Give moving boxes for Christmas!

Struggling to pay too much for new boxes? Tired of driving around to grocery stores to find that they have already gotten rid of theirs? Have a friend moving during the holidays?
You can go to usedcardboardboxes.com and purchase boxes for your move.
I was impressed! They offer free shipping, and if you purchase before 3 p.m., they will ship in 1 to 2 days. They also offer "moving kits" depending on the size of your home. The site is about 30% less than other companies that sell new boxes.
Save a tree!
http://www.audreybutlerhomes.com/

Weekly mortgage interest rate comment from Mickey 12.18.07

The weekly mortgage rate comment from Mickey Carlton:

Mortgage interest rates hit a two-year low on Monday, December 3, but have experienced an increase since that time time. Currently, thirty-year mortgages, without discount points, range from 6.25% to 6.75% depending upon loan size and creditworthiness of the borrower. Please note that Fannie Mae and Freddie Mac are instituting new policies regarding an individual's credit score. It is going to become increasingly difficult for lenders to quote an interest rate without "pulling" a potential borrower's credit report. Be prepared for possible grumblings from your buyers as lenders become more and more reluctant to price a loan without fully "diagnosing" the patient.

Thanks, Mickey! If you have any questions, please contact me through my website at: www.audreybutlerhomes.com.

Under 740? Ask for an improved credit score for Christmas

With all the subprime loan problems that have hit this country this year, (see my earlier blog entries) we are starting to see new guidelines for obtaining a home loan. My friend, Mickey Carlton wrote me about one of the changes that we will see in the next few weeks. To understand what he shares below, I'll explain a little about the home loan process.

When you go to a company to get a home loan, they are considered the primary mortgage market. After closing your loan, they are usually sold to the secondary mortgage market, including Fannie Mae and Freddie Mac. When they put out new guidelines, everyone has to follow them, or they cannot sell their loan. Given that background for those of you who are new to the market, here are Mickey's words:

Historically, an approval by Fannie Mae or Freddie Mac's proprietary software meant that a borrower qualified for "good rates" regardless of his or her credit scores. The computer software considered the scores along with loan amount, income and employment history, and liquid assets. An approval obtained by the 640 credit score applicant was as marketable as an approval by a 740 credit score applicant.

This is no longer true. The agencies are changing their pricing models on loans delivered after March 1, 2008. A loan that closes in January might not make it to the agency until March so most banks are already adjusting their pricing. In the very near future, buyers are going to be priced depending upon their credit scores. Lower scored borrowers may be priced out of the Fannie/Freddie market even if they qualify for a Fannie/Freddie program. The answer, in many cases, will be FHA. There are no more subprime loans and Fannie/Freddie is making it harder on the marginal borrowers to obtain a "good" rate.

Bottom line: you need a credit score of 740 or higher for a good interest rate loan. If you have a few "dings" in your credit, contact me at http://www.audreybutlerhomes.com/ and I can connect you to someone who can provide guidance to help you.

Mickey's weekly interest rate update for 12.11.07

INTEREST RATE UPDATE FROM MICKEY CARLTON FOR 12/11/07:

Investors turned optimistic late last week when the administration announced plans to aid beleaguered subprime mortgage holders. Anticipation of a rate cut from the Federal Reserve also encouraged stock traders to return to the "buy side". The result was a worsening by .25% in mortgage rates that had been gained during the previous week. We are currently pricing 30 yr conforming (<$417K) fixed rate mortgages between 6.125% and 6.625% without points or origination fees. Individual borrowers' rates are determined by loan size and creditworthiness.

For more information, write me at: www.audreybutlerhomes.com

Mortgage Interest rate comment from Mickey, week of 12.04.07

Here is the weekly interest rate comment from Mickey 12.04.07:

Mortgage interest rates have reached new lows for the year as we near year-end. Today, buyers seeking financing can secure 30 year fixed rate conforming (<$417,000) mortgages for rates ranging from 5.75% to 6.5% depending upon loan size and the creditworthiness of the borrower. Rates have improved in spite of last week's stock market gains. Long-term note and bond traders seem more concerned about the likelihood of a recession. Friday morning's employment figures (estimated at 77,000 new jobs vs. 166,000 last month) should be the next big influence on interest rates. Next week, all eyes will be focused on the Federal Reserve meeting. The Fed is widely expected to reduce short-term rates which would have an immediate impact on consumer rates such as credit cards, auto loans and home equity lines of credit.

I want a smart house for Christmas!

Wondering what to get from Old St. Nick? How about a smart house?

I heard that the Gates (Bill Gate's family) have a smart house---they spend millions, but they have technology working to their advantage in their home.

Now there are technologies available to the general public! Last year, Business 2.0 shared that there are some devices to use now.....

Check out AT&T, iControl and Nobu for:

• Sprinklers that turn off when it rains
  
• Controlling the blinds by remote


• Caller ID displayed on the TV


• Live video of the inside of the house sent to your phone


• Motion sensors send a text message when doors or windows open


• Pool temperature set from your cell phone
  

Not many homes like that in Orlando, but the can be installed.....

check out my website at: http://www.audreybutlerhomes.com/

We're business friendly

Forbes.com has ranked Florida as one of the best places to do business. We are ranked 7th. The other business-friendly states include: Virginia, Utah, North Carolina, Texas, Washington, Idaho, Colorado, North Dakota, and Minnesota.


One thing we offer that the others don't are beautiful Winters, no income taxes, and friendly people!

check out http://www.audreybutlerhomes.com/

weekly update from Mickey, 11.27.07

Hope everyone had a great Thanksgiving!

Here is the weekly update from Mickey Carlton, Mortgage specialist here in Orlando:

Mortgage interest rates were improving versus week-ago levels until mid-morning when bond pricing reversed course. Banks and mortgage companies began to worsen their pricing almost immediately. Currently, the one-eight percent improvement versus last week has given way and we are back in the same range as a week ago. Home buyers can expect to obtain thirty-year fixed rate conforming mortgages (<$417,000) without points in a range of 6.125% to 6.625% depending upon loan size and the creditworthiness of the individual borrower.

Check out my website at: www.audreybutlerhomes.com

Weekly interest rate comment from Mickey, 11.14.07

The latest interest rate comment from Mickey Carlton:

Mortgage interest rates have remained fairly stable in a range of 6.25% to 6.75% for thirty-year fixed rate loans without discount points or origination fees. Rates for individual borrowers will be determined by loan size and creditworthiness of the borrower.

Any questions? Write me at www.audreybutlerhomes.com

Lake Mary makes the list

Money magazine has ranked Lake Mary as number 4 on its 2007 list of America's 100 best places to live.

The magazine focused on smaller places to live---cities with populations ranging from 7,500 to 50,000. They considered economic opportunity, good schools, safe streets, recreation and a real sense of community.

Lake Mary was singled out for high-paying jobs, no state income tax, small-town atmosphere, proximity to Orlando and Daytona Beach, and the recreational activities: boating, fishing, and golfing.

My husband was driving out of town this weekend, and he captured a picture in Lake Mary. I thought I would show it above.

Check out some of his other pictures at: http://www.audreybutlerhomes.com/

Weekly mortgage rate comment from Mickey, 11.8.07

Weekly comment from Mickey Carlton:

Mortgage interest rates have worsened slightly since last week. Yesterday's (Wednesday) weakness in stock prices, if extended, will likely result in an improvement in our rates. Weakness in stock prices cause investors to shift money into long-term bonds sending interest rates lower. Currently, borrowers seeking conforming (<$417K) loan amounts on purchases should be able to obtain 30 yr fixed mortgage rates in a range of 6.25% to 6.75% (without paying discount points) depending upon their individual credit worthiness and loan size.

Need a mortgage? E-mail me at audrey@audreybutlerhomes.com

Planning to remodel?

With many people deciding not to sell due to so many houses on the market, you may be considering a remodeling project. Unfortunately, I've seen and heard of some nightmare stories....here are some suggestions from REALTOR Magazine on hiring a remodeling contractor:

1. Get 3 written estimates.

2. Get references and call to check on the work. If possible, go by and visit earlier jobs.

3. Check with the Chamber of Commerce or Better Business Bureau for complaints.

4. Make as small a downpayment as possible so you won't lose a lot if the contractor fails to complete the job.

5. Be sure the contractor has the necessary permits, licenses, and insurance.

6. Ask the contractor if his workers will do the job, or if subcontractior will do parts.

7. Write a contract that specifies that the contrator will clean up after the job and will be responsible for any damage.

