Okay, so the subject line is long - but, believe it or not I cut it short. It could have been, “First Time Home Buyers can couple $8000 Tax Credit and Low Interest Rates and high inventories to buy Longwood Real Estate” We are seeing an unbelievable ‘perfect storm’ for buyers! Beware though - when it comes to mortgage rates, sometimes it’s better to “act now”… and no, that isn’t just salesmanship - its the difference between a rate in the 4% range and the 5% [or even 6%] range. Granted, all of these rates are historically low, but why settle for a 6-percenter when you can possible get a 4-percenter - even for an Orlando FHA Loan.

Last Tuesday, mortgage rates plummeted to their lowest levels in four years. Now, I love when mortgage hacks are right for the wrong reasons - don’t you? Many have pontificated that it was because the FED lowered that pesky FED Funds Rate - but if you have been a reader for any length of time you know more than they do because you know that long-term mortgage bonds frequently move in the opposite direction as the FED decisions. [I will not go into why here in this post.] It happened because the Fed said it would “employ all available tools” to resuscitate the US economy.

The next day, however, the markets had second thoughts.

After the sugar-high of this statement, the markets began considering the long-term implications of a near-zero percent Fed Funds Rate and the cumulative cost of government intervention to-date. Suddenly traders grew afraid that government action would devalue the dollar and lead to inflation — the enemy of low Longwood mortgage rates. [Okay, so I couldn't help myself - I went into why.]

As a result, that nice dip in rates - didn’t last… again. By the end of the day, mortgage rates were higher by as much as a .500% and nearly all of Tuesday’s big gains were erased and Longwood home loan rates went right back up to where they had been.

In hindsight, the reversal Wednesday wasn’t all that surprising — it’s the same trading pattern we’ve seen twice already this year.

• The first time was after the Fed’s “surprise” rate cut in January
• The second time was after the federal takeover of Fannie Mae and Freddie Mac in September.

Sharp rate drops tend to be followed by immediate bounce-backs, it seems.

What can be learned from this? Get your ducks lined up if you intend on wanting to be able to pounce the next time Longwood mortgage rates fall. I had a boat-load of people call but wanted to think about it. I don’t fault a person for wanting to ponder things a bit before making a decision - I do it. Unfortunately the marketplace could care less and those that hesitate - pay more. While those that locked at the first opportunity to save money are sitting pretty today, the rest that “waited for rates to go lower” are likely kicking themselves about it.

Does this mean you missed it? Yes and No.

Call me [407-377-0500 x 210] and join my group of Longwood real estate buyers and those seeking a Longwood refinance who have gotten their paperwork in order to be able to get a low Longwood interest rate the next time it spikes lower.

Going forward, mortgage rates may fall, or they may not - but we’ve now seen the pattern 3 times now — when mortgage rates plunge like they did, they rarely stay that low for long. Lets get your finger on the trigger, get in and get locked as soon as possible.

Sleeping on it for even one night may end up costing you dearly. Don’t be that buyer or refinance candidate.

Qualify for an Orlando FHA loan now.

See if you qualify for a rate lowering refinance now.

(Image courtesy: The New York Times)

Chris Brown All Around Good Guy Trinity Mortgage 153 Parliament Loop #1001 Lake Mary, Florida, 32746	Work: 407 377 0500 x 210 Chris@OrlMtgPro.com www.MortgageChiliBlog.com
Visit OrlandoMortgagePro.com and watch the cool video!

Well Good News for Lake Mary mortgage rates! The Federal Open Market Committee [maybe we will just call them the FED] voted to cut the Fed Funds Rate by at least three-quarters percent Tuesday. The benchmark rate now rests in a range of 0.000-0.250%… and no, that doesn’t mean your mortgage will be at 0%. [Typically you will add 3% to that number to attain the PRIME Rate - which is what many Home Equity Lines, car loans, credit cards, and equipment loan are based upon.] In its press release, the FED ID’d 3 key sectors of the economy in which activity has weakened since October. They noted:

• The U.S. job market is deteriorating - uh, duh!
• Consumer spending levels are falling - really?
• Business investment is contracting nationwide - try WORLDWIDE!

