So you've located a sweetheart deal of a home buy through either a short sale or a foreclosure.  Congrats!  However, to all of you potential buyers here in Winter Haven, FL and across the nation - I say this: If you're expecting a huge break on the foreclosed or short sale home purchase, think again.  Florida appraisers and some real estate agents worry unsuspecting buyers will expect a tax windfall. Foreclosures and short sales – in which lenders take less than what is owed on the mortgage and forgive part or all of the remaining debt to avoid foreclosure – account for a good number of the homes that have sold in Polk County and surrounding areas as increasing numbers of home owners find it impossible to keep up with mortgage payments. But hear me on this: The tax rolls in your area wi... 10/09/2008

Buyers are returning to the housing market. Each month, The National Association of REALTORS® tracks homes under contract to sell, but whose closing has not yet happened.  It calls them "pending sales" and publishes a monthly report to quantify them.  The Pending Home Sales report is important because it's meant to predict future home sales activity.  History shows that 80 percent of homes under contract will "close" within 60 days, and most of the rest will close within 120 days.  If Pending Home Sales are up, it's believed, actual home sales will be up, too.  Based on this news, I think those of us here in Winter Haven, FL and across the nation can afford to be a little bit more optimistic. In August, Pending Home Sales jumped 7 percent from the month prior, returning to levels not s... 10/09/2008

The Federal Reserve made an "emergency rate cut" this morning, dropping the Fed Funds Rate by one half-percent to 1.500 percent. The move is meant to stimulate the U.S. economy. When the Federal Reserve changes the Fed Funds Rate, it often takes 9 months for the changes to work their way through the economy.  On a broad scale, therefore, we won't know if the cut truly "worked" until Summer 2009. But, as it relates to the good folks here in Winter Haven and across the nation, the rate cut spurred two immediate changes. First, because Prime Rate is directly tied to the Fed Funds Rate, Prime Rate fell by 0.500 percent today, too.  That means that interest rates on credit card debt and home equity lines of credit are now lower, reducing monthly interest costs for the majority of American ho... 10/08/2008

Monday, the Dow Jones Industrial Average closed below the psychologically-important 10,000 level for the first time since 2004.  Despite the milestone-marker breach, however, there was a large group of Americans with reason to cheer.  As stocks sold off, mortgage markets rallied to the benefit of home buyers and mortgage rate shoppers here in Winter Haven, FL and across the nation. Why Conforming Mortgages Rates Improved Yesterday Most interesting here is that rates improved for the same reason that the stock market fell.  Because of lingering concerns about the worlds' economies, investors lost their collective appetite for risk Monday.  In response, they sold their stock positions and parked the proceeds in the "safe haven" of U.S. government-backed debt.  The extra demand for safe i... 10/07/2008

If you're shopping for a mortgage here in Winter Haven or the surrounding Polk County, FL area - you'd do well to lock in a rate as soon as you see one you like.  In other words, a mortgage rate quote from the morning is likely to be "expired" by the afternoon. Congress approved the $700 billion "Bailout Bill" Friday, answering the question that dogged mortgage markets all week long: Will they or won't they pass it? The uncertainty prior to the vote created huge market swings that ultimately sent the Dow Jones Industrial Average to its worst week since the 2001 terrorist attacks, while causing similar damage in the mortgage markets. Mortgage rates worsened for the third straight week last week. However, if we take the congressional vote out of the picture and look strictly at last week... 10/06/2008

Those looking to buy or refinance a home in Winter Haven, Florida and regions across the nation using Fannie Mae Loan Products have a bit more breathing room - thanks to a reduction in one of Fannie's mandatory loan fees. In an effort to provide "the most market support possible", Fannie Mae is cutting one of its mandatory loan fees by 0.250 percent, effective immediately. Fannie Mae introduced the Adverse Market Delivery Charge in December 2007 to offset foreclosure and delinquency losses.  The initial fee was a quarter-percent of the amount borrowed.  Then, as market conditions worsened, Fannie Mae doubled its across-the-board loan fee to 0.500 percent in August of this this. As of today, the fee is back to its starting point. Since the start of the 2008, Fannie Mae has made 21 separ... 10/03/2008

