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

Weekly mortgage update from Mickey, 2.19.08

Mickey Carlton's lastest, current, weekly interest rate update:

Mortgage rates experienced a sharp increase over the last several days. Strengthening equity prices and the likelihood of a further cut to short-term interest rates seem to be the major culprit. Long-term lenders do not like the inflationary implications of repeated and aggressive cuts to short-term rates. The Federal Reserve, in an effort to save the economy from recession, is actually worsening the picture for mortgage pricing. This week, 30 yr fixed rate mortgages without discount points can be acquired in a range from 6.25% to 6.625%, depending upon loan size and the borrower's creditworthiness.

If you need to be prequalified, contact me at: www.audreybutlerhomes.com

thank you!

One list where I am glad we are not at the top

I was listening to Clark Howard the other day (I really enjoy his show on talk radio) and he was talking about the top 10 cities with the most foreclosures. Well, working in Orlando I was ready to hear our name. I was so surprised! Even Atlanta was higher than us on the list!

I guess the surprise is based on how many people are calling me in crisis, or how many pre-foreclosures I see when I am out showing property to my clients. It is encouraging to know that as a city, we have the possibility of bouncing back within a few years.

The information on foreclosures can be found on www.realtytrac.com

Although we are not in the top 10, we are number 20 on the list.

As I research about the market on a daily basis, I want to keep on top of these statistics so I can best serve my clients. If you have a home to sell, or want to buy something in this market, please contact me through my website, www.audreybutlerhomes.com

PMI deduction extended

As I mentioned in my last post, I am providing an update on some of the latest laws passed relating to home ownership.

Today the topic is PMI: private mortgage insurance. PMI is required as part of your monthly payment to the mortgagor when you did not put down 20% or more in the purchase of your home. The insurance is to cover the mortgagor---not yourself.

The good news is that Congress voted to extend the deductibility of PMI premiums until January 1, 2010. If your adjusted gross income is below $100,000, you are eligible for a full deduction; it is phased out after your adjusted gross income is above $110,000. You also had to purchase your home after 2006.

If you have any questions, it is best to talk to your tax expert. I know enough to tell you to talk to someone who knows all the details! I hope this information points you in the right direction. Good luck on your tax filing this year.....

Good news for "short sale" owners

At the end of the year, the President signed in new legislation....I have to admit with all the news is has been hard to figure out what has been written into law. I decided over the next few posts that I would share what I have learned in hopes it will help those who currently face the "short sale" prospect.

A "short sale" is the effort by a Realtor to sell someone's property who is facing foreclosure. Prior to the bank or mortgage company auctioning the property, the property is marketed, and the Realtor works with the mortgagor to accept less than what is owed on the property. This remedy is being used a lot nowadays because of the number of adjusting loans and the property values in Orlando not rising to allow for re-financing.

In many cases, the house ends up being sold for $25,000 to $50,000 less than what is owed. In the past, the amount that was forgiven by the bank in the "short sale," but a 1099 was filed, and the amount was attributed as "income."

Yes, it is hard to imagine, but if the loan cannot be paid, how did the government expect them to pay taxes on the forgiven amount? But I digress.

Law was inacted that eliminates the tax until January 1, 2010. The law is retroactive to January 1, 2007.

If you have any questions about short sales, or the options you can have with a mortgage company when you cannot continue to make the payments, please e-mail me at www.audreybutlerhomes.com or contact me at the numbers provided.

Mickey's weekly mortgage rate update, 02.12,08

Here is the Weekly Interest Rate Comment from Mickey Carlton for 2/12/08:

Mortgage rates have remained fairly steady for the last week or so. Currently, a borrower can obtain a 30 yr fixed rate mortgage at the conforming limit (<$417K) with no discount points for rates ranging from 5.875% to 6.5% depending upon loan size and the borrower's credit worthiness.

If you have any questions, do not hesitate to contact me at www.audreybutlerhomes.com

Out of Print

Many have asked me about newpaper advertising when it comes to marketing a home. Unfortunately, it is not an effective means of selling your home in 2008.

