Mortgage Blog

Renting vs. Buying

May 19th, 2008 8:17 PM

Now is a great time to buy a home, at least for those with good credit and a little down payment. Interest rates remain low and the housing downturn has lead to a “buyers market” – meaning buyers are very much in the driver’s seat. With a large inventory of homes for sale there are some great deals to be had.

However, this is also a good time to rent. Many sellers have decided to wait out the current difficulties and are instead seeking to rent their properties. This has lead to a big inventory of rental units in many areas of Florida and renters can expect attractive deals.

This brings us to the questions; is it better to buy or rent? Well if you plan on staying in Florida for only 1-2 years then renting will probably be the best option for you. Those who are putting down more permanent roots should certainly consider buying.

But keep in mind there are many unexpected costs to home ownership. There is the constant expense of upkeep and maintenance and don’t forget the occasional big costs such as when that A/C or water heater needs to be replaced. Then again there are the ever rising costs of property taxes and Insurance.

The key is always to make sure you don’t overstretch yourself and have a rainy day fund on hand for those unexpected expenses. Buying a home does have its advantages however. The biggest plus is surely the ability to write off the mortgage interest. Owning a home is also an investment and historically it has been a wise one. The housing downturn won’t last forever and those buying today will have bought when the price was low.

So generally speaking it is better to buy than rent. But consider all of the above factors before making a decision. Most importantly make sure that whatever you do fits into your budget.

Posted by Anthony Rigney on May 19th, 2008 8:17 PMPost a Comment (1)

Protecting Florida Homeowners

May 30th, 2008 11:41 AM

Protecting Florida's Most Vulnerable Homeowners (An Article Provided by the Florida Attorney General's Office)

Last year, as a result of substantial increases in interest rates and monthly housing costs, more than 245,000 mortgage foreclosures occurred in Florida. This ranks the Sunshine State second in the nation in the number of foreclosures. As the number of Floridians facing foreclosure increases so does the number and variety of scams devised to defraud these vulnerable consumers.

Fraudsters commonly seek to take advantage of at-risk homeowners by promising to prevent loss of the home in one of three ways - by taking a hefty consulting fee without providing the promised services; by stripping the equity from the home; or by simply attempting to take possession of the home itself. Examples of typical fraud schemes include tricking the homeowner into signing over the deed to the home; requiring an up-front fee for foreclosure services never provided; and misleading a homeowner who faces foreclosure into transferring ownership of his or her home under the premise that the homeowner can stay in the home and pay rent with an option to repurchase, but evicting the homeowner shortly thereafter.

Recognizing that many Florida consumers were facing these unscrupulous tactics, Attorney General Bill McCollum proposed a legislative remedy. With the leadership of and assistance from Senator Mike Fasano (R-New Port Richey) and Representative Clay Ford (R-Pensacola), Attorney General McCollum helped develop legislation to educate consumers on their rights prior to signing foreclosure rescue-related contracts and to include further legal protections to Floridians who face foreclosure.

The legislation (House Bill 643), which passed both the House and Senate during the 2008 Legislative Session and was signed into law earlier this week, prohibits foreclosure rescue consultants from collecting a fee upfront and requires consultants to provide a written agreement to the consumer. This contract must include a clearly-stated notice to the homeowner of his or her right to a three-day cancellation period, as well as other important information that will protect the homeowner, such as suggesting that the homeowner contact the lender or mortgage servicer prior to signing the agreement. By contacting their lender or mortgage service provider, the homeowner may have a payment plan negotiated potentially free of charge which allows the homeowner to escape foreclosure.

To reduce the risk of fraud in the transfer of the home to an investor who promises that the homeowner can remain in the home and retain an option to repurchase, the bill requires the Buyer (investor) to present a separate contract with all the terms and conditions of the proposed property transfer, before any instrument that transfers title to the property can be implemented. Should the transaction occur while the homeowner still resides in the home and makes payments to the new owner, the homeowner will be given a 30-day right to cure any default of the terms of the repurchase agreement, which is presumed to be a loan. The repurchase price must be made clear and cannot exceed 17 percent per annum more than the total amount paid by the equity purchaser to acquire, improve, maintain, and hold the property.

By protecting Florida homeowners who face the threat of foreclosure from the fraudsters who prey on them, this law will ensure that vulnerable consumers will not be further victimized at a time of personal financial crisis. Florida homeowners now have an important tool to protect their most valuable possession - their homes - and Attorney General McCollum's Office will be standing ready to enforce the new provisions.

Posted by Anthony Rigney on May 30th, 2008 11:41 AMPost a Comment (0)

Florida Investor Mortgages to 95% of Purchase Price

May 29th, 2008 12:09 PM

As a result of the distressed real estate market there are many great deals available for those interested in investment property. We recently came upon one buyer who snapped up a desirable home for almost half its appraised value. The challenge up until now has been that financing is difficult to come by. The credit crunch has seen financing for investors dry up especially when a large downpayment is not possible.

However, things have just changed. We are pleased to announce that we can now offer investor financing for the State of Florida up to 95% of the purchase price.

The important detail is that the buyer must be purchasing the property well below market value and that is not so unusual these days. We can also do refinance loans including "cash out" loans on both investment and owner occupied properties

Our Lender has money ready to lend and they are looking for the right borrower today. Don’t miss the bottom of the market! For more information on this program please call 1-800-461-2986. Inquiries from Real Estate Professionals are welcome.

Posted by Anthony Rigney on May 29th, 2008 12:09 PMPost a Comment (0)