Florida Mortgage Lender Blog & Real Estate News

On Thursday, the U.S. Congress passed a congressional resolution to extend the current higher Fannie Mae, Freddie Mac and FHA loan limits through 2010. The present, higher loan limits expire at the end of 2009 and revert to previous lower limits. The move still needs to be signed by President Obama, which is expected shortly.

The National Association of Realtors® (NAR) thanked Congress for speedy action.

“NAR commends both houses of Congress for their quick action in continuing these higher limits during a time for recovery in the housing market and national economy,” says NAR President Charles McMillan. “The higher limits, along with the homebuyer tax credit extension, are necessary to keep the markets moving at this critical time.

“Home sales have shown significant movement upwards in the past six months, and reduced inventory in some segments of the housing market, but not in all. Home purchases in the middle-income and higher brackets have not moved much, and those markets must improve before we can experience a fully sustained housing recovery. These higher loan limits will help motivate qualified homebuyers to purchase in those markets,” McMillan said.

The resolution would extend the present loan limits for FHA, Fannie and Freddie through the 2010 calendar year at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost areas. The floor for FHA is $271,050; the floor for Fannie Mae and Freddie Mac conforming loan limits is $417,000.

Source: FloridaRealtors.org

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Home prices may be stabilizing in some areas in the nation, but the damage has already been done in the housing markets that saw the biggest boom and in turn the biggest bust.

Home buying in these markets reached a frenzied pace during the middle of this decade, and that means that a good portion of buyers purchased homes at the top of the market. No surprise that they have now sunk deepest underwater on their mortgages.

A new survey from Zillow.com shows that even in those markets where investor competition has returned and prices on the low end are beginning to stabilize, homeowners still owe far more on their mortgages than their homes are currently worth.

Las Vegas leads the way with 81.8 percent of borrowers underwater on their loans in the third quarter of this year, down barely one percent from the second quarter but still up 10 percent from the first quarter.

The bulk of underwater borrowers are in California, Florida, Arizona and Nevada. While home prices nationwide were down 8.5 percent in September from a year ago, prices in these states are still way down -- 34 percent in Las Vegas, 26 percent in Orlando, 23 percent in Phoenix and 11 percent in Los Angeles (National Association of Realtors). Again, that's from a year ago, but many of these cities have seen over 50 percent price declines from the peak of the market. complete story

Source: CNBC.com - Diana Olick

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There are many different ways to update your Florida home to make it more eco-friendly.

• In your Florida home, install ceiling fans and thermal windows. Ceiling fans are low energy, cost effective ways of cooling your home without using the air conditioning. Thermal windows offer insulation from outside heat and cold.
• Use foam caulking around any cable lines or cords leading to an exterior wall. This will provide insulation against temperature changes.

• In the winter (or in climates that are cool year round), use the natural sunlight during the day. Opening the drapes and allowing the sun to come in decreases the amount of energy needed to light and heat your home. Closing the drapes at night adds another layer of insulation against temperature changes.
• Installing motion sensors on your light fixtures may help to decrease energy usage as well. The lights will shut off automatically when not in use.
• Use a power strip that has an on/off switch. These power strips can be used for video games, stereos, DVD players, and other items that are not in use on a constant basis. Turning off the switch when they are not in use saves energy.

If you'd like to buy an eco-friendly home, we can help. Call us at [407-876-5771 for more information.

Winter is almost here and few things are as comforting as the smell of wood burning in the fireplace of you Florida home. Before you light the first fire of the year, there are a few things you need to do. Here is the short list for fireplace safety:

Clean Out the Chimney

Everyone wants to get out of the cold weather, including birds and squirrels. Have a chimney cap installed at the top of the chimney to keep out small animals looking for shelter. The cap will also keep debris from clogging the chimney.

Have a professional clean out any creosote residue. Creosote is the build up of carbon from burning wood. It is flammable and needs to be removed every year.

Creosote is hazardous to your health. It can cause respiratory problems, so don’t try to clean it out on your own. Some home improvement stores sell a creosote removal log that you burn in your fireplace, it may clean your fireplace incompletely, so it’s best to go with a professional chimney cleaning company.

