Historic Fed Move Cuts Both Ways for Borrowers-Tampa, Fl

Historic Fed Move Cuts Both Ways for Borrowers

Hot on the heels of its surprise inter-session rate cut of 75 basis points last week, the Federal Reserve cut key interest rates again, the fifth straight cut since September 2007. In its statement last week, the Fed said it had decided to cut the federal funds rate "in view of a weakening of the economic outlook and increasing downside risks to growth." In other words, economic data suggests the US is on the brink of recession, and the Fed is acting accordingly.

Who benefits from this cut?If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home equity lines of credit (HELOCs) and variable rate charge cards are the types of loans that will have an interest rate reduction on their next statement.

What does this mean for long-term rates? Long-term mortgage rates, the lowest we've experienced in years, could actually increase after today's cut, based on historical performance and recent trends.

So if you're waiting for long-term rates to fall further, don't count on it. Your best chance to lock in the lowest rates since 2005 is now. Getting your application in process now will allow you to capture a great rate before it's too late.

Thinking about buying or selling real estate in the Tampa Bay Area? Have a Real Estate question?
Feel free to email or call us 813-784-7744
Rae Catanese and Michelle Jordan
Realtors.

Search MLS
Prudential Tropical Realty



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Savvy Woman: Questions to Ask Before Buying A Home with a Friend-Tampa Fl

Savvy Woman: Questions to Ask Before Buying A Home with a Friend
The answers to these six questions can make or break your decision.
By Tara-Nicholle Nelson Published: 11/01/2007



1) What is your Vision of Home?Ask anyone you're considering teaming up with for a house purchase to write a Vision of Home and fill out the Wants & Needs Checklist. Discuss the differences and similarities between theirs and yours. Especially discuss what you want your living space to be like, physically speaking -- everything from location, to the type of building, to the architectural style, to cute/old/charming vs. cool/new/modern. EVERYTHING. And make sure you know each other's must-haves and deal-breakers.


2) Will you be sharing a single family home or buying a multi-family home? Said differently, will you be living together or will you each get your own unit?Are you really committed to making a roommate-type relationship work over a long-term period of time, or do you each want your own private residence (complete with your own kitchens, bathrooms, and front doors - which you can close and lock if you need to be alone!).


3) Do you prefer to make decisions slowly and deliberately after lots of investigation or do you prefer to trust your intuition and act when you "feel" it is right?Nothing is more frustrating than for one person to be ready to buy the third or fourth property they see, when the other person has no intentions of buying anything until they've seen at least 40 or 50 properties. Get clear up front on how you both envision your house hunting process, so you are not unpleasantly surprised when you find the place of your dreams and your pal is not ready to buy, or when your buddy pressures you to buy a place way before you are ready. If you are a more intuitive buyer and your co-buyer is more deliberate, then you might want to have them do a lot of Open House looky-loo-ing before you go out and get serious about looking with your Realtor and vice versa. If you are a significantly slower decision maker than your friend, consider going out to lots of Open Houses to build up your comfort level with the commitment involved in actually buying before you, your co-buyer and your Realtor begin the formal house hunt.

4) Do you have a Realtor or mortgage lender?If either of you has a Realtor or lender, you should calendar a meeting with all buyers and all professionals to give every buyer a chance to meet and question the professionals, and choose with whom they would like to work.

5) Have you been pre-approved for a mortgage? If so, for what purchase price were you pre-approved and on what terms?The good faith estimate will show all this information. At the beginning stages of your discussion, you can roughly combine your approval amounts to get a general sense for

(a) how much you can spend on your home together, and

(b) what the monthly payment on that amount will be.


Nine times out of ten, though, you will need to jointly qualify as co-borrowers on a single mortgage in order to purchase a property held in TIC or Joint Tenancy. You should do so as soon as possible to uncover and iron out any potential glitches before you get too deep into the house hunting process.

6) What is your career situation (i.e., stability, earnings, future plans, etc.)? I know this seems strange, but you really do need and want to know where the money for your friend's share of the mortgage payments is going to come from, and how stable that source of funds is. You actually should find out how much she (or they) makes. I've literally had best friends get deep into the homebuying process prior to realizing that they each assumed the other made way more money than she actually did!


This information empowers you to do a reality check on the amount for which you collectively have been pre-approved. It is impossible to plan to spend almost every cent of your income on a mortgage -- and it might raise a red (read: preventive) flag if you realize that your friend is planning to do so.!

To start your Real Estate Search visit www.TampaBayDwellings.com or contact Rae Catanese-Prudential Tropical Realty-813-784-7744.

