UPDATED - November 7th, 2009 **It is LAW - signed by Obama on Friday**!

The Florida First-Time Home buyer Tax Credit may soon be known as the Home Buyer Tax Credit… being opened to non-first time buyers for the first time.

As you have likely already read on My FHA Mortgage Blog - the Florida First-Time Home Buyer tax credit is on the verge of extension.   I noted there that there are a few exciting changes that benefit you - the home buyer!  Here is an explanation as to their significance.  Those noteworthy changes between the current tax credit and the proposed tax credit are:

• Change in the deadline. From November 30, 2009 to April 30, 2010.  MORE IMPORTANTLY, however is what has to “happen” by the deadline date.  As it is now, you ahve to close by Nov. 30th.  The extension has wording that states you need to be under contract by April 30th.  HUGE difference - especially if you are looking at an Orlando Short Sale, Orlando Foreclosure, or Orlando Bank owned property.  The difference can not be overstated! It does not remain open-ended however… you have 60 days from 4-30-10 to close on that property.
• There is also a possibility that the tax credit would be opened up to non-first-time buyers. It looks like non-first time home buyers could be eligible to receive a $6500 credit for homeowners that have lived in their home for 5 years or more.  This is big since many of the Orlando homes for sale are not suited for the first time home buyer market.  This allows those that own to sell and move up - furthering the impact the housing market can have on the sputtering economy.
• Income limits are also possibly effected. Right now to receive the full benefit, the income limits are $75,000 and $150,000 for single/married income earners [respectively]. That may jump to $125,000/ $225,000. This furthers the number of folks that fit the parameters and can be the key to making this effort work!

Understand that as this gets enacted, it will get crazy busy for folks in the industry, so it is of vital importance to let those you care about know about this blog post so that they can get the groundwork done before it gets nuts!

It is important to note that - while it is not yet through he entire process, the momentum seems to be behind the extension of the Florida First-Time Home Buyer Tax Credit until April 30, 2010 if it makes it to the President and is signed.  Here is what needs to happen. [In case you missed it from my syndicated blog post on MyFHABlog.com.]

Contact me ASAP to review the best scenario for you and the people you care about.

Chris Brown
Orlando Mortgage Pro
Direct: 407 - 377 - 0500 x 210
Chris@OrlandoMortgagePro.com

_____________________________________________________

Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the many leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, the newest contributor to Lenderama and has been recently featured on Fox35 News.

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

Click Here to Apply Online

Not sure how to connect? Find out at FindChrisBrown.com

Congress both extended and expanded the First-Time Home Buyer Tax Credit program Thursday.

The White House says the President will sign it into law today.

The up-to-$8000 tax credit’s expiration date has been pushed forward to spring, requiring homebuyers to be under contract by April 30, 2010, and to be closed by June 30, 2010.

The program’s basic eligibility requirements remain the same:

• Buyers can’t purchase the home from a parent, spouse, or child
• Buyers can’t purchase the home from an entity in which they’re a majority owner
• Buyers can’t acquire the home by gift or inheritance
• All parties to the purchase must meet eligibility requirements

The new law includes some notable updates, however.

For one, the definition of “first-time home buyer” has been expanded to include most homeowners with at least 5 years in their current home.  “Move-up” buyers like these are now eligible for IRS tax credits, but with a cap at $6,500.

This means that you don’t have to be a true first-time home buyer to claim the “first-time home buyer tax credit”.

Other eligibility changes include:

• The subject property’s sales price may not exceed $800,000
• The subject property must be a primary residence
• Income thresholds raised to $125,000 for single-filers and $225,500 for joint-filer

And remember, the First-Time Home Buyer program grants a tax credit as opposed to a deduction.  This means that a tax filer would receive a cash payment of $2,000 from the U.S. Treasury if his “normal” tax liability totals $6,000 and he was eligible for all $8,000 available under the new law.

