Miamism» Miami Mortgage Rates Reports

The Future of Miami Mortgage Rates – Part I of III

Chris Brown — Tue, 09 Mar 2010 15:12:02 +0000

Miami Mortgage Rates Part I

Wow – maybe I bit off more than I can chew here. Well, lets at least try to dig deep enough to be of value but not too deep that it bores you to tears. That is one of the main quandaries of being a Miami loan officer – I love this stuff, but most people would rather by playing on Miami Beach or sipping a Mojito than reading about how FED policy influences long term mortgage rates, am I right?

In this first segment, I am going to touch on the FED and how they do not have direct control over long-term mortgage rates like for 30-year fixed Miami Beach mortgages. In Part II, I will touch on how the FED can influence rates. And lastly – in the ever awaited Part III, I will address the potential nuclear bomb coming at the end of March. If you made it this far – that likely got your attention.

Attention A.D.D. readers- may want to call or email me if you are considering one of the following in the near future.

Getting Prequalified for a Miami Beach mortgage
Getting a Miami Refinance Loan

Contrary to popular belief, the FED does not dictate long-term mortgage rates directly so lets dispel that out of the gate. It is not uncommon for me to get multiple calls asking if it makes sense to get a Miami refinance after the FED meets and the public reads “FED Lowers Rates Again” in the Miami Herald. The FED controls short term lending rates in the form of the Discount Rate [aka the FED Funds Rate] and the PRIME Rate. This change has much more immediate effects on things like credit card intetest rates, car loans, and lines of credit offered through banks. The Discount rate is what the FED charges banks to borrow money from the them and the PRIME Rate. PRIME is what banks use to lend to their commercial clients for things like capital equipment loans. PRIME is also a common index used as a basis for Home Equity Lines of Credit [HELOCs] for residential real estate.

Stay tuned for Part II coming to your favorite resource for Miami Beach Real Estate Information – MIAMISM.com

As one of Florida’s Top FHA Mortgage Brokers, Chris actively serves the Miami and Miami Beach real estate markets. For mortgage advice, contact Chris directly via email Chris [at] Miamism [dot] com or by calling 407 377 0500 x 210

Jump to Part III

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TIPS for getting Pre-qualified for a Miami Beach Mortgage Loan << Video

Chris Brown — Tue, 23 Feb 2010 14:28:59 +0000

Are you taking the correct steps right from the start?

When looking to buy Miami Beach homes for sale, getting a pre qualification letter has become more than just a good idea – it has become a necessity. If we have learned anything from recent history, it is that good mortgage advice is, indeed, not around every corner. The point – make the most of each step from the beginning.

Make sure the lender is endorsed by someone in the know… not necessarily someone you just, well… know. Okay, that is a somewhat of a charged statement, so indulge me a moment to elaborate. Obviously if you have someone you have used in the past and had momentous success with – by all means… they have earned your business and you should reward that kind of above-and-beyond service. This Tip is really to warn those that are tempted to use the infamous “sister’s best friend’s cousin half-brother”. The new world of real estate finance has chewed and spit out 70% of the people in it and now is no time to go soft on this part of the decision to buy.

Here are the top three places to find a rock star mortgage broker.

• Your Realtor’s preferred loan officer. Typically, the best place to start is with the Miami real estate agent you have chosen. Since you are employing your Realtor to represent your interests, choosing to stray from players they have experience with forfeits some of the leverage that they bring to the table, potentially thwarting your own efforts. There is something to be said for synergy.
• Someone you have personal experience with. Even this one needs to be questioned a bit if it has been quite some time since you have used them. Mortgage brokers are no different than other people [insert favorite mortgage broker joke here] in that they typically resist change as much as anyone. With that in mind, if your previous resource has drug their feet or worse – refused to adapt to the new world of real estate – this is a recipe for future frustration for you. If they are still at the top of their game – stick with them for sure, you have a real solid mortgage adviser.

• Someone you trust that has a top-notch professional network. The first one that comes to mind [though there are others] would be a financial planner that you entrust with your money. They likely have a network of super-sharp service providers that are mavens in their field. You still need to do your homework but this can be a distant third for finding the right person to finance your Miami FL house for sale.

