Winter Haven, Florida mortgage rates might be falling, but the costs of financing your Florida home are rising. To understand why, we need to talk a little about conforming versus non-conforming loans.
See, conforming loans are loans written according to strict guidelines and borrowers need to have, among other things, good credit and verifiable income. Non-conforming loans take us a bit closer to the "sub-prime" loans we've been hearing so much about... those loans that, in many cases, should never have been made in the first place.
Well, the massive onslaught of homes financed with non-conforming loans has been all over the press, and many a bank has tanked as a result of investing in mortgage baked securities comprised of these little stinkers. However, starting in late-2007, Fannie Mae began to see a rise in mortgage defaults for conforming loans - which are typically a little less riskier than their non-conforming cousins. This caused Fannie to start "covering theirs," so to speak, by creating a loss-mitigating, fee-generating scheme that employs what Fannie calls "Loan-level Pricing Adjustments."
How Do These Loan-Level Pricing Adjustments Work?
The concept for these loan-level pricing adjustments is pretty simple: Collect up-front payments to offset potential long-term losses suffered from lending to borrowers with "high risk" profiles. Now, at first blush, this concept did make a little bit of sense.
Similar to the auto insurance model in which younger drivers pay higher premiums, the riskier the applicant, the higher the fee. At the inception of the program, Fannie Mae defined "risk" as a combination of borrower credit score and home equity percentage.
In general, if you had a lower than average FICO score say, below 600, and you were putting next to nothing down on your home (which meant you had a higher Loan to Value or LTV ratio), you paid a higher adjustment fee. However, come April 1, 2009 - Fannie Mae's definition of "risk" will expand... a lot!
Fannie Mae's new loan-level fees now impact any conforming mortgage that meets any of the following criteria, with the exception of fixed rate loans of 15 years or less. Note, fee percentages represent that percentage multiplied by the total loan amount. We'll use $200,000.00 as a round number example.
Each 1 percent in fees equals 1 percent of the borrowed amount, and one percentage total piggybacks onto another if the situation applies. For example, say a condo buyer moves forward on a $270,000 property putting 20% down ($54,000) and paying the balance of $216,000 by using a $200,000 first mortgage and a $16,000 line of credit. Because they will have less than 25% equity (bullet point one above = .75% FEE) in their condo and are using a junior mortgage (bullet point two above = .50% FEE), they will be subject to a mandatory 1.25% charge (.75% + .50%) on their first mortgage (the Fannie Mae Funded part) of $2,500, due at closing.
Now - I understand that it would be the rare case today that the above example would actually happen, in terms of the $16,000 HELOC coming into play, but it does provide a little bit of an example of what could happen under these new guidelines. And, just when you thought we were done... there's more!
Fannie Mae has also adjusted its original FICO-LTV matrix so that nearly every Winter Haven, Florida home loan applicant -- regardless of credit score -- will be looking at higher closing costs. Yes - you read correctly. Now even well-intended, well-qualified borrowers get to pay into the pot! But, not until April 1, 2009.
Folks, I'm not a high pressure guy. What I am is a realist.
Fannie Mae's latest announcement represents the fifth such risk-based pricing update in just over a year - 15 months, to be exact - and I'm pretty sure it won't be their last.
As always, I'm here to answer any questions you have regarding locking in a low, fixed rate today so that you can avoid these higher fees. Give me a call at 863-604-3019 or apply for a Florida home loan online so we can get you set up with a pre-approval letter today.
|
Kevin Sandridge
The Florida Home Loan Specialist
Signature Home Funding
410 Laurel Cove Way
Winter Haven, FL 33884 |
Mobile: 863-604-3019
Fax: 888-496-0265
kevin.s@sigfunding.com
 |
|
Building effective relationships one step at a time...
          |
|
When Congress passed the Economic Stimulus Act of 2008, they authorized significant conforming loan limit increases in "high-cost" areas around the country. This change really didn't impact Florida counties all that much.