8. Guarantee that materials used meet your specifications.

9. Don't make the final payment until you're satisfied with the work.

I know a lot of this can take time, but you could be spending more time and a lot more money (and having more headaches) if the job is not done properly the first time.

Check out my website at: www.audreybutlerhomes.com

Use your mortgage consultant as a coach

The other day I was reading through some material from a Mortgage Specialist, Mickey Carlton. He wrote about how the best athletes in the world have coach---in a like manner, your family needs a financial "coach"----a trusted financial planner and mortgage expert that can assist you in coordinating your mortgage in light of your investment and retirement plans.

Many times people just try and get off the phone as quickly as possible when dealing with a mortgage broker. Use someone you trust, and disclose the needed facts so your true picture can be taken into consideration. You are making such a large investment, it is best to consider all the financial plans for your family and future.

http://www.audreybutlerhomes.com/

How to get rid of your junk, part two

Part two, on getting rid of your stuff:

4. Perhaps you have some nice items you know longer want. Consider selling them on http://www.craigslist.com/ (free) or http://www.ebay.com/ (nominal fee). My friend Allison has had great success selling things on craigslist.com---including a mirror, cell phone, and other furniture!

5. If you have a lot of stuff to donate, you can check out http://www.salvationarmy.com/ and http://www.goodwill.com/. Also consider your favorite local charities and http://www.excessaccess.com/ and http://www.inkindex.com/. Remember that items donated in good condition or better are tax deductible---check out http://www.irs.gov/.

6. If you hold a yard sale, consider getting the neighbors in on the action. A larger sale may mean more buyers.

7. If you have a lot of clothes, you may want to have a clothes swap with friends. When I lived in Canada, we held one at work after hours. Our coordinator did an amazing job, including food and a funny fashion show with some of the donated items. (I was the southern MC...I'm scared pictures may be available for circulating) We had so much fun, and all the clothes that were left over were donated to Dress for Success and Goodwill. I still have a pair of white pants that I picked up during the party, and I will take them to my grave!

www.audreybutlerhomes.com

How to get rid of your junk, part one

When you get ready to sell your home, many struggle with having too much stuff in their house. Many are selling to move to a larger home, having outgrown the current one. It makes sense that the closets will be filled, and the garage stuffed.

Here is part one of tips to de-clutter your home:

1. Pace yourself. Going through all your items can be time consuming and stressful. Take one closet or area a day, or set aside an hour every couple of days.

2. Plan to move items out of the house so the closets will be useful. Overstuffed closets make the house appear too small. Consider renting a storage unit, or store your goods at a friend's house.

3. When emptying the closet, set aside four boxes for items: 1. storage; 2. donation; 3. to another room or closet 4. trash. Running from room to room wastes time.

tune into tomorrow for additional suggestions tomorrow......

www.audreybutlerhomes.com

Weekly mortgage rate comment from Mickey, 10.30.07

Weekly interest rate comment from Mickey Carlton, Mortgage specialist:

Interest rate movement remains fairly quiet this week as the market awaits Wednesday afternoon's announcement from the Federal Reserve regarding their decision on rates. The Fed is widely presumed to be planning a further quarter point reduction in the Fed Funds rate. Again, you should be cautioned that this is an overnight rate used by banks to borrow from one another to meet their reserve requirements. The Fed DOES NOT set mortgage rates. A rate reduction would have an immediate positive effect on consumer rates such as home equity lines, auto loans and credit cards.

The effect, in any, on long-term mortgages should be minimal and might actually cause a slight uptick in rates. Currently, borrowers can obtain 30 year fixed rate financing for rates ranging from 6.125% to 6.75% without paying discount points or origination fees. Actual rate will depend upon loan size and the individual borrower's creditworthiness.

Check out www.audreybutlerhomes.com

How to improve your home for selling

In this tough buyer's market, every home is under scrutiny, given the number of homes on the Orlando home market. What are some considerations as a seller you should consider when listing your home?

1. Obviously, curb appeal is a key factor in creating a good impression. Make sure you trim the grass, keep blooming flowers in the gardens, and take care of any ant beds and weeds. Paint the front door if it is needed, and treat any wood rot in the trim. Invite over a true friend who will give you an honest opinion, or ask your Realtor.

2. When entering a home, smell is the second consideration. If you or a family member smokes, then the home should be treated before it is sold. Smoke can be smelled in all fabrics, including carpet. Consider steam cleaning. Once the home is listed, the smokers should smoke outside.

As much as we love pets, they do smell. Make sure the odors are treated, and their areas are kept clean at all time. Spot needs to be regularly washed, and should be taken from the home (or kept in the back yard) during showings. If the dog is not friendly, the pet should be removed during the showing.

Key: do not try and mask the smells. This is not the time for short cuts, given this tight market!



Check out my website: www. audreybutlerhomes.com

People want to own a home

Ok, I know this may seem like common sense, but a new study has come out saying the reason for most first time home purchasers is that they want to own a house and establish their household. They say placed in context, it should humble some market experts. People in the survey never mentioned that the reason they purchased was because it was a strong buyer's market.

Now I am a bargain hunter on certain things....yes, I buy for value and quality as well. For example, when I go clothes shopping, I don't just buy something because it is on the sales rack. I want to buy well made, cute clothing that will go with the rest of my wardrobe....stay with me, I'm going somewhere with this....my values in shopping are inherent in my process. If someone were to stop me in the mall and ask me what I am doing there, I would say: "shopping for clothes because I want something new." I'm not sure I would mention all the sales signs.

Yes, there is no need to purchase something costing over $200,000 unless you want it....but hopefully this buyer's market will make purchasing a more affordable for new buyers.

Check out my website at: www.audreybutlerhomes.com

home prices will continue to remain low

At the Mortgage Bankers Association convention going on in Boston this week, the experts told attendees that the national home prices are going to decline in 2008. Thomas Lund, the executive vice-president at Fannie Mae says that prices will flatten in 2009, before gradually rising in 2010.

Any questions? e-mail me through my website at: www.audreybutlerhomes.com

weekly mortgage rate info from Mickey 10.23.07

This week's rate quote from Mickey Carlton:

Mortgage interest rates improved late in the week as investors dumped stocks for the safety of bonds. This "flight to quality" improvement in rates could melt away if the stock market sustains a rally. Currently, residential home buyers can expect to pay between 6.125% and 6.75% to obtain 30 year fixed rate mortgages without having to pay an origination fee or discount points. Individual rates will depend upon loan size and the creditworthiness of the borrower(s).

For more questions, contact me on my website: www.audreybutlerhomes.com

Goals for a seller

Are you a "for sale by owner"? Here are some tips to help you in selling your home:

1. Don't have a bloated price tag, in hopes of negotiating a better deal.

There is a misconception that a home can still get the same asking price as in 2005. Not in this market. Homes have dropped significantly in price, and buyers will not be interested in seeing a house with a high price.

2. Try to get as many people in to see the house in the first 2 weeks.

If the house is on the market for a very long time at a high price, people will begin to think there is something wrong with it.

3. Realtors can be your friend.

You may have had a bad experience with a Realtor, or just don't want to pay the 6% commission fee. However, in this market, exposure and savvy marketing are key. Also, pricing it compared to the other houses in the neighborhood is important so you can have potential buyers see your home. When there are so many houses on the market, an agent can help you discuss how yours can stand out.

If you had a bad experience, talk to others that like/liked their Realtor. Ask to speak to some of their past clients. An experienced agent will be invaluable in pricing your home correctly and getting it seen in this market.

Check out my website at: www.audreybutlerhomes.com

Housing forecast for 2008 looking up

The National Association of Realtors is forecasting an improvement in the mortgage market, which could result in more buyers in early 2008. I don't know if they are telling Realtors like me this news to cheer me up (I'm actually already cheerful; I really enjoy my work...), but the vice president of research for the association says that nationally the housing market for this year is the 5th highest for existing home sales.

I hate sounding like a negative person all the time on this blog, but that does not consider the individual market in central Florida. However, there has been a reduction in new home building, which can help stabilize the market.

All in all, this could be good news for current sellers, and will hopefully result in the pent-up demand leading to action in the next couple of months.

To learn more, check out my website at audreybutlerhomes.com

Go Sheila!

