land was cleared of liens when TV purchased it, it's safe to not pay for title insurance on new homes sold by TV but not re-sales.

"Cleared of liens"?

Have you ever taken the time to read a Title Insurance Policy? Obviously not, if you think that's the only subject of a Title Insurance Policy and the only reason for buying Title Insurance.

If you've ever been involved in a Title dispute, you'd have a whole different opinion of Title Insurance. The last time I was involved in one, I was sure glad we had paid the $50,000 Title Insurance premium. It cost the Insurance company, a little over $1,200,000 to defend what I considered, a "frivolous claim".

[justjim]

I started with citizen then to a mortgage broker..the fees were very high and ended up using a online mortgage company affiliated with a out of state bank..lowest rate with .little or no fees

I went cash with current house but went out of state to my bank in Illinois on our previous Village home. We beat Citizens by a large margin. BTW, salesperson recently told me 65% of homes sold were cash.

[ElDiabloJoe]

On new homes only, their could be un-disclosed liens on re-sales.
I'm not certain I agree. A few years ago, my friend and I were both living in CA and bought into a Tennessee community that was built by a single developer who divided and sold lots to be built upon. The land belonged to Native Americans (Mississippians then Cherokees) before farmers before a large quasi-governmental agency (who took via eminent domain) the land from some of the farmers) and then the developer and then my friend and I.

I bought title insurance. I had zero issues with my pre-existing home. He bought a lot and thought title insurance was a rip-off. He did not get title insurance. His lot (which he later had built upon) was not problem-free.

Turns out there was an issue. He got VERY lucky. He was actually able to track down the notary who still had the 20 year old missing records in her possession - even though she was not only retired but also no longer in Tennessee. He was VERY lucky she was an hour away from him in California. He spent a weekend in her garage digging through her file boxes to find what he needed for his lot purchase and home-build to move forward.

A lot of time, effort, worry, and luck later things have worked out. Title insurance seems very cheap now, and not so much a rip-off.

Anywhere in The Villages some farmer or rancher's descendants get a bug in their bonnet that The Villages didn't give them the price they think was fair, or regret the sale due to property valuation increases can start digging into it. Anyone can file suit for anything. Maybe they find a document that wasn't filed properly or (as in my buddy's case) properly notarized. Maybe some contractor feels they weren't paid properly and puts a lien on your new house, or a laborer was injured and sues you as the new property owner. Or some other unforeseen hiccup and you're screwed.

You think The Villages is at fault and will ride to the rescue? They already sold YOU the house, they don't have a horse in the race. I bet you that $1500 title insurance policy will be well worth the headaches you might endure. Cheap "sleep easy" insurance in my opinion. Other opinions, of course, may vary.

[BrianL99]

I am no expert, but from what I understand the deed for the land on which my parcel sits has some discrepancies dating from 1987. It seems that the blemish(es) are more clerical than substantive. After nearly forty years, though, I do not understand what remedy would be available.

A Motion to Quiet Title.

(There are also companies out there, that specialize in correct clerical (Scrivener's Errors). Ask any real estate, conveyancing attorney & they can probably recommend someone.

[graciegirl]

Famous last words.

I would guess that Citizens would know whether a title was free and clear. It's owned by the developers.

[graciegirl]

I went cash with current house but went out of state to my bank in Illinois on our previous Village home. We beat Citizens by a large margin. BTW, salesperson recently told me 65% of homes sold were cash.

We also didn't have a mortgage on the two homes we have owned here. I was curious so I looked it up. 38% of homes in The Villages have mortgages. The median price for those with mortgages is $345,000. Also another thing I wonder if it is still accurate. The Villages used to have the highest credit rating score of any place in the U.S. Anybody know if that is still true?

[Normal]

We also didn't have a mortgage on the two homes we have owned here. I was curious so I looked it up. 38% of homes in The Villages have mortgages. The median price for those with mortgages is $345,000. Also another thing I wonder if it is still accurate. The Villages used to have the highest credit rating score of any place in the U.S. Anybody know if that is still true?

About 50 percent of initial home purchases in the Villages rely on mortgages or are mortgaged. Your 38% number includes the long term of those that have stayed and paid off their mortgages at or before term.

Cool Facts About The Villages Florida (https://www.insidethebubble.net/the-villages-cool-facts/)

Mortgage rates are perhaps a major reason why the market is cooling? Maybe the required insurance for those who do decide a loan is right for them? The large inventory increases (ie. Zillow at 730 and VLS Preowned at 742) are indicative of the issue. Those numbers don’t even include New Homes or (Zillow) homes in the Villages east of the Lake /Sumter line.

[ltcdfancher]

I would guess that Citizens would know whether a title was free and clear. It's owned by the developers.
One would think that the undeveloped land would have an unclouded title. That’s not what the title insurance company has found however. Shout-out to Brian for sharing the idea of a motion to quiet the title. Filing that motion is not in my rucksack thankfully. TV must provide an insurable title without any encumbrances. They are not there yet.

[BrianL99]

... That’s not what the title insurance company has found however. Shout-out to Brian for sharing the idea of a motion to quiet the title.

We once bought 300 acres of land (for a golf course), that consisted of over 100 different parcels & over 3000 "owners". We employed a full-time Genealogist for about 6 months, 2 of which were spent in Europe.

I'm a semi-expert on clearing Titles .... & the pitfalls with Titles. As I mentioned in a previous post, our Title Company spent over $1,000,000 defending against a Title challenge ... we won. (That was their number, I think it was closer to $600K)

[bmcgowan13]

I found best rate on line, for new construction or need quick close, Citizens First Bank. Their main downside was I found the Title Insurance a bit high.
FWIW

I was a bit put off that Citizen's First does not publish their rates online. You have to have a rep call you with the rate. Who knows what their fees are. Whey don't they put that information on line? Just seemed odd...

We fond them HIGHER than Bank of America! We wanted to use them but was more than a bit surprised to find their rates 1/4 point higher than BOA.

I thought Title Insurance in Florida was set by statute?

Florida title insurance costs are regulated and also set by the Florida Department of Financial Services in conjunction with a consortium of title insurance underwriters that operate in the state. The state sets five defined premium tiers based on the price of the property or the loan in increments of $1,000 that you can see on this page below.

In Florida, a title insurance policy computed using the 2020 rates on a $100,000 property or loan would cost you around $575. Whereas, the title insurance policy premium on a $200,000 property or loan would cost your around $1,075. As you can see, as your Florida property or loan value increases, the cost for title insurance goes down as a percentage of your Florida property or loan price