However, there are some reductions to note: Effective January 1, however, those limits rolled back. Conforming mortgages in the 59 designated high-cost regions are now capped at $625,500. Previous to January 1, 2009, loan limits for single family homes in the following "High Cost" Florida areas were as follows:
| Metro Area | 2008 Conforming Limit | 2009 Conforming Limit |
| Miami, Florida Area | $423,750 | $417,000 * |
| Sarasota, Florida Area | $442,500 | $417,000 * |
| Naples, Florida Area | $531,250 | $448,500 |
| Key West, Florida Area | $729,750 | $529,000 |
| * No longer listed as high cost area |
Aside from Collier and Monroe Counties, all other Florida counties are now listed as non-high-cost areas. The 2009 conforming loan limits remain unchanged from 2008.
IF you live in either Collier or Monroe Counties consider Super Conforming Loans as a way to extend your buying power. These loans used to be known as "Jumbo" or "Super Jumbo" loans. Lending amounts for these areas would be 115% of the "area median house price," not to exceed $625,500.
|
Kevin Sandridge
The Florida Home Loan Specialist
Signature Home Funding
410 Laurel Cove Way
Winter Haven, FL 33884 |
Mobile: 863-604-3019
Fax: 888-496-0265
kevin.s@sigfunding.com
|
|
Building effective relationships one step at a time...
|
|
My FHA Mortgage Blog | Central Florida Homes and Mortgage Report
If you're keeping track of this blog, you know that we've received a good many "gifts" this year in terms of the Feds actions to boost liquidity. Well, Uncle Ben had one more gift for us through 2008 to usher in the 2009 home loan and home buying season!
As we roll into New Year, look for the Fed to begin purchasing the $600 billion in mortgage-backed securities wracked with bad loans starting this month. $100 billion worth of these bad loan securities have already entered into the buying pool via the Fed's chosen brokerage firms, which include BlackRock, Goldman Sachs, PIMCO and Wellington Management Company.
Florida home buyers and mortgage rate shoppers should absolutely consider this latest Fed move a gift! Spread the word via Twitter, Facebook, or heck - carrier pigeon:
However, rates never hold fast for long, so if you're in the market for a peaceful spot for a piece of Lakeland real estate, an Orlando Luxury Home, or a slice of Clearwater real estate beach front paradise, email me or give me a call at 863-604-3019 soon so we can get your rate locked in before they begin heading northward.
|
Kevin Sandridge
The Florida Home Loan Specialist
Signature Home Funding
410 Laurel Cove Way
Winter Haven, FL 33884 |
Mobile: 863-604-3019
Fax: 888-496-0265
kevin.s@sigfunding.com
|
|
Building effective relationships one step at a time...
|
|
My FHA Mortgage Blog | Central Florida Homes and Mortgage Report
I'm happy to be able to share some of my thoughts here with Kevin's audience. We've been working together now for some months, and I appreciate his helpful efforts in my practice. As such, I wanted to stop by and share some thoughts regarding foreclosure.
As a Lakeland real estate agent, I am always saddened to see good people taken advantage of by those seeking to gain a quick buck. This holds true in the case of families facing foreclosure who are conned by would be "professionals" professing to hold the one solution available to save their homes.
First of all, I am not an attorneyand therefore this blog post is for your information only. If you are facing foreclosure, it is important that you seek an attorney, who specializes in foreclosure.
What is Foreclosure?
Foreclosure is an action by the lender to take back your property. If you have been served with a foreclosure complaint, in the State of Florida you and/or your attorney have 20 days to respond to this notice. It is critical that you hire an attorney, who specializes in foreclosure.
You still have the right to fight foreclosure, however hiring an attorney is essential. There are steps you can take when you cannot make or have already fallen behind on your mortgage payments.
Another option would be Forbearance. Your lender may allow you to delay payments for a short period of time, with the understanding that another option will be used afterward to bring the account current.
Did you know that your foreclosure notices (Lis Pendens) are public record?
