One might think that buying a vacation home in today’s economy sounds a little crazy. Some people say that now is a great time! Think about it…prices are down and interest rates are low. Buying a vacation home could be a very good long term investment. Don’t forget that renting the property out during the times you are not personally using it could provide the opportunity to make a profit. So who is going to rent a vacation home? Believe it or not, vacation homes are less expensive to rent for longer durations than booking a hotel room. Plus, with a vacation home, you have the luxury of more space and privacy than being in a hotel! If you are looking for an investment this just might be the way to go!
September 1, 2010
August 30, 2010
Hud dishing out Grant Money to Thirteen States
Thirteen of the United States will be awarded close to $312 million from the U.S. Department of Housing and Urban Development (HUD) in an effort to aid in future disaster relief. Grants will be provided from the HUD’s Disaster Recovery Enhancement Fund (DREF).
Florida, one of the states to receive monies from DREF, will receive over $26 million to be used for projects such as improving and enforcing building codes, home improvement grants and land-use plans.
According to Shaun Donovan, Secretary for HUD, “An ounce of prevention today can spare communities a world of hurt tomorrow. We’re making a serious investment in our future by making certain that when disaster strikes, the impacted communities in these states can weather the storm.”
August 27, 2010
Underwater Mortgages showing a Decline
The number of “underwater” mortgages across the nation showed a slight decline during the 2Q, according to CoreLogic.
The term “underwater” is to say that the homeowner owes more on the mortgage loan than what the home is actually valued at.
By the end of June of this year, Corelogic reported that nearly 11 million mortgages were “underwater” which reflects a decline of .2 from March.
The top three states with the highest number of “underwater” mortgages are Nevada at 68%, Arizona at 50% and Florida coming in at #3 with 46%.
August 25, 2010
Modified Mortgages could stop the next wave of Predicted Foreclosures
According to a report released by the State Foreclosure Prevention Working Group, homeowners that have had their mortgages modified are doing much better with their mortgages than was expected. This report could possibly counter the prediction of another wave of foreclosures in the future.
The State Foreclosure Prevention Working Group, made up of state attorneys general and banking regulators, also found that close to 63% of the homeowners that are at least two months behind on their mortgage is not involved in any form of mortgage modification program.
According to Neil Milner, President and CEO of the Conference of State Bank Supervisors, “There is still a tremendous amount of work to be done to prevent unnecessary foreclosures; Servicers must continue to perform meaningful outreach to those homeowners who are seriously delinquent and to perform modifications with significant principal reduction.”
Also in the report nine mortgage companies were noted as having serviced 4.6 million loans nationally, 2.3 million foreclosures have been completed. This number reflects 3 times the amount of loan modifications that they have completed.
August 18, 2010
What is the median home price for your area?
Zoom in to your metropolitan area to get the 2nd Quarter 2010 median home price for your market, its… percentage change from the previous quarter, and the median work commute here http://www.realtor.org/research/research/nar_research_maps_msa
August 16, 2010
Mortgage Rates Plummet Again
Mortgage rates plummeted to a new record low of 4.57% on a 30-year fixed rate mortgage this week, down from 4.77% the month earlier. With the rates this low one would think that homeowners looking to refinance would be out of control applying for mortgages, yet, mortgage applications saw very little activity last week.
However, 78% of the applications that were turned in came from home owners looking to refinance. Many economists believe that the lack of interest in home buying is due to falling home values, tight lending standards and high unemployment. While others are concerned that the number of horror stories of not being able to get a loan, have dissuaded potential homebuyers from even trying to get a mortgage.
Now is the time to either refinance your loan or start looking into relocation! Home prices and mortgage rates haven’t been this low in a very long time! If you’re looking for change, NOW is the time!
July 28, 2010
Citizens Property Insurance gearing up to Raise Rates
Citizens Property Insurance, the largest property insurer in the state of Florida, is seeking to raise their rates by 8.4% on average. The proposal has been approved by the board but still needs approval from the Office of Insurance Regulation.
Under the proposal, certain policyholders could see a decrease. In the Miami Beach area an average decrease of 3.8% is proposed as well as a 10% decrease for the coastal areas of Broward and Palm Beach Counties.
Citizen’s rates were frozen by the state legislature from 2007 to 2009; however regulators allowed rates to rise.
July 27, 2010
New Home Sales on the Rise
New home sales across the country rose last month in a monthly comparison according to the Commerce Department. The housing market was active during the beginning of this year due to the Homebuyer Tax Credit and the low interest rates.
Both the Homebuyer Tax Credit and the FED program that pumped $1.25 billion into mortgage backed securities in an effort to keep mortgage rates at or around 5% expired during the spring, causing a lag in the real estate market.
The high unemployment rate as well as the troubled economy is continuing to add to the lack of potential homebuyers. However, with the European Debt crisis, many investors shifted their funds into safer US treasury bonds and as mortgage rates are closely tied into long-term bonds, the rates have dropped to the lowest percentage in 50 years.
July 26, 2010
Mortgage Rates hit a new Record Low
Mortgage rates on a 30-year fixed rate loan dropped to a new record low this week, according to mortgage giant, Freddie Mac. Coming in at 4.56%, down from 4.57% last week, the rates have not been this low since the 1950’s.
Freddie Mac collects rates weekly Monday through Wednesday from lenders across the country and as rates are closely tied in with long-term treasury bonds, they are known to fluctuate significantly even on a given day.
Rates began to fall when the FED pumped 1.25 billion into mortgage backed securities, when the program expired in the spring; rates were expected to begin to rise again. However, the European Debt Crisis forced investors to move their money into safer Treasury Bonds, which in turn has kept the yields down.
July 6, 2010
FHA Home Loans
What is an FHA home loan? It is a mortgage loan insured by the Federal Housing Administration. The insurance protects the lender from losses resulting from borrower default. The lenders have less risk as the loans have specific requirements established by FHA that must be met to qualify for insurance. A survey by the Home Buying Insitute is being conducted to determine the usage of the FHA home loans. The first phase showed that 87% of the 12,000 people asked said they were planning on using an FHA loan. The 12,000 people were polled when visiting the Home Buying Institute website. Since conventional loans typically require a larger down payment as opposed to an FHA loan, 53.8% of the survey takers said they would use an FHA home loan. Perhaps and FHA home loan is just what you are looking for!! For more information on FHA loans please call Gregory Berger at CENTURY 21 Mortgage 352.556.9232 or send him an email at gregory.berger@mortgagefamily.com
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