Lake Mary First Time Home Buyers… perk up. We all know what inflation is and the ugliness that can go with it. Most of us know that deflation is the opposite of inflation…. but don;t know much more than that.
In fact, business TV and newspapers have inflated deflation [sorry for the play on words… but I like doin’ that] as a hot topic this week and, since Monday, Google has tracked 13,000 mentions of it. Make this 13001.
Deflation is a recurring cycle in which the prices of goods and services fall. Suh-weet… falling prices that is so cool, right? Well, um, not really. Why? Human nature.
When prices are declining across many industries at the same time, IT CAN SHUT DOWN THE ECONOMY!
If you think about it…
Find out the ugly truth of deflation by finishing the blog post here:
Talk of Deflation – What Lake Mary First Time Home Buyers Need?
(Image courtesy: The Wall Street Journal)
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Chris Brown
All Around Good Guy
Trinity Mortgage
153 Parliament Loop
#1001 Lake Mary, Florida, 32746 |
Work: 407 377 0500 x 210
Chris@OrlMtgPro.com
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Posted in Borrowers, Economic News, FHA Loans, Home Buyers, Mortgage Advice, Rate Shoppers | Tagged: $7500 Tax Credit, chris brown, deflation, deflations effect on real estate, first time home buyer tax credit, lake mary mortgages, lake mary real estate, lower mortgages rates, orlando interest rates | Leave a Comment » IRS funded Orlando Down Payment AssistancePosted by Chris Brown on October 7, 2008 Okay, we all know that the loss [unless something changes] of Ameridream and Nehemiah is going to stifle the first-time buyer’s ability to jump in the market, do we not?
I am talking, obviously, about the new $7500 Tax Credit for First-time home buyers. How do we position this so that buyers can legitimately see the benefit and be willing to re-engage. First things first. What is the difference between a Tax Deduction and a Tax Credit Tax Deduction –The benefit is relative to the tax bracket that the last dollars of your income falls in. For example, if you had a $7500 tax deduction in a 25% bracket, the realized benefit would be $1875.00 [7500 x .25 = 1875] Tax Credit – A dollar for dollar reduction of your tax liability. If you owe $4000 in taxes, a $4000 tax credit, would wipe it out completely and any taxes you had paid through your withholding would be returned to you. The Example Now…. 1. Assuming the tax credit is coupled with FHA financing [what isn’t these days?], they will still need the 3% down at the closing table. This can still be a gift. Imagine this … [Ring… ring… Hi, Mom? I know you haven’t heard from me since your last birthday… I hope you got my belated card. Sorry I couldn’t make it over, but Spike had diarrhea. Listen, anyway… we were thinking about buying a house…] 2. Lets say that Mr. and Mrs. Firsttimebuyersonsteinburg, through their withholding out of their w-2’d job, end up having $3750 as a tax liability for the year. Well, at the time of their tax-refund, that $3750 would be returned to them as a “check from the gov’t”. [Sorry for the quotes, don’t get me started on that.] 3. Now with that $3750 in hand, they can either thank Mom & Dad by gifting the money back, more creatively sending them on a weeks cruise or something, or in many cases…likely most… keep it. The end result, however is that they still get the 100% financing… they just have to wait for the $$ to come full circle. Just a thought. FYI: Now, just because seller-assisted DPA is going away, it doesn;t mean that there is still not other things available. Here locally, the SHIP program is still something that people turn to, in fact, Heather Joubran of Re/Max Central Realty is one of those that goes above and beyond for her clients… read the story of what she recently did. Chris the Implementer P.S. Want to do what YOU can to help save DPA? Visit DPA Groundswell. Chris the Implementer Orlando Mortgages | Orlando Credit Repair | Orlando FHA Loans Posted in Borrowers, FHA Loans, Home Buyers, Mortgage Advice, Rate Shoppers | Tagged: $7500 Tax Credit, 100 percent financing, 100% financing, Down Payment Assistance, first time home buyer tax credit, heather joubran, SHIP, ship program | Leave a Comment » “No” Vote on bailout… what happened to Orlando Mortgage RatesPosted by Chris Brown on October 1, 2008
The Dow responded by falling an astonishing 777.68 points — its largest one-day loss in all U.S. history. The media, in prime fashion, did a great job in over reporting that… but guess what they missed? [Gee, have they over-reported anything else…say…over the last 3 years!! LOL… sorry pet-peeve of mind and how they scare consumers, but I digress.] What they missed, however, is how the “No” vote created a terrific opportunity for Orlando mortgage rate shoppers. Throughout the day Monday,money fled the tanking stock market and most of it ended up getting parked in the relative safety of government-backed bonds which includes, of course, the mortgage bonds. This phenom is called, “Flight to Quality”. This rising demand for mortgage bonds caused rates to fall. To investors, both institutional and on street level, the stock market represented extreme risk and bond markets represented comparative safety… Translation: Rates get better. Media seemed to miss that…. huh. So, when market sentiment changes, as it did on Monday, Wall Street players often shift their dollars from one place to the other. This is why Monday’s stock sell-off was good news for Orlando mortgage rate shoppers — the added demand for “safe” securities drove down rates. Mortgage rates were about about an eighth-percent less Monday. Now, Tuesday, mortgage rates are opened flat, Then it got u.g.l.y.. Mortgage Backed Securities fell [fell is bad for rates, btw] back to where they were in the beginning of September… erasing the benefits gained. In today’s volatile market, you need to be able to move quick… or that rate you saw…WILL be gone. If the new-look bill is viewed as favorable to U.S. businesses without harming taxpayers, expect stock markets to improve and mortgage rates to rise. If the bill fails to accomplish that goal, however, expect mortgage rates to improve. Quick sidebar… re-looks at this kinda stuff make me nervous. When has a Bill that didn;t get enough votes, get smaller, in order to get more people on-board? Never… they add more pork to it to convince other to vote. Ughhhh. Other Articles of Interest: Posted in Borrowers, Economic News, FHA Loans, Home Buyers, Home Sellers, Rate Shoppers | Tagged: $7500 Tax Credit, bailout, Down Payment Assistance, lower mortgage rate, Orlando FHA Loans, orlando mortgage, orlando mortgage rates, orlando rate shoppers | 1 Comment » $7,500 Home-Buyer Tax Credit gets lots of Public Interest.Posted by Chris Brown on September 3, 2008 This was a great article I came across written by a gal named Mary Ann Milbourn. This was originally written on Aug. 13th, 2008 ————– A new National Association of Home Builders Web site explaining the $7,500 first-time home buyers tax credit approved by Congress last month is being swamped by people interested in finding out about the program. NAHB reports the site, www.federalhousingtaxcredit.com, has received 116,000 hits since it went up early this month. “The initial response is encouraging,” said NAHB President Sandy Dunn. “This could be the trigger that helps move prospective first-time buyers off the fence and back into the market. But it won’t last forever.” Granted, $7,500 doesn’t go very far in Orange County, where the median price was $495,000 as of June. But “first-time buyer” is defined as anyone who hasn’t owned their principal residence in the last three years. So former owners who cashed in their equity and have been on the sidelines renting could take advantage of it. There are, however, income restrictions. The NAHB site also explains other aspects of the legislation, often referred to as the mortgage bailout bill because it originally was aimed at helping financially-strapped homeowners avoid foreclosure.
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Posted in Borrowers, Home Buyers | Tagged: $7500 Tax Credit, buyer help, first time buyer, stimulating industry | 1 Comment » | ||
On Sept 29th, the U.S. House of Representatives 
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