The complete list of qualifying criteria is posted on the IRS website.  Be sure to review it with a tax professional to determine your eligibility.  Then mark your calendar for April 30, 2010.

It’s 5 months away.

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, the newest contributor to Lenderama and recently featured on Fox35 News.

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

Can I Do My Own Orlando Loan Modification?

The short answer is yes; you can do your own Orlando loan modification. If you are an avid do-it-yourselfer [DIY], and are willing to dedicate the time, energy, and effort, you can do your own loan modification. One thing to understand upfront, though, is simply because you can do-it-yourself, does not mean that your results will be equal to someone that does loan modifications regularly and consistently. The question to ask becomes, not can you – but should you. Just as you can represent yourself in court or build your own kit-car, you can do this. This article contains resources whichever you ultimately choose.

I imagine it would be helpful to know what your options are going to be at the end of this article, would it not? In order to make the time reading this fruitful – at the end - I will ask you what you think the best option for you is. Obviously, the answer is for your own benefit since his conversation is only taking place in your own head. =0) See, I am not the only one that has conversations in my head!

Option 1: You don’t have to do anything. I will give you all the information you need and if you are not ready to decide yet, that will be just fine.

Option 2: You can do this all on your own. Every day, people are attempting loan modifications all on their own, and if you decide to do it all on your own, just make sure you are adequately prepared.

Option 3: You can work with a solicitor that contacts you for you loan modification. You may save some money up-front by choosing a call center and many people that haven’t read this article are choosing that every day.

Option 4: You choose to work with me because you believe I am your very best option.

So at the end of this article, I will pose that question… fair enough?

So - which one is the right one…

First, let’s define the possible pathways. Under the umbrella of the commonly used term ‘loan modifications’, there are actually distinct directions… modification and mediation.

Loan Modification

The first is loan modification itself. This is chosen when the homeowner wishes to modify one or more of the terms of their mortgage. Whether it be the lowering of their interest rate, changing their ARM to a fixed mortgage, or extending the term from 30 to 40 years, etc. Making these changes is completely voluntary on the part of the lender so it is vital to have a game plan in place that will include, not only a hardship letter in your handwriting, but also the documents to back up the hardship you are presenting. [More on that later.] About 100% of the time, no exaggeration, I get the question about reducing the outstanding principal balance.

The hard truth is that, despite what you hear on the news, only 2% of loan modifications actually result in a principal reduction. I know, I know – your co-worker’s sister’s friend’s nephew’s neighbor who lives in Phoenix did their own loan modification and cut the mortgage balance in half and lowered their rate to 1% fixed for 40 years after their first call. I know. I have heard that too… can never seem to actually track this prodigy down, but I have heard the story nonetheless. If you choose an attorney to represent your interests with a loan modification then you should expect to pay around $2300 to $3300… most of which is likely refundable.

Loan Mediation

The second of the two pathways is Orlando loan mediation. If you owe more than your home is worth or simply wish principal reduction as a primary objective, which is what we are finding in most of the cases for Orlando loan modifications, then you may skip loan modifications all together and explore loan mediation.

Boiled into its simplest form, loan mediation is accomplished by engaging an attorney on on retainer [is that good English?] to facilitate an Orlando forensic loan audit of the mortgage file. Yeah, it sounded intimidating to me at first too, but in essence, all it means is the attorney explores in great detail if all the proper steps and guidelines were followed by the lender. Here are a few of the things that are done. [Since half the people reading this are likely wanna-be loan modification ‘experts’, I will limit the specifics to a select few points.] Such as;

• Calculation and analysis of Federal Real Estate Settlement Procedures Act [RESPA]
• Predatory Lending Analysis
• Federal Fair Lending Act analysis
• Financial Benefit analysis on cash-out refinances

… and 16 other very specific procedural and feasibility examinations.

