weekly mortgage interest rate comment from Mickey, 3.20.08

Comments from Mickey, mortgage specialist:

Mortgage interest rates experienced improvements in the early part of the week as stock values fell and the Federal Reserve continued its efforts to improve conditions in the mortgage environment. For a brief period late Monday afternoon and early Tuesday we were able to lock 30 year fixed rate mortgages at 5.75% without charging discount points or origination fees. Today's thirty-year fixed rates on conventional loan amounts (<$417K) range from 6% to 6.5%, depending upon loan size and the borrower's creditworthiness.

Given the volatility in the mortgage market, make sure to talk to a specialist to know the real rates. If you have any questions, e-mail me at audrey@audreybutlerhomes.com

where to buy in this market

With a buyer's market, you can be overwhelmed with all your choices if you are planning to buy a home now. How do you determine where to live in Orlando?

If you plan on living here for 5 to 8 years, don't worry! The market will be rebounding back, and the concern about your home having value won't be a problem. But if you have to sell in the next couple of years, what steps should you take to help your home sell quickly?

1. Look for good neighborhoods. Even if you don't have children, you should consider the school districts. Better schools means the neighborhood will be more in demand.

2. Don't buy in the boonies. Gas costs over $3 a gallon, and people will be looking for neighborhoods that are near town. Closer to work=less gas.

3. Look at planned communities. Although the HOA fees are higher, the neighborhoods are well maintained and there are a lot of amenities.

If you want to talk about specific neighborhoods, let me know! You can e-mail me at audrey@audreybutlerhomes.com

Mickey's weekly interest rate update, 3.11.08

Mickey Carlton's Mortgage Interest Rate Update for 03/11/08:

Mortgage interest rates have experienced a very volatile week. The primary features have been a dangerous divergence between treasury bond prices and mortgage-backed securities prices, a weak jobless number last Friday and a mammoth attempt on the part of the Federal Reserve (this morning) to add liquidity to the markets. The end result is a rather turbulent interest rate situation that is somewhat worse than last week. Buyers can expect to pay between 6.25% and 6.75% for conforming (<$417K) 30 year fixed rate mortgages without discount points or origination fees. A borrower's individual rate will depend upon his or her loan amount, purpose and creditworthiness.

Observers ask, "what's going on in the mortgage market?". The quick answer is that we have many sellers and few buyers. Large investors (corporations, pension funds, insurance companies, college fund trustees, etc.) have refused to purchase mortgage backed securities because of the recent "bad" news relating to mortgage debt. Holders of mortgages (companies like Thornberg Mtg and Carlyle Funding) have been aggressive sellers in the secondary market. The result has been mostly bad news for borrowers.

The good news is that we remain in a range between six and seven percent which is exactly where we have been for the last two to three years. Historically, an observer, glancing at a chart of interest rates, would remark that "it must be a pretty quiet time in the mortgage business". In spite of all the volatility, we are still offering rates that borrowers would have killed to obtain just a few years ago.

Any questions? Write me at audrey@audreybutlerhomes.com

weekly mortgage update from Mickey, 3.4.08

Here is the weekly mortgage update from Mickey, and I don't mean the mouse. This is for the week of March 3, 2008. He says:

Mortgage interest rates improved slightly over the last few days. Buyer/borrowers can expect to obtain 30 yr fixed rate financing in a range of 6.125% to 6.625% for conforming loan amounts (<$417,000) without paying origination fees or discount points. Actual rate will depend upon loan size and creditworthiness of the borrower.

If you have any questions, write me at: audrey@audreybutlerhomes.com

thank you!

Insuring problems for Florida?

Ok, so I tried for a pun in the title, but it just looks like a grammar error...oh well....

Why are all the "big name" insurance companies trying to pull out of Florida? Julie Patel at The South Florida Sun-Sentinel reported last week that State Farm will not be writing home owner's policies here any more as well as dropping 50,000 coastal policies. Also, she reported that Allstate has dropped about 250,000 policies and Nationwide is planning to drop 39,000.

What is up with this unwillingness to insure Floridians? Isn't that the definition of insurance? They take the risk of the weather, and we pay a lot of money every month. Are the insurance companies just being greedy, or are they really suffering and can't take the risk?

I guess as Larry King says, "you be the judge"......

www.audreybutlerhomes.com

Mickey's interest rate comment (a couple of days late)

Hello everyone!

The interest rate comment this week is a little late because I was out of town for a few days. I took a trip up to NC....I used to live there, and it was strange being back in cold weather! Of course, when I got back here, it was chilly as well.....

Here is the comment from Mickey, mortgage broker extraordinaire:

Mortgage interest rates continue to climb this week as long-term lenders fret over the threat of inflation. Inflation robs returns so lenders demand higher yields. Buyer/borrowers seeking 30 year fixed rate mortgages can expect rates in a range from 6.375% to 6.875% without paying discount points. Actual rate depends upon loan size and the borrower's creditworthiness. As you can see, the low rates of six weeks ago are a fleeting memory.

This quote was surprising to me, given what we have been hearing in the press, but it is best to stay informed!

If you have any questions, contact me at www.audreybutlerhomes.com

No need to wait a year to buy

I've heard people saying, "I'm just going to wait a year while the market gets worse, so I can get a deal." Here's some numbers to show why that is not necessarily a good idea (Thank you Time Magazine--2/25/08):

As the economy improves, waiting may not have any effect. Let's say today, a house costs $218,900. If housing prices drop another 10%, the house will cost $197,010 in a year.

Right now, the interest rate is 5.5%. With an improved economy, the rate could go up to 6% and higher. This rate is based on putting 20% down on a 30 year fixed.

If you bought the house this year, the payment would be $994.31. If you bought the house next year, it would be $994.94.

Why wait, and be stuck in a place you don't like? If you are interested in looking, contact me at www.audreybutlerhomes.com