The Associated Press is reporting that Sheila Bair, head of the Federal Deposit Insurance Corp., has recommended that the companies that have pre-foreclosure clients consider an across-the-board conversion of adjustable-rate loans to fixed-rate loans if the borrowers were current on their payments and living in the homes.

Yes! Someone with a solution to directly help those in need.

Now I have to carry that a step further-----how about just a few months behind? If people are already current on their payments and still living in their homes, why would they need the help?

How about helping those whose payments have already increased $500 to $1000 dollars a month and can't afford the payments?

Check out my website at www.audreybutlerhomes.com

Let's party like its 1999

The big question out there: Is it time to buy, or not time to buy?

Here are the three latest sources to weigh in on the subject:

Time to buy

Forbes magazine: based on estimated 2008 inventory, sales rates, etc. the authors notes that Orlando has had a 2.4% decline but it is expected to turn around fairly quickly.

Not time to buy

PMI Mortgage Insurance Co.: Orlando is one of 11 metro areas with a greater than 50 percent chance of price declines over 2008 and 2009.

Time to buy

Jerry Jackson at the Orlando Sentinel: Resales of existing homes and condos had it's worse month in September in more than 8 and a half years.

Predicting the lowest point is a lot like predicting the stock market.....Yet remember, any home purchase can be a good investment if it is considered a LONG TERM investment.......

Interest rate comment from Mickey, 10.16.07

Here is Mickey's interest rate update for 10/16/07:

Thirty year fixed rate conforming (<$417,000) loans can be obtained for rates ranging from 6.375% to 6.875% without paying origination fees or discount points. Individual borrowers' rates will depend upon loan size and the borrower's creditworthiness.

Foreclosures down in September

RealtyTrac, an online market for foreclosure properties is reporting that foreclosures were down 8 percent in September compared with August when they hit a 32-month peak. However, foreclosures are still up 99 percent compared to September a year ago.

There were 223,538 foreclosures in September — or one in every 557 households. California, Florida, and Nevada led the nation.

New Florida Law raising the roof costs

Starting October 1st, new Florida law went into effect to increase the building code requirements for roof replacements. The new protections require:

• roof deck attachments and fasteners must be strengthened or corrected.
• secondary water barriers are required.
• if the insured value of the house is $300,000 and is in a coastal wind-borne debris region, roof to wall connections must be enhanced.
• Insurance discounts will vary based on where the home is located

What could this mean to you, the consumer? Additional costs to replace your roof. The Real Estate Webmasters predict the costs could rise 25%.

If you are purchasing a home, and it needs a new roof, get an estimate. You may go with the amount they offer, and not realize they are not taking the new law into consideration. Also consider the new law when making an offer on a house that has a roof over 10 years old.

If you are a seller, make sure that your roof replacement meets the new requirements---these changes will be checked by home inspectors.

Open House, Sunday, October 14th

$229,000

Open House

Sunday, October 14th

2:00 to 5:00

810 Veronica Circle

Ocoee, Florida

This 1328 square foot house is the lowest price home in the neighborhood. Beautiful upgrades include hardwood floors, new kitchen cabinets, and a fenced-in back yard. Come check out the nice neighborhood with friendly neighbors. This home was just reduced!

Hope Now----really?

OK, so I know I've had a few ranting sessions on a couple of things on this blog, but I really have to wonder about the Hope Now initiative that was advertised on WESH TV last night.....I know it is not the TV station's fault, but why not investigate what Hope Now is really about....INFORMATION ONLY.

I look at the foreclosure problem, and I see a big crisis. Yes, people made some bad choices, maybe didn't read the fine print, thought the interest rate would change, or relied on a factor that did not happen. But the bottom line is that we are seeing a significant number of people losing their homes and their dignity.

The problem in Orlando is compounded by the fact that home values have dropped significantly since all the investors pulled out of the area, and we now have over 26,000 homes on the market.

After hearing the news story yesterday, I went to the website and found the link to Hope Now....(www.hopenow.com) ...All it does is instruct people to contact their mortgage lender and talk to them.....really? The people that I know are in trouble HAVE ALREADY DONE THAT. What happened? Numerous answers: No one can give them an answer.....they can't get to the person that makes the decision....the situation has to get worse before the lender can do something.

Then we direct people that are struggling and stressed out, who have not gotten any help from their lender, and we send them to a non-profit organization. Nice, but does that organization have any say? Do they have a direct phone to the bank, with approval to override the bank? Can they force a lender to modify the loan?

The counselors can recommend some options, but they are just window dressing.

Here is the problem that is not being addressed: Mortgage companies have a lot of foreclosures and clients are not getting answers. The homes cannot be refinanced with a different mortgage broker/banker in Orlando because the homes will not appraise for the amount when they were mortgaged in 2005.

No other bank can help, and NO LENDER has come out with a policy on how to address the problem with their client and help the owner (another question: why would they be motivated to do anything to help? They have to listen to their investors, correct?). Foreclosures seem to be the only option...

...now exactly how does "Hope Now" address this?........

Weekly mortgage rate from Mickey, 10.10.07

Here is the weekly mortgage interest rate comments from Mickey:

Mortgage interest rates have drifted slightly lower over the last few days. Buyers seeking 30 year fixed rate mortgages can expect to find rates ranging from 6.375% to 6.875% without paying discount points or origination fees. Actual rates for individual borrowers will depend upon loan size and creditworthiness of the borrower.

Last week one of my loan applicants asked, in a gleeful voice, how much the interest rates dropped after the Federal Reserve "lowered them". I had to explain that long-term rates actually went up slightly the next day although they have fallen somewhat in the intervening two weeks. My borrower was not thrilled with the news. No doubt your buyers have also expressed the belief that the Fed "lowered rates".

Be aware that the Federal Reserve has the ability to set short-term rates ONLY. The actual rates the Fed controls directly are the overnight rates used by banks to borrow from each other (Fed Funds rate) or directly from the Fed (discount rate). Banks use the overnight market to meet their reserve requirements, as set by the Fed. By moving these two short-term rates the Fed can influence long-term rates, but the market, that is, the trading participants, actually determine such rates. Sometimes market participants cause rates to move in strange ways (to us!) due to concerns over inflation or other economic conditions. My message is that professionals should consult with their lenders before discussing the level of rates with clients. The six o'clock news is not always what it seems.

Is your house "so not hip"?

Here are the recent trends that are no longer "hot" in the housing industry, according to Realtor Magazine:

McMansions

the cold look of modern

formal dining rooms

carpeting

junky foyer or coat closet

granite counter tops

Is your house "hip"?

Here are the latest home trends as reported by Realtor Magazine:

Cozy, small homes on a big lot

earth colors (brown, green)

Informal living spaces

exotic hardwood floors

mudrooms

marble, limestone and concrete (yes, concrete) kitchen counter tops

tomorrow: What is NOT in......

The weekly interest rate comment from Mickey 10.2.07

The weekly comment from Mickey:

Mortgage interest rates are quietly unchanged from a week ago. Thirty-year fixed mortgage rates are ranging from 6.375% to 7.00% (no discount points or origination fees) depending upon loan size and the creditworthiness of individual borrowers.

Where are the buyers?

This time last year, I had just started selling real estate in Orlando. Well, to be honest, I was recovering from an appendicitis after having just started working for RE/MAX 200. Boy, a lot can happen in a year.....

I'm sorry. I digress. In this last year, I have watched everyone call this market a "buyer's market." Yet as I reflect over the last year, I wonder where the buyers are hiding.

Don't get me wrong.....there are people out there looking, and there is a lot of inventory to choose from---over 25,000 in our area, to be exact. Yet the sales each month have been minimal. Now prices are significantly dropping, yet we are not seeing an increase in sales at this point in the year as predicted by the experts.

My take on the situation is that there are a lot of buyers sitting on the sidelines, waiting. Why, I am not sure----I know there has to be a lot of pent up demand. Even in a slow market, we see about 2,000 people moving into the city every day. Is everyone waiting for the prices to hit rock bottom? How will they know when that is happening? The statistics in the papers and used by experts are always outdated.

As I ponder my first year and this interesting question, I will be conducting a survey among my contacts and I'll report back.....yet I guess that trying to figure out the reason why won't bring people off the sidelines!

weekly mortgage update from Mickey 9/25/07

Here is the weekly update from Mickey regarding the interest rates on a home mortgage:

Mortgage interest rates have become very stable over the last few days. Currently, borrowers can obtain 30 year fixed rate financing for rates ranging from 6.375% to 6.875% without origination fees or discount points. Individual borrower rates will depend upon creditworthiness and loan size.

