Longwood real estate and mortgage rate shoppers - beware.  When it comes to low mortgage rates, you can’t always believe what you read in the papers, get in your mailbox [as you go through your mail standing over the garbage can] or hear on TV. Or, for that matter, what you see in official looking graphs!

A terrific example is the chart at right.  Published by Freddie Mac, it shows the 30-yr fixed mortgage’s “going rate” by the nation’s mortgage lenders.

On December 30, 2008, that rate was 5.1 percent.

But 5.100%  is only 1/2 of the information that matters.  There’s a mandated fee schedule that accompanies the Freddie Mac-reported rate survey.

Currently, the published fee required to get a 5.100% mortgage rate is 0.7% of the borrowed amount, this equates to an additional cost of  $700 for every $100,000 that you borrow. 

Kinda important isn’t it?

This fee is more commonly known as “points”.  Points in and of themselves are not bad, in fact, they can be very useful at times.

But here is the interesting part that you can’t see in Freddie Mac’s graph ere.  Versus last year, the amount of the fees has nearly doubled from 0.4 points.  Same rate, double the points?  How can those items be on the same chart?  Wouldn’t you need to keep a constant in order to compare apples to apples? [Or here in Seminole County Florida's case -oranges to oranges?] =0)

So, yes, conforming mortgage rates are low and they have fallen near all-time lows but there’s more to the story than just the interest rate — there are the fees that go with them, too.

Mortgage rates and loan fees often move in opposite directions so to get lower rates, consider paying additional points. Conversely, to face fewer fees, accept a higher rate. It’s a trade-off and there is no magic.  If your loan officer tells you there IS magic - find a different one. [Preferably a Certified Mortgage Planning Specialist.] If you would like me to review your scenario to see if can be one of the many right now that are getting a Longwood refinance and saving hundreds per month, connect with me.  Here is how:

• Call me at 407 377 0500 x 210
• or you can email me
• Start Longwood refinance application
• Check out my Longwood Mortgage Site

(Image courtesy: The Wall Street Journal)

FHA Loans + $7500 Tax Credit + High Inventory = Orlando Real Estate Deals

Phew - Made it through the holidays, and day-to-day life is setting back in. I love Christmas, for me it helps pull everything back into perspective for an approaching New Year. So now that the lights are back in the boxes and the tree is down, Lake Mary real estate and Longwood real estate buyers are wondering… “is the timing right for me to do something?”.

Well, if economic data enters into that thought process, now may be the ideal time. [Though most home buyers will miss it because they listen more to the mass media than a trusted industry professional.] For the 1st time in over 12-months, the sales of “gently loved homes” fell below the 5,000,000 unit trend line, which helps push the total home inventory higher by 0.% - a national number, not local.

Based on the rate at which homes are selling nationwide, it would take 11.2 months for the existing housing supply to be exhausted. Here in Longwood / Lake Mary - the existing inventory would last quite a bit longer. This is even better news for the Longwood home shopper… especially the first time home buyer. [Click here for access to the 21 Most FAQ about the $7500 First Time Home Buyer Tax Credit.] When you couple the Tax Credit with the availability of Orlando FHA home loan financing, whoa - you got one powerful combo!

For Lake Mary home buyers, this is an opportune time to act [not wait] due to the negative news on housing.

1. First, sellers know that between now and the Super Bowl [can you hear the music in your mind], housing activity will be light. The general scarcity of Orlando home buyers may force a seller toaccept a bid he wouldn’t have otherwise accepted.
2. Second, the economy is showing weakness and that, too, can concern a home seller. Buyers are much more cautious and prudent in uncertain times which further reduces the buyer pool and, again, putting pressure on the seller to “make a deal”.
3. and Third, most buyers that are in the market will wait, hesitate and stall - making the pool of well-informed, ready to move buyers even smaller. [Which one are you?]

And lastly, because the government has been trying to forcefully lower mortgage interest rates down as a way to stimulate the economy, the weak housing data is actually making it cheaper to finance a home. This means that a well-qualified home buyer can better stay within budget.

Each 0.500% rate reduction saves about $33 per $100,000 that you borrow.

It is important to remember, though, that the U.S. housing market is not national — it’s highly localized. This is one reason why national real estate reports can be misleading and further reinforces why it is imperative to have a local Longwood/ Lake Mary real estate professional guiding you through the local Longwood - Lake Mary market. Just as figures from Eugene, Oregon have little to do with statistics from Las Vegas, Nevada, even data from neighboring ZIP codes like 32779 and 32750 can vary.

The universal truth, however, is that a home that is priced fairly will sell more quickly than a home that is not. And, until the Super Bowl passes, expect fewer buyers to be out there competing for them.

Your Next Steps:

• Get pre-qualified here: Don’t Be A Mortgage Victim
• ACTION! Beat the rest to the punch and steal a house like this one!

(Image courtesy: The Wall Street Journal Online)