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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Here’s a quick excerpt that I found to be interesting. It always amazes me with the infinite amount of variables that affect the market and economy. Weakening factory orders may lead to lower rates. Lets take a closer and in depth look at this…

 Factory orders data is a monthly report released by the US Census Bureau. The realease is officially referred to as The Advance Report on Durable Goods Manufacturers’ Shipments, Inventories, and Orders.

The manufacturing sector is a major component of the economy. Investors use the factory orders report to attempt to determine the direction of the economy in the future. Orders are generally believed to be a precursor to activity in the manufacturing sector because manufacturing typically has an order before considering an increase in production. Conversely, a decrease in orders eventually causes production to scale back; otherwise, the manufacturer accumulates inventories, which must be financed.

The stock market typically likes to see strong factory orders data indicating a surge in future production. On the other hand, bonds typically like weaker figures.

Despite some positive spots in the US economy, manufacturing continues to struggle. If the factory orders data shows a significant increase, stocks may rise on the data. This scenario is likely to pressure mortgage interest rates higher. However, a factory orders report showing continued weakness may help to push mortgage interest rates lower.

The next report for Factory Orders comes out on Wednesday, April 4th, 10:00am. Be sure to use the knowledge provided above to determine what the economy and interest rates are doing. Come back again for another weekly report on the economy. Also be sure to take a look at the employment report coming out on Friday as this will be the most important release nest week. If you see an increase in unemploymnet or a large decrease in payrolls you might be seeing lower rates!

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Are you interested in trying to improve your credit scores so that you can get a better interest rate on your mortgage?  In this article I’ll show you how to go from that sub prime loan with prepayment penalties and high interest rates to an A-paper loan with low closing costs and low interest rates.  Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower’s income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It’s important to have a mortgage professional in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible.

Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has its own guidelines, it’s safe to assume that as the consumer’s credit score goes down, interest rates will go up.

A borrower with an outstanding credit rating will get what is called an A-paper loan. This type of borrower is rewarded with a lower interest rate because they have a proven track record of using credit sensibly and paying their bills on time.

Loans designed for consumers with less-than-perfect credit – sometimes referred to as “sub-prime” – can range anywhere from A-minus, B-paper, C-paper or D-paper loans. Read the rest of this entry »

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The Fed Chairman Bernanke delivered the Federal Reserve’s semiannual report on monetary policy to both the House and Senate Banking Committees yesterday. What was the outcome you ask? How does this affect me and why am I even reading this ever so boring post about what some chairman has to say?

Well I’m so glad you asked! The report given is one of the most important speeches for the Charmain. The areas addressed usually have to do with the overall state of the US economy, recent developments, economic fundamentals, foreign developments, economic outlook, ranges for growth, and concluding remarks. Wow that’s a mouth full!

Bernankes testimony indicated inflationary pressures were decreasing and economic growth was improving with an easing of the housing slump. Mortgage interest rates bounced favorably to Bernanke’s remarks before Congress in which he indicated, “So far, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing of core inflation.” This makes it possible for mortgage interest rates to remain low for the time being. Read the rest of this entry »

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Happy Valentines Day! What better way to start off this day of spending on flowers, cards, chocolates and more, than to talk about saving yourself from disaster and putting more dollars into your bank account? Do you have an ARM (Adjustable Rate Mortgage) where the payment is fluctuating each month? Or you have an ARM product that will begin adjusting shortly? Now is the time to think about refinancing into that secure fixed rate mortgage… I don’t know anyone who is comfortable in not knowing what their next payment is going to be…

In 2004, the Federal Reserve made it clear that short-term interest rates would be increased at a “measured pace” because of a fluctuating US Dollar, unstable oil prices and an evaluation of other economic indicators. In an effort to curb inflation, the Federal Reserve has kept its word and continued to raise rates, including one incredible streak of 17 consecutive hike announcements following meetings of the FOMC.  The last two meetings they were able to hold off on the hikes but each meeting causes nail biting.

As a result of these interest rate increases, millions of homeowners with adjustable rate mortgages will feel the sting of corresponding increases in their annual adjustments. Consumers with revolving debt accounts tied to the prime rate have already felt the impact, as the prime rate always rides 3% above the current Fed Funds Rate.  Read the rest of this entry »

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Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower’s income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It’s important to have a mortgage professional in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible.

Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has its own guidelines, it’s safe to assume that as the consumer’s credit score goes down, interest rates will go up.

A borrower with an outstanding credit rating will get what is called an A-paper loan. This type of borrower is rewarded with a lower interest rate because they have a proven track record of using credit sensibly and paying their bills on time. Read the rest of this entry »

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