Florida Real Estate News and Info

It has been recently announced that there will be a new version of the HARP (Home Affordable Refinance Program) loan rolling out soon for american homeowners with a mortgage. The purpose of the new program will be to allow more people to refinance their mortgages into the current low interest rates.

Here in Florida, the first round of this loan was a failure because it only allowed the borrower to refinance their home as long as they were not too underwater on their mortgage. The new program will have no cap on loan to value: in other words, it does not matter how much your home is worth to participate in the new program. The hope is that more people will be able to refinance their loans, which will lower their monthly payment. This may make it easier to make the payment, or simply give them more money to spend or save.

Morgan Financial will be sending out updates on this program as more information comes out. Please subscribe to our blog in the upper right hand corner, or check back often for more information.

Thank you again for watching, and please contact us anytime with questions. 321-757-3570 or info@morganfinancial.net

It is an age old catch-22; you can not get credit, because you do not have credit.  Have you ever heard that before?  Many people establish credit when they are very young by having a parent add them on to an account, or co-sign for a car or credit card.  However, what if this is not the case for you?  How can you establish credit, so that you may prove to a creditor that you have a history of paying your bills on time?

One way to establish credit is to get a secured credit card.  A secured card will work just as any other credit card will, however, these cards require a security deposit.  So, if you start with a deposit, or security, of $200, the creditor will give you a $200 limit.  If you pay your bill on time, after a while, some companies will even return your deposit, and increase your limit.

The goal here is to prove to the creditors that you are responsible with credit, so, it would be best to only charge a small amount each month, and pay your bill off monthly.

Now, it is also important to shop around when looking for a secured card as these cards come with different annual, monthly, or set up costs.  Also, you want to make sure that the creditor reports to all three of the credit reporting agencies ie. Trans Union, Equifax, and Experian.

Again, good credit will save you many, many thousands of dollars over your lifetime, so it is imperative that you protect it.  If you have any questions about credit, and would like to speak with an expert, please contact Morgan Financial at 321-757-3570 or info@morganfinancial.net  today.

One more thing!!!

Like everything else, there are lots of Secured Credit card scams out there.  I have attached a link below to the Us Governments Federal Trade Commissions website below that has some great information on scams surrounding these cards.  You may want to check this out before you shop for a card.

FTC Info On Secured Credit Card Scams

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre25.shtm

Here are some links to some secured credit card options.  Please remember that there are many options, and these only a few, so do your shopping!

Wells Fargo

https://www.wellsfargo.com/credit_cards/secured/

Citi

https://creditcards.citi.com/credit-cards/citi-secured-mastercard/

US Bank

http://www.usbank.com/cgi_w/cfm/creditcards/secured/usb_secured_card.cfm

Bank Of America

https://www.bankofamerica.com/credit-cards/marketinglist.action?context_id=marketing_list&category_id=2029

Hi Everyone,

As you can tell from the past few emails, Joe Harris and I are working on our BLOG. We are very excited to bring you the most up-to-date financial information and hope that you will provide us many comments and suggestions.

Talk with you again soon,

Dave

The luxury or high end real estate market in Florida is seeing more action now than it has in the last couple of years. While most of these transactions are cash, jumbo loans are available here in Florida.

The rates on these mortgages are very aggressive and their are several different programs to choose from. If you or anyone you know is interested in looking in Jumbo loans in Florida, please contact Morgan Financial at 321-757-3570.

Subprime mortgages have now been credited for bankrupting well over 110 lenders and seriously damaging operations at many major mortgage firms. They've reportedly wiped out 5 hedge funds, tens of thousands of jobs, and have led to millions of foreclosures with millions more on the way. And, as if that weren't enough, subprime mortgages are also blamed for massive volatility in the stock, bond, credit, futures, and real estate markets here in the US and around the globe. Some say losses in the mortgage securities market alone could reach hundreds of billions of dollars this year.

This means that, for any Americans looking to buy, sell, or refinance a home, they are confronting a very different market from the one that existed just 6-12 months ago.

How did this happen?
The recent real estate boom was fueled by a period of record home appreciation and historically low interest rates. Banks, in order to compete, loosened guidelines and began offering more funding to more borrowers through riskier, non-conforming or "exotic" mortgages.

These ideal lending conditions persisted for several years, supported by high demand, historical real estate data, home prices, and massive trading volume/profits on mortgage-backed securities and other financial instruments on Wall Street.

Then, in 2006, a slowdown in real estate led to a deterioration of home values, an increase in inventories, and ultimately to today's tightening of credit guidelines, leaving many investors unable to sell or refinance out of their existing positions. Many Americans who had tapped into their equity were suddenly tapped-out and overextended as home values fell. Foreclosures followed in record numbers and a re-valuation of mortgage bonds and other financial instruments created the credit/liquidity domino effect we're now experiencing.

What does this mean to you and your mortgage?

Sellers: If you're planning on selling your home, be prepared for an even smaller pool of qualified buyers. While some experts predict a settling of this credit crisis over the coming year, tightened credit guidelines and diminishing mortgage products could knock out as many as 15%-30% of potential qualified buyers. Now is not the time to sit and wait for the best possible price. Have a serious talk with your real estate agent. Having experienced buying/selling transactions in your area, he or she can help you price your home accordingly. He or she can also help ensure that your buyers are pre-approved and stay pre-approved throughout the entire transaction.

