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

Valentine's Vacation

Happy Valentine's day! Why am I sending wishes early? Because I am going on a Valentine's vacation with my husband. We are going to Cumberland Island, off the Georgia coast. Then we'll be in Savannah. I will be out of the office for the week.

I look forward to sharing some of the photographs from our trip!

Open house on Sunday, Feb 11th in Waterford Lakes

Tomorrow, I'll be holding an open house at 657 Terrace Cove Way, Orlando, 32828. The house has 4 bedrooms and 2 and a 1/2 bathrooms and approximately 2,334 heated square feet. List price: $399,900.

There are so many amenities in this house! It has a black bottom lagoon style pool with stone waterfalls; a new kitchen with granite counter tops and 48" upper cabinets; under mount sink and stainless steel appliances; gleaming hardwood floors throughout; family room wood burning fireplace; 3+ car garage; and a pond view.

Here's the virtual tour: http://www.visualtour.com/show.asp?T=843707

Come check it out: I'll be at the property tomorrow, Sunday, February 11th from 1 to 4. Google the address, and then follow the RE/MAX open house signs. See you there!

It's a buyer's market

For the last two days, the International Builder's Show has been held at the Orange County Convention Center. Several speakers have addressed the issue on every builder's mind: What is this year's housing market going to look like?

Of course, some level of speculation is involved---no one knows for certain. Yet experts can look at the economic factors, and weigh in on their thoughts about the real estate market in Florida.

Frank Nothaft, chief economist for Freddie Mac, predicted the builders would see improvements on the second half of 2007 and home starts continuing into 2008. However, he reminded them that the "wonderful days" of 2004 and 2005 would not return.

David Berson, chief economist for Fannie Mae, told the builders there would be a gradual improvement later this year after a few more months of a soft market as home sellers lower prices to entice buyers.

Mike Larson, analyst with Weiss Research (Jupiter), warned attendees to not expect miracles.

What does this mean for you, the buyer? It is a good time to buy!

Expect the builder's representatives to bargain with you. Does this mean you don't need to use a realtor when visiting new building developments? No. Rely on a realtor's knowledge of this market and incentives available to negotiate the best deal for you. Make sure you have representation to help you through the complete sale.

Deciphering home insurance

Do you have questions about home insurance? If you are thinking about purchasing your first home, you may want to check out www.iii.org. The site provides questions for you to ask your insurance company and explains what factors insurance companies use when determining the cost of your policy.

As last resort, many have turned to Citizen's insurance, a state-run insurance company to insure Florida residents are covered. In the past the insurance was seen as too expensive, but recently the insurance has been touted as a cheaper alternative for some. To find out more, check out the latest article written by Beatrice Garcia from the Miami Herald:

New insurance law suddenly makes Citizens an attractive option

A one year tax break for 2007 homebuyers

Although it is considered to have limited applicability, the President signed in new legislation that gives some home buyers another tax break this year. The deduction allows borrowers paying a monthly mortgage insurance premium to treat the amount as mortgage interest.

However, there are several qualifiers.

The provision only applies to mortgage insurance policies issued in 2007 for homes purchased in 2007.

The deduction is only available to people with less than $100,000 in adjusted gross income on a joint or single tax return ($50,000 for married filing separately). The provision phases our by 10% for each $1000 of adjusted gross income over $100,000, so there is no deduction for individuals or families with adjusted gross income above $110,000.

The home owner is supposed to receive a statement from either the lender or the mortgage insurance provider stating the proper amount of the deduction. To find out if this provision applies to you, speak to your tax specialist.

Audrey Butler's Real Estate Blog

Welcome to Audrey Butler's Real Estate Blog! In the coming weeks I will be adding lots of useful information about real estate. Please check back often to see updated content!