The Bottom Line

When you have decided to buy a house please be sure not to over look the most basic of steps. Please! I cannot stress that enough. Why? Well let me ask you… how many people that are now Miami foreclosure statistics made their mortgage broker choice based on faulty or superficial grounds? I’m just sayin…

Chris is considered one the Florida’s Top Mortgage Brokers. He actively serves the Miami and Miami Beach real estate markets. For mortgage advice, contact Chris directly via email Chris [at] Miamism [dot] com or by calling 407 377 0500 x 210

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Miamism introduces Chris Brown – Mortgage Broker

Ines Hegedus-Garcia — Thu, 18 Feb 2010 13:25:44 +0000

It’s not often that we get excited about mortgages, and much less mortgage brokers (no offense to the industry). But we have some amazing news to share with you. Mortgage Broker extraordinaire, Chris Brown, has agreed to share his knowledge and passion with our Miamism readers and we could not be any happier. Chris has proven over and over that he has the business ethic, the determination and knowledge that it takes for us to endorse his work and feel comfortable referring your business to.

What we like about Chris is that he is a down to earth, people person very similar to us. He is known to go above and beyond for his clients and is a wealth of information that we know you will find useful. You will find Chris sharing his knowledge here in Miamism.com on a regular basis, but that’s not the only place you can find Chris. He has acquired quite a reputation nationally as a trusted resource for anything mortgage related.

Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the many leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, the newest contributor to Lenderama and recently featured on Fox35 News.

And if THAT’s not enough, you can also find him on our favorite social networks:

Look for Chris’ first contribution next week …stay tuned

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Miami Mortgage Rates Report – December 1, 2009

Brian Scott — Tue, 01 Dec 2009 20:11:16 +0000

Looks like the Federal Housing Administration is loosening their belts along with the rest of us following Thanksgiving Day stuffing. The rates for FHA are down considerably while conventional rates are climbing in the same period. And jumbo rates are showing signs of lowering as well. All of these items are contrary to what we think should be happening with the stock market coming off a very strong November and Dec starting off with a bang. We did have a few investors pull their rates for possible inter-day increases but on whole the rates look pretty stable.
Existing home sales also show an increase which is encouraging news. Any signs of using up the existing inventory are positive signs towards a more stable housing market.

FHA …………4.875%
Conventional…5.375%
Jumbo………..5.75%

Brian Scott

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Miami Mortgage Rates Report – November 24, 2009

Brian Scott — Tue, 24 Nov 2009 05:01:43 +0000

This is the week to give thanks.

Thanks to the tax credit we have more interest in the housing market. Not just with first time home buyers but now for current home owners as well as long as they’ve owned for more than 6 years.

Thanks to the market and the Feds that have kept interest rates low to keep us interested.

Thanks to foreclosures and short sales for creating an environment to make homes more affordable. It’s the silver lining. It may not be popular to acknowledge this and give thanks but it’s a reality.

Thanks for making loans to people that can actually afford the debt so we might not be doomed to repeat the history of greed we’ve seen in the recent boom that was fertile ground for fraud.

Thanks to professional realtors for providing guidance in “interesting times”. Hopefully the lack of business over the last couple of years has scared away the pretenders that were just there to earn a quick buck when it was too easy.

Thanks for good rates

Conventional: 5.00 %
FHA 5.125%
Jumbo 5.875%

Happy Thanksgiving !!!

Brian Scott

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Congress Passed the Federal Homebuyer Tax Credit Extension and Expansion

Ines Hegedus-Garcia — Thu, 05 Nov 2009 22:17:54 +0000

Talk about Good News…..but the wait was well worth it.

According to an email we just received from RAMB,

Yesterday, the U.S. Senate voted (98-0) to pass a bill which extended and expanded the federal homebuyer tax credit. Today, the U.S. House of Representatives did the same (403-12). It’s now on its way to the President for his signature which is expected to happen as early as tomorrow!

CLICK HERE to view (and print) a one-page PDF document that outlines the final changes that were approved. All changes made to the current credit and the new additions will become effective when President Obama signs the bill. To summarize:

Amount:                              Up to $8,000
Who:                                   First-time homebuyers — same definition as current law

Amount:                              Up to $6,500
Who:                                   Repeat purchasers. Must have used previous home as a principal residence for 5 of the 8 previous years.

Income Limits:                    $125,000 for single filers/$225,000 for joint filers. Same for both first-time and repeat/move-up buyers.

Time Frame:                       December 1, 2009 to April 30, 2010
(also includes a 60 Day extension if binding contract is in place by April 30, 2010)

Limitation on cost purchased home:    $800,000

Anti-fraud measures have been added.