Mediations analysis does not just relate to the original handling of the mortgage, but also the custodial chain of documents if your mortgage has ever changed hands and timelines under RESPA.. The only way to do this is with an attorney in your corner. Is it worth it? That is for you to decide. It is not at all uncommon for attorneys to be able to skip the first two options a lender will offer direct to homeowners simply because all emotion is removed from the equation. [See the DIY section for the four common tactics of a lender-homeowner negotiation.] A reasonable fee to expect to pay is between $2800 and $3800. Due to the fact that you are retaining that attorney to do the forensic loan audit, the fee they charge is probably not refundable.

Option # 1: Doing Nothing

Hello? Is this mic on? If you wish to do nothing, click here.

Option #2: Doing it Yourself

Okay, now that we know what to reasonably expect if we choose worthy representation, let’s talk about a couple of the things to watch out for if you decide to DIY.

Set your mind to recognize that this is truly a David v. Goliath scenario. True, in the original account of history David was victorious - but unless your lender is an, “uncircumcised Philistine that has defied the armies of the living God“, I would encourage you to recognize the outcome may possibly be different.

Fact #1: The lender negotiates for the lender. If you are fortunate enough to get someone on the phone – know that they are not representing you or your interests.

Fact #2: The first person you talk to is never the person you should talk to. Even if you are in the right department, get to a decision maker as soon as you can. Don’t bother explaining your situation unless you enjoy doing it over and over. Better yet. Record it the first time you share it, you can be assured when you are transferred, you will be starting over.

Fact #3: They will always offer less than what they can deliver. First rule of negotiation, is it not? In modification, there are several different layers of what a lender will do directly with the homeowner and they typically follow this order. For example, will what they offer you protect your credit?

• Forbearance
• Temporary Modification [Soft Mod]
• Permanent Modification
• Principal Reduction [Typically a last resort]

If you would like to attempt this on your own and would like a FREE 15 minute phone consult with me to gain a couple of tips, please email me to that effect and three time slots that you have available during business hours and I will try t work you in.

Option #3: Dealing with a Solicitor

Warning #1: BEWARE of loan modification companies that charge an upfront fee where your agreement is not directly with the attorneys doing the work. Don’t misread what I stated. It is not uncommon for attorneys to charge the fee upfront – just beware because under law, attorneys are the only ones that can. I have heard stories where folks are getting calls that ‘state’ that the work is done by attorneys and there is no fee until the end if/when it is successful. The only charge up-front is the “$99 processing fee.” My opinion? Sounds like a great way to lose $99. Have you ever personally witnessed an attorney working for free? Looks good on TV, I know – but in real life? Mmmm – I haven’t.

Warning #2: BEWARE of not having attorneys do the actual work. Get specifics. It is illegal in most states to have anyone other than an attorney [imagine – attorneys coming up with a law like that] do this kind of work. It is not that you would necessarily get in legal trouble if someone else were doing it, but what does that say about the individual you chose? Best case they are working with a lack of due diligence, worse yet it is in spite of the law – “dat is not gwood”.

Warning #3: BEWARE of people that guarantee specific changes such as:

• Specific rate changes
• Principal balance reductions [remember, only 2% of modifications result in this.]
• New payment terms
• Time frame

While it is human to feel better when we hear the word guarantee, it is crucial to know that every scenario is 100% unique. Your personal circumstances, the lender’s position on homeowner-direct modifications, the type of loan you have, etcetera, all influence a final outcome. You have better odds at guaranteeing an outcome while playing roulette than what a lender is willing to do in your specific case.

By the way, are you on the do-not-call list?

Option#4: Working with a Trusted Resource

First and foremost – I am a Certified Mortgage Planning Specialist [CMPS], not a modification expert. That statement may scare some of you, but I am curious how soon you will realize that it is actually quite refreshing. Let me tell you why you don’t want a modification expert… because you are dealing with contract law and that should be handled solely by those that practice law – not a self-proclaimed loan modification expert on the internet. Savvy?

