Miller on Mortgages

Fort Lauderdale Mortgage Interest Rates Update: June 10, 2011

Justin Miller — Fri, 10 Jun 2011 12:45:57 +0000

Mortgage-backed securities, which move interest rates, are moving lower today after getting hit hard yesterday which is bad for interest rates. Interest rates paying NO POINTS in Fort Lauderdale and South Florida are as follows today on a $250,000 purchase price, 740 credit score, 25 day lock period, primary residence, single family detached home, with escrows are:

4.625% on a 30 year Conforming fixed rate mortgage with 20% down (APR 4.72%)
3.875% on a 15 Year Conforming Fixed rate mortgage with 20% down (APR 4.033%)
4.375% on a 30 year FHA fixed rate mortgage with 3.5% down (APR 5.265)

On a Jumbo loan with a loan amount under $850,000 putting 20% down paying no points with the same parameters as above interest rates are at 5.25% (APR 5.301%)

Call or email me for interest rates on Adjustable Rate Mortgages (ARMs) in Fort Lauderdale and South Florida

Your Fort Lauderdale Mortgage Banker Wants To Say “YES!”

Justin Miller — Thu, 09 Jun 2011 22:02:04 +0000

The timing of this article couldn’t be better because my main goal going forward is to educate everyone involved in the real estate transaction about what is needed for a loan and how we as mortgage professionals don’t want to ask for it as much as a borrower doesn’t want to give it. But it has to be done.

The sooner we all accept this the smoother the transaction will go. It’s hard enough getting an FHA or Conventional loan in Fort Lauderdale and South Florida to have to add arguing back and forth about why something is needed. There is a reason for everything, believe me.

Many don’t understand why a borrower’s tax transcripts are pulled and why it must be done or why they must be stamped by a local IRS office. It’s because you can give me a tax return with higher income and get that return Amended or file a different return with less income and a larger tax refund.

Make sure to read this Blog post “Does Your Lender WANT to Say “Yes?”

South Florida Residential Inventory

Justin Miller — Wed, 08 Jun 2011 19:22:33 +0000

Compiled by Condo Vultures Realty using the South Florida Shared Multiple Listing Service. Active listings are properties where no current sale contract exists; pending sales are properties in which a contract for sale has been executed, but not yet closed. Listing brokers control the status of a property listing.

Fort Lauderdale Mortgage Interest Rates Update: June 8, 2011

Justin Miller — Wed, 08 Jun 2011 14:58:08 +0000

Mortgage-backed securities, which move interest rates, are improving once again today which is good for interest rates. Interest rates paying NO POINTS in Fort Lauderdale and South Florida are as follows today on a $250,000 purchase price, 740 credit score, 25 day lock period, primary residence, single family detached home, with escrows are:

4.625% on a 30 year Conforming fixed rate mortgage with 20% down (APR 4.72%)
4.375% on a 30 year FHA fixed rate mortgage with 3.5% down (APR 5.265)

Call or email me for Jumbo Rates and Adjustable Rate Mortgages in Fort Lauderdale and South Florida

Is It Time To Buy a Fort Lauderdale Home?

Justin Miller — Mon, 06 Jun 2011 21:17:47 +0000

Interest rates are at historic lows if you are buying a home in Fort Lauderdale but as I mentioned before it’s not for everyone. Owning a home has additional costs because you have to fix something if it breaks or stops working. You will also want to make sure you are ready to stay in that home or hold onto the real estate for 10 years and have a secure job.

If you do have all of that then I recommend reading the article from The Wall Street Journal title “Is It Time to Buy a Home?”

If you read enough articles you will find something you want to hear but remember that owning a home is a lifestyle, not an investment.

Fort Lauderdale Home Prices

Justin Miller — Mon, 06 Jun 2011 20:06:54 +0000

This is a must read from KCMBlog.com because home prices are local and depends on where you are buying, the schools, etc.

“Prices of properties in your region will not be determined by the different price indices. Prices will be determined by the supply of homes available in ratio to the demand for those homes in your area. Whether you are buying or selling, check with a local real estate professional to help you analyze these numbers.”

http://kcmblog.com/2011/06/06/are-home-prices-headed-up-or-dow/

Fort Lauderdale Interest Rates at a 2011 Low

Justin Miller — Thu, 02 Jun 2011 17:56:18 +0000

Every Thursday Freddie Mac releases their Primary Mortgage Market Survey which shows average interest rate for the week ending. If you dig into and read the actual report you will see that it is always with paying points and broken down by regions. With anything you read you need to make sure to read the whole article, not just the headline.

By only reading the headline and not understanding the report you could get yourself in trouble. Remember, this news is something that has already happened. Yesterday mortgage-backed securities, which is what moves interest rates, rallied like crazy for the better. Right now, mortgage bonds are down 47 basis points which in english means whatever rate you got at the end of the day yesterday now will cost you your loan amount times .0047 so on a $100,000 mortgage that is $470 extra. The reason not knowing much about this survey can hurt you is if you quote it and on Thursday mortgage bonds get a lot better you might get the savings passed on to you. Yes , there are dishonest people. I don’t mean to be negative but this is why it is important to know what you are quoting.

You will see for Fort Lauderdale and the Southeast that the rates ended a tad higher than the rest of the US at 4.57% versus 4.55% paying .6% in points.

Should You Buy or Rent a Fort Lauderdale Home?

Justin Miller — Thu, 02 Jun 2011 00:03:38 +0000

According to the headline in the Sun Sentinel today if you are going to be renting you better sign a long term lease as rents are likely to go up. This is a good reason to look at buying.

Owning a home isn’t for everyone and you need to make sure you consult a mortgage professional about the pros and cons of each. You shouldn’t just buy a home because you read a headline saying doing so is better.

Interest rates are at historic lows which will help you afford your Fort Lauderdale but you better make sure you don’t plan on moving for close to 10 years and you are secure with your job. Do your research first!

http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2011/06/south_florida_renters_sign_lon.html

South Florida Residential Inventory

Justin Miller — Tue, 31 May 2011 22:15:10 +0000

An Adjustable or Fixed Rate Mortgage For Your Fort Lauderdale Home?

Justin Miller — Tue, 31 May 2011 20:46:01 +0000

There was a really good article in The Wall Street Journal this weekend called “Home Loans: A Call to ARMs?” that mentions how the spread between the interest rates on a 30 year fixed and a 5 Year Adjustable Rate Mortgage (ARM) is an 123 basis point (1.23%) difference is on pace to be the widest it has been in 8 years.

That is very enticing but you need to be very careful if you are to take on an ARM especially when interest rates are at historic lows. You never know what the future holds and unless you are 100% certain you will be able to pay it off in that time period I would suggest getting a fixed rate loan. Some are calling for further declines home values in Fort Lauderdale and South Florida and if you can’t sell your home or pay it off you could be in trouble. Remember though, every 1% increase in interest rates reduces your buying power by 10% so even if home values do drop your low interest rate can offset that decline if it in fact does occur.

Also, it depends on what your loan amount will be. On a $100,000 mortgage it isn’t as big of a difference in your mortgage payment as it would be for a $300,000 loan. Every borrower’s situation is different. You are not your neighbor or someone else you spoke to that did or got such and such on a loan.

Here is how a 5/1 ARM works: After the first five years, rates typically adjust each year and can move either up or down. During the sixth year, the maximum amount they can increase by is 5 percentage points. Each year after that the rate can move by 2 percentage points, as long it doesn’t surpass the loan’s maximum lifetime cap, which is 5 percentage points above the initial fixed rate. That means the lifetime cap on a loan made today at 3.4% would be 8.4%.