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Buyers Market picking up due to low interest rates- Tampa, Fl

Beautiful Seminole Heights Bungalow

Lowest Rates in 25 Months

We couldn't have asked for a better Thanksgiving treat than the one we got on Monday: the lowest 30-year fixed-rate in over two years. That's right. For those of you who have been patiently waiting, here's your chance to save anywhere from $5,000 to $7,500 or even more on the mortgage financing you've been looking for. Do not miss this great opportunity to cash in on the lowest rates since October 2005.

Here's why you should act now:
Monday saw the lowest 30-year fixed interest rate in over two years. However, each time this interest rate reached previous low points, both last year and earlier this year, it began increasing and didn't stop, climbing over 0.50% in the months that followed!

Fannie Mae and Freddie Mac tightened guidelines, announcing new Loan-Level Price Adjustments. In the first quarter of 2008, most borrowers who have good credit, but have FICO scores below 680, will now be forced either to pay more points at closing or incur a higher interest rate.

The amount that a borrower could be forced to pay, even if they've never been late on a payment, could be as much as 2.00% in points or an interest rate that's 1.00% higher than the going rate.

On a $250,000 home loan, a borrower could have to pay up to $5,000 in order to receive normal market rates! Borrowers choosing the higher interest rate, under the worse case scenario, would stand to lose over $7,500 in just the first three years of the loan.

Choosing to wait could cost you money both in the form of higher market rates and points. This could well be the greatest holiday present you could treat yourself to this year, but only if you act fast!


For Real Estate questions contact

Prudential Tropical Realty

Rae Catanese, Realtor at 813-784-7744 or email us.


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It's a BUYER'S MARKET!-Tampa,FL

Are first time home buyers fearing the worst?

The past few years home buyers were coming out of the wood work looking to purchase. Mostly first time home buyers. What has really changed? Interest rates are now the lowest they've been all year, there is inventory galore, sellers are eager................. So what is stopping people from buying?

Fear. Fear that things may get even better? My opinion is that things are pretty darn good now. Waiting may or may not be a good option for people. Once everyone figures out that now is the time to buy everything will change once again. They say it's either a buyer's market or a seller's market, not both.

Here are Four Great Reasons To Buy

If you've ever thought about buying a home, but decided that it was too big a financial gamble, think again. It's possible you haven't considered the risk of not buying a home. For the majority of working people, home ownership is the single most reliable way to achieve financial security. Without it, you may find it almost impossible to gain access to the kind of capital you'll need to support yourself in your old age, pay for your children's education or start a new business.

Since the 90's, overall housing prices have remained stable, though in some areas of the country they have fallen by as much as 25 to 30 percent, and mortgage interest rates have dropped dramatically. But, like many people, you may continue to think of home ownership as something beyond your reach. Here's why that thinking could be a big mistake.

1. You may wait a long time to see rates this good again. Suzanne recently saw a house selling for $125,000. She has $20,000 in savings to use as a down payment; $105,000 30 year mortgage at 6% would cost her $629.50 a month, and she may have another $160 a month in real estate taxes and insurance, for a total of $789.50.Suzanne is hesitating: $ 789.50 feels like a stretch for her now, since she is paying only $650 for her rental. But if she waits, and prices and mortgage rates rebound to the levels of five years ago, the exact same home might cost her $150,000, and she could be paying an 8 percent interest rate. The bottom line: she would be stuck with mortgage and tax/insurance payments of $1113.90- almost twice her current rent for exactly the same home.

2. Renting deprives you of big tax breaks. Home ownership is one of the last remaining tax shelters. In the example above, Suzanne would be able to deduct about $9,000 in mortgage interest and real estate taxes on her annual tax return. She earns $30,000 a year, which puts her in the combined 31% federal and state tax bracket. Therefore, her tax savings could come to about $2,900 a year or almost an additional $250 in take - home pay each month. If she rents, she'll get no tax breaks whatsoever.

3. You need to start small to trade up. You may feel that there will be plenty of time to get into the housing market when you feel financially secure. The problem is, you'll probably need the profit you'll make by selling your "starter" house to be able to afford the one that you'll want in the future. In the last 6 years, the median price of a single-family home rose an average of nearly 8% a year, according to the National Association of Realtors.

4. Your future is going to be expensive. Financial experts generally suggest that to retire, you'll need to build up enough in savings and investments to generate yearly income of 70 % of your pre-retirement income. That's a tall order- and a reason to start amassing some serious capital soon.

Most importantly, a good Realtor can show you properties in your price range making your search almost effortless. Realtors who are "Buyer's Agents" get compensation buy the selling agent, therefore it cost the buyer nothing for having representation.

If you are a thinking of purchasing a home and would like to be referred to an agent in your area you can go to www.tampabaydwellings.com

You will be asked for some basic information regarding your home search preferences. A qualified agent will then be assigned to work with you to determine what your options are.