So there's a lot of talk out there about the new Verizon Storm that's on the horizon.  Sorry - the pun was (nearly) unavoidable.  Will its touch screen and 3G network capability provide an experienced to rival that of the new iPhone?  Or - will this represent yet another failed attempt to match the cultish wonderment of all things Apple?  I've set up a neat little poll using Twitter via PollDaddy.  You can find it here.  Chime in and let me know what you think?  Do the folks at Research in Motion (RIM) have a snowball's chance in the "Hot Zone" of besting Apple's latest darling?  Or - are they destined to roam the technological landscape as a perennial "also ran?"  Take a Poll on this Topic Now!           10/02/2008

Here in Winter Haven, FL - and with the rest of the nation as well - household budgets get pinched and credit markets tighten, a growing number of Americans are making "hardship withdrawals" from their 401(k) plans.  One major fund group cites a 15 percent increase in activity from this time last year for various reasons including staving off foreclosure and medical emergency. However, 401(k) loans should only be made with careful consideration. On the positive side, 401(k) loans don't require a credit check.  This is helpful feature for people deep in debt, and who may have missed a payment or two to their creditors.  With no credit score requirement, a poor payment history won't disqualify a plan participant. In addition, most 401(k) loans can be arranged with just a phone call and a ... 10/02/2008

Monday, after the House of Representatives defeated the Emergency Economic Stabilization Bill of 2008, the stock market fell in historic fashion. The Dow Jones Industrial Average closed down 777.68 points, its largest one-day point loss ever. By Tuesday, however, optimism had returned to Wall Street. Assuming that the bill would pass in some form, investors poured back into the stock market, driving prices up.  Again, in historic fashion -- Tuesday's gains were the third-largest on record. The stock market activity is highly relevant to mortgage rates right now because when investors flee the stock market, they're often parking their money in bonds.  In general, that causes mortgage rates to fall. But, by contrast, when investors regain their appetite for stocks, as they did Tuesday, th... 10/01/2008

Thursday, federal regulators seized mortgage lender Washington Mutual.   The Seattle-based thrift became the third "big name" lender to close its doors since July, joining IndyMac and Lehman Brothers. In 2007, these 3 lenders represented about 10 percent of the mortgage market and their subsequent failures are confusing American homeowners. The most prevalent question: If my mortgage lender fails, are my payments still due? And the answer is an unequivocal "yes". If a mortgage lender is seized, goes bankrupt, or is otherwise closed, it doesn't change the terms of the bank's mortgages whatsoever -- just maybe the mailing address. This is because a mortgage (and its corresponding note) is a legal contract between the lender and the lendee, signed on the date of closing. It is binding and ... 09/26/2008

The August Existing Home Sales report was released Wednesday, showing a decline in the number of homes sold nationwide, and a reduction in the median sales price.  Not surprisingly, the media singled these two statistics out, playing them as a big negative.  They're not. The decline in sales wasn't good, but it wasn't terrible, either -- sales were actually up in half of the regions around the country.  And, citing "median sales price" is somewhat pointless because median sales price only measures the price point at which half the homes sold for more, and half sold for less. No, it's the third statistic in the report that deserves as much -- if not more -- attention that the previous two.  According to yesterday's press release, the national home supply is decreasing.  This is terrific ... 09/25/2008

Earlier this year -- and for the first time in its history -- the FHA changed its funding fees and mortgage insurance structure. Effective October 1, 2008, it's repealing those changes. Partly to keep FHA home loans affordable, and partly to comply with new laws, the FHA is rolling back its up-front fees and ongoing mortgage insurance requirements and replacing them with new ones. The new up-front FHA fees are as follows: 1.750% : All purchase and "standard" refinances 1.500% : All "streamline" refinances 3.000% : All FHASecure programs for delinquent mortgagors These fees are paid as a one-time cost at closing, and are calculated by multiplying the loan size by the fee.  A $200,000 FHA purchase, for example, now carries a $3,500 one-time charge. Ongoing mortgage insurance requirements ... 09/24/2008

Crude oil prices jumped $25 at one point Monday, ending the day up by 16 percent. This is an unwelcome development for home buyers because the same market forces that pushed up oil prices had a similar impact on mortgage rates. It all comes down to the U.S. dollar. Because both crude oil and mortgage-backed bonds are denominated in dollars, the fate of both instruments has been closely tied to the greenback lately. With respect to the mortgage market, when the dollar has been strengthening, rates have tended to fall.  And, when the dollar has been weakening, mortgage rates have tended to rise. Yesterday, the U.S. dollar had its worst one-day performance against the Euro in history so it only follows that conforming mortgage rates spiked.  Across the board, they added about a quarter-per... 09/23/2008