[Commentary added by yours truly... forgive me, I digress.] The Fed intends its rate cut to provide stimulate to each of these areas and the Lake Mary Real Estate market is likely to be a benefactor as well.

In addition, the voting members of the FOMC singled out inflation as a diminishing threat to the economy. This is an important admission because it’s well-known that cuts to the Fed Funds Rate can spark inflation. Rapidly falling oil prices and commodity costs, therefore, likely paved the way for today’s historic cut.

In its announcement to markets, the Fed gave The People what they wanted — a reassurance that the policy-making group would “employ all available tools” to help turnaround the economy. Lowering the Fed Funds Rate to an all-time low is one such step; its plan to purchase mortgage-backed debt in the open market is another. This is huge.

After the announcement, stock markets rallied and mortgage bonds did, too. Rates ended the day slightly lower.

Source Parsing the Fed Statement

Chris Brown All Around Good Guy Trinity Mortgage 153 Parliament Loop#1001Lake Mary, Florida, 32746	Work: 407 377 0500 x 210 Chris@OrlMtgPro.com www.MortgageChiliBlog.com
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In a world that seems to be consumed with consumption - sorry for the play on words - and kids that are only interested in getting ‘things’ there are a few heart warming stories that warm the heart -doooh… i did it again. [I sound like Yogi]
A good friend of mine, and a solid family man, recently shared a story that should be shouted from the roof tops. Rather than me messin’ it up, here is Ted in his own words:

Caleb came home with straight A’s on his report card. Of course I was proud and yes I’m bragging here. I asked him what he would like as a reward expecting him to say Chucky Cheese, a new X box game, a trip to the movies (something big). Wow was I wrong. He said “dad, I wanna shave with you again” Are you kidding me? That’s it–shave with dad.Let me rewind. About a month ago, Caleb observed me shaving and asked if he could try it. I let him lather up with some Edge gel and then I handed him a disposable with the plastic still covering the blade. I guess he REALLY enjoyed the experience.This made me realize how something so small and insignificant to me (adults) can be a huge deal with our children. That 3 minutes of “SPECIAL” 1 on 1 attention that I spent with my son a month ago seemed so irrelevant at the time.The entire story reminded me of a quote.”Your children want your presence more than presents”

Ted is a normal guy just like you and me, but he just seems to invest in his family like the rest of us want to an try hard to do. He is also a local author! He wrote Springing Forward which can be found at Amazon.

If you have questions for Ted or would just like to catch up with an all-around-good-guy, you can reach him at springingforward [at] yahoo [dot] com

Chris Brown All Around Good Guy Trinity Mortgage 153 Parliament Loop #1001 Lake Mary, Florida, 32746	Work: 407 377 0500 x 210 Chris@OrlMtgPro.com www.MortgageChiliBlog.com
Visit OrlandoMortgagePro.com and watch the cool video!

For Lake Mary home owners that need a little bit extra deduction on their income taxes because of the ailing economy, this might be the little extra bonus you need. You see, for most Americans, mortgage interest paid on home loans secured by Lake Mary real estate is tax-deductible in the year in which it was paid.

With advance planning on your Lake Mary Mortgage, therefore, you can increase your deduction on mortgage interest for 2008 by making your Jan. 2009 mortgage payment on Dec 31st [or whenever... as long as it falls in 2008] This simple but un-thought-of idea can increase your tax refund when it comes in 2009.

In making the payment in 2008, the payment’s mortgage interest is applied against this year’s tax deductions instead of next year’s. Remember - mortgage interest is paid in arrears; a payment due January 1 covers the interest that accumulated in December.

Tax planning is a complicated issue and not all homeowners will qualify for mortgage interest tax deductions. Check with a true tax professional, like Craig Zokvic, before making tax planning decisions.

Chris Brown All Around Good Guy Trinity Mortgage 153 Parliament Loop #1001 Lake Mary, Florida, 32746	Work: 407 377 0500 x 210 Chris@OrlMtgPro.com www.MortgageChiliBlog.com
Visit OrlandoMortgagePro.com and watch the cool video!

Finding the best Longwood mortgage interest rates can be tricky business… locking them in before the market swings makes it even more so!

Each Wed., the Mortgage Bankers Association [MBA] releases its Weekly Applications Survey which gives a detailed look at the new mortgage applications done over the last seven days.