This is the most vulnerable time of your life and scam artists just waiting for you to fall for it with all kinds of tricks up their sleeves:
Lease-Back or Repurchase Scams – they simply try to convince you that they will continue paying your mortgage and renting the home back to you by signing the deed over to them. You could be out of your home and still be held responsible for your mortgage. Don’t be fooled!
Bait and Switch – posing as mortgage brokers or lenders offering to refinance your loan with affordable rates and payments by con you into signing over home ownership instead of refinance documents. Don’t be fooled!
Phantom Help – charges you high fees upfront for work you as a homeowner could do yourself. Don’t be fooled!
Foreclosure Prevention Specialist – phony counselors, if it is too good to be true turn the other way. Don’t be fooled!
Don’t sign any documents, such as your deed to your home. The Federal Trade Commission’s web site has some valuable information regarding avoiding foreclosure as well as info for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help you spot, stop, and avoid them.
In 2007, an estimated 150,000 foreclosures were filed in the state of Florida. Unfortunately, this created for scam artists and criminals a niche market by defrauding homeowners making false promises to save homeowners from foreclosure.
The Florida Foreclosure Fraud Protection Law prohibits rescue consultants and/or equity buyers from starting services without first executing a written agreement with you, the homeowner, and charging upfront fees before completing or performing all services as agreed. There are further protections with regard to cancellation of such agreement, and other prohibited acts of offering or providing foreclosure related services you should read in this bill.
Copyright © 2008 http://www.petranorris.com| All Rights Reserved |
Petra Norris – Lakeland Realtor®
Licensed Florida Real Estate Broker | CDV TransAtlantic, Inc.
P.O. Box 92050 – Lakeland, FL 33804-2050
|
Kevin Sandridge
The Florida Home Loan Specialist
Signature Home Funding
410 Laurel Cove Way
Winter Haven, FL 33884 |
Mobile: 863-604-3019
Fax: 888-496-0265
kevin.s@sigfunding.com
|
|
Building effective relationships one step at a time...
|
|
My FHA Mortgage Blog | Central Florida Homes and Mortgage Report
Low volume and less than optimum conviction levels last week had Friday's post-holiday action moving slower than a first year college student on Sunday morning.
Luckily, mortgage rates held steady after their previous two week back to back plummet. I say luckily because steady beats rising any day of the week.
Actually, I was a bit surprised to see that mortgage rates didn't' begin to climb on Friday in light of several key and one "major" negative economic news items that came through the wire:
Historically, these elements have all played a role in mortgage rate movement. However, it's the last bullet point -- the weakened dollar -- that seems most intriguing.
See, normally, a strong dollar tends to push mortgage rates downward, while a weak dollar typically causes mortgage rates to rise. Maybe we're just in the eye of the storm so to speak - as the dollar's most recent thrashing came as swiftly as a Bruce Lee punch combination. As such, it wouldn't be much of a shock to see mortgage rates spike a bit in the coming days.
We're up for another "week interrupted" through Sunday, aside from a couple of economic reports. "Uncle Ben" should remain quiet as well, and I don't think we'll see too much in the way of trader activity. As such, volume should be very light. But stay tuned... Low volume can sometimes signify the calm before a storm of high volatility. If anything, traders will seek to shake some holiday rust off and get back into the swing of things!
The silver lining to all of this continues to be that mortgage rates are still hovering near their 2008-lows. However, Florida real estate investors and home buyers need to act quickly. Given the path of the dollar and low-volume trading, things could all change in a flash.
(Dollar Value Chart Image courtesy: The Wall Street Journal)
|
Kevin Sandridge
The Florida Home Loan Specialist
Signature Home Funding
410 Laurel Cove Way
Winter Haven, FL 33884 |
Mobile: 863-604-3019
Fax: 888-496-0265
kevin.s@sigfunding.com
|
|
Building effective relationships one step at a time...
|
|
My FHA Mortgage Blog | Central Florida Homes and Mortgage Report
 |
|
|
I'm a Mortgage Professional serving customers looking for Florida Home Loans and advice about the mortgage industry. I love networking and am always looking to build new Realtor relationships!