Continuing weekly update from Mickey

As Mickey promised, here is the update on the mortgage rates this week:

Earlier this week, I promised an update on mortgage rates after the news of the Fed's half point short-term rate reduction had time to work its way into the financial markets. As feared, anyone expecting immediately lower long-term interest rates has to be disappointed. Long-term credit markets have worsened somewhat and are worsening further as this message is being typed. Today's early rate sheets indicated 30 yr fixed rate conforming loans in a range of 6.375% to 7.00% without discount points. As always, specific borrowers would be treated in accordance with loan size and their individual credit worthiness. At the moment, we are seeing a series of inter day repricing from our investors. It appears that the lower end of the above-stated range will move to 6.5%.

There is a growing likelihood that Fannie Mae and Freddie Mac will soon increase the current "conforming loan limit" to some yet-to-be-determined amount above the present $417,000. Best bet is for something in the neighborhood of a 10% increase (as reported in today's Wall Street Journal). This would put the new limit around $460K. This would allow some relief to "jumbo" borrowers.

weekly interest rate comment from Mickey 9/18

Mickey Carlton's comments today about the interest rates this week:

Mortgage interest rates have waited quietly for the Federal Reserve to announce their latest "interest rate" decision. Thirty-year mortgage money was offered at 6.375% to 6.875% prior to the release of the Fed's report. Individual loan rates depend upon loan size and the creditworthiness of the borrower.

The Federal Reserve lowered both the Fed Funds rate and the Discount Rate by .5%. This will have an immediate and positive effect on consumer short-term borrowing. Home equity loans and credit card rates will drop right away. However, we should not be overly convinced that long-term rates will fall as quickly.

The Fed Funds rate is the rate used by banks to borrow from each other in the overnight market. The Discount Rate can be used by banks to borrow directly from the Federal Reserve in the overnight market. These 24 hour rates are the only rates the Fed controls, directly. The mortgage rates that we live on are set by market factors. Long-term lenders sometimes react to a rate cut by charging higher rates on long-term money. Their concern is that the Fed's rate cuts will allow inflation to re-enter the market. Inflation, of course, is the great enemy of long-term lending. I will issue an update to this report in a day or two. Today's market closed before a full reaction could be measured.

More bad news for Florida homeowners

RealtyTrac reports today that the number of foreclosure filings in August jumped 36% since July in the US. That is more than double from the same time last year.

Florida was one of 3 states that had the highest foreclosure rates, according to their research. Our foreclosure filings were up 77% from July's total. We had 33,932 foreclosure filings! For us, that means that we had one foreclosure filing for every 243 households.

This research confirms what Realtors have been forecasting for weeks. Unfortunately, we are continuing to see the fallout from sub-prime loans. Also, the number of homes for sale are increasing at an alarming rate, meaning that we have over 18 months of inventory in the Orlando area (6 months of inventory gives us an equal buyer/seller market).

As I look at properties for sale in the newspaper, I can immediately tell you which properties are overpriced---be careful about choosing a Realtor in this market who is telling you about the price you want to hear when listing your property. If you have to sell, choose a real estate consultant that is going to tell you the truth. Going with the person who will list your house for the most money may result in your property sitting for over a year on the market. Hire someone that will explain that you have to stay ahead of the curve.

Unfortunately, this trend is only getting worse, not better. When will we hit the bottom? We won't know that until that time has passed......

Remodeling or home staging?

Thinking of remodeling the kitchen before you put your house on the market? My advice would be to renovate for your own enjoyment----don't expect to get the value of your renovation out of the sale....especially in this market!

Real Simple magazine says that the average price to renovate a kitchen in the US is about $43,860.

Today, granite counter tops and tile floors are becoming the standard. Builders are including them in new properties being built every day. You may not see a higher return for all the costs and hard work. Although you will recoup about 90% of your remodeling based on national averages, be sure to consult a Realtor if you think about renovating to only sell your home. Every area and every market varies, and other smaller steps may be effective.

I've seen a seller put in new carpet, and the new buyers rip it out the first day they move in and put in new tile floors. Renovation is not your only option. Realize that you can lower the cost, or consider a reduction during the negotiations with an interested potential buyer.

One inexpensive way to improve your house is to consider home staging options. Find a Realtor who knows about home staging and hire them to sell your home. I have helped some of my clients in the past. If you are interested in staging your home for selling, call me.

Moving on up.....

Since houses are such a great deal right now, does it make sense to "upgrade"? The National Association of Realtors suggests that you answer these questions:

1. How much equity do you have in your home? Although you can get a home for a good price, that means you have to sell yours for a good price, too. To make a profit on your current home, it is best to have equity in your home to justify selling it.

2. Has your income increased? A bigger paycheck is needed to cover the bigger house payment, closing costs, and moving expenses.

3. Does your neighborhood still meet your needs? With young children you need to consider the schools they will be attending in a few years.

4. Can you add on or remodel? Your yard has to be big enough, and you may not want the headaches of remodeling.

5. How are the interest rates? Make sure your payment will not increase significantly.

Reprinted from REALTOR Magazine Online, 2005.

Blame it on MTV

You sit back, watching Cribs on MTV, and start dreaming of your own mansion. When designing your place, consider how you entertain and what hobbies you enjoy.

Here are some of the latest ideas to customize your own home:

Your own home theatre: Have a mini-theatre placed in your house. At the Street of Dreams, I saw a mansion with a pirate-themed room---it looked like the inside of a boat. It may become dated in a few years, but a traditional style could work for quite a while. Don't forget the popcorn!

A home spa: Save all that money you spend traveling to an exclusive spa, and build your own! Include a giant shower, steam room, and aromatherapy. Masseuse not included.

A designer back yard: Besides a pool and deck, people are adding much more. Consider a backyard kitchen, a waterfall, a fountain, and lush landscaping. Or, combine the theatre idea and put in an outdoor theatre.

Extensive gardens: Instead of traveling to England or Versailles, create your own garden in your back yard. A landscape architect can design your dream.

Who knows...maybe you'll have your own episode one day....

Questions to ask a home inspector

When hiring someone to inspect your home, make sure you ask:

1. What are your qualifications?

2. How many inspections do you conduct each year?

3. What does your inspection include?

4. Do you have past clients I can contact?

5. How long will the inspection take? Can I attend? (if you want to!)

6. How much does the inspection cost?

Tax information for new home owners

Are you a new home owner, and concerned how this is going to affect your taxes? The IRS has created an on-line publication called "Tax Information for First-Time Homeowners." Look for Publication 530.

Check it out: http://www.irs.gov/

Some things to consider when purchasing.....

It's easy to call a "for sale" sign posted in the yard and ask the price....but that is not the only number you should consider...

1. What are the taxes on the home? Most likely they will go up when you purchase the house.

2. What are the utility costs? Have you figured them into your future budget?

3. How old is the roof and the appliances? You may have to repair or replace them, sooner than you expected if they are old.....

4. What was the price of the comparable sold properties in the neighborhood?

5. What is the home insurance payment going to look like?

These are just some of the questions to ask when making a purchase.....let a realtor give you the special treatment, and get these answers, and many more, for you!

Repair or replace?

One day you are standing in the kitchen, and you realize you cannot get the dishwasher to run. Kicking does not seem to be working, so you have to make a decision. Do you get the dishwasher repaired, or do you purchase a new one?

Consider replacing the following appliances after:

6 years: dishwasher, over-the-range microwave, and top freezer refrigerators.

7 years: dryer and top-loading washing machines.

8 years: Bottom freezer refrigerator, side-by-side refrigerator, electric or gas range, front-load washing machines.

The decision is based on the cost of repair, versus purchasing a new one, as published by Consumer Reports, May 2007.

You have got to be kidding me....

Today I was listening to the radio, and there was a commercial talking about a couple purchasing a home. It was a re-enactment of a true story, and it went something like this:

They had bought their first home, were planning to close on a Monday, marry on the next Saturday, and move in after their honeymoon. So far, so good......then the problems started....After their mortgage broker had their loan package for 45 days, he called on a Friday to say they could not close on the following Monday. He called his fiancee, and she told him to call a real estate attorney. After the call, the problem was resolved by the lawyer, and they closed on Monday.

The commercial then encouraged listeners to call a real estate attorney when purchasing a home. ........Wait a second.........

