Lowest Lake Mary Mortgage Refinance and Purchase Rates in over 2 years!? If you move quick…

Well Good News for Lake Mary mortgage rates! The Federal Open Market Committee [maybe we will just call them the FED] voted to cut the Fed Funds Rate by at least three-quarters percent Tuesday.
The benchmark rate now rests in a range of 0.000-0.250%… and no, that doesn’t mean your mortgage will be at 0%. [Typically you will add 3% to that number to attain the PRIME Rate – which is what many Home Equity Lines, car loans, credit cards, and equipment loan are based upon.] In its press release, the FED ID’d 3 key sectors…

Want to read more, please click here: Lowest Lake Mary Mortgage Refinance and Purchase Rates in over 2 years!? If you move quick…

Source Parsing the Fed Statement

Chris Brown All Around Good Guy Trinity Mortgage 153 Parliament Loop#1001Lake Mary, Florida, 32746	Work: 407 377 0500 x 210 Chris@OrlMtgPro.com www.MortgageChiliBlog.com
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FED Cut and Lower Orlando Interest Rates

Do they go to a special school to ‘speak FED’???  Good Lord, fellas… we gotta be able to understand this stuff to be able to respond appropriately… or is that not what you want? LMAO

Well, the Federal Open Market Committee voted to cut the Fed Funds Rate by .5% today. The benchmark rate now stands at 1.0%.  THIS DOES NOT LOWER MORTGAGE RATES

In its press release, the Fed got busy addressing the main issue at-hand, stating that economic activity has “slowed markedly”.  Ha… ‘markedly’… have you ever used that word in your life?  Well, my readers are notably smarter than I am, so you probably have!  Anyway, they pointed to three main causes:

1. Consumer spending…

Read the whole Blog post at THE Orlando Real Estate and Mortgage Chili Blog:

FED Cut and Lower Orlando Interest Rates

Wake up Orlando Real Estate: Fannie Mae cuts Mortgage Loan Fees

Okay, FHA Loans are only 90% of today’s market… conventional loans DO still exist.
In an effort to provide “the most market support possible”, one of our beloved GSEs, Fannie Mae, is slicing one of its standard loan fees by 0.25%.

Fannie Mae introduced their, [Good Lord, who thinks up these names…] Adverse Market Delivery Charge in December 2007 to help in offsetting the foreclosure losses. The initial fee was a quarter-percent of the amount borrowed.

As things got worse, Fannie Mae said, ‘you know what, let’s double it!’ and they changed that fee to 0.5% percent in August.

Now, we are back where we started the fee is back to its starting point. The good news here is, if you are debating an Orlando refinance, now maybe a good time to make the move. It is true that the credit guidelines are a bit more strict, so more of you may be in need of Orlando credit repair. If that is the case, let me know. Bad credit can be addressed if you have a large enough reason.

Since the beginning of this year, Fannie Mae has made 21 separate changes to its mortgage guidelines. I gotta use toes to count that high…uh oh… I am out… good, 21… they are all there. Anywayyyy, most of these not been beneficial to borrowers. They increase the difficulty, or the cost, of qualifying for a conforming home loan for most folks.

Friday’s change is among the very few that are “good news” For Orlando home buyers.

Friday, mortgage pricing edged higher because of the – at the time – looming Congressional vote and Wall Street’s reaction to the weak jobs report.

The good news is that price changes could have been worse. In this case, the flip-flop helped the cosumer. Fannie Mae’s Adverse Market Delivery Charge change is keeping rates from rising as high as they might have otherwise risen.

“No” Vote on bailout… what happened to Orlando Mortgage Rates

On Sept 29th, the U.S. House of Representatives whooped up on the the $700 billion “Bailout Bill”, surprising Wall Street and the rest of the world for that matter.

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:

$7500 Tax Credit

Is DPA… DOA?

Lowering your rate EVERYTIME rates go down…

Orlando FHA Short Refinance

An FHA Short Refinance is designed for people who owe more than their home is worth. Wow, this is more of us than eer anticipated is it not?

Well, when faced with this scenario, there are about three main options available which are determined by the process of negotiating with your current mortgage lender:

1. FHA Secure Refinance – This was put forth by Congress and unfortunately was more symbolic than it was substantive. Sorry… facts can be inconvenient. Anyway, this is typically the case when the borrower owes on two different mortgages that are now greater than the total of the homes current value. For an FHA Secure Refinance, the new lender will allow the second to remain as a subordinated lien but this is a very small box to fit in to be sure.

2. Short Refinance – A Short Refinance is also considered a Mortgage “Write Down” where the current mortgage company allows for a payoff that doesn’t add up to the current amount owed. There is a process of negotiating with the current lender to allow this transaction to take place.

3. FHA Secure Short Refinance – There are some unique occasions that the current mortgage company will allow the writing off a certain amount of the balance and arrange for an unsecured loan to be paid independently by the borrower. The benefit with this example would be to obtain a very low interest rate on the remaining balance that was not wrapped up into the new mortgage payment.

All of these options may need the help of an Orlando mortgage professional that has had experience negotiating FHA Short Refinances with the reeling banks.

In many cases, the borrower doesn’t have to pay for any of the fees at the time of that they make application and can wrap the normal costs into the new-born mortgage.

Written by Chris Brown, an Orlando Loan Officer. For more information about purchase loans or refinances on primary residences or investment properties, please contact me directly @ 407-377-0500 x 210.