Buyers: Get pre-approved by your mortgage professional. While there are a lot of great deals out there, getting credit is becoming tougher and tougher, and it's taking longer and longer to complete a transaction. Remember, what you qualify for today could change tomorrow in a volatile market. For those looking to refinance, keep this in mind. There is no time to delay! Communicate with your lender. Don't do anything that could negatively affect your credit, and make sure you get all your documentation in on time.

ARMs Borrowers: If your ARM is scheduled to reset in the next 2-18 months, you need to schedule an appointment with a mortgage professional right away. Whether your ARM is subprime, Alt-A, or even if you have a pre-payment penalty, don't let a default or foreclosure situation sneak up on you. Did you know that your monthly payments can increase anywhere from 30% to 100% once your loan resets? At the very least, give yourself the peace of mind of knowing what your adjusted payment will be.

Borrowers with less-than-perfect credit: Each week it seems lenders are shedding more and more mortgage products. Many lenders have stopped offering No-Doc loans and are reducing all forms of Stated-Income loans. While it might be challenging, borrowers with credit issues need to see a loan expert. Often they have credit repair resources and other strategies to help you reach your financial goals.

Finally, there's an important concept to embrace: all markets, while cyclical in nature, are self-correcting, be it credit, real estate, stocks, or bonds. For the last 6 or 7 years, real estate was booming and riding high. The correction we're experiencing now – while it seems harsh and could get much worse – is, in a sense, "natural" and directly related to the extremely loose guidelines and perhaps overzealous lending and leveraging during the boom cycle.

When it comes to real estate, foreclosures aren't the only big story in the news. Builders and sellers are reportedly offering huge savings and massive incentives in order to pull in buyers and compete in today's marketplace.

Business Week recently revealed that some big builders have been auctioning homes discounted by as much as 50% in selected markets, while other large builders have been providing up to $100,000 in savings and incentives. Many individual sellers are getting in on it, too, by offering incentives like special financing, plasma TVs, vacations, and even motorcycles, cars, and boats.

ARM Yourself Against Higher Payments

According to CoreLogic, nearly 300,000 subprime adjustable-rate mortgages (ARMs) are scheduled to reset throughout the fall months of 2008. For many borrowers, this means higher monthly mortgage payments with a rate increase of 1 or 2 percentage points -- or more in some cases -- when their loan adjusts.

The peak month for the resetting of mortgages, however, will come this October when, according to Credit Suisse, more than $50 billion in mortgages are scheduled to adjust to a new rate for the first time. If you or someone you know has an ARM, be proactive. Find out how much your payments will increase before your loan adjusts this fall. Remember, while interest rate cuts from the Federal Reserve over the last year will definitely help some borrowers, many others could have trouble making increased monthly payments with food and fuel costs on the rise -- especially if the Fed begins increasing its key interest rates in order to fight inflation.

It’s also important to note that credit guidelines have tightened dramatically in the last year or so, and it may be harder for you qualify for a fixed-rate product if we don’t have enough time to address certain credit issues. So don’t wait until October. Give us a call today. We’ll review your adjustable-rate mortgage with you and see what’s best for your individual goals and needs.

Increased Loan Limits This Year Only
The Economic Stimulus Act of 2008 did more than just authorize rebate checks. It also increased loan limits for Fannie Mae, Freddie Mac, and FHA-insured mortgages in many regions throughout the country. For those looking to purchase real estate in a "high-cost region," these loan limit increases could help you avoid the higher interest rates associated with jumbo loans. For current homeowners looking to refinance into a new “conforming loan,” this could be your best chance in all of 2008.

What’s the catch? This legislation is a temporary tool designed to stimulate the economy and the housing market through 2008. This means qualifying mortgages or refinances under this plan must be in place before the end of the year. If you or someone you know would like more information on how to take advantage of this rare opportunity from the government, give us a call right away. We’ll run the numbers and show you how much you can save.

Gas-saving Tips
With oil prices reaching record highs, the price of filling up the tank is becoming more and more challenging for many American households. Here are a few simple tips to help you save money at the pump this spring:

Use the octane level recommended by your owner’s manual – According to the Federal Trade Commission, “Using a higher-octane gas than the manufacturer recommends offers no benefit in most cases.” So, as long as your engine’s not knocking or pinging, you can save up to 40 cents a gallon in many cases simply by switching to lower-octane fuel. If you’re convinced that super unleaded is the best choice for the life of your engine, use lower-octane fuel every other time you fill up just until peak gas prices drop to more manageable levels.

Slow down and plan ahead – In most cars, gas mileage decreases at speeds above 60 mph, so leave early and take the slow lane to save a few bucks on fuel costs. Also, you can avoid costly extra trips and traffic by carefully planning out your route in advance. Why not go to the grocery store on your way home from work? While you’re there, use the store’s ATM and avoid another trip to the bank.

Don’t pay more for the same gas – Before you fill up, go online and look for consumer gas-saving sites like www.GasBuddy.com. Sites like these reveal which stations in your neighborhood have the lowest rates each day. Some even offer maps and directions! You’d be surprised at how much you can save sometimes at a gas station just three blocks away.