1. The mortgage broker had the loan package for 45 DAYS and couldn't close on the scheduled date?!?! A seasoned real estate agent can work with reputable, experienced mortgage brokers and can close a transaction in mere days----some as quickly as 48 hours.

2. Where was the real estate agent?!?! Why hire a lawyer and pay a lot of money (remember, lawyers cost at least $200+ an hour)? A Realtor can insure that the mortgage will be ready for closing, and as a buyer's agent, does not require the buyers to pay a dime!

3. Also, the lawyer was called once there was a problem....where was the experienced person who can help you find a good deal, negotiate an incredible price, and can take you through all the necessary steps to buy a house....was an inspection done? Does the house have termites? Mold? A good real estate agent is experienced to handle all kinds of problems, and has the contacts to insure they are handled properly.

Now, I am a lawyer and can appreciate the need for legal representation. A real estate attorney is on retainer by our brokerage----we do not practice law. However, why pay legal fees when you can get greater service for no cost?

Weekly interest rate comment from Mickey

Mickey Carlton's weekly comment about the mortgage market, for the week of September 3, 2007:

Mortgage interest rates dropped slightly over the last several days. Jumbo rates, in particular, showed a reversal of their recent uptrend. Conforming (below $417,000) rates on thirty year fixed loans can be expected to range from 6.5% to 6.875% depending upon loan size and the individual borrower's creditworthiness.

Weekly mortgage rate update from Mickey

Mickey Carlton's latest update:

Mortgage interest rates had a rather turbulent few days but, in the end, are virtually unchanged from a week ago. Borrowers with good credit and verifiable financial data can expect to find thirty-year fixed rate mortgages (below $417,000) priced at 6.5% to 7.00%, with no discount points or origination fees. Individual pricing will be affected by loan purpose and loan amount. Jumbo mortgages (over $417,000) and reduced documentation mortgages continue to climb in price as a result of the liquidity crunch. Thirty-year fixed rate jumbos are now priced at 8.00% for borrowers who do not wish to pay points.

Concerned you won't get a mortgage?

I have been talking to friends, and many are concerned that they would not qualify for a loan, due to the recent news of mortgage companies closing. Yes, approximately 120 mortgage companies closed, but there are many other companies still providing loan money for qualified purchasers. They are also continuing to refinance current homeowners.

The type of loan that created this problem, as I discussed a while back, is the sub-prime loan. It may be harder to qualify for a loan today, but many of the sub-prime loans had a high interest ARM. Qualifying for a loan with difficult credit only resulted in greater cost, meaning that many homeowners got into a house, but can no longer afford the mortgage payment.

If you have good credit, money in the bank, and a desire to purchase a home, you are a good candidate to apply for a 30 year fixed mortgage with a good interest rate. Last week, the interest rate ranged from 6.625% to 7.125% without having to pay points. An individual borrower's rate will depend upon loan size and creditworthiness.

Unsure of your creditworthiness? Call me, and I will be glad to provide the name of some very reputable mortgage brokers and bankers.

Who do you trust for homebuying advice?

My friend Sara at the office shared the following today:

Los Angeles economist Gary Watts gave a talk to the Orange County California Realtors where the main message was - keep news about housing in perspective. The popular press has called an end to housing for some time, says Watts:

"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." Business Week, 1969

"The median price of a home today is approaching $50,000 ... housing experts predict price rises in the future won't be that great." National Business, 1977

"The golden age of risk-free run-ups in home prices is gone." Money Magazine, 1985

"A home is where the bad investment is." San Francisco Examiner, 1996

Property is always a great long-term investment, and can benefit some in the short-term. Talk to a qualified Realtor to know what is going on in an area, and to learn what the media doesn't know yet.....

weekly interest rate comment from Mickey Carlton

The mortgage market is changing rapidly! In applying for a mortgage, your situation can change weekly. It is important to watch the numbers....Here is the weekly report from Mickey Carlton:

Mortgage interest rates have experienced an interesting few days. Conforming fixed rate loans (less than $417K) have declined about an eight since last week. These loans can be obtained for a range of 6.5% to 7% without discount points. The actual rate depends upon loan size and the creditworthiness of the borrower. Non-conforming rates that would include jumbos (over $417K) and niche products such as No Income Verification and Option Arms have skyrocketed in price. Fixed rate jumbos, for example, are now priced at least 1% higher than conforming fixed rate loans. One of my option arm programs increased 3.625 discount points in price last week. These increases are caused by the withdrawal of funding from increasingly nervous Wall Street investment bankers.

Interest rates for the week of July 30th from Mickey

Mickey Carlton, Mortgage broker, provided the following regarding interest rates this week:

"Mortgage rates improved somewhat with the sharp decline in stock prices during the latter part of last week. Those improvements were surrendered Monday and Tuesday with the gains in stocks. All eyes are currently directed toward the economy's prospects as reflected by stock prices. Currently, borrowers can secure thirty-year fixed rate mortgages with no discount points for a range of 6.625% to 7%, depending upon loan size and creditworthiness."

Our broker, Ron Acker, passed away this Sunday. He will be greatly missed by everyone in our office. He was a man who left an amazing legacy, not only for his family, but for our company and the community. My prayers go out to his family and friends.

His funeral will be held on Friday, June 15, 2007. In lieu of flowers, the family requests that those who wish to express their support consider a donation to either the Rollins College Ron Acker Scholarship Fund, 1000 Holt Avenue - 2754, Winter Park FL 32789-4499 or a donation to the Ron Acker Affordable Housing Foundation, P.O. Box 1689,Winter Park Fl 32790 in honor of Ron's dedication to these causes.

All of the Acker RE/MAX offices will be closed on Friday, June 15th.

weekly interest rate update from Mickey

The latest interest rate information from Mickey Carlton:

Mortgage interest rates rose considerably over the last several days. We are now seeing 30 yr fixed rate mortgages with no origination fees or discount points range from 6.75% to 7.25%, depending upon loan size and the borrower's creditworthiness. The cash price of ten year treasury notes hit a five year high in the Asian market during last Friday's trading session. Nothing appears on the immediate horizon that would reverse these increases.

The various agencies that "set" loan guidelines continue to tighten. We are expecting an announcement from Fannie Mae and Freddie Mac that conventional interest-only fixed rate loans will now be qualified by using the full principle and interest payment. In the past, we have qualified such borrowers with the interest-only payment. This is just another example of the current trend toward tighter loan guidelines.

Weekly interest rate comment from Mickey Carlton

Mickey's latest interest rate comment, as well as some info about his company:

Mortgage rates are slightly worse than last week. Thirty-year fixed rate loans can be obtained (without discount points) for 6.25% to 6.625% depending upon loan size and creditworthiness of the borrower.

Thomas Mortgage is a correspondent banker, meaning that we have "correspondent" relationships with multiple investors. A client came to us yesterday in search of 100% financing on a million dollar plus property. Zero down loans in the "super jumbo" range are difficult to obtain. The client's local banks had both turned him down. I managed to locate an investor (new to me) that specializes in super jumbos. The client now has an option that was formerly not available to him. This is the advantage of seeking mortgage assistance from companies who have multiple sources of fundings. Not even the biggest banks cover every niche.

60 Minutes misses the mark on the MLS

The National Association of Realtors, of which I am a member, wrote an article in response to the 60 Minutes Show on their May 13th segment. As a person who values the truth, sometimes to the point of over explaining, I was very disappointed by the inaccuracies in the report.

I have decided to reprint the article issued by the NAR in it's entirety:

CBS News Magazine Show Misses the Mark

May 14, 2007 -- In the world of political campaigns, it's a standard ploy to set the stage with an empty chair when one candidate refuses to debate his opponents. The CBS show 60 Minutes gave the NATIONAL ASSOCIATION OF REALTORS® the empty chair treatment in a May 13 segment that examined the impact of online brokerages on the real estate industry. The show featured interviews with a representative from the now-defunct eRealty and the president and CEO of Redfin, but no one from NAR, even though NAR twice offered and prepared Association spokespersons for interviews with Leslie Stahl. It was CBS that made the decision it would rather interview our opponents and let them make unanswered -- and inaccurate and unfair -- accusations about REALTORS® and NAR policies. The one-sided journalism and egregious errors served no one well, especially the once-vaunted news magazine show.