I'm a Winter Haven, Florida Mortgage Professional serving customers looking for Florida Home Loans and advice about the mortgage industry. I love networking and am always looking to build new Florida Realtor relationships!
I started in the Mortgage Industry two years ago, just before the housing market started its downturn. I remain active in this business because I take the time to really listen to the my clients' needs and provide solutions that fit their individual situations.
My job as a Florida home loans specialist is to help my clients locate financing that meets their unique requirements. I'm an educator at heart and consider myself a student of the quickly changing Florida home loans landscape. What's more - I love sharing what I learn with my clients! No one client is the same - and if there's one thing that happens steadily in this business - it's change.
A Promise to My Realtor Partners
When we work together you can expect each client's Florida home buying experience to elevate to a new level. You’ll hear them express gratitude and tell their friends and family about you - laying the groundwork for future referrals.
Additionally, we’ll define a clear marketing strategy based on collaborative efforts, enabling you to build your Florida real estate business based on relationships and become immune to existing market conditions. Over a period of time, you’ll realize higher sales, higher profit margins and less work.
Working together should be fun! Too often, the home finance process becomes hectic and stressful. My job as your partner is to alleviate client anxiety and help each family feel confident, well-informed, and comfortable.
I love to laugh and find that my good sense of humor really helps to ease the minds of worried home buyers. I am passionate about serving client needs, but I don’t take myself too seriously.
I believe in life balance. There’s more to life than just my work. Weekends are spent with my family, and although I’m occasionally available and can return calls, I maintain a schedule that balances my lifestyle.
My job is to make you, my partner ( the real estate agent) look good in the eyes of our clients. It’s also the job of the real estate agent to make the lender look good, too!
In today’s competitive marketplace, you cannot afford even the smallest margin of error. Lapses in service, especially from your affiliates (i.e. loan officers, inspectors, title & escrow agents, etc.) cost you dearly.
As your preferred mortgage lender, my job goes beyond delivering red carpet service to clients. It includes helping you build client loyalty so you benefit from a lifetime of referrals, increase lead generation in affordable ways, and enjoy the lifestyle you deserve.
As a Florida Home Loans Specialist, I work primarily with FHA and VA loan programs, as conventional products simply cannot match their flexible guidelines and affordability levels for both purchase and refinancing solutions.
This being said, I am a fully licensed mortgage broker and have access to a comprehensive list of products including:
Professional Affiliations
I believe that the level of service I provide is best described by those I serve - my customers, Real Estate partners, and mortgage industry colleagues. Here's what some of them have to say:
"Hey all. This is Leslie Petersen, and I just have to tell you a few things about Kevin Sandridge. Kevin is a one-of-a-kind mortgage broker who actually provides his clients with whatever is in the client's best interest, and he does the homework to make this happen.
It's funny, because I've never before recommended anyone with less than 5 years experience. Mortgages are complicated, and it takes a lot of work to understand the core business, let alone keep up on what's going on. Also, there's tons of misinformation out there.
(1) He cares enough about his clients to find out what their real needs are before he places them into a home loan that is not quite right for them; and
(2) Kevin works hard to stay informed. Heck, he keeps himself educated - which isn't at all easy. If he didn't, his clients would suffer and end up paying higher rates and more money in the end. Also, by knowing what's going on, he is able to make Florida home loans that other mortgage brokers don't even know how to do.
(3) He has boundless energy to do whatever is right for his clients. If I had family looking for a Florida home loan, I'd send them to Kevin. And that's the highest compliment that I could pay any mortgage professional."
Leslie Petersen, Mortgage Guidelines Expert
www.mortgagecurrentcy.com
Mortgage Educator | Mortgage Speaker
30+ year Mortgage Professional with Current Broker License in Utah
Author of numerous books and sought after author for trade magazines
Comment on my August 14, 2008 Downpayment Assistance Call with John Lamberg, Florida Area Manager with the Nehemiah Corporation
"Kevin's conference call was great; very clear, informative, and a very practical way to achieve our goal of gathering the knowledge we needed about the possible demise of DPAs.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
