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!