A recent interest rate report will reveal what most of us already know — dropping mortgage rates created an onslaught of mortgage movement in Longwood and Lake Mary, Florida.

If you’re among the many Americans taking advantage of Florida’s low rates, don’t forget that when I locked your rate, it was locked with an expiration date.

For most of those entrusting me with their Longwood mortgage needs, that rate lock is for 30 days.

I know, I know, thirty days may seem like a long time, it’s not. Locks are calendar days… loan ‘movement’ occurs on business days. [Reason 104 to work with a serious Realtor when you are buying... they GET THIS!]

A 30-day rate lock, therefore, many fewer “working” days in which to underwrite and approve the mortgage and that’s not a lot of time at all.

Making matters more difficult, many lenders are ill-equipped for a rush of new activity… we are grateful to continue to remain fully staffed. Combine that with MONEY TO LEND and we are rockin and rollin in the Longwood Real Estate scene.

So, for active Longwood refinance candidates, the best way to preserve a 30-day rate lock is to be as responsive as possible to the process:

• If paystubs are requested, return them on the same day
• If a home appraisal is needed, schedule the appraisal immediately… of course… I gotta guy!
• If a closing date is scheduled, don’t postpone it by a day

As mortgage rates hang near 3-year lows, the number of Longwood refinances will grow, though we are fully staffed… if you already have a loan in process, be pro-active about it to prevent your 30-day rate lock from expiring.

Chris Brown All Around Good Guy Trinity Mortgage 153 Parliament Loop #1001 Lake Mary, Florida, 32746	Work: 407 377 0500 x 210 Chris@OrlMtgPro.com www.OrlandoMortgagePro.com

When we hit the day after Thanksgiving, shopping takes over… at least historically nationwide[ surprise!] and, this year, analysts are paying extra attention to sales figures since the news has been so negative about the economy.

Dubbed “Black Friday” in reference to red ink representing loss and black ink representing gain, today’s start to the Christmas [again... I am not afraid to call it Christmas] Shopping season and it is believed to be the day that retailer balance sheets finally cross over to profitability. [I never quite understood why you would stay in a business that wasn't profitable until the 12th month of the year... but... okay.]

But the accounting connotation of the phrase “Black Friday” wasn’t its original usage — it’s a media-coined term.

When the phrase was first used in Philadelphia in 1975, it was in reference to the day after Thanksgiving being the busiest shopping and traffic day of the year.

There’s other Black Friday trivia out there, too:

Did you know? Black Friday is neither the largest, nor the most profitable, shopping day of the year. Contrary to popular wisdom, it’s the 5th biggest, not the first. The two weekends before Christmas are usually the “biggest” series of days.

Did you know? In an attempt to spur the economy in 1939, President Franklin D. Roosevelt proposed to move Thanksgiving ahead by 7 days. 7 more days of shopping, he thought, would help retailers and help the economy. Eventually, the idea dubbed “Franksgiving” failed.

Did you know? To protect competitors from price matching “deals”, some retailers copyright their Black Friday advertising. Others won’t print prices at all.

Did you know? Last year, 14 percent of Black Friday shoppers had made a purchase prior to 4:00 A.M. with an average ticket of $347.

Black Friday is of special significance this year because consumer spending accounts for two-thirds of the U.S. economy. If Americans are shopping in full force, expect economic optimism and a mild rebound in the stock market. Unfortunately for home buyers, this should also lead mortgage rates higher.

By contrast, if sales figures are weak, expect talk of recession to grow.

Sources
Black Friday (Shopping)
Wikipedia
https://en.wikipedia.org/wiki/Black_Friday_%28shopping%29

Geek Trivia: Early bird special
Tech Republic
Jay Garmon, Nov 22, 2005
https://articles.techrepublic.com.com/5100-10878_11-5958978.html

(Image courtesy: Give Congress Back)

Chris Brown All Around Good Guy Trinity Mortgage 153 Parliament Loop #1001 Lake Mary, Florida, 32746	Work: 407 377 0500 x 210 Chris@OrlMtgPro.com www.OrlandoMortgagePro.com

This is not meant to be a political post, but merely a post about truth and how it is not being taught in the public school system. It is no mystery that the public education system is failing our children, but I think only a small part falls at the feet of the front line… it is more of an institutional and union issue in my mind, but I digress….anddddd… this isn’t a rant post.

