Interest Rates are at an all time low. Interest rates fell below 5 percent for the third week this year!
Lets turn this into numbers:
100,000
per month
$536.82
150,000
per month
$805.23
200,000
per month
$1073.64
250,000
per month
$1342.05
300,000
per month
$1610.46
350,000
per month
$1878.88
400,000
per month
$2147.29
Calculation are based on 5% rate for 30 years. Consult your bank or lender to see what rate you are eligiable for as rates may vary.
Either way, home price drops and such low rates, will indicate that many people are buying or that they are going to buy soon. The less inventory the more chances prices slightly begin to climb.
For a quick assessment of your community kindly call us.
Banks are beginning to understand the entire hardship that families are going through with their homes. see WSJ article below
Mortgage lenders are trying to arrange smoother departures for distressed homeowners who can’t be saved by loan modifications–and discourage them from trashing the homes on their way out.
CitiMortgage, a unit of Citigroup Inc. (C), announced Wednesday a pilot project that will let some delinquent borrowers remain in their homes without making mortgage payments for six months if they voluntarily transfer ownership to the bank.
Over the past two years, millions of foreclosures have been delayed by state and federal programs requiring lenders to try to keep borrowers …
What this means?
At the end of the day, they banks take the property back and do not give the real option for the homeowner to keep the home. AKA Deed in Leu of Foreclosure. Why not truly make real modification attractive to owners
This federal law requires that new owners of foreclosed residences allow tenants to remain in the property for at least 90 days after the foreclosure sale.
Please note that this law protects all bona fide renters of residential units, even those that do not have a written lease.
If the tenant has a written lease that expires more than 90 days after the foreclosure sale, the tenant can remain in the property until the end of the lease.
The only exception is if the new owner wants to live in the property him/herself – but the tenant still has a right to stay for 90 days from the date of the sale.
The Terms of your Lease still apply. Including the RENT PAYMENTS.
It is critical that you are in contact with your Landlord and coordinate based on the intentions.
For those wondering that there is a stop in construction in South Florida. No we are wrong! Next week’s demolition of 1515 Flagler Drive in West Palm Beach will look like, the video above should provide a frightening, yet visually-stimulating preview. The 30-story, hurricane damaged, uninhabited condo tower will be the third-tallest building in the United States to be destroyed by a controlled implosion when it goes down at 9 a.m. Feb. 14.
Up coming GUIDELINE changes to the FHA loan program:
Allowable seller concessions are going down from 6% to 3%
For people who have a credit score below 580, the down payment requirements are going up from 3.5% to 10%
The UFMIP requirements are going up from 1.75% to 2.25%
Seller Concessions Reduced From 6% to 3%
In my opinion, this change possibly has the biggest impact. Many times when negotiating the price of a home, seller concessions can help the buyer actually be able to afford getting into the house. While it won’t be a deal killer every time, this will make it more expensive for buyers in many cases — and I expect that it will result in higher out-of-pocket costs to buy a home.
Low Credit Score = Higher Down Payment
For people who have a credit score that is lower than 580, the new down payment requirement will be 10% rather than the current 3.5%. While this may seem steep if you have a low credit score, the reality is that very few (if any) lenders are still doing FHA loans for people who have lower than a 580 credit score. My guess is that after this goes into effect, virtually no lenders will provide FHA financing for people with a credit score below 620.\
UFMIP Requirements Going Up
When you get an FHA loan, you are required to pay UFMIP (Up Front Mortgage Insurance Premium) and from time to time, HUD adjusts the amount they require to be paid. Due to the fact that FHA cash poor at the moment, they are raising the amount required to be paid. There isn’t a technique around paying this UFMIP when you get an FHA loan – but the good news is that if you don’t have the cash to pay all of it up front when you get your loan, you can finance the entire amount into your loan. We consider this to be a wash and it will not affect your cash to close.
FHA loans in South Florida Market is ideal for homes, there are a very small amount of condos that approved FHA for FHA loan. Check if your condo is approved FHA here: Approved FHA Condos
Get more details about HUD’s press release detailing a few of the changes to the FHA program.
Its about time you win