Next – Loan modifications and mediations are not for everyone. With a price tag of between $2300 and $3800 as noted above [some even charge more], you should be able to get some reasonable That being said, you may notice that the costs of a loan modification/mediation –though nothing to sneeze at – are quite a bit less than the other options you likely have. Let’s compare the other options on the table. assurances that you are not placing that money on RED and spinning the wheel.

• Refinancing – This is only an option if two things exist in the same scenario. Both the homeowner and the property qualify. As you likely know, even in a perfect financial situation on part of the homeowner, if the property is significantly upside down as we are in Orlando in many cases, this ‘ain’t gunna happen’. I think this is what should be explored first, however. The cost of such is probably double what loan modification would be. The benefit would be the ability to avoid having to come up with the fee by being able to roll those costs into the new mortgage assuming the value of the property would allow it. If you were referred to this article by a mortgage professional – consult with them about this option… not me. The purpose of posting this is not to pull business away from other good mortgage professionals, but rather to combat much of the mis-information out there in the marketplace. If you weren’t introduce to this content from another mortgage professional, by all means - feel free to contact me. =0)

• Short Sale – If you are current on your mortgage and wish to get out from under the house with your credit intact, this may be the right option. The mortgage originator that directed you to this article can lead you to a Realtor that is a Short Sale Expert. Don’t be fooled – a ‘short sale’ is anything but short. If you are going to travel down this road, make certain you are working with a Realtor that “gets it” when it comes to Short Sales. Don’t attempt it with someone unfamiliar with the process. If you do, I offer my condolences in advance.

• Short Refi – This is basically a short sale without a new buyer. A new mortgage is attained after the current lender agrees to a short payoff. Your mortgage broker will provide a letter to the current lender in order help facilitate the new transaction. Now, since you are qualifying for a brand new mortgage, you can’t have any late mortgage payments. Ask yourself… why would the new mortgage company take on a risk that the other is trying to dump unless they qualify like any other borrower?

• Foreclosure – this is the worst possible outcome, but is the default course if nothing else is done… like choosing Option #1. No one wins with foreclosure. Not the homeowner – not the lender, not the neighbors, not the economy. Avoid if you can by getting sound advice from a mortgage planner and your current financial advisor. Your financial advisor might not be a professional, but get input from whomever you currently trust and turn to for financial insight. If you would be interested in an introduction to a true professional in the financial advice world, let me know. I am glad to help with an introduction.

Bottom Line

Listen folks, do your own homework, as I have. As a trusted resource for many people over the last seven years as an Orlando mortgage advisor and as a Certified Mortgage Planning Specialist, I found that it was imperative to find a rock-solid resource for loan modifications and mediations. As more and more people were requesting my help, the need became apparent that not finding a resource was equivalent to returning them to the “murky waters” filled with all the sharks. I found that unacceptable.

So, remember the options at the beginning? What’s it going to be 1, 2, 3, or 4? Remember – not to choose is to choose.

If you choose option 4 because you believe I am the best choice, there are a few different ways to reach out to me.

You can:

email me,

call me at 407 377 0500 x 210,

or begin the Loan Modification Worksheet.

April 4, 2009, marked the official start of the Making Home Affordable refinance program.

Expected to help 5 million homeowners, the Making Home Affordable program “looks the other way” with respect to falling home values, approving mortgage applications based on borrower payment history and benefit to the homeowner.

Not every homeowner is eligible for a Making Home Affordable refinance, however. There are 3 basic criteria that must be met.

First, your existing home loan must be backed by either Fannie Mae or Freddie Mac. Thankfully, both companies provide online lookup services. Start with the Fannie Mae site because Fannie has a greater market share and because Freddie Mac’s site requires your social security number.

Next, you must have a perfect mortgage payment history over the last 12 months. Even one payment made 30 days late disqualifies you from participating in the Making Home Affordable program. It is okay, however, if you were 20 days late on your payment and incurred late fees.