“How do credit checks affect my credit score?”  This is one question I receive more than any others.  To answer, I instruct clients that credit checks are classified into two main categories:  Soft Inquiries and Hard Inquiries.  It’s the hard inquiries that you need to look out for, as these are the ones that negatively impact FICO scores.  Hard and Soft Inquiries Defined Hard Inquiries Hard inquiries take place when potential mortgage lenders or credit card issuers review your credit file because you've applied for credit with them. Some examples include credit checks when you applied for an auto loans, mortgages or credit cards. Each time one of these companies runs your credit, it counts as a single inquiry.  One of the biggest concerns I help my clients overcome is whether their cre... 09/19/2008

Getting a great, low mortgage rate is often a combination of luck and preparation.  Consider what happened in conforming mortgages this week: Monday, mortgage rates plunged to their lowest levels of the year Tuesday, they bounced back in full Wednesday, they clicked higher by a eighth-percent Thursday, they clicked higher by another eighth-percent And so, here we on are Friday, four days after the best rates of the year, and the mortgage market barely resembles itself.  Despite what the papers tell you, mortgage rates are not low anymore. That's the luck element -- you can't plan for rates moving up and down. But, if you missed Monday's plunge, and don't want to miss the next one, all you have to do is get prepared.  Then, you're waiting for luck when it happens. There are 4 basic steps... 09/19/2008

Manufactured / Mobile home financing is better left to the experts.   This type of property is just DIFFERENT and, like anything else, if you do it every day you get REAL good at it.  I've done financing on 1965 single wides, 100% VA purchases, tons of loans for homes in 55+ parks on rented or leased land.  I'm an expert at FHA loans, and the FHA programs are a lot simpler to do these days.  If you have a manufactured home listing in Florida, call me to get the scoop on financing.                            Call me  - RANDALL  863-229-1235                         (Florida homes  only please)      09/19/2008

Tell the Story of Families Shut Out by DPA Elimination Draw attention to the families that will be shut out if DPA is eliminated. Critics say that those who don't come into homeownership with their own downpayment are not DESERVING of the opportunity. Call your elected officials and tell a story of a family that will be locked out of homeownership if HR 6694 does not pass by Oct. 1, 2008. Help dispel the myth that DPA homebuyers are financially irresponsible and destined for foreclosure. Folks, we HAVE to talk with our legislators. No one is going to do it for us.  Yes - WE HAVE TO MAKE THAT CALL.  Not sure who to contact?  No sweat.  FOLLOW this link...   09/18/2008

H.R. 6694 Will Move to the Floor for a Full Vote Washington, DC — September 16, 2008 By: Nehemiah Corporation of America VIDEO: Financial Services Committee Markup - HR 6694 DPAGroundswell.org Youtube Videos: A great source of information on what's going on how with DPAs.The discussion of HR 6694 starts at 9:20 minutes into the video A Bill that would save seller-funded downpayment assistance from being eliminated on October 1 passed the House Financial Services Committee today on a voice vote amidst strong bipartisan support. The Bill, The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008, or H.R. 6694, is expected to move to the floor for a full vote in the coming days. “We continue to believe that reinstating downpayment assistance (DPA) will en... 09/18/2008

Yesterday, the stock market suffered its largest one-day point loss since September 17, 2001, and its sixth-largest point loss in history. Not everyone got punished, however.  Two groups of people, in particular, welcomed yesterday's losses: Home buyers out shopping for a mortgage Homeowners that snoozed through last week's mortgage rate drop See, as the stock market dropped yesterday, investors anxiously moved their money away from risky investments like stocks and into the safe haven of government-backed debt.   This includes mortgage-backed debt, of course. As traders poured into bonds, bond prices rose.  They did so beginning at Market Open, all the way into Market Close. And, because mortgage rates move in the opposite direction of mortgage bonds prices, mortgage rates fell Monday.... 09/17/2008

    For the third consecutive meeting, the Federal Open Market Committee left the Fed Funds Rate unchanged at 2.000 percent. Of interest to mortgage rate shoppers, the FOMC led its press release with comments about the health of the financial and labor markets, calling them "strained" and "weakened", respectively.  The relative weakness in both of these areas has contributed to low mortgage rates of late. The FOMC also noted in its release that, although economic growth has slowed this year, the historically-low 2.000% Fed Funds Rate should foster "moderate economic growth" in the future. In the wake of the announcement, Wall Street is rallying.  Investors like what the Fed had to say and this is attracting money to the stock market at the expense of bonds.  Mortgage rates have given up... 09/16/2008