Leah Ross ~ Tampa, Florida Mortgage

Refinancing your mortgage loan can be a big decision for consumers. These days it's not just about getting a lower interest rate on your mortgage, there are many reasons to refinance.

Of course, the biggest reason: Lower your interest rate. This is one of the main reasons people refinance their mortgage. You can get a lower monthly payment and that can make a big difference in your monthly budget and the interest you pay over the term of your loan.

Another big reason in today's market: Get out of your adjustable rate mortgage (ARM). In the past couple years, many people were put into an ARM to save on a monthly payment or to qualify to get into their first home. The downside of these mortgages is when the adjust. That attractive rate now becomes a monthly burden when it adjusts. Many people at this point look to refinance to get the stability of a fixed rate mortgage.

Credit changes can also be a reason for refinancing. Some homeowners have to take a higher interest rate if their credit is bruised. When the time comes that their credit is in a better standing, they could consider refinancing to a lower interest rate that they would qualify for.

Some consumers have the flexibility to change loan terms from a 30 year loan to a 15 or 20 year loan, thus building equity faster. If a consumer is in a position to afford the monthly payment on a shorter term loan, they save a large amount in finance fees and pay down the loan balance faster

Another reason to refince is to pull out equity you have established. By utilizing a cash-out refinance, a homeowner can use the equity they have to turn into cash. It could be to pay off credit cards, do repair work on a home, finance college costs or just personal spending money.

Whatever the reason may be that a homeowner needs to refinance, I am committed to discussing the options with you and helping you determine what program are available and what makes the most sense. I am keeping a close eye on interest rates and now is a great time to consider a refinance. Please contact me for a complimentary consultation.

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Your Tampa Bay Mortgage Professional

Leah Ross, XCO, AmeriFirst Home Mortgage

Please feel free to contact me via email at LRoss@AmeriFirst.com or Phone 813-643-8430 or 269-488-9527

FHA Loans in Tampa, Florida and throughout the US are going to become even more useful now as the President has finally signed the Economic Stimulus Bill which increases the FHA loan limits by county. (To determine your maximum loan limit, please use the following link to HUD.)

What does this mean to the consumer? For consumers, many people could not take advantage of FHA loans in the past for purchases or refinances because of the low loan limit....now FHA loans can be used for higher loan amounts...in Hillsborough County, this means we can use FHA loans for loan amounts up to $292,500 for a single family home.

What is the benefit of using an FHA loan?

• Lower down payment - Typical FHA standards say that the borrower must have a 3% down payment. However, with the help of down payment assistance programs, like AmeriDream, borrowers can have that down payment gifted and in turn have a zero down loan.
• Reduced Credit Standards - FHA is more lenient on borrowers with limited or bruised credit history, with no true minimum credit requirement.
• Higher LTV allowed on cash-out refinances - Standard conventional guidelines say that a borrower can "cash-out" up to 90% of the value of their home. However, in our declining market environment, that number is reduced by 5%. This is a problem for many homeowners trying to get our of their adjustable rate mortgages. With an FHA loan, a borrower can cash-out up to 95% of their property value.

What does this mean for REALTORS?

• FHA has made some significant changes in their underwriting criteria. In the past, FHA inspections were required to make minor repairs for cosmetic defects, or normal wear & tear. Now, FHA has revitalized to a underwriting process much similar to conventional loans, making it easier for consumers to use and REALTORS to promote FHA products.
• Ability for Seller to offer concessions to sell their homes - FHA allows the seller to "gift" the 3% down payment through AmeriDream. In addition, the seller can give up to 6% of the sales price to the buyer for closing costs, prepaid expenses and points.
• If you have a listing that isn't selling because the home needs some improvements such as new flooring, windows or updated appliances - the new FHA mini rehab program allows buyers to finance as much as $35,000 into the mortgage for minor repairs that would be completed after the sale.

FHA Mortgage Loans are going to become a more vital way for consumers to get the best out of their mortgage options for purchases or refinances. If you are a consumer who has recently been turned down for a conventional loan or were told that you have to bring more money then you have to closing, please feel free to contact me for a complimentary consultation to see if the new FHA program is right for you!

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Your Tampa Bay Mortgage Professional

Leah Ross, XCO, AmeriFirst Home Mortgage

Please feel free to contact me via email at LRoss@AmeriFirst.com or Phone 813-643-8430 or 269-488-9527

Mortgage Rates Dropping...What's the lowest rate? This topic is a conversation I am having at least 5 times a day from Michigan to Florida. So, I figured let's get the information all out on the blog and via the e-zine and we'll all be on the same page!

The conversation goes like this....you ask: "Leah, I heard mortgage rates are dropping...I saw on the news and in the paper that they are going to drop the interest rates again by another quarter of a point...How low are they going to drop?"

Now, my response...keep in mind I try to keep it simple and not to heavy on the economics: "Actually, this is a very confusing topic. The majority of what you are hearing on TV and seeing in the newspaper is talking about the Fed Funds Rate or the Discount Rate. This is what the "Fed" controls. This is the rate that has been dropping recently. We call this rate the short term rate. Short term rates affect loans that are based on the Prime Rate, most likely home equity lines of credit."

"What controls our 15, 20, and 30 year fixed mortgages, or what we call the long term rate, is the bond market. These two rates are not directly tied together. When the Fed cuts the short term rate, it doesn't have a direct impact on the long-term rates, rather the bond market dictates long term rates. The Fed has been dropping the short term rate to keep inflation in check. It's when the bond investors think the Fed is letting inflation get out of control that the long the long term rate is affected."

It's really a matter of economics and understanding this small piece will hopefully give some insight on when is the best time to purchase or refinance. Rates are still low although we've seen them rise the past month. If you'd like to know if it makes sense to do something for your particular situation, have concerns about a refinance or just want some honest information, please give me a call. As your mortgage consultant I'm here to take the mystery out of the mortgage market, answer your questions and "pilot" you through the turbulence of financing or refinancing your home.

If you're receiving mortgage solicitations in the mail and on the phone and need some home understanding them, I'd welcome the opportunity to act as your interpreter and give you the facts!

__________________________________________________________

Your Tampa Bay Mortgage Professional

Leah Ross, XCO, AmeriFirst Home Mortgage

Please feel free to contact me via email at LRoss@AmeriFirst.com or Phone 813-643-8430 or 269-488-9527.