Like him or not, and I know that some of my readers will not be able to get past this, Rush nailed this True story of Thanksgiving. We are taught that the Pilgrims were an incompetent group of boobs and were saved by the Indians… revisionist history at best. Brace yourself… you may never have heard this before and i encourage you to seek out the FACTS yourself if you doubt the balance of this post.

The Mayflower set sail in the summer of 1620. On its deck it carried a group of just over 100 people [including 40 Pilgrims] led by William Bradford. On the journey, Bradford set up an agreement, a contract, that established just and equal laws for all members of the new community, irrespective of their religious beliefs.

Where did the revolutionary ideas expressed in the Mayflower Compact come from? From the Bible. The Pilgrims were a people completely steeped in the lessons of the Old and New Testaments. They looked to the ancient Israelites for their example. And, because of the biblical precedents set forth in Scripture, they never doubted that their experiment would work.

But this was no pleasure cruise, friends. The journey to the New World was a long and arduous one. And when the Pilgrims landed in New England in November, they found, according to Bradford’s detailed journal, a cold, barren, desolate wilderness. There were no friends to greet them, he wrote. There were no houses to shelter them. There were no inns where they could refresh themselves. And the sacrifice they had made for freedom was just beginning.

During the first winter, half the Pilgrims – including Bradford’s own wife – died of either starvation, sickness or exposure.

“When spring finally came, Indians taught the settlers how to plant corn, fish for cod and skin beavers for coats.” Yes, it was Indians that taught the white man how to skin beasts. “Life improved for the Pilgrims, but they did not yet prosper! This is important to understand because this is where modern American history lessons often end. “Thanksgiving is actually explained in some textbooks as a holiday for which the Pilgrims gave thanks to the Indians for saving their lives, rather than as a devout expression of gratitude grounded in the tradition of both the Old and New Testaments.

Here is the part [of Thanksgiving] that has been omitted: The original contract the Pilgrims had entered into with their merchant-sponsors in London called for everything they produced to go into a common store, and each member of the community was entitled to one common share. This will seem like a familiar ideology to some of us that follow politics.

“All of the land they cleared and the houses they built belong to the community as well. They were going to distribute it equally. All of the land they cleared and the houses they built belonged to the community as well. Nobody owned anything. They just had a share in it. It was a commune, folks.

Bradford, who had become the new governor of the colony, recognized that this form of collectivism was as costly and destructive to the Pilgrims as that first harsh winter, which had taken so many lives.

He decided to take bold action. Bradford assigned a plot of land to each family to work and manage, thus turning loose the power of the marketplace.

“That’s right. Long before Karl Marx was even born, the Pilgrims had discovered and experimented with what could only be described as socialism. And what happened?

It didn’t work! Surprise, surprise, huh?

What Bradford and his community found was that the most creative and industrious people had no incentive to work any harder than anyone else, unless they could utilize the power of personal motivation!

But while most of the rest of the world has been experimenting with socialism for well over a hundred years – trying to refine it, perfect it, and re-invent it – the Pilgrims decided early on to scrap it permanently.

What Bradford wrote about this social experiment should be in every schoolchild’s history lesson. If it were, we might prevent much needless suffering in the future.

“‘The experience that we had in this common course and condition, tried sundry years…that by taking away property, and bringing community into a common wealth, would make them happy and flourishing – as if they were wiser than God,’ Bradford wrote. ‘For this community [so far as it was] was found to breed much confusion and discontent, and retard much employment that would have been to their benefit and comfort. For young men that were most able and fit for labor and service did repine that they should spend their time and strength to work for other men’s wives and children without any recompense…that was thought injustice.’

Why should you work for other people when you can’t work for yourself? What’s the point?

“Do you hear what he was saying, ladies and gentlemen? The Pilgrims found that people could not be expected to do their best work without incentive. So what did Bradford’s community try next? They unharnessed the power of good old free enterprise by invoking the undergirding capitalistic principle of private property.

Every family was assigned its own plot of land to work and permitted to market its own crops and products. And what was the result?

