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
Visit OrlandoMortgagePro.com and watch the cool video!

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