Orlando Mortgage rates are suffering through another volatile week, causing problems for mortgage rate shoppers and Orlando home buyers.

After falling Monday and Tuesday, mortgage rates surged Wednesday and Thursday.  The momentum higher appears to be carrying into the weekend, too.

There are several data-related reasons for the mortgage market’s spastic activity this week:

1. Unemployment claims fell
2. Leading economic Indicators went up
3. Inflation readings remained stable

But while the up, down, and flat data points above fueled Orlando mortgage rate volatility, it’s not the data that’s making markets move the most.  It’s the psychological impact of the data.

See, data tells us about the past.  It measures and reports on what’s already happened.  Unfortunately for rate shoppers, mortgage markets are not made on data from the past – they’re made on the expectations of what will happen next - on the now and on the ‘yet to come’.

Therefore, Orlando Mortgage rates and Orlando FHA Mortgage Loans reflect Wall Street’s opinion of the future.

In reading the papers and watching the news, you’ll notice ongoing debate about the U.S. economy.  It’s unclear whether the recession is worsening or improving. 

On one hand, data is weak and sub-optimal.  On the other hand, the data is not nearly as weak as it was 6 months ago and, in some cases, it’s strong. To some, this is a signal that a recovery is already underway.

Or, it may just be a blip.

We can’t be certain in which direction the economy is headed and the same can be said for Orlando mortgage rates.  Because sentiment is changing so often, though, it forces us to be on our toes.  Huh, who saw American’s being fickle!? 

The last few months have been marked by large mortgage rate swings across small windows of time.  A rate that’s offered in the morning, for example, is rarely available in the afternoon.  Therefore, do your Orlando rate shopping in a compressed period of time and be ready to lock your rate at a moment’s notice.

When markets move, they tend to move quickly.  If you are a Orlando first time home buyer looking for the tax credit?  Don’t wait too long!

I am not sayin… I’m just sayin… =0)

The country’s, including Orlando, mortgage rates rose by 0.625 percent yesterday [Wednesday] - Ouch! Yes, you read it right. Zero-point-six-two-five percent.

The surprise surge in pricing started shortly after 1:00 P.M. ET, then continued all the way until the market’s closing. It was the sharpest one-day surge in mortgage rates in recent history. Perhaps ever.

For Orlando mortgage rate shoppers swept up in the surge, monthly payments are now higher by $29 per $100,000 borrowed.

That’s a significant shift.

For as rare as Wednesday’s events were, though, middle-of-the-day, 0.625 percent rate changes don’t just happen. Yesterday, the action was the result of a confluence of factors, including:

• Rising oil prices and gas prices
• Optimistic predictions about the end of the recession
• Concerns over the U.S. total debt load
• Fears of inflation

In addition, momentum-trading played a role.

As markets worsened, selling begat more selling, amplifying Wall Street’s total losses. As mortgage bond prices fell, mortgage rates went up. By a lot.

Mortgage markets are notoriously fickle and yesterday’s events proved it. Days like Wednesday are precisely why insiders recommend shopping for mortgage rates in a compressed timeframe. The faster you finish, the lower the risk of losing low interest rates to new market conditions.

If nothing else, this illustrates why you need a trusted advisor watching for your best interest - we were able to lock in several people before the shift, others - that second guessed, got hammered.

________

Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.

Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210

Being an FHA licensed Longwood mortgage company, we at Trinity Mortgage feel honored to offer our First-Time Home Buyers with Longwood Government-backed FHA programs that can truly provide for the American Dream of home ownership.

With low down payment requirements, competitive mortgage interest rates, flexible credit history guidelines, and common sense underwriting practices, FHA mortgage loans are designed to meet the primary needs of many First-Time Home Buyers.

Buying your first home can be, simply put, overwhelming at times… that is why is is imperative to make sure that you are not solely focused on just rates, but in getting sound mortgage advice as well. Seeking only rate has been one of the main contributers to the mortgage mess we now find ourselves in.

There are literally hundreds of questions that our clients uncover as they start their initial mortgage and Longwood real estate related searches.We invest a significant amount of time and effort in updating our blogs and home buyer packets with the most relevant and valuable information necessary so you feel confident that you are making the most informed decisions. Our goal - earn your trust through communication and service and the lowest cost of borrowing money over time.Please feel free to contact us directly at any time via phone, email, or online FHA mortgage application form if you desire no-nonsense mortgage insight to gain a better understanding of some of these complex details.

Floridas 1 FHA Mortgage Lender 407-377-0500 x210

Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.

Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210

Is Zero-down back for Lake Mary’s First Time Home Buyers?  Could be.  This is the next best news to working with Florida’s #1 FHA Mortgage Broker.  This info was released right at the close of business yesterday - getting it to you ASAP!

Hot off the press!

4:47 PM ET -  Shaun Donovan, secretary of the U.S. Department of Housing and Urban  Development, said that the Federal Housing Administration [FHA] is going to permit its  lenders to allow homeowners to use the $8,000 First Time Home Buyer Tax Credit as a down payment.  According to Donovan, the FHA’s approved lenders will be permitted to ‘monetize’  the tax credit through short-term bridge loans. This will allow eligible home  buyers to access the funds immediately at the closing  table.

For more information on this email me, or call me at 407 377 0500 x 210.  Or, you can get prequalified now with the online mortgage application.

