Florida mortgage borrowers may soon see mortgage rates rise as the U.S. economic forecast set forth from the November 4 FOMC press release was fairly optimistic.

The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.

Stating that the U.S. economy “has continued to pick up” since the September FOMC meeting and that housing market activity has increased, “Uncle” Ben Bernanke and company seem to believe that we’re out of the woods – or nearly so.

However, there is reason for a small degree of continued concern, which can be supported by several points the Fed advised us to watch out for including:

1. Job losses for American workers continue to mount
2. Businesses continue to reduce fixed investment activity
3. Financial markets still face some ongoing challenges

These concerns taken into account, the overall tone remained positive, as inflation appears to be holding steady for now.

Rounding out its statement, the Fed announced that it will hold true to its plan to keep the Fed Funds Rate near zero percent “for an extended period” and to remain committed to its $1.25 trillion pledge to bolster mortgage bond market.  However, the Fed will continue to wind down its mortgage market support over the next 5 months, reaffirming its March 2010 exit date.  For now, Fed support is helping to keep Florida mortgage rates down.

The Florida mortgage market reaction to the Fed’s press release is negative overall.  As such, mortgage rates in Florida are rising.

The FOMC’s next scheduled meeting is December 15-16, 2009.

Florida mortgage borrowers may want to lock in rates as soon as 2:15 PM ET today.  Why?  Well, “Uncle” Ben Bernanke and company (AKA the Federal Open Market Committee) will begin their 2-day meeting today in Washington D.C.  If history repeats, as it often does, their post meeting notes will amp up Florida mortgage rate volatility.

The FOMC’s post-meeting statements are brief but comprehensive – giving Florida mortgage companies and borrowers a bit of insight into what’s going on at the Federal Reserve.  While the results on these meetings are far from transparent – even with the extended meeting minutes in hand – Wall Street analysts put forth a great deal of effort picking apart every sentence for clues.

It’s why FOMC meetings tend to shake up the mortgage markets — for good and for bad.

After its September 2009 meeting, the FOMC issued the following in its press release:

1. Financial markets have improved
2. Housing activity has increased
3. Economic activity has “picked up”

Since September, we’ve seen these events and their positive effects on the economy increase with added momentum.  Credit risks have reduced further, home sales here in Florida and elsewhere around the nation are picking up, and, despite high unemployment numbers, the Fed continues to feel good about the prospects for a full economic recovery.

What Florida mortgage borrowers should watch for today…

As always, Wall Street’s best will be looking closely at today’s FOMC press release.  If the Fed hints at a belief in strong growth with inflation in 2010, mortgage rates should rise. Reference to slower growth should help keep rates steady.

Yes – it’s true… a bad economy or economic forecast means lower mortgage rates.

The FOMC is expected to leave the Fed Funds Rate within its target range of 0.000-0.250 percent — the lowest it’s been in history.  However, it’s what the Fed says Wednesday that will matter more than what it does.

If you’re floating a Florida mortgage rate or wondering if the time is right to lock, the safe approach is to lock prior to 2:15 PM ET Wednesday.  As a licensed Florida mortgage broker, I look forward to getting you situated so that you can take advantage of the best rate available.

One of the things I’m most happy to educate mortgage borrowers about are the protections put in place to make sure their lending experience goes as it should.  As such, I wanted to address one of the most powerful protections in place today – the Truth in Lending Act (TILA).

The history of the Truth in Lending Act (TILA) goes back back more than 40 years to 1968, where it was put into place as a protection for consumers requiring full and clear disclosure of the terms related to credit transactions – including all costs involved.

The Housing and Economic Recovery Act of 2008 put some key changes to the TILA into action  – with them taking hold this past July 30, 2009.  Some of these changes may not be immediately evident to you as a borrower.  However, there are a few that change the way key processes are put into place, and some that might impact when your mortgage loan closes.

What Changes Were Put Into Place?

Here are some of the main changes included in the July 30, 2009 TILA update:

1. Fee Collection Limitations Imposed: Your mortgage broker is not allowed to collect fees from you in excess of those fees required to cover the cost of obtaining your credit history, until you have reviewed the Truth-in-Lending (TIL) paperwork.

This paperwork includes, but is not limited to, the information found as part of the Good Faith Estimate (GFE) – which discloses your loan’s annual percentage rate (APR), finance charges, the amount financed, and the total payments you’re required to make. TILs must also be provided when you refinance your home.

2. 7 Day Waiting Period in Effect: Your home loan is not allowed to close until 7 business days after you have received the TIL. For mortgage transactions, business days run from Monday to Saturday.