‘This had very good success,’ wrote Bradford, ‘for it made all hands industrious, so as much more corn was planted than otherwise would have been.’

Is it possible that supply-side economics could have existed before the 1980s? Yes.

“Read the story of Joseph and Pharaoh in Genesis 41. Following Joseph’s suggestion (Gen 41:34), Pharaoh reduced the tax on Egyptians to 20% during the ’seven years of plenty’ and the ‘Earth brought forth in heaps.’ (Gen. 41:47)

In no time, the Pilgrims found they had more food than they could eat themselves…. So they set up trading posts and exchanged goods with the Indians. The profits allowed them to pay off their debts to the merchants in London.

And the success and prosperity of the Plymouth settlement attracted more Europeans and began what came to be known as the ‘Great Puritan Migration.’”

Is this lesson being taught to your kids today — and if it isn’t, why not? Can you think of a more important lesson one could derive from the pilgrim experience?

So in essence there was, thanks to the Indians, because they taught us how to skin beavers and how to plant corn when we arrived, but the real Thanksgiving was thanking the Lord for guidance and plenty – and once they reformed their system and got rid of the communal bottle and started what was essentially free market capitalism, they produced more than they could possibly consume, and they invited the Indians to dinner, and voila, we got Thanksgiving, and that’s what it was: inviting the Indians to dinner and giving thanks for all the plenty is the true story of Thanksgiving.

The last two-thirds of this story simply are not told.

Some other countries don’t have a prayer because they have no incentive. They live under tyrannical dictatorships and governments.

The problem with the world is not too few resources. The problem with the world is an insufficient distribution of capitalism.

I wish I could claim more credit for the content in this post but the real story provided here, with exception of the links I inserted for the readers benefit to research the facts themselves, was provided by the modern voice of the conservative movement, Mr. Rush Limbaugh. By the way, if you are looking for a great Christmas present for yours truly… 24/7 would be well received. LOL. Oh and Rush, if you are reading this, I have several days in December in which I am able to meet with you if so desired. =0)

Happy Thanksgiving America!

Lake Mary First Time Home Buyers… perk up.  We all know what inflation is and the ugliness that can go with it.  Most of us know that deflation is the opposite of inflation…. but don;t know much more than that.

In fact, business TV and newspapers have inflated deflation [sorry for the play on words... but I like doin' that] as a hot topic this week and, since Monday, Google has tracked 13,000 mentions of it.  Make this 13001.

Deflation is a recurring cycle in which the prices of goods and services fall.  Suh-weet… falling prices that is so cool, right?  Well, um, not really.  Why?  Human nature.

When prices are declining  across many industries at the same time, IT CAN SHUT DOWN THE ECONOMY!

If you think about it, is rather obvious why falling prices shut down the economy.  Well, maybe not super obvious because as I type this, the first thing that came to mind was not the REAL reason it does.  Anyway, here it goes.

Rather than buy things on the cheap, people stop buying anything at all. And why would they? The same items will cost less tomorrow than it does today in a deflationary environment.

And this is the problem with deflation — it stops folks from spending and consumer spending is about 2/3  of the U.S. economy. When it stops, the spiral begins

1. People stop spending, which leads to…
2. Layoffs of the workforce, which leads to…
3. Less consumer spending, which leads to…
4. Dwindling corporate revenues, which leads to…

And the spiral continues.

Deflation can be much more insidious that its expansionary counterpart — inflation. Inflation is when the prices generally rise over time and it’s an economic condition through which governments can comfortably navigate. Deflation, on the other hand, is more rare and, therefore, fewer practical control measures exist.

Whether the U.S. economy will slip into deflation is a matter of debate, but if you look more closely, at least with Lake Mary real estate, isn’t that what has been happening here in the local Orlando real estate market?  I talk to many prospective buyers that have been sitting on the sidelines, because of that same reason. ‘it will be cheaper tomorrow.’

The Fed has cut the Fed Funds Rate to promote economic growth and those changes can take up to 12 months to work their way through the economy. Deflationary pressures we’re seeing today, in other words, may have already been addressed and corrected by Bernanke’s 10 rate cuts in the last 14 months.

