Sarasota Mortgage Rates | The Mortgage Skinny

In today’s tough market many banks are closing doors and others are struggling to survive.  The banks that decided to offer “specialized” financing are now wishing they hadn’t and for the banks that stayed on the straight and narrow are glad they did. 

The real estate world is going through what many would call a “Tough Time.”  Most people in the Real Estate profession  have either retired or found new jobs because the last year and a half home sales have dropped more than 40% in some parts of the Nation.  What has the government done to try and fix this?  Well the fed has tried numerous times over the past six months to stabilize rates by lowering the fed funds rate and create a turn in the market to get things back on track.  So far none of those attempts have worked because we’re still dealing with declining home prices and banks are still having a hard time lending money.

Just recently, the Fed started allowing big firms to temporarily borrow money from the Fed for emergency financing that only large banks had access to previously.  These actions have caused many to protest and raise concern because many believe the Fed is putting tax payers hard earned money at risk by simply bailing out Wall Street.  The Bush administration and Fed Officials state this is an action they needed to take to prevent an economic meltdown.  Analysts believe the way the first three months of this year have gone, we’re heading towards what many would call a recession.

Despite all the negatives associated with today’s market, there are a number of positives that we’ve noticed take place during this time.  For the people losing homes to banks and dropping prices on their homes, there’s always new purchasers out there looking for a good deal.  Now is the time for First Time Homebuyers to start buying their dream homes.  Two years ago a home that was going for $250,000 is now going for $150,000.  Despite what people may think, there are still a number of programs out there for First Time Homebuyers.  There’s been a large increase in local and state grants that are strictly for First Time Homebuyers that gives them a chance to own a home and afford it.

Another positive that has been a result of today’s tough market is lowered interest rates.  The Fed has desperately tried to stabilize this market and it hasn’t had much affect on the market so far, but one thing it has done is helped out home owners who have a Home Equity Line of Credit.  Two years ago the prime interest rate was somewhere around 8.25% but over the past year the Fed has dropped that rate and is currently at 5.25%.  This has saved many home owners hundreds of dollars which has created a little relief. 

It’s a tough market but if you can get through the “Tough Times,” just think about how nice the good times are going to be.  Also just remember, you’re not the only one going through “Tough Times,” the whole Nation is.

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For those of you who are wondering what rates are doing each and everyday, we’ve added a Mortgage Rate Update text message alert company on our website.  I think this is a great tool for anyone who is in the Real Estate world because it updates you with the U.S. Average Rates each and everyday and will also update you with rate changes that take place during the day.  If you’re out on the golf course with clients and didn’t go into the office to check on rates, you will already have them texted to you each and every morning.  It’s a great way to stay on top of the market and be able to quote a rate when you need one.

 People who can benefit from this text message alert are:

 Consumers: If you’re in the market to purchase a home or refinance your home this text alert is for you.  If you’re looking to refinance your home and are waiting for that rate to drop below 5.5% this alert will be perfect for you.  When you wake up in the morning and want to know if today is the day to refinance, all you have to do is wait for the text message.  Or if you are purchasing a home and your not exactly sure on when to Lock in your Rate with your Mortgage consultant, all you have to do is wait for the text.  It is the perfect tool!

 Real Estate Professionals:  If you’re in the real estate world and work with clients on a daily basis,  it’s always good to have an understanding of what the market is doing.  Rates change daily, and you want to have an edge on your competitors by being a wealth of knowledge.  If a client asks you “What are today’s rates on a 30 year fixed?”  All you have to do is look down at your cell phone and quote the rate that was texted to you that morning.  It’s a great way to stay on top of today’s market and inform your clients about what’s going on.

 Mortgage Loan Officers:  Obviously your business is based around Mortgage Rates and getting clients approved and locked in.  This tool is extremely helpful for your business especially if you’re put on the spot and not exactly sure if rates went up or down.  The best feature about this text message blast is that it sends you an immediate text if there has been a price change during the day on mortgage rates.

 Overall, I recommend subscribing to the Mortgage Rate text message.  If you work in the real estate world or just curious about what today’s rates are, then I would reccomend you subscribe today.  It’s just an overall great way to stay on top of the market and be in the know.  Type in your number below to sign up for your Mortgage Rate Subscription or text ”MortgageRate” to 41411.

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What better way to start 2008 then with a post explaining another money saving tax break you receive with your mortgage. The Mortgage Forgiveness Debt Relief Act of 2007 will have wide ranging effects on many American’s pockets. The  law takes action on the deductibility of private mortgage insurance premiums and also to the capital gain taxes from sales of primary residences. If you experienced capital gains in in 2007, my hats off to you!

Let’s take a look at the private mortgage insurance premiums, PMI for short. Many Americans are paying PMI because their down payment was less than 20% of their home’s value when purchasing. These American’s can pay hundreds to thousands of dollars depending on their down payment amount and loan amount simply because their high loan to value is risky to banks. PMI was never attractive to home owners and was more of a damper adding yet another payment that did nothing to your mortgage’s principal. Instead of paying (PITI) Principal + Interest + Taxes + Insurance, there was another element to the payment that looked more like PITIPMI. Pretty Ugly if you ask me! The new deduction is available to families with an adjusted gross income of $100,000 or less. Home owners with incomes up to $109,000 get a partial deduction on average the tax break is worth about $350 a year.

A penny saved is a penny earned… The ugly PMI has just got prettier!

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Our posts have dwindled and we’ve slowly lost touch towards the end of 2007. Well I have good news for our followers and fellow mortgage bloggers… We’re back! One of our new years resolution for 2008 was to step up our game in the mortgage world and what better way than to give TheMortgageSkinny a face lift with a clean design and more content. We beleive 2008 will be a great year for mortgage transactions, the worst has come and gone.

So sit back, relax, and enjoy the knowledge!

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Mortgage bonds fell pushing rates higher last week. Rates were pressured by high oil prices and remarks by fed Chairman Bernanke indicating inflation may increase. Fortunately significant stock weakness the latter portion of the week helped bonds recover some of the losses seen earlier in the week.

Important dates to look for….

Today watch the Retail Sales… Why? It’s important because it measures the consumer demand. A smaller than expected increase may lead to lower mortgage rates.

Also Watch Producer Price Index… Why? It’s Important because it’s an indication of inflationary pressures at the producer level. A weakness may lead to lower mortgage rates…

High oil prices continue to weigh heavily upon the financial markets. the health of the economy remains uncertain. Storcks continue to bounce up and down but recently showed some significant weakness. Inflation friendly data this week may lead to improvements in mortgage interest rates. However, unexpected consumer price spikes may push interest rates higher in the short-term. Be cautious heading into the release. Read the rest of this entry »

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Subprime mortgages have now been credited for bankrupting well over 110 lenders and seriously damaging operations at many major mortgage firms. They’ve reportedly wiped out 5 hedge funds, tens of thousands of jobs, and have led to millions of foreclosures with millions more on the way. And, as if that weren’t enough, subprime mortgages are also blamed for massive volatility in the stock, bond, credit, futures, and real estate markets here in the US and around the globe. Some say losses in the mortgage securities market alone could reach hundreds of billions of dollars this year.

This means that, for any Americans looking to buy, sell, or refinance a home, they are confronting a very different market from the one that existed just 6-12 months ago.

How did this happen?
The recent real estate boom was fueled by a period of record home appreciation and historically l Read the rest of this entry »

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