NAR staff spent nearly a year working with CBS, briefing producers on the issues involved. The producers attended the REALTORS® Conference in New Orleans and met with NAR's legal counsel for half a day in Chicago. Yet, still the segment was full of major errors. NAR is in communication with 60 Minutes about its unbalanced reporting and presentation of misinformation and will be sending the CBS network a letter demanding an opportunity to correct these errors and misrepresentations. Here are some examples of the misinformation:

Error: The six percent commission is "sacrosanct."

Fact: All commissions are negotiable. The average commission rate is not 6 percent, but 5.1 percent, according to Real Trends.

Error: NAR is the industry's "governing body."

Fact: NAR is a trade association. It does not govern the industry.

Error: In 2003, NAR issued new rules of its own that threatened to block Internet discounters' access to the MLS.

Fact: The Virtual Office Website policy did not block access to MLSs for discounters or any other brokers who are members of the MLS.

Error: The MLS is the database that lists virtually every home for sale in the country.

Fact: There is no single national MLS. Rather, there are more than 900 local and regional multiple listing services. These are not simply "databases" but private exchange of offers of cooperation and compensation between real estate brokers.

Error: Eight states have "minimum service laws" that require REALTORS® to provide a level of service many Internet discounters can't afford.

Fact: "REALTOR®" is a trademarked term and should never be used synonymously with "real estate agent." The intent of minimum service laws is to ensure consumers receive a minimal level of service from licensees.

Error: The brokerage industry has a powerful lobby. Eleven states flatly prohibit rebates.

Fact: The intent of anti-rebate laws is to prevent kickbacks in real estate transactions, not to limit brokers' incentives to attract customers. The brokerage industry does not lobby for anti-rebate laws.

Other key points 60 Minutes misrepresented or overlooked:
NAR supports all business models and favors none. Our 1.3 million members include REALTORS® who work on a full-service basis, as well as those who consider themselves to be limited service, fee-for-service, minimum service, and discounters. We think it's great that consumers have a choice today.
The real estate industry has harnessed technology for the benefit of consumers and will continue to do so. Real estate is both high-tech and high-touch, so can be enhanced by both electronic and personal interaction.
There is no such thing as a "standard commission." Commissions are negotiable and prices vary. The fact is that commission rates have decreased 16 percent from 1991 to 2004 (source: Real Trends).
The real estate business is unique in that competitors must also cooperate with each other to ensure a successful transaction, and MLS systems facilitate that cooperation. The first MLS was created more than 100 years ago as way for brokers to share their listing agreements with each another in hopes of procuring buyers for their properties more quickly and efficiently than they could on their own.
The MLS is a tool to help listing brokers find cooperative buyer brokers to help sell their clients' homes. Without the collaborative incentive of the existing MLS, brokers would create their own separate systems, fragmenting rather than consolidating property information.

weekly mortgage quote from Mickey Carlton

Weekly (05/08/07) rate comment from Mickey Carlton:

Interest rates remain mired in the 6.125% to 6.625% range for 30 yr fixed mortgages without points or origination fees. A borrower's actual rate is dependent on the loan amount and the his/her creditworthiness.

More people moving to Orlando soon

One interesting statistic that will affect the housing market in Orlando----the job market statistics.....Orlando was named the HOTTEST JOB MARKET in the nation, according to Business 2.0 Magazine. Approximately 72,600 new jobs coming our way in the next two years.

Interest rates for the week of May 2nd

Interest rate comment for 5/2/07 from my pal Mickey Carlton:

Interest rates for residential mortgages remain very stable in the 6.25% to 6.625% range for 30 year fixed mortgages without discount points. The actual rate will depend upon loan size and the creditworthiness of the borrower.

why you need a realtor

I know--ha ha--a realtor explaining why you need one of us. Yet it seems odd that people regularly go to their accountant for finance and tax questions, their lawyer for legal questions, and their doctor for medical questions. These are all specialized fields, with unique terms, rules, and areas of expertise, just like real estate. What do Realtors offer?

1. Real estate transactions are not easy. A real estate consultant can help you navigate legal contracts, give expertise on the pricing with statistics and research, and help you should a crisis during the process occur.

2. Transactions take a lot of time. Houses stay on the market for an average of over 90 days right now. Realtors spend every day learning the market, marketing, and networking. A lot goes on behind the scenes that is valuable. Once the property is sold, that is just the beginning of the process. Many things have to happen to get the property to closing.

4. Objectivity is needed when buying/selling. Home often symbolizes family, rest, and security--it is a very emotional undertaking. It is the biggest purchase a person will ever make. Having a concerned but objective 3rd party helps you keep focused on the right issues.

5. Market knowledge is necessary to price the home competitively. If you are contemplating selling your home, you may know what one or two homes nearby have sold for, but you don’t have the access to the market knowledge to adjust pricing.

6. Representation in the home selling process is key. Have an agent handle criticism of the house. As a trained professional, a Realtor is more attuned to the buyers’ needs and able to highlight the home’s features that have the most appeal to each buyer.

7. Real estate agents can provide trusted mortgage financing advice. That includes assessing a buyers’ ability to afford the property and help them locate the best places to obtain financing. Agents are also more experienced in prequalifying buyers so that they will not make an offer on a home they cannot afford.

8. Realtors know how to negotiate and overcome objections. Balancing offers and counteroffers, as well as handling many of the contingencies that usually accompany real estate transactions, can be frustrating or frightening.

9. Are you sure the transaction will close? Many think that once the purchase agreement is signed, the work is over. Many things are still needed, including: home inspection, termite inspection, title insurance, building permits for improvements, and so forth.

Watch the naysayers when it comes to real estate

The media is saying that the market is slow, and people should wait. Why? Here's the problem with their theory:

1. How do you know how low it will go? (boy, that sounded like Dr. Seuss!) You will only know when the market picks up, and prices are not declining. How long does it take for this information to get to you in the media? At least a month. They wait for statistics from the NAR, and those reports are created monthly. So let's say you want to buy at a low point. By only looking at the media, you will not get in at the lowest point----you will only hear that the market is picking up, and you have missed it.

2. Instead of going to the second source, why not use the source they use? A qualified realtor. Don't ask just one. Interview three of them. We all have statistics, and can provide actual numbers to help you make your decision.

3. Don't just consider the home prices. Look to the interest rates as well. Even if the prices continued to drop and the interest rate rose, you may not achieve a great bargain waiting. This week, Freddie Mac reported that the interest rate for a 30-year fixed-rate mortgage averaged 6.17%, the first decline since early March. At this time, the rate is low because inflation is low in most areas, except in the area of energy.

4. Have you considered your own timing? How long are you planning on staying in an area? Because the market is going back to normal at this time, you don't want to hold the property a short time. You want to keep it for a while so you can see a good return on your investment.

How foreclosures affect your neighborhood

I had a buyer ask me the other day about a problem in their current neighborhood. The house next door is going into foreclosure. Unfortunately, the husband and wife divorced, the wife got the house, and she could not keep up the payments.

Foreclosures are more of a concern in these recent months, due to sub prime loans. My mother said that in our hometown paper in Georgia there are pages of foreclosure notices. The big question: how does it affect your home's value?

I did some research to see what the experts say. The response: the price of your home may decrease by 1.5% if there is a foreclosure in your neighborhood.

How do you decrease the risk? If you are friends with your neighbor, and they express concern about making their house payment, encourage them to seek out a Realtor. Make sure they are trained on how to handle families in this crisis. Ask them if they are familiar with "short sales." If they are not familiar with the term, ask them to refer you to someone in their brokerage that is familiar with them. I can provide assistance in locating someone who can help them.

When this problem strikes, it is easy for someone to want to stick their head in the sand. This is not the time for that particular action. Quick action must be taken, to insure the homeowner, the bank, and the neighborhood is protected.

The Virginia Tech tragedy

It is hard to write about real estate when the country is greiving over what has happened at Virginia Tech. My thoughts and prayers go out to the families of the sons, daughters, brothers, sisters, fathers, and mothers that were lost yesterday. May God provide you peace that surpasses all understanding at this time.

6 Open House Tips

Thinking of having an open house? Here are some tips to prepare:

1. This may seem like a no-brainer, but I need to share it: make sure the house is very clean.

2. Turn on all the lights and open the curtains/blinds. People like an open, airy, house.

3. Take the pets to a friend's house, or board them.

4. Turn on soft classical music.

5. Take down all personal pictures. People will look at the pictures, and not your house.

6. If you have too much stuff in your house, box it up and store it.

Weekly mortgage rate quote

Today is Tuesday, the date I receive a weekly quote update from my friend Mickey Carlton, a mortgage specialist (you can learn more about him on my website: audreybutlerhomes.com).