3 Main provisions of the 2009 economic stimulus plan that benefit Orlando Real Estate Buyers and Owners.

Benefit #1 — Expansion of Home Improvement Tax Credit

The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements up to a maximum of $1,500. This means that if the improvements cost you $4,500, you

would receive a tax refund of about $1,500 when you file your tax returns. Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. Generally, your home improvement contractor and/or the manufacturer selling the improvements issues a certification that clarifies whether the improvements meet the necessary standards for energy efficiency. Most modern windows, furnaces, and air conditioners meet these requirements. If you’ve been holding off on making some of these improvements, now is a great time to get a move on it - especially with all the great deals that are being offered!  If you live in the Orlando area and are in need of a quality introduction to someone that can help with these items, let me know - i am glad to help.

Benefit #2 — Expansion of First-time Home Buyer $8,000 Tax Credit

The tax credit available to Orlando’s first time home buyers was increased from $7,500 to $8,000 for Orlando Real Estate purchased between January 1, 2009, and December 1, 2009. Also, the credit no longer needs to be paid back as long as you live in your new Orlando home without selling it for at least 3 years.The previous version of the credit expired on July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame.
The income limitations remain the same ($75,000 for single tax payers claiming the full credit and $150,000 for married tax payers), as do most other qualification requirements. Also, the credit remains refundable. This means that first-time home buyers who owe less than $8,000 in taxes for the year are still eligible for the full $8,000 credit when they file their tax returns. In that case, the IRS will write you a check for the difference between $8,000 and your actual tax bill. In fact, the credit can be claimed on your 2008 tax returns that you file by April 15, 2009, even if you buy the home in 2009.
There is one catch, however: if you bought the home in 2008, the credit remains $7,500, and it still needs to be paid back over a 15 year time frame beginning in 2011 when you file your 2010 returns.

Benefit #3 — Higher Reverse Mortgage Loan Limits

The loan limits for FHA-insured reverse mortgages have been increased to $625,500 across the entire country - not just the higher cost areas. The previous limit was $417,000 across the country. This is especially important because the FHA program is virtually the only game in town as private and jumbo reverse mortgage programs have nearly all evaporated.

This coincides with another little-known change in the reverse mortgage arena: the availability of reverse mortgages on home purchase transactions. This is a fantastic opportunity for senior citizens to buy a new home and live mortgage payment-free without having to wait for their old home to sell. Seniors could also use this strategy to buy a new home and turn the old home into a rental or otherwise wait for market conditions to improve before trying to sell the old home.

P.S. This is big news, you may choose to forward it to tell you care about…

Where to now?

Get the 21 Most FAQ about the $8000 First Time Home Buyer Tax Credit - new and old.

Find out home much home you qualify for NOW.

Get introduced to a solid Realtor regardless of where you are in the country.

The Super Bowl Weekend [wow, what a game - huh?] traditionally marks the start of the Lake Mary real estate Spring Buying Season. Anecdotally, Lake Mary real estate agents will tell you that buyer activity tends to tick higher at this time of the year… and I tend to agree. I have seen a definite up-tick in activity within the past week.

Meanwhile, with mortgage rates still trolling near all-time lows and Congress debating a first-time homebuyer tax credit, 2009 may bring out even more buyers than we’ve seen in the past. There are some proposed changes that make the First Time Home Buyer Tax Credit even better. Les Christie, a CNNMoney, Staff Writer states in his article Homebuyers get a Bonus in the Stimulus Bill,

“Technically, the stimulus bill is actually changing the terms of the $7,500 tax credit that was issued as a part of the Housing Recovery Act, which Congress passed last summer. That legislation required that the tax credit be repaid over 15 years, making it more of a no-interest loan. Not surprisingly, the measure had little impact on the market. The stimulus bill now under consideration would make that tax credit a true credit that doesn’t need to be repaid.”

Just having your home on the market may not be enough to attract an offer, though — the home has to have appeal. Consider that reason #233 to have a top notch Realtor in this market. That brings us to home staging — the process by which a homeowner re-organizes and re-presents the home to appeal to as many potential buyers as possible.

Home staging is part-science, part-art, and part-psychology. Homebuyers tend to judge homes within the first 8 seconds of seeing them so making a quality first impression can mean the difference between getting multiple bids, and just getting a lot of foot traffic.

The 4-minute video gives some quick-and-easy tips, including:

• Create more light in the home
• Clean up the closets and thin them out
• Remove the clutter from every room in the house

Even though home inventories are falling, supplies are still higher than in previous years. Home sellers wanting to stand out in a crowd may want to consider staging their homes to help them sell more quickly.

Staged homes sell for as much as 17% more money and as much as 40% faster than non-staged ones.

If you are looking at buying - your timing couldn’t be better. By the time you hear in the news that, “It is time to buy - uhhhh - you missed it by about 6 months.” the smart money is on buying now while all the ingredients are perfect and before the news catches on. The first Step in the process is to get Pre-Approved by a Lake Mary Mortgage Broker and asked them to introduce you to a tried-n-true Realtor that knows the area like the back of their hand.

If you are looking to sell - it is likely because you have a pressing need, otherwise I would recommend waiting. When you have a pressing need and time is important - play it smart. Before you list that house, contact me about options to selling like a

• Refinance,
• Short Refinance,
• or Loan Modification.

If we are able to determine that none of those is the best option, let me introduce you to a veteran Realtor that is the top in their market. Now is not the time to use Aunt Betty’s neighbor’s friend’s cousin that got their license in 1977.

Find out your options here and now. Send me an email and let me know your concern.

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)

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!