3. A “You’re Not Committed” Statement has Been Added: Basically, you’re not obligated to close the loan just because you’ve received disclosure documents or have signed a mortgage application. Don’t let mortgage brokers or your bank pressure you into moving ahead with your home loan if you feel you just aren’t ready to do so.  If you don’t feel right about the deal, back away. Period.

4. New APR Change Waiting Period is in Effect: If the APR changes, a 3 day waiting period is tacked on before the loan can close. If you are quoted one APR, and then that APR changes for any reason, then the lender is required to wait an additional 3 days after you’ve received the revised paperwork before they can close the loan.  Any time the APR changes (which is hopefully not often at all), another 3 day waiting period goes into effect.

Overall, these changes are meant to provide you some added protections. In a perfect world, a handshake would seal a mortgage deal.  However, the times today are what they are.

Always require full disclosure and complete transparency from your mortgage broker. Once it’s delivered, the obligation then falls on you to read through your loan documents and decide whether the deal makes sense to you or not.

I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 888-859-7418 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!

Florida mortgage borrowers may have been mislead to some degree by recent newspaper headlines touting home sales numbers.

After the September New Home Sales report indicated that home sales volume was down from August, the mainstream media immediately released stories like the following:

• New Home Sales fall a surprising 3.6%
• Surprise Drop In New Home Sales
• Stocks slide as New Home Sales fall

However, as is sometimes the case, these headlines miss the point.  True, home sales volume is important to housing, but it’s not as important as home supply.

Florida mortgage borrowers would be well advised to dig a bit deeper into these reports.  Doing so, would reveal an interesting comparison point:

• New home sales volume fell 3.6%
• The number of new homes available for sale fell 3.8%

In other words, sales outpaced supply — a reoccurring theme this year and a positive signal for housing.

Since peaking in January 2009, the national supply of newly-built homes has decreased by 40 percent.  The average home sales price is up 15% over the same period.

This is why, as a Florida mortgage borrower, you should not glean your real estate news from the headlines.  You have to dig a little bit deeper to get the real story.

September’s New Home Sales report was plenty strong.  As such, we have more proof that the housing market recovery continues.

Orlando mortgage rates looked great for most of last week, but took a bit of a hit on Friday  – sending rates lower overall for the second week in a row.

There were two main reasons Wall-Street reacted negatively at week’s end.   The first was data-driven, while the second represents more of a “feeling things out” vibe among analysts.

Data wise – the few months leading up to September brought us better than expected payroll data.  However, once September hit, things turned south.  As such, we saw the September Non-Farm Payrolls report fall well short of expectations.

According to the data, 250,000 jobs were lost last month, raising the 12-month total to 5.75 million.  Not surprisingly, this increase in job losses sparked lower consumer confidence figures.  This brings us to the “feeling things out” part of our story line.

Analysts look at the job numbers are are openly wondering how the economy will ever begin to expand.  This is not good. – especially with the Holiday Shopping season just beginning to take off.

All of this “wondering” was enough to cast a shadow over the good Pending Home Sales numbers we saw last week.  On the whole, both Pending Home Sales and the Case-Shiller Index showed promise.

For the week ahead, the economic data coming out will be on the slim side.  As such, Orlando home loan rate shoppers can expect the “feeling things out” vibe to play an important role in the direction of mortgage rates.

The last two times that mortgage rates fell to these levels, they quickly rose again.   All the pieces are in place for that to happen again.

Orlando mortgage borrowers seeking to take advantage of the first-time home buyer tax credit have only 15 days to get under contract on a new home.  This program expires November 30, 2009, which puts you out only 60 days from today.

Do closings happen within 60 days from the time you start looking for a home?   Sure, it’s possible. But the norm lately has been right around this time frame when you consider that it takes first-time buyers as many as 2 weeks to find a home on which they want to bid.

Put another way – Orlando mortgage borrowers not under contract to buy a home by October 15 have a very small chance of meeting the November 30 deadline.  Miss this “due date” and there’s little chance of your claiming the tax credit.   Note: This is expressly true for those of you looking to benefit from short sales or foreclosures.

First-Time Home Buyer Tax Credit Basics

The First-Time Homebuyer Tax Credit program was put into effect as part of the 2009 economic stimulus plan.  IRS Form 5405 provides the details on this program’s qualification requirements and includes the following rules:

• Home buyers may not have owned a “main home” in the past 36 months
• The home may not be purchased from a parent, spouse, or child
• Adjusted gross income for the household must be below $95,000 for single tax filers and $170,000 for joint tax filers

The credit maxes out at $8,000 or 10% of the purchase price, whichever is less, and what makes this tax credit so great is that it is an actual credit –  not a deduction.  This means that if an Orlando mortgage borrower claims the full $8,000 and has a “normal” tax bill of $5,000 – she would receive $3,000 in cash from the US Treasury when her tax return is processed by the IRS.  Sweet!