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Miami Mortgage Rates Report – November 3, 2009

Brian Scott — Wed, 04 Nov 2009 00:57:31 +0000

Tax Credit expires at the end of this month….or does it?
The senate has offered an extension through July of 2010 but it needs to be agreed to by congress. So for now the only tax credit is still slated to expire at the end of this month.
There is an interesting twist to the one now proposed….if you’ve owed a home for at least the last 5 years then you could be eligible for a $6,500 tax credit under the new suggested program. Once again this is a proposal not a done deal. This certainly could “stimulate” additional interest in home buying for another group not addressed under the current program. You should recall that the tax credit now available is only for those who have not show to have had home ownership in the last 3 years and that tax credit is for $8,000 that is completely forgiven if you stay in the home for at least 3 years into the future as your primary home.
Please be aware as a warning that there are individuals out there offering to help you file for these tax credits that are filling in the forms to be filed with the IRS that refer to your having already closed on a home that may intend to buy …this is not the way this program is intended. You may be actually committing tax fraud. The tax credit is intended to filed for after you have actually closed on a home NOT during the process or in anticipation of buying a home. It would be nice to have access to that money ahead of time for a down payment but that is not the intent of the program. Don’t be ‘set up’ by someone that is looking to take any where from $100-$450 to fill out some very easy IRS forms that anyone has access to.

So what’s happening to rates???
Large swings in the stock market and a weak bond sell-off has kept rates from staying as low as they were…

FHA….5.25% 5% with 1 pt
Conv…5.25%
Jumbo …6% with 1 pt

Brian Scott

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Miami Mortgage Rates Report – October 27, 2009

Brian Scott — Tue, 27 Oct 2009 16:28:05 +0000

“Mortgage Bonds are lower this morning, following through on Friday’s weakness and responding to a move higher in Stocks. While Stocks are higher due to good earnings reports, it is important to understand that positive earnings numbers gained by cutting jobs are not really positive for the economy, nor are these gains sustainable.

There are no economic reports set for release today, but later this week we’ll have reports on housing, consumer demand, economic growth, inflation and the labor market. In addition, there will be more Treasury auctions this week.

The Fed’s Treasury buyback program comes to an end on Thursday. Without the Fed buying support helping to provide demand to sop up some of the massive supply…rates will continue to edge higher.

FHA…5.25%
Conventional….5.125%

Brian Scott

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Miami Mortgage Rates Report – October 20th, 2009

Brian Scott — Tue, 20 Oct 2009 14:40:14 +0000

“After a wild run last week, Mortgage Bonds are starting the week on the quiet side. With no economic reports due for release today, Bonds will likely react to action in Stocks as well as a speech by Fed Chairman Bernanke at 11:00 yesterday

Stocks are attempting to maintain a rally, fueled by optimism that 3rd Quarter Corporate earnings will continue to exceed expectations. So far, 61 companies from within the S&P 500 have reported earnings, with 79% beating expectations. It is worth noting that 61 companies is a small sampling of the 500 due to report – additionally the expectations for the earnings have been pretty low.

After last week’s decline, Bonds are now trying to stabilize and hold their ground above a key support level. I recommend Floating, but I will alert you should sentiment change.”..Mortgage Market Guide

Rates up on a rising stock market:

FHA……….. 5.375

Conventional……5.25

How about paying points…discount points…to drive your interest rate for the life of the loan lower. Makes sense if you hold the mortgage long enough to get a return on the investment. Usually is a good idea as long as you intend to stay in the property for more than 4-5 years.

Brian Scott

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Miami Mortgage Rates Report – October 13, 2009

Brian Scott — Tue, 13 Oct 2009 20:37:46 +0000

Federal Reserve Chairman Ben Bernanke said that as the economy heals, the Fed will be very vigilant to protect against inflation. While inflation is not a problem at present…it will most certainly become a problem down the road. So why does this matter if you are considering purchasing or refinancing in Miami? Because inflation is the arch-enemy of Bonds and home loan rates, and just the knowledge of it coming has been causing both Bonds and home loan rates to worsen in recent days. Along with the fear of inflation, the Fed’s purchasing program of Mortgage Backed Securities is already slowing down, with the end of their buying in sight – and the reduced demand for these Bonds is also driving home loan rates higher.

Bottom line: home loan rates are already on the rise, and we won’t likely see these low historic levels again.

Interest rates are still very near historic lows – George Washington couldn’t have gotten a better interest rate – and the opportunity these low rates present is huge for Miami home buyers or people looking to refinance. If we haven’t talked recently about your own home loan situation – we should. There’s no time to waste.

Conventional Rate…..5.125%

FHA Rate…………….5.25%

Brian Scott

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Miamism» Miami Mortgage Rates Reports

The Future of Miami Mortgage Rates – Part I of III

Miami Mortgage Rates Part I

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TIPS for getting Pre-qualified for a Miami Beach Mortgage Loan << Video

Here are the top three places to find a rock star mortgage broker.

The Bottom Line

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Miami Mortgage Rates Report – November 24, 2009

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Miami Mortgage Rates Report – November 3, 2009

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