Prepare the Surrounding Area

Before you light the fireplace in your Florida home, make sure that the area around it is clear of clutter. You’ll want to make sure there is at least two to three feet of cleared space around the fireplace.

Invest in a fireplace screen so that nothing is accidentally knocked into the fireplace. It will also help to prevent burning embers from flying out.

Each time you get ready use the fireplace, clean out the ashes from the previous fire.

Light the Fire

First, open the fireplace damper so the proper airflow can occur. Then, start with paper or kindling placed on top of the fireplace grate. Use seasoned firewood cut to the right length for your fireplace. A couple of logs will be enough; you don’t want to add too many or the fire will suffocate.

Following these fireplace safety instructions can help you enjoy this winter season without worry. So, feel free to light that fireplace and soon the aroma of burning wood will fill your Florida home.

Owning a Florida home can be a sign of independence and success. It allows you to build up equity and the mortgage interest and property taxes are tax-deductible. Can you afford it, though?

Reputable lenders look at a list of criteria to decide how much they’ll loan you. This list includes:

· Credit score

· Existing assets including cash

· Car leases or loans

· Credit card balances

· Debt consolidation loans

· Home equity loans

· Installment loans

· Student loans

· Other monthly debts

· Size/source of your down payment

If you’d like to get an idea of what you can afford before talking to a lender, here are a few tools you can use to decide whether a Florida home is within your budget:

• As a rule of thumb, your house hunting budget shouldn’t be more than 2.5 times your pre-tax annual income. If you earn $50,000 a year, your budget for house hunting should be around $125,000.
  
• Your Housing Expense Ratio, which is principal, interest, taxes and insurance (PITI) shouldn’t be more than 25% to 28% of your pre-tax monthly income.
  
• You're Debt-to-Income Ratio should be no more than 36% of your pre-tax monthly income. This is the ratio between how much you owe and how much you earn.
  
• Use an online calculator to figure how much home you can afford.

“Qualifying for” and “can afford” are two different things. Shopping for a Florida home within your budget will save you a lot of heartache now and in the future.

If you'd like help determining how much mortgage you can really afford, we can help. Call us at 407-876-5771 for more information.

More festive candles are used in your Orlando condo during the holidays than at any other time of year, so it’s important to review the safety rules. Here are few tips to keep your condo safe:

Candle Placement Preparation

It may sound silly, but you need to prepare before you light that candle. First figure out where you want to place the candle in your Orlando condo.

• Find a heat resistant surface.
• Make sure there aren’t any books, papers, curtains, or bedding nearby.
• Watch out for flammable holiday decorations.
• Keep the candle away from windows and vents, and check for signs of a draft.
• Place the candle where children and pets can’t reach and where it isn’t likely to be bumped into.

Getting Ready to Light the Candle

• Before burning the candle, review the manufacturer’s instructions. Most recommend that the wick be trimmed to ¼ inch before lighting.
• Make sure to use only approved candle holders. Using an unapproved glass holder could cause it to burst and send glass everywhere.
• Place candles at least three inches apart so the additional heat doesn't cause them to melt improperly.

Burning the Candle

Now that the candle is lit, make sure to never leave it unattended.

• Watch the candle to see if it smokes or flickers a lot. This could be a sign that the candle isn't burning properly.
• Leave about two inches of wax when you extinguish the candle. Most manufacturers recommend that you don't burn the candle all the way down.

Putting the Candle Out Safely

The safest way to put out a candle is with a candle snuffer.

• Don’t use your fingers or blow out the candle; the flame may travel and cause a fire.
• Never use water to put out a candle; the wax may splatter and burn you.
• Wait until the wax is cooled before you move the candle.

Candles are a beautiful way to decorate for the holidays in your Orlando condo. By following these simple safety suggestions, you can help to ensure that your holidays are happy and safe.

If you’d like to be in a new condo before the next holiday rolls around, we can help. Call us at 407-876-5771 for more information.