by Matt Leicht
on Tuesday, December 29th, 2020 at 9:04am.
If you’re thinking about moving to Florida in 2021, this one’s for you! Moving is about more than the house you select. From homeowners insurance to mortgages, you’ll want to make sure you have the best information out there about what you need to know about moving to Florida in 2021.
Today I interviewed two of my local friends who I consider experts in their industries. Let’s see what they had to say about moving to Florida in 2021. Check out the video for all the details, or read the blog for some highlights!
Florida Homeowners Insurance 2021
I interviewed Nino Gancitano from All State Insurance. Nino is an insurance agent who has been in the industry since 2002.
What made homeowners insurance so hard to obtain in 2020?
“You’ve got reinsurance costs – that’s the insurance that the insurance companies buy to protect them. That coverage went up approximately 30% this year. Which is ultimately going to be passed onto the consumer in the form of rates.” -NG
“Insurance fraud in Florida is probably one of the main factors right now that is driving the cost of insurance up.” -NG
What were rates on a 10 year old home a year ago to today? (2019 vs 2020)
“10-15 year old homes, anywhere from 300-500 dollars more annually on those policies.” -NG
“A lot of different factors go into it - Roof shape, size of the home, coverages, whether they’ve had updates or not. All of that is going to play into it and affect.” -NG
“The sooner you can get in contact with someone in the insurance industry to at least give them the basics of what you’re looking at – so that this doesn’t become an after thought – that you find your forever home and then realize that either we can’t get insurance for it or you realize that the insurance is now 5x greater than what you anticipated… Getting in touch with an insurance provider early on to let them know what you’re looking at may help you make your decision a little easier at that point.” -NG
What do people need to know in 2021 on obtaining homeowners insurance in Florida?
“The biggest thing, again, is getting in touch with an insurance provider early on with what you’re looking at. We normally will let clients know what type of inspections are going to be needed. Roof updates are going to be a huge factor for 2021. The majority of companies have gone to a 10-year limit on a 3 tab shingle roof.” -NG
“I would say 18-24 months, hopefully the insurance market will get a grasp on whats been going on and I would hope at that point things would tend to lighten up a bit as far as underwriting restrictions go - and hopefully with rates being more consistent. I do think rates are going to continue to go up over the next year.”-NG
I interviewed Paula Switzer from Union Home Mortgagee. Paula is a mortgage broker who has been in the industry since 2002.
What was going on with the loan process at the beginning of 2020 vs. the end of 2020?
“We saw a real pull back in what’s called non conforming loans in the jumbo higher end category. There were very few loans that were available for higher dollar amounts – above the $550,000 and above loan amount.” -PS
“That has really come back very strong. So that is something that is fabulous! I priced a jumbo loan this morning, it was at 2.75% give or take. Which, we haven’t seen those kinds of rates in the jumbo market in my 18 years of lending! - The jumbo market is back.” -PS
“The other thing that has been positive is that interest rates are really low. You can get a 30 year fixed rate for under 3%, that’s phenomenal. - So, there’s a lot of refinancing going on. A lot of people are moving up their time frame to purchase, simply because they want to take advantage of those low interest rates.” -PS
Can you explain to my listeners, what is forbearance? Let’s say somebody was in forbearance and now they want to move to Florida; can they still qualify to purchase a home?
“Forbearance is like taking a time out on your mortgage, you’re pausing your mortgage payments.” -PS
“As long as you have come out of forbearance and now you’ve shown your due diligence to pay for 3 months of on time payments, then absolutely you can purchase.” -PS
“Forbearance has not been a hindrance, which is fantastic.” -PS
Can you still qualify if you have a fixed income?
“We can be very creative with income and still offer the same fantastic interest rate. Putting you in the Fanny May / Freddy Mac lending category.” -PS
“There are alternative ways to get financing if you don’t have a W2 type of income.” -PS
What do you expect to see in 2021 that was different than 2020?
“I’m hearing it’s still going to be a phenomenal year for interest rates.” -PS
There are a lot of moving parts to purchasing a home, but I hope Paula and Nino were able to help educate you on some important topics when it comes to this! I’d love to help guide you through the home buying process. Feel free to call, text, or email for questions or help about purchasing a home!