Sarasota Mortgage Rates | The Mortgage Skinny

If you’re thinking of buying a home, now might be the right time! Interest rates have fallen below 6.00% to start the year in 2008 which is below 2007’s national average of 6.44%.  Mortgage rates have always been known to fluctuate but it seems as though 2008 is starting out strong.

The unexpected and steady decline in rates could help cushion the home sales for 2008 by making mortgage payments more affordable.  With the decline in home values, now is the time for first time homebuyers to purchase.  With an interest rate of 6.00% and a home valued at $150,000, a monthly mortgage payment would cost $899 for Principle and Interest.  Most renters can afford this and can now have the opportunity to own and not ever have to deal with landlords again.

With interest rates as low as they are today, it’s also giving current home owners a chance to refinance out of their current situations.  Many Americans are dealing with fluctuating ARMs (Adjustable Rate Mortgages) that are coming due and it’s causing their monthly payments to increase which then causes many to forclose.  Lower interest rates could not have come at a better time especially with the estimate of $1.2 trillion in ARM loans scheduled to reset to higher rates this year.

Lower interest rates help the economy, it gives first time homebuyers the opportunity to own, it gives current home owners the opportunity to refinance into better situations, and all of this causes more spending in the economy.   My advice would be to call your Mortgage Consultant and ask to get an annual mortgage check up.  If you’re not currently satisfied with your situation, then now is the time to make some changes and save! 

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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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Until recently, seniors 62 years of age and older have not had the best choices when it came to getting cash from their homes. Traditional home loans only offered the option of either selling one’s house or borrowing against its equity.

With reverse mortgages coming on the scene, seniors now have some additional cash-flow alternatives. This type of loan allows mature borrowers to convert their home equity into tax-free income without leaving their current home or making mortgage payments - and they do not need an existing income to qualify. 

How a Reverse Mortgage Works… Read the rest of this entry »

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