And lastly, the balance on your mortgage cannot exceed your home’s value by more than 5%. The math formula is (Mortgage Balance) / (Home Value). If the quotient is greater than 1.05 then your loan-to-value exceeds 105% and you are not eligible for Making Home Affordable.

Now, assuming you meet the criteria, there are some noteworthy details of the Making Home Affordable program:

1. If you didn’t pay mortgage insurance prior to refinancing, you won’t have to pay it after refinancing — even if your loan-to-value exceeds 80%.
2. All refinances require income verification — even if the original mortgage was a stated income loan.
3. Second mortgages cannot be paid off using loan proceeds — they must be subordinated

There are other guidelines, too, and both Fannie Mae and Freddie Mac have dedicated portions of their website to the Making Home Affordable program. To the layperson, unfortunately, the information may be a bit technical.

Even the government’s fact sheet can be a little dense at times.

Therefore, if you have specific questions about the Making Home Affordable program and your own eligibility, first check to see if Fannie or Freddie is backing your loan. If they are, pick up the phone and call your loan officer to plan next steps.

The program ends June 10, 2010.

For additional question, contact me directly Chris [at] OrlandoMortgagePro.com

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.

As an Orlando Mortgage Broker in Seminole County, I have had the experience of working with many insurance carriers -some good - some bad. As the largest private property insurer makes the move to pull out of Florida, home owners are wondering - what do we do now? I personally have been using State Farm since day one… so you and me, yeah… same boat here!

The most pivotal, yet most overlooked thing, is likely the urgency to move QUICKLY!

“But Chris, this is supposed to happen over a period of a few years… what’s the rush?”

Glad you asked!

The Answer - Capacity.

Effectively, when State Farm pulls out, the other carriers are going to be inundated with folks that need their homes insured. While this is a welcome event for those carriers, it is not all roses for them. Imagine these carriers are like a sponge. As they soak up these other policies abandoned by State Farm, they will begin to saturate. Once they max out, home owners without insurance will be left with less options.

It is safe to assume that the best, most competitive companies will fill up first, is it not?

At the end of the day, those that do not hesitate will end up with the most options and therefore the best options. Meaning, those policy holders that act the fastest will have the best and broadest options available to them - those that wait and hold on to the Farm the longest will be left with the lessor of the options and likely pay more for their home owner’s insurance for years to come.

Here are 3 EASY STEPS to take to make sure that you get the very best that is out there.

STEP 1: LINE UP THE DUCKS - Pull out your current policy and have it handy when you contact possible insurance companies. DON’T HAVE THEM? Call your current carrier and ask for copies of your “Declaration Pages”. Commonly referred to as “Dec Pages” show the coverage that you have and will assist your hunt for a new provider. [Sample of what you should get from State Farm.]

STEP 2: PICK UP THE PHONE - With the Dec pages in hand - ACT NOW. It is likely best to find an independent insurance company that can write insurance with MANY carriers. Why? Because an insurance company that can write for many [rather than just one] can do the shopping for you and find the very best coverage for the cost. Since the best companies for the money are likely to fill quickly, time is of the essence. Here is the company I chose, personally. The gal I connected with was Sarah - email Sarah here: scornwell@iscf.biz.

STEP 3: COMPARE - When you find the best independent carrier, have them provide 2-3 quotes from different companies they represent. Have them walk through the coverages with you and offer their opinions on which is the best value. Cheapest isn’t always best. You want to gain confidence that they company you are with doesn’t follow State Farm’s lead

The folks at ISCF have put together an informative White Paper about the State Farm pull out. I consider it required reading for any current State Farm policy holder.

Related Articles:

State Farm Announces its Intent to Stop Writing Property Insurance in Florida.

State Farm to Florida Homeowner: No Thanks.

State Farm to exit Florida Property Insurance.

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)

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
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