However, it won’t be so sweet for you if you can’t close by November 30, 2009.  Miss this deadline and you miss out on the cash.

To borrow a tried and true idiom — “the clock is ticking.”  If you’re planning to use the First-Time Home Buyer Tax Credit, the time to act is now.  Give me a call at (863) 604-3019, or catch me over at The Florida Mortgage Blogger, so I can get your pre-approval process under way and get you on the road to tax credit heaven!

A Lakeland mortgage is your key to securing lasting enjoyment in one of Central Florida’s most beautiful cities.

Florida is a great place to live. It’s a shame that so many people only visit this warm and sunny state for vacations, especially when they could live there for a reasonable price.

The problem is that when some people think of Florida, they only think about the big flashy cities like Orlando and the Tampa Bay area. There are lots of other great cities in Florida, most of which are lower key than the big cities, but with a charm and appeal of their own. Take for instance Lakeland – you could get a reasonable priced Lakeland, Florida mortgage and move to this exceptional city.

Lakeland is located right in between two of Florida’s major centers, so it’s close enough to visit special attractions, but far enough away to avoid overcrowding by tourists.

Of course you’ve also got the nice Florida weather to look forward to. It’s especially nice with all of the lakes around the area, which is where the city gets its name. Don’t just think of it as a place to retire to when you’re ready to settle down.

A Lakeland, Florida mortgage could help you finance the home of your dreams in this city.

Of course you shouldn’t jump into any rash decision. You should carefully plan and consider your budget before you think about applying for a mortgage loan. Even the cheapest homes can be pretty expensive, so one should be in a very secure place before looking at a new home.

Fortunately, with a little research you can find out a lot about how much a mortgage will cost before you commit to anything. As long as you know the base cost of the house, there are calculators that can show you how much you’d be paying monthly, assuming you get a fixed rate mortgage. If you get an adjustable rate mortgage, then the rates will be unpredictable anyway.

Even if you don’t know the cost of a specific house for a Lakeland mortgage, you can just throw out a ballpark figure of how much you’d want a house to be worth. From there, you can see how the monthly payments would change if you add or subtract from the home’s worth.

If you want to live in Lakeland, you should expect to be looking at a a piece of Lakeland real estate (house, condo, etc) worth around $100,000 minimum, and potentially much more. On a fixed rate 30-year mortgage at current rates, that would cost you around $800 a month. It’s a good deal for living in a great city like Lakeland.

Lakeland Real Estate sales are beginning to pick up, and it’s time you started planning for your Lakeland Mortgage Financing.

For many people, Florida is the place that they dream of retiring. With the promise of constant warm weather and a lot of fun things to do, it’s no surprise that people flock there. You don’t have to wait until you’re settling down to enjoy it, though. You could look into getting a Lakeland, Florida mortgage and move to this great city nestled right in the middle of the state.

While a lot of people think of cities like Tampa and Orlando, there are a lot of other great cities in Florida. Lakeland is one of them. It’s located right in between Tampa and Orlando, two of the most exciting cities around – about an hour away from either of them. As the name implies, Lakeland is home to a lot of lakes. There are over 40 within the city. Lakefront property can be expensive but a Lakeland mortgage broker can help you find a Lakeland real estate professional capable of finding one within your price range. The city is also home to a number of great parks, so it’s a great place to settle down and enjoy the scenery.

Getting a Lakeland, Florida mortgage doesn’t have to be a hassle. There are tons of resources that can help you find the right home at the right mortgage rates to fit your budget. You have the ability to search around and see what a lot of different organizations are offering in terms of rates and terms for mortgages, so you can have most of the details sorted out before you even make a call. Just be sure that if you don’t understand the different terms, such as fixed rate versus adjustable rate mortgages and so on, that you speak with someone who can explain it. Needless to say, financing a house is a big decision and it’s important to understand everything fully.

At the time of this writing, the median value of a home in Lakeland, Florida is $155,000. That means if you took out a thirty year fixed rate mortgage at the current rate of 5.7%, you’d be paying about $901 a month if you mortgaged the full value of the house. Of course, the housing market is finicky and those numbers might be different tomorrow, but that should give you an idea of what a Lakeland, Florida mortgage would be like. It’s not a bad price to live in such a nice community with great amenities.

Those looking for a quiet yet activity filled place to call home should definitely consider buying a piece of Lakeland real estate. As always, if you’re looking for a Lakeland Mortgage, contact me at 863-604-3019 or apply online.  We’ll take care of everything for you.

The Lakeland mortgage scene has really tightened up of late.  Underwriting has become much more strict, and borrowers are having to come up with larger downpayments.  As such, I’ve noticed an increasing number of Lakeland real estate buyers looking to family members to assist with downpayment and closing cost requirements.

