Move Up and Keep Your Low Mortgage

Ground yourself in these unique factors and you’ll move up and keep your low mortgage. You’ll be ready to buy smart, secure favorable financing, and maintain a mortgage that fits comfortably within your budget in beautiful Southwest Florida. 

1. Understand the Southwest Florida Market

Cape Coral: Buyer’s Advantage

• • Inventory & pricing: Cape Coral is currently a buyer’s market. Inventory is up 24%, now totaling around 12 months of supply—well above the 5–6 months that typically indicate a tight market.

• • Average cost: The median home price is about $365,000, requiring a 10% down payment ($36,500). Closing costs add another 3 to 4% ($14,600), not including reserves and upkeep.

Move Up in Fort Myers & Naples

Trends are similar to Cape Coral, but Naples homes are pricier, leading to higher mortgage payments and insurance costs. Sellers in Naples should expect to pay higher insurance premiums—especially in hurricane-prone zones. Older homes are more expensive to insure as are homes near waterways, including the gulf, canals or rivers.

2. Prepare Financially Before You Shop

Check Credit & Debt

• • A strong credit score helps secure a better rate. Aim for 620+ for conventional loans; FHA may approve borrowers at 580, but at higher mortgage rates.

• • Lower your debt-to-income (DTI) ratio—ideally below 43%—by paying down debt ahead of time.

Down Payment & Closing Costs to Keep Your Mortgage Low

• • Save 20% to avoid Private Mortgage Insurance (PMI). Don’t worry if you can’t reach that right away—FHA loans allow for just 3.5% down.

• • Closing costs typically run 2–5% of purchase price. For a $365K home in Cape, that could mean $7,300–$18,250.

Get Pre-Approved

A pre-approval letter proves you’re a serious buyer and gives you negotiating power.

3. Choose the Right Loan & Lock in a Good Rate

Mortgage rates currently average just under 7%, but comparing offers could save you $76,000 over 30 years roughly $212/month. We have a lender that will match rates so don’t be too concerned with that.

Keep Your Low Mortgage

Gauge whether to purchase points or negotiate rate buydowns:

• • A permanent buydown might cost 1% of the loan (~$5,000 on $500K) to reduce the rate by around 0.25%, saving hundreds long-term.

• • Sellers, builders, or lenders may offer temporary buydowns (e.g., 2–1), which get lower rates. Use the equity from the sale of your home to move up and keep your mortgage low.

Rate Locks & Credits

• • Later rate locks (60–90 days) can be negotiated to protect against market swings, especially if the closing is delayed.

• • Lender credits let you take a higher interest rate in exchange for help with upfront costs.

4. Move Up Factors: Insurance, Taxes, & Fees

Many buyers overlook insurance, property taxes, HOA fees and flood zones — but these add hundreds to your monthly payment.

Homeowners & Flood Insurance

• • Lee County’s average homeowner’s insurance is about $3,500/year. For Fort Myers, older homes face 50–100% rate increases post-Idalia and Ian.

• • In Naples, buyers report $2,000/year for standard homeowners + flood; waterfront or older homes can reach $9,000–$20,000.

Property Taxes

• • In Naples, tax rates hover around 1% of the home’s assessed value. Buyers get a homestead exemption, but those buying new often pay ~$5,000/year .

• • In Cape Coral, taxes may jump significantly after purchase since “Save Our Homes” caps don’t apply to new buyers.

HOA Fees & Assessments

• • HOA dues have increased lately due to reforms requiring full funding of reserves and higher insurance premiums.

• • In Cape Coral, homes north of Pine Island Road still use private well/septic unless newly connected—and buyers may inherit large utility assessments ($30K+).

Age of Roof & Insurance Impact

• • A few years’ difference in roof age can translate to $100 more per month in insurance. Lenders often check this during underwriting.

5. Low Mortgage Insights

Cape Coral

• • Assess utility connection: North Cape still relies on well/septic systems. Incoming city expansion could mean tens of thousands in impact fees added to your mortgage payment—check any outstanding assessment.

• • Limited inventory: While prices dropped 11% in the past year, bargains are tough to find but we will work with you to find the deal you’re looking for in the current market.

Fort Myers

• • Insurance drops: Post-hurricane inflation of insurance costs has been a major issue but rates have been dropping the past six months.

Naples

• • Tax-savvy negotiations: A competitive strategy in Naples is to leverage multiple pre‑approval offers for better lending.

• • Know your zone: Flood zone designation—especially AE—can trigger mandatory flood insurance under FHA, impacting affordability. We’ll do the homework with you so you know where you’re buying.

Thorough Inspections & Contract Review

• • Use an experienced local inspector—especially in new builds, where issues like drywall cracks or tile problems are common.

• • Have your legal and financing contingencies solidly written, and be clear on timelines to avoid penalties so you can move up and keep your mortgage low.