This week, he says:

"Mortgage interest rates have been pushed higher by a combination of tension over the Iranian/British hostage issue, shortages in oil refinery capacity and last week's red-hot employment figures as released by the Labor Department. Borrowers are now paying 6.25% to 6.625% for thirty-year fixed rate mortgages without points. Specific rates are determined by loan size and the borrower's creditworthiness."

Thanks, Mickey!

A mortgage that sounds to good to be true?

If your inbox is anything like mine, I get about 5 requests a day for a mortgage or to refinance my home. Also, almost every website I visit has an ad for a loan product that says I can buy a $500,000 house for about $10.00 a month.....OK, it's not $10, but it might as well say that for the chance you have of getting that kind of deal. I don't care if you have an 800 credit score (the highest available)----you'll end up paying for these incredible offers in the end.

Don't jeopardize your credit---get these offers checked out. You can contact me at audrey@audreybutlerhomes.com, or contact one of the loan officers I have listed on my website. If you don't feel comfortable contacting one of us, you can educate yourself at:

http://www.federalreserve.gov/consumers.htm. They offer pamphlets explaining all the terms, and offering sound advice on what to expect from different loan packages.

Know the risks before you sign the bottom line!

Interested in cows, jazz or Shakespeare?

Looking for something different to do? Besides the theme parks in Orlando, there are other events to check out this spring.

In April, the Orlando-UCF Shakespeare festival is held at the one of the downtown theaters in Orlando. A mix of professional actors and students from the University of Florida, the troop performs a play written by the Bard. The shows are incredibly affordable-the most expensive ticket is $35.00, and there are special discount shows.

For entertainment that has been around Orlando before Mickey Mouse, attend the Central Florida Fair. Held in the last weeks of April each year, they boast 100 rides on the midway, food and craft competitions, and the livestock show. Their website address: www.centralfloridafair.com.

Just south of Orlando in Kissimmee, a Jazz Fest is held in every year in April. It features professional and amateur jazz performers at Lakefront Park.

Enjoy!

Buying a foreclosure is harder than it sounds

With a lot of foreclosures on the market, investing in some of them can seem like picking up found money on the ground. It's not as easy at it sounds. Not only will your expenses include the cost of the property, but repairs and holding costs.

The key is to buy at 30% below the after-repaired market value, according to Daryl White, a foreclosure investor in California. Never rely on appreciation to make a foreclosure deal work.

In Orlando, property is on the market for an average of 90 days----remember that you should figure in the costs of maintaining the property before it sells.

How to get rid of Spot's spots

Have a bad pet odor and trying to sell your house? This is one of the first things buyers notice when they walk into a home. It has to be eliminated to sell. Some suggestions:

1. Use a fluorescent black light to find the spots. They sell them at pet stores.

2. Remove the spots with a cleaner, and after it dries, with a odor neutralizer. Never use ammonia, because it can trigger more pet accidents.

3. Sarah Casey Newman from the St. Louis Post-Dispatch suggests 3 products---Bramton's Oxy Solution Pet Stain and Odor Destroyer (be sure to test it first) for cleaning; Safest disinfectant is Chlorhexidine, which is sold under such names as Novasan, Chlorasan, and Chlorhex by veterinarians and medical-supply outlets for deep cleaning. A temporary neutralizer: Fresh Wave.

4. If the odor is really bad, or there are a lot of spots, the carpet should be replaced or new wood flooring installed.

Remodeling an older home

How can you update an older home, and see some return in your investment when you go to sell it?

Eric Bramlett, with Broker Agent News gave these suggestions:

1. Gut the attic and raise the ceiling in the living room. Older homes have 8 foot ceilings, and it is one of the first things buyers notice.

2. Knock down the walls. Not the load bearing walls, but if you can open up the downstairs, it will flow better.

3. Overhaul the kitchen and/or master bathroom. Is one of the best returns.

4. If the house has one bathroom, add a master bathroom. Adds value, and convenience. Make sure there are 2 sinks, if possible.

Should I buy now?

Buyers are looking at houses, and they see that they have been on the market for up to a year. They ask, "if I buy now in a slow market and I want to sell in a few years quickly, am I stuck?"

Short answer: Not likely.

Long answer: There is no doubt that home prices are soft, and there are lower interest rates. Yet people in Orlando need to remember that we are coming off a period of very quick appreciation. In 2005 and the beginning of 2006, due to limited supply, home prices skyrocketed. Prices in Orlando had been low, compared to other areas of the country. Investors flocked to invest and make some great money.

Some of the people who put their properties on the market at the beginning of 2006 did not sell them as expected, and the market took a dramatic slow down from August to December of last year. Some property prices have been overinflated, trying to capitalize on what happened in 2005.

As for a home appreciating, the projected existing home prices are expected to increase in the coming years. The stronger gains will most likely happen in 2008. It won't take off like 2005, but appreciation is likely.

Why is the market sluggish now? Because there are a lot of properties on the market. The real estate market is cyclical, and it does not respond quickly to shifts. Because of the time it takes to build a house and/or a person to decide to sell and list their house, the housing market does not bounce back in a matter of days---it can take months.

With the strong economic factors expected in Orlando due to employment, new business, and the average number of people moving here daily, there is no reason to expect a recession, leading to depreciated property rates next year.

I don't have a crystal ball......

...so I read a lot about the real estate market from experts in the field. The chief economist for the National Association of Realtors, David Lereah, states that existing-home sales are projected at 6.42 million this year, and 6.66 million in 2008, compared with 6.48 million last year. Although some home sales will be reduced by the sub-prime loan restrictions, they should be gradually rising this year and next.

I know I am sounding like a broken record, but this is a good time to buy!

Are you ready to buy?

With all the discussions about sub-prime loans and home prices, many of the people I talk with are concerned they can't afford a home. You do need savings to be a good homeowner, for maintenance and emergencies.

But how much is too much to spend on a house?

The rule of thumb is 33%. Your monthly housing costs, including principal, interest, taxes and insurance should not be more than 33% of your gross income. With all your other loans and credit cards, your total debts should not be more than 38% of your gross income.

If you have any additional questions about affording a home, give me a call.

Osceola County---great and growing

Forbes has recently reported that Osceola County, Florida is one of the fastest growing counties in the US. It is in the top 25, according to the Census Bureau's analysis between April 1, 2000 and July 1, 2006. This is one of several counties in Florida that is viewed as an alternative to the priciest areas in South Florida.

Florida ranks #1 in Foreclosures

CNN Money reported today that Florida had the most homes in the foreclosure process nationwide in February, according to RealtyTrac, which reported a two-fold year-over-year gain in delinquencies – more than 19,144 statewide.

Foreclosure filings are also recording double-digit increases in California, Nevada and Arizona, mainly because large numbers of speculative investors cannot sell properties purchased during the recent housing boom.

Is now a good time to buy?

Yesterday I was out walking with a friend, who is currently renting an apartment. She is in a new job as a teacher, and doesn't know how long she will stay in her current position. She has all the necessary resources to purchase, but her question was: "Is now a good time to buy a house?"

I get this question frequently, given the current real estate market. So much has been changing over the years. Property values have significantly increased in Orlando. The news is reporting on the sub-prime loan problem every day. There are mixed messages in the media.

My response: Yes, it is a good time to buy. Why? The interest rates are good. There are properties to purchase in every price range. The key? Buying property is a great investment. You have tax advantages not available to renters. When you leave an apartment, you don't see any appreciation in your asset! Consider the advantages......

Some home selling tips

Yes, it's a buyer's market.

Sellers, want to know how to make your house more of a "hit" on the market? In a survey conducted by HouseHunt, Inc., the North Carolina Realtor's Association reported that:

3 out of 4 buyers found "closing costs paid" as an incentive to purchase

A distant second was "free upgrades"

Third: "free property inspection"

Fourth: "free appliances" or "flooring credits"

Artists unite!

Floridarealtors.org had an interesting article on it's website the other day. In determining where to invest in real estate in the next 5 or 10 years, look at where the artists are living now.

It seems that artists are the advance of what's cool, and due to their lower incomes, they have to seek out less expensive neighborhoods. One of the most significant reasons? An economist noted, "businesses don't often understand the extent to which art affects them. [Artists] are just as important as science and technology companies."