If you’re fortunate enough to have an immediate family member (parent, grandparent, etc.) willing to help you out, then consider yourself blessed!  However, you need to be sure you do things correctly, or your downpayment gift may not be allowable.

Read on to find out what the rules are so you don’t get bit.

The Right Way to Receive Lakeland Mortgage Gift Funds

If gift funds from a family member are in the cards for you as you move forward with your Lakeland real estate purchase, you should be aware that you can’t just deposit the money in your bank account.

Here are the 3 main things to do when receiving Lakeland mortgage gift funds:

1. Complete and sign an acceptable gift letter
2. Document the gifter’s (your family member) withdrawal of funds with teller receipts
3. Document the giftee’s (you, the borrower) deposit of funds with teller receipts

Follow this recipe, and you should be good to go.  As you can see, Lakeland mortgage lenders pay close scrutiny to downpayment gift funds and how they are managed, and with good reason.

First, lenders today are fending off increasing acts of mortgage fraud – so they need to be sure that the funds in question are “clean” (i.e. not laundered).  Second, lenders must be certain that the gift in question is in fact a gift and not a loan in disguise.  This is where the “gift letter” comes into play.

Lenders nearly always require your family member (the gifter) to produce a signed, dated letter affirming that the money they give you, the borrower (or giftee), is in fact a gift and not a loan.

Here is some sample language you can use for the gift letter:

I am the [relationship to recipient] of [name of recipient] and this letter serves as evidence that I am gifting [name of recipient] [amount of gift] to be used for the purchase of the home at [complete address of property].

This is a gift — not a loan — and there is no expectation of repayment.

Signed,
[Signature of gifter]

A Note on Gift Fund Tax Liability

It’s also worth noting that gifting funds between family members can create both legal and tax liabilities.  If you’re not  certain about how donating or receiving a gift may impact you and your Lakeland Real Estate purchase, call or email me directly.  If I can’t help you with your questions, I can refer you to somebody that can.

The process leading up to refinancing your Lakeland, Florida home loan can be daunting, not to mention frustrating. We don’t like to pay too much for anything – especially one of the most important assets we’ll ever own – your Lakeland, Florida home!

Going about your Lakeland mortgage loan refinance correctly will help you make sound decisions that will actually save you money.  Here are a few things you’ll need to do.

Obtain a Copy of Your Credit Report

One of the first things you need to do as you prepare for your Lakeland mortgage refinance is to know where you stand regarding your credit history, and you can do this by ordering a copy of your credit report from each one of the main three credit reporting companies (Trans Union, Experian, and Equifax).

Lakeland, Florida mortgage lenders will consider your credit score (FICO Score) heavily when they decide on the  home loan interest rate, conditions, and home loan terms you’ll receive as part of your mortgage.

Note: As you read through your credit report, you’re bound to find mistakes in the form of items that should have been removed or should never have been put on  your report in the first place.   These mistakes or errors will flat out cost you money in unnecessary interest payments, so be sure to look for them and seek dispute them as soon as they are discovered.

Accessing Your Credit Reports for Free

Per government regulation, you are entitled to one FREE credit report from each of the three main credit bureaus once per year.  Do a Google Search for annual credit report, and you should have no problem locating sources where you may obtain these copies.

Locate a Lakeland, Florida Mortgage Broker

After reviewing your credit reports, you’ll then need to locate a Lakeland mortgage broker.

You’ll find the best mortgage refinance deals through a wholesale mortgage lender.  But you can’t just ring up Joe the Wholesale Mortgage Lender and obtain a mortgage – you’ll need the services of a mortgage professional who can shop your mortgage refinance application around to several of these wholesale lenders in order to find you the best deal possible.

Why Not Just Go to My Bank?

Your bank may very well have a mortgage program that will fit your unique financial situation.  However, you should know that with a Bank, you will be limited to their loan products.  A Lakeland mortgage broker will be able to open you up to many, many more options.

In any case – you’ll want to take the time to do your initial homework, pull together your documentation, and most of all, be sure to contact a qualified Lakeland mortgage broker to help ensure that your refinance goes well.

Final thought on Lakeland, Florida

Those looking for a quiet yet activity filled place to call home should definitely consider buying a piece of Lakeland real estate. As always, if you’re looking for a Lakeland Mortgage, contact me at 863-604-3019 or apply online.  We’ll take care of everything for you.

Other Posts of Interest:

1. Locating the right Lakeland Mortgage Broker
   
2. 3 Facts about buying a home in Florida
3. Gaining an Accurate Perspective on Florida Mortgage Rates
4. Finding the best mortgage rates in Florida