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Tips for First Time Home Buyers, Tampa Real Estate

Top 7 Tips for First Time Homebuyers
by Eric Bramlett

Purchasing your first home is a big step, that comes with some very serious decisions. Many homebuyers are intimidated by the process, and continue renting much longer than they should, or need to. However, if you break the homebuying process down into these simple steps, and follow these important tips, you will find the process less intimidating, and much more manageable.

1) Before You Begin, Ask Yourself One Question
Will you live in your next home for at least 3 years? If the answer is "Yes," you should probably purchase, rather than continue renting. With average appreciation, you'll break even on your closing costs after 2 years, and start making money at year three. Every year after that will put more money in your pocket! The most expensive aspect of real estate is buying & selling, so the longer you can live in the home the better. However, purchasing makes sense if you can make as little as a 36 month commitment.

2) You Don't Need a Down Payment!
It always surprises me how many people want to purchase a home, but don't because they believe that a hefty down payment is required. Zero down programs are very common, and are quickly becoming the norm, rather than the exception to the rule. Because your new home is collateral for the loan, there are many banks that will jump at the chance to loan you 100% of its value. Perfect credit isn't a requirement, either. Because real estate typically appreciates in value, it's often easier to be approved for a 100% mortgage than it is to borrow 100% for a car!

3) Get Pre-Qualified
Pre-qualification is a very important step, and the step that first time home buyers dread the most. Qualifying to buy a home is pretty easy and requires relatively little work for you. Pre-qualification is what gives you buying power and allows you to make an offer on your dream home when you've found it. More importantly, pre-qualification will let you know how much your new home will REALLY cost - in monthly payments. A $150,000 or $300,000 home doesn't mean a lot to most buyers - but $1200 per month and $2500 per month are tangibles that everyone can understand. After your lender pre-qualifies you, ask them for a "payment table" that shows you a rough estimate of TOTAL monthly payment based on purchase price. Pick your payment, and you know the price range to shop in.

4) Consult a Real Estate Professional ASAP
Many first time home buyers avoid contacting a Real Estate Agent because they dislike high pressure sales. However, Real Estate Agents have an advantage over traditional salespeople because they have access to the Multiple Listing Service, which is a database that lists roughly 99% of the homes for sale in a given market. This means that your Real Estate Agent doesn't have to sell - he/she merely presents your options. The most important qualities to look for in your Real Estate Agent are his/her knowledge of your specific market and their willingness to help. Interview a few agents and choose one that will help guide you through the process, and best of all it doesn't cost you the buyer a dime! You'll find the help & insight will be invaluable - and you'll be glad you contacted your Real Estate Agent sooner, rather than later.

5) Make a List of "Must Haves" & "Wants"
Many new home buyers mistakenly think that they will "just know" when they "walk into the one." While some buyers DO fall instantly in love with a home, this is not the norm. You'll find your search is easier, and you will be more confident in your decision, if you take a systematic approach to your search. The best way to organize your search is to make two lists: Your "must haves" and your "wants." Your "must haves" are the absolute necessities in your new home - in fact, you don't even need to view a home if it doesn't have every "must have." Great examples of your "must haves" are price, school district, size, etc... Your "wants" are the qualities that you would like for your new home to have, but it's not a necessity. Great examples of "wants" are color, flooring, kitchen appliances, surround sound, and type of exterior. By taking the time to articulate what you need and want in your new home, you will know exactly what to look for when viewing prospective homes.

6) Pick Your Favorite Neighborhoods
You can always make changes to your house, but you can never change its location. Most home buyers already have a good idea of where they would like to live because of school districts, work, or other factors. However, neighborhoods can be pretty different, even in the same area of the city. Ask your Real Estate Agent to email you a list of homes in the specific area of town you're interested in. Take a drive through the different neighborhoods on the list your Real Estate Agent sends you, and choose your favorites. Pay attention to area amenities, how well the yards & common areas are kept, and if you see a lot of "for lease" signs - which can be an indication of a heavy rental area, and lacking in "pride of ownership." After you have picked your favorite neighborhoods, and you know your "must haves" and "wants," you can literally make a list of EVERY home available that meets your criteria, and view those homes.

7) Make Your Decision!!!
Homebuyers often hesitate after they've found the right home because they're not confident about their decision, or their decision-making process. Your home is probably the largest investment of your life, and it's normal to feel butterflies in your stomach before putting your first home under contract. However, if you do your due diligence - and you have if you followed the steps above - then you will have your bases covered. If you've found a home that meets all of your "must haves," most of your "wants," is in the right neighborhood, and in your budget - it's the home for you! Don't wait and let another buyer take YOUR home!
Buying your first home can seem very intimidating, but can be extremely exciting. If you think that buying a home is right for you, it probably is. Make sure and follow these important tips and you'll know you made the right decision when you find your first home.
To find an agent in your area send an email to: realtyrae@yahoo.com or visit www.TampaBayDwellings.com/forBuyers


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