Sarasota Mortgage Rates | The Mortgage Skinny

Few things are more exciting than signing a contract to purchase a home. After the excitement dies down, though, many homeowners are often discouraged by the complexity of the mortgage application process.

But applying for a mortgage doesn’t have to be a complicated and cumbersome process. These five steps can help the mortgage application process run smoother, faster, and more efficiently.

1. Know your credit score. Your credit score is the most important factor in determining what type of mortgage you may qualify for and what your interest rate will be, so it’s something you should obtain early in the process. In general, an ideal score is anything above 680, while a score below 620 may result in higher interest rates and tougher loan programs. But don’t fret, there are loads of programs for the credit challenged borrowers.

2. Prepare the paperwork and other necessary documentation. When you meet with your mortgage loan officer, you’ll typically need to bring the following: Read the rest of this entry »

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Making home improvements has almost become a national pasttime. With the recent slowdown in the housing market, some experts predict that even more Americans will choose to remain in their homes and fix them up, rather than try to sell and move up to a larger or newer home.

If you’re considering making more home improvements or renovations, it’s smart to consider not only the value of the improvements from a lifestyle standpoint, but also how well they will hold their financial value. Of course, almost any improvement will have “value” to you, the homeowner, as you enjoy more space, more light, etc. But you should also consider how the project will impact your home’s value when it comes time to sell.

While few renovations will fully pay for themeselves, some clearly hold their value better than others. To help homeowners determine what kind of improvements hold their value best, the National Association of Realtors and Remodeling magazine publish an annual “Cost vs. Value Report” each year.

Here are some recommendations based on the most recent report:

1. Kitchens are at the heart of it - The kitchen is the heart of the house for most buyers and is usually a smart place to invest your home improvement dollars. Read the rest of this entry »

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In today’s market many people are starting to feel the pressure of having to make those high and forever changing Home Eqiuty Line Of Credit payments.  The prime rate right now is at 8.25%, and we can finally thank the Fed for not adjusting the Fed Funds rate the last few times they’ve met. But with an ever changing economy and market, it’s still an uncomfortable feeling to have.

So How can borrowers get out of a HELOC hole?

Prepay the loan. If they have the cash, they could pay off the loan immediately. If it’s less than three years since taking out the loan, however, they would probably incur a penalty of between $350 and $500. That’s probably worth it, especially for a large loan.

Take a cash-out refi. Refinance the primary mortgage and pay back the full amount of the Heloc. Rates are a couple of points lower on a 30-year fixed rate today than on a HELOC. Application fees, title search and insurance and other expenses will increase the total debt but monthly payments may still be lower than the blended total of the old primary mortgage and the Heloc. Plus, with a fixed rate, borrowers know exactly what their payments will be.

For borrowers with low rate primary mortgages, however, this is not recommended; they would be refinancing at a higher interest rate. Currently, 30-year fixed rate loan average 6.11 percent.

Switch to a fixed rate home equity loan. Unlike HELOCs, home-equity loans are usually fixed-rate loans. They don’t cost as much as a mortgage refinancing to execute but there still are some closing costs. Plus interest rates run a point or so higher than for 30-year, fixed rate mortgages, but that’s still a savings compared with Helocs.

Visit CNNmoney.com to learn more.

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CNNMoney wrote an article about 25 rules that will help you save, invest, and live happier.  In today’s market we need all the help we can get when it comes to saving and making sound investment decisions.  If you’re able to discipline yourself to follow these 25 rules then your a better person than I.

1. For return on investment, the best home renovation is to upgrade an old bathroom. Kitchens come in second.

2. It’s worth refinancing your mortgage when you can cut your interest rate by at least one point.

3. Spend no more than 2 1/2 times your income on a home. For a down payment, it’s best to come up with at least 20%.

4. Your total housing payments should not exceed 28% of your gross income. Total debt payments should come in under 36%.

5. Never hire a roofer, driveway paver or chimney sweep who is going door to door.

6. All else being equal, the best place to invest is a 401(k). Once you’ve earned the full company match, max out a Roth IRA. Still have money to invest? Put more in your 401(k) or a traditional IRA.

7. To figure out what percentage of your money should be in stocks, subtract your age from 120.

8. Invest no more than 10% of your portfolio in your company stock - or any single company’s stock, for that matter.

9. The most you should pay in annual fees for a mutual fund is 1% for a large-company stock fund, 1.3% for any other type of stock fund and 0.6% for a U.S. bond fund.

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NEW YORK (MarketWatch) - It’s no secret that the housing market  finally, after a long while, belongs to the buyer. Home sales and prices   sagged in 2006, and 2007 is not expected to be too different. According to David Lereah, chief economist for the National Association of Realtors, buyers have a “window of opportunity” in 2007 to take advantage of lower mortgage interest rates and seller flexibility.

Colby Sambrotto, COO of ForSaleByOwner.com, a no-commission real estate marketplace, offers these rules for shopping for a new home in a buyer’s market:

Don’t limit yourself. While you should look for homes that are listed with real estate agents, don’t discount properties that are for sale by owner. They make up about 25% of the market, and you may be able to find a good deal with one of them thanks to a lack of agent commission and fees.

Hold onto a property for a while. Now is not the time to buy a condo or home to flip quickly for a profit. Make sure you buy a property at a good value - you’re more likely to have a good sale in the future. Read the rest of this entry »

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Whether you already have a mortgage or you plan to buy a house in the next year, here are seven mortgage tips for 2007.

1. Review your mortgage _ does it still fit your circumstances? Interest rates change, children are born and grow up, sometimes you need to fix up the house and sometimes you need to move on. Life events can trigger changes in the way you pay for your house.

“Every year,” says Dan Hanson, who oversees the retail branches for Countrywide Home Loans,” say, ‘What’s going to happen this year?’ Do I have a child who, in a year, is going to college? Are we going to have a child, maybe add a bedroom or have to move?’” The answer might make you go mortgage shopping.

For example, let’s say you own a house and plan to move in a couple of years because your family is going to grow. Consider refinancing into an adjustable-rate mortgage with a low initial rate that lasts three years (a “3/1 hybrid ARM”). That initial rate probably is lower than the rate you’re paying now and the same with the monthly payments.

Hanson believes that you should ask yourself periodically: “Is my interest rate higher than the market today? Would it make sense to refinance, to take cash out? Would it be a good idea to get a reverse mortgage? How much is my house worth?”

2. Watch out for reset. Have you ever seen a cartoon where Bugs Bunny stands at the base of a cliff and he yells at someone standing on the cliff’s edge, “Watch that foist step. It’s a doozy!” Same thing with a lot of adjustable-rate mortgages: The first step is a doozy _ but up instead of down. Read the rest of this entry »

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