Designing women

Women make 83% of consumer spending decisions in the US. What does that mean in home design?

Architect Ann Olson and Designer Paul Foresman offered these suggestions:

• pay attention to de-stressing areas, like the master bath
• rear foyers are important--include lots of storage
• people now gather in the kitchen---size matters
• busy women demand closet organization systems
• natural light makes her happy
• women crave kitchen storage
• outdoor maintenance is a burden, so use things like maintenance-free decking
• always include a home office
• consider the needs of blended families who don't want to share bathrooms
• women like change, so incorporate flexibility in the designs

Save money with CFL bulbs

With all the talk of global warming (did you see the Oscars?) many are touting ways to slow the process. One suggestion is using compact fluorescent light bulb (CFL). It's benefits? One bulb should last 5 years, and could lower your electric bill 50 cents to 75 cents each month. If every American home replaced just one light bulb with the CFL, the US could save enough energy to light more than 2.5 million homes for a year and prevent greenhouse emissions of nearly 80,000 cars.

Study says home prices are stabilizing

The U.F. Bergstrom Center for Real Estate Studies reported on March 9th that single family home prices have leveled out. They conducted a survey of 318 industry experts, including market analysts, attorneys, financial advisors and industry executives. Wayne Archer, Director of the center is quoted as saying: "If you're thinking of buying a house, there's probably not much to be gained by holding out at this point. It doesn't look like prices are going to fall anymore."

Seems that buyers are agreeing with him. In February 2007, there were 2,387 new contracts in Orange and Seminole County. The lowest dip in the last year was December 2006, with 2,012 contracts.

The average mortgage rate for February 2006 was 5.92% for our area, compared to 6.07% for the same time last year.

Let the RE/MAX brand work for you

Before I became a real estate agent, I used to wonder why RE/MAX touted it's brand strength.

In questions about real estate companies, 91% of respondents say RE/MAX, making us #1 in brand awareness.

For the month of January, RE/MAX 200 Realty was the number one RE/MAX company in Florida, based on closed transactions.

That doesn't mean a hill of beans unless it has meaning for you, the client. Having worked for RE/MAX now and seen the inside of the company, here's what I've learned:

1. Top brand awareness draws top, professional people. Therefore, you're working with excellent agents who are well-trained and experienced.

2. As a seller, the RE/MAX name will transfer its goodwill to your property. As potential clients see the sign in your yard or view your property on the web, it will provide more confidence during the home selling process.

3. The name draws millions to the website, which has led to 1,991,228 unique site visits. Impressive potential viewings for any property.

4. In drawing the best agents to RE/MAX, the office is incredibly productive. Higher productivity means that greater resources are provided to support the agent's needs. Working with our office means you have the benefit of those additional resources.

Brits: new company for your Florida property?

Jack Snyder with the Orlando Sentinel wrote yesterday about a new business debuting here---a London based firm, Global Property Audit Agency. For $600 a year, British owners of property in the Orlando area will receive home inspections and property reports so they will be aware of how their vacation /investment properties are maintained.

Interesting.....I'd love to hear how it goes!

Home improvements provide big impact

Sid Davis, writer of Home Makeovers That Sell (AMACON, 2007) warns sellers that if they don't make updates on their houses they may pay dearly. The Miami Herald shared some of his suggestions to get the most out of the sale:

• start with the kitchen; it's the most important room in the house for buyers
• update the bath; replacing the mirror and vanity will net the biggest payoff
• clean the laundry room, and add storage shelves
• scrub, scrub, scrub! A clean house wows buyers

Many of the buyers I have worked with confirm these suggestions. More people enjoy entertaining from their kitchen these days, and expect it to be large. Also, sellers will immediately leave a dirty house. I know it can be a chore to keep the house clean at all times, but buyers set appointments. Most people decide to buy a house in the first minutes of being in the house. Bottom line: If it does not show well, it will not sell well.

Rising home values expected in Lakeland

Business 2.0 magazine ranked the top cities in the US for rising home values. On the list, Lakeland ranked 4th, with a 59% projected gain in home prices over the next 5 years. Between Orlando and Tampa, the home prices are much less than either city.

Two other Florida cities that could result in good investment returns include Panama City (#1) with an airport opening up next year and Vero Beach (#2) with moderate property taxes and beautiful weather.

Weekly mortgage interest rates 3.6.07

Depending on one's credit history and amount of the loan, thirty-year fixed rates are in the range of 6% to 6.5% this week.

Florida's existing home sales in January 2007

The Florida Association of Realtors (FAR) research for January 2007 shows that existing home sales in Florida remained slow in January. The median sales price for single family homes in January 2007 was $239,300. Last January it was $243,200 for a 2% decrease.

Sales of existing condominiums also decreased. 3,007 condos sold statewide, compared to 4,279 in January 2006. Although the prices of condos only decreased 1%, the amount sold decreased by 30%.

Real estate analysts said that as inventories become more balanced over the next several months, we are expected to see some modest price gains.

fun local event: Florida Strawberry Festival

My friend Mickey reminded me about the Florida Strawberry Festival yesterday---
Held in Plant City through March 11th, you can try: strawberry shortcake, strawberry sundaes, strawberry milkshakes, strawberry cobbler, strawberry.....ok, you get the idea! They also have country music performances and the coronation of the Florida Strawberry Festival Queen.

Check it out at: flstrawberryfestival.com

Don't get caught in the foreclosure wave

When the real estate market was booming these last several years, lenders often ignored borrowers' credit problems because the property values were rising. Now, with the downturn, lenders are looking at borrowers who are paying late.

According to the Christian Science Monitor, that means 2.2 million people are facing foreclosure and could lose their homes.

The majority of these loans are called subprime---meaning that the loans are for people who do not qualify for prime market rates because of blemished or limited credit. Wikipedia.com says that about 25% of the population falls into this category---they have a credit rating below 700.

In 1995, only 5% of mortgages were subprime. Today, Wall Street estimates it is about 18 to 24%.

I'm all for home ownership for everyone, but one needs wise when purchasing a home. With subprime loans come higher interest rates and a greater risk of losing your house. There may be a short-term gain of a new home, but it could cause greater credit problems down the line if you are unable to make the payment. Also, if you are able to improve your credit prior to your purchase, you could qualify for a better interest rate.

In response to this major problem, Freddie Mac said on February 28th it will stop buying subprime adjustable-rate mortgages and will require more borrowers to prove they earn the income they disclose on their loan applications. Unfortunately, this may be too late for many.

National home prices take a dramatic drop

The Dow Jones Business News reported that US home prices fell .7% in the fourth quarter, according to the new Case-Shiller price index.

Why is this statistic important? It is the fastest rate that national home prices have fell since 1992. Prices in the metro areas are down 2%, and overall home prices rose only .4% last year.

None of the price gains were in Orlando; The biggest gains were in Seattle, Portland, and Charlotte.

Current interest rates, 2.20.07

I got an e-mail from my friend, Mickey Carlton this week. He has a mortgage brokerage, and this is his update from Tuesday:

"Last week's address by the Fed chairman to the joint banking committee had a positive effect on interest rates. Thirty year fixed mortgages can be obtained for 6.125% to 6.5% (no discount points) depending upon loan size and the creditworthiness of the borrower....more and more borrowers are selecting interest only loans that provide for lower mortgage payments and therefore greater cash flow. Borrowers use the cash flow for other investment purposes. The interest only option is just that, an option. The borrower is free to pay down the principle at any time if his or her investment or income circumstances change."

Valentine's Vacation, pt. 2

No, unfortunately this is not a house for sale in Orlando! This is the B&B that my husband and I stayed in on Cumberland Island, Ga. The Greyfield Inn was opened by the Ferguson family in the late 1960's.

My husband and I arrived on the island by ferry. Because you cannot drive to the island, we enjoyed touring the beach and the ruins on the island by bicycle. The inn provided us a picnic lunch to enjoy every day.

In the evening, all the guests would enjoy an amazing dinner prepared by the two chefs. One of the highlights of the trip was Valentine's night dinner, enjoying a lobster appetizer and roasted lamb. We had lively conversation with our new friends from Boston, Georgia, and Florida telling about how we had each met our spouses!

Here are some other sights we enjoyed on the island:

The Dungeness ruins on the south side of the island.

the beach

the wild horses