Until the market figures it out, though, expect that each mention of deflation will hurt the stock market and help the bond market — including the mortgage-backed variety. This should help lower Lake Mary mortgage rates and make homes more affordable for all sorts on buyers… including the first time home buyer that has been chomping at the bit to get into the market and take advantage of these great deals.  Couple that with the $7500 First Time Home Buyer Tax Credit… and you got some serious buying power.

Word of caution though… FHA loan limits are going down in 2009 and the credit goes away in 2009 as well.  If you have been wondering when the right time to jump in was?  Guess what?  Merry Christmas!  Fill out your application today.

(Image courtesy: The Wall Street Journal)

If the presence of inflation causes mortgage rates to rise, then the absence of inflation should cause mortgage rates to fall. And, in most markets that’s true.

Today, it’s not.

Despite a deep, month-over-month dip in consumer prices not seen since 1947, Altamonte Springs mortgage rates not steady by any stretch of the imagination…  they are still as volatile as ever!

The main reason why rates are fluctuating so, is that the Cost of Living didn’t just ease last month — it plunged.

In fact, the monthly drop was so severe that Wall Street now questions whether this summer’s record-breaking inflation will lead to equally-strong deflation this winter.

In economic terms, deflation is the opposite of inflation — it’s when prices and wages chase each other lower… have you been watching oil?  It was like $54 dollars a barrel today! The two can be equally bad for the economy. What’s often best for Americans are moderate, steady readings. [What does steady look like?]

Because of the rapid decline, markets fear that Consumer Prices may have swung way past moderate in October and started a downward spiral. As always, however, market opinions can change quickly and when they do, they usually take mortgage rates with them.

(Image courtesy: The Wall Street Journal Online)

So you wanna deal on Longwood Real Estate. I completely understand… I do to, in fact with the gloom they are painting for retail this Christmas [and Yes, iI am one of the ones still willing to CALL it Christmas] I have thought about scooping up a deal on one of those super-duper flat-screens… but I digress. Back to your needs… not mine. =0)

When it comes to housing info, there are always 2 questions to think about:

1. How does this impact Longwood real estate buyers?
2. How does this impact Longwood real estate sellers?

Since these are commonly on opposite sides of the see-saw, housing data is rarely negative or positive on a universal level — one group of us is going to see a benefit.

Today, it’s home sellers. [Sorry buyers, the longer you sit on the sidelines, the greater the chances you are going to miss it. For those seeking Orlando FHA loans... that may be even more pronounced as the guidelines become more restrictive next year with higher down payment requirements and lower loan limits.]

Can I take a tangent here for a sec?

I recently came back from a mortgage conference and heard a very powerful speaker in the form of Gary Keller… one of the founders of Keller Williams Realty. He made a very profound statement that resonated with me. He mentioned that they call it a ‘buyers’ market… not a ‘waiters’ market. The main reason so many miss it is that they buy during a sellers market because they are afraid of ‘missing out’ but when a true buyers market arrives, to many sit on the sidelines. Since I do not know who the reader of this is, I can ‘call you out’ without being confrontational…

are you one of those?

Sorry back on track now, I promise. From the government, we learn that Housing Starts fell to their lowest levels since 1947 last month. Let’s define that. Housing Start - a new housing unit on which construction has started. One step further back therefore reflective of the future… building permits are down, too.

This is all good news for people selling their homes in the coming months but may be troubling for those deciding to wait till next Spring to buy… they may have missed the bottom by waiting. As fewer homes are built, existing inventory is consumed and therefore creates a movement in the supply - demand ratio that favors sellers.

With fewer new homes coming on the market, owners of “used” homes may feel less pressure to lower asking prices or to make other concessions. Home buyers often pay more when home supply is falling, or find that sellers are less willing to add “throw-ins” to a contract.

If you want to make sure you are primed to make a move in the Longwood Real Estate market before it is too late, getting pre-approved for a Longwood Mortgage is a great first step… I can even introduce you to one of Longwood’s Top Real Estate Resources.

(Image courtesy: The Wall Street Journal)

Chris Brown All Around Good Guy Trinity Mortgage 153 Parliament Loop #1001 Lake Mary, Florida, 32746	Work: 407 377 0500 x 210 Chris@OrlMtgPro.com www.OrlandoMortgagePro.com
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