One reason is the demise of the printed word. As the New York Times is reporting, the Sun-Times media group is closing many of its newpapers, and trying to sell off the Chicago Sun-Times. You can read the full article at:

http://www.nytimes.com/2008/02/07/business/media/07paper.html

It notes that less advertising dollars from home sales are part of the concern; I know this is not a big surprise to many. In my years as a Realtor, I have only seen one person come into my open house with a newspaper in their hand. I cannot count the number of times someone has started their home search on the internet.

I know this is not a big surprise to many, but I do think we see a line being drawn this year---where the internet will be recognized as the go-to source for advertising homes.

If you have any questions about marketing your home or internet marketing, contact me: www.audreybutlerhomes.com

thank you!

Weekly mortgage rate update from Mickey, 02.05.08

Here is the weekly update from Mickey Carlton, Mortgage guru:

Weekly Interest Rate Update for 2/05/08:

Mortgage interest rates have been relatively calm for the last few days. We are improving today. Currently, borrowers can expect to obtain 30 yr fixed rate financing without discount points on conforming loan amounts (<$417,000) in a range from 5.5% to 6.25%. Actual rate will depend upon loan size and the individual borrower's creditworthiness.

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

thank you!

Rentals in Orlando

Tired of checking craiglist.com or confusing rental websites? You do have another option: you can contact a Realtor. In our office we have a rental department in our RE/MAX office (http://www.orlrent.com/) with available properties to view.

Also, I can look up rental properties in the MLS---the system we use to list properties also includes homes and apartments for rent.

If you are interested in having me send a list of rentals for a particular area or in a certain price range, you can contact me at: http://www.audreybutlerhomes.com/

Concerns for selling existing homes

When I was listening to Howard Clark on talk radio yesterday, he highlighted the recent news about new home sales statistics vs. existing home sales. Did you hear the news? The latest reports show that existing home sales are down 13%, but that new home sales from builders are down twice that percentage.

Besides the trauma that home builders feel, it has an impact on the homeowner who is currently trying to sell their home in this market. Unfortunately, existing home sellers can not equally compete against a home builder. He/she is able to offer incentives that the existing seller cannot. Also, they can drastically lower the price to avoid bankruptcy and prepare to fight another day.

Unfortunately, I am starting to see the impact on my current homeowners that have listed with my company. With the last 2 agents that I spoke with to get feedback on what their clients thought of my listings when they showed them this week, both said that their clients were leaning towards the new homes because of the incentives being offered.

Lesson to buyers: bargains to be had in new homes!

Lesson to sellers: reiterate how long it took for your punch list to ever be completed by the builder!

for more information, check out: www.audreybutlerhomes.com

Weekly interest rate comment from Mickey, 1.29.08

Happy voting day here in Orlando!

Boy, I cannot believe it has been a while since I have posted anything on my blog....I have been so busy! I have talked to other agents in the office, and we are encouraged by the number of people that are interested in selling and buying homes. It has definitely picked up since last fall!

Ok, back to work....Here is the weekly interest rate comment from sage Mickey Carlton:

Weekly Interest Rate Comment for 1/29/08:

Mortgage rates have risen with the recovery in stock prices. We experienced rates in the low “5’s” last week at the depth of the stock plunge. Mortgage interest rates are currently priced at 5.75% to 6.25% with no origination fee or discount points for conforming (<$417K) loan amounts. An actual borrower’s rate will be determined by loan size and the borrower’s creditworthiness.

If you need any assistance or have questions, I'm never too busy! www.audreybutlerhomes.com

Weekly mortgage interest rate comment, 1.15.08

The weekly interest rate comment from Mickey Carlton, mortgage guru:

Mortgage interest rates continue their (painstakingly) slow decline. This week we are originating conforming (<$417K) 30 yr fixed rate loans in the 5.75% to 6.5% range (no discount points). An individual borrower's rate depends upon his or her loan amount and creditworthiness.

Now is a good time to buy! If you are interested in purchasing a home, contact me at audrey@audreybutlerhomes.com

Realtor Mythbuster

Some people hold the caricature of a Realtor, always talking on their telephone, driving a big, nice car, and making money by showing a couple of people a few houses and showing up at the closing to get a big, fat check.....

OK, time to debunk some of these myths....

1. Yes, Realtors are always on their telephone, hopefully working.....with contradicts the fact that we do little work...While it can appear that the agent only showed up to show a few houses and fill in a contract, there are many hours and a lot of hard work that went into those meetings. Through a transaction, your Realtor will have read hundreds of pages, talked to numerous people, and navigated you through dozens of difficult questions and issues.

2. Not all Realtors drive big, nice, cars! I have a Volkswagen, but I am learning that if someone doesn't follow in their own vehicle, then you need a nice size car to drive your clients around!

3. Average Realtors make only about $48,000 a year! Yes, there are some "power agents" that make more, but we are NOT paid a salary....we work for a broker as a INDEPENDENT CONTRACTOR meaning that if a buyer does not buy a house, WE DO NOT GET PAID. We are a service industry, so your agent should be responsive to your needs, but understand that we have to work very strategically. No only do we not have a salary, but we have to pay office fees, association fees, continuing education classes, all supplies (including signs, supra keys, lock boxes, advertising, etc.). Now I am not complaining----all small business owners have their costs. It is all part of doing business.

I wanted to let you into the world of a real estate agent to understand our perspective----It is best that a potential buyer be pre-qualified for a loan amount so that your Realtor is not driving you all over town only to find out you can't buy a house. Why list a home for a client to only have it priced so high that it cannot get any showings, (i.e. no contract)?

For some people they have had a bad Realtor experience....I am sorry to hear that. Before using a Realtor, ask for referrals, as you would with most contractors. Talk to your friends for referrals, and ask your Realtor the hard questions to make sure you trust them.

If you have any questions or comments, write me at audrey@audreybutlerhomes.com~

Countrywide is saved

It has been said by many experts familiar with the mortgage market that Bank of America has prevented Countrywide from impending bankruptcy (Check out my last blog entry on my concern about the company). The bank announced that they would be purchasing Countrywide with 4 billion in stock.

Although it does not have much effect on the average home buyer, it does possibly prevent further downfall of the mortgage market. May 2008 see the market stabilize, and purchasers with good credit scores enter back into the home buying market.

If you are interested in buying this year, be sure to check out my website: www.audreybutlerhomes.com

Is Countrywide in trouble?

Amid rumors on Wall Street, it looks like Countrywide could be in trouble. I had a friend predict that the company would not be in business by the summer of 2008.....unfortunately, she may be right.

I believe part of the problem started when they refused to work with their clients. Many got into a fix when their loans readjusted. I know that they have investors to answer to, but what was wrong with readjusting their loans, either out a few extra years, or earning a little less so someone could stay in their home?

Make sure when you are working with a Realtor that they are able to help you understand what kind of loan you are getting into when you buy a house. I had some clients a couple of months ago that wanted a loan, but with their credit they interest rate would have been unreal. I recommended that they wait about a year and repair their credit, before trying to purchase a home. No need to cause additional stress.....

If you are interested in talking about your credit situation, I can put you in touch with some great people, with no obligation. E-mail me at audrey@audreybutlerhomes.com

Mickey's weekly mortgage rate comment, 1.8.08

This week's mortgage interest rate comment from Mickey Carlton, mortgage specialist:

Mortgage rates improved somewhat after last Friday's employment figures. The report indicated a dismal number of new hires for the month of December. Investors sold stocks and bought bonds after the numbers were released. As is usually the case, their actions caused rates to drop. Mortgage applicants can now find 30 yr fixed rate mortgages (loan amounts <$417K) in a range of 5.75% to 6.5% without paying discount points. An applicant's actual rate will depend upon creditworthiness and loan size.

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

Thanks!

Happy New Year! Weekly mortgage update from Mickey, 1.2.08

Happy New Year!

I hope you had a great holiday. I know I did! I am back and renewed with new ideas for 2008.

Here is the latest update from Mickey, Mortgage Extraordinaire, for this week:

A disappointing report on the level of US manufacturing activity sent stocks lower and bonds higher on the first trading day of the new year. This has resulted in an improvement in mortgage rates. Currently, 30 year fixed rate conforming (<$417K) mortgages can be had for 6.00% to 6.5% without points. A borrower's actual rate depends upon loan size and creditworthiness.

Mickey also notes:

New and more restrictive loan-to-value guidelines continue to flow from Fannie Mae and Freddie Mac. This means higher down payments in many instances. These new rules are going to come into play in areas marked as "declining markets" by the appraisal and on all condos.

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