The Infromation below is from varies lenders and news media and is for information purposes only.

****** This information is intended for real estate professionals, and may not intended for distribution to consumers.  Other sources should be used to verify the contents within ******

Please pass this site on to others and call me Denis 850-685-4014 or email dgagnon@topproducer.com me any questions, thanks and enjoy this site

Interest rates are at the lowest in the last 5 years!!!!.

6/03/2009

Everyone Wants a Lower Price, But What About the Impact of Interest Rates?

Ben Bernanke & Co. cite weakness in economy and reduced inflation threat as justification for cutting rates below 1% for first time.

By Chris Isidore, CNNMoney.com senior writer

December 16, 2008: 2:29 PM ET

NEW YORK (CNNMoney.com) -- In its latest effort to try and stimulate the U.S. economy, the Federal Reserve cut its key interest rate to a range of between zero percent and 0.25%.

The central bank typically sets a specific target for its federal funds rate instead of a range. The rate had previously been at 1%. Most investors were expecting the Fed to cut rates to either 0.25% or 0.5%

In a statement, the Fed said the U.S. economy, which has officially been in a recession for a year, was in in danger of getting weaker, and that the risk of inflation had decreased "appreciably." Earlier Tuesday, the Labor Department reported that the Consumer Price Index , its key inflation measure, fell by a record 1.7% in November.

The central bank's federal funds rate is an overnight lending rate used as a benchmark to set rates for a variety of loans, including adjustable rate mortgages, credit cards, home equity lines of credit and business loans.

This rate is the key tool the Fed uses to spur or slow the economy as it tries to balance its dual goals of economic growth and price stability. Lower rates are designed to encourage spending by making borrowing more affordable. Higher rates can keep prices in check by slowing the economy.

The central bank has lowered rates 10 times in the past 15 months, but the latest cut leaves the Fed with little room for additional moves if the economy does not start to show signs of improvement soon.

Stacy Holland

Loan Officer

Mortgage One of the South

877-711-0411

850-936-4075

Fax: 850-515-0477

www.mortgage1one.com

www.mortgage1one.com


12/10/2008

I have had a lot of my agents and previous borrowers inquire about refinancing when the rates get to the possible 4.500%.  It has been published that this rate will be a special program provided for purchase transactions only, it will not be for people to refinance.  The purpose is to get people to purchase homes and help liquidate inventory and boost the market.
However, interest rates are at 5%-5.250% right now, which is historically low, so now still may be the time to check into refinancing.

Remember, we can do 100% VA refinance, which will allow those who took out an 80/20 1^st and 2^nd versus using their VA, now consolidate both of these into a fixed low rate mortgage, up to 100% of the value.  Please spread the word.

My fear is that the news has told the public about the possible 4.500%, so now we could have buyers who were ready to move forward and buy now, hold off and wait and see if they can get the 4.500%.  Congress should have not said anything about it until they had the plan in place and was ready to move forward with in the week.

I will try and find an article explaining more about this program and share with you all.

Thank You!

Stacy Holland

Loan Officer

Mortgage One of the South

877-711-0411

850-936-4075

Fax: 850-515-0477

www.mortgage1one.com

12/05/2008

Today, the Bank of England and the European Central Bank both cut interest rates today in an effort to revive their sagging economies. Here in the US, Secretary Treasurer Paulson is considering another plan to help boost the ailing housing markets. The Treasury already announced plans to buy Mortgage-Backed Securities issued by Fannie Mae and Freddie Mac and now wants to step up those purchases in a coordinated move to drive home loan rates down to 4.5%!

850-424-5596

12/04/2008

The Treasury Department is strongly considering a plan to intervene directly in the mortgage industry to dramatically force down rates and stimulate the moribund housing market, according to sources familiar with the proposal.

Under the initiative, the Treasury would offer to buy securities that finance newly issued loans for home purchases, according to the sources. But to participate in the government's program, mortgage lenders would have to set exceptionally low interest rates, for instance, no more than 4.5 percent for traditional, 30-year fixed-rate loans.

These securities would be purchased primarily from Fannie Mae and Freddie Mac , the financing giants that buy most mortgages from U.S. lenders, according to sources who spoke on condition of anonymity because the plan has not been finalized.

The cost of the plan and source of funding remain unclear. One possibility is for the Treasury to raise money by issuing bonds to the public at 3 percent interest. This could allow the government to turn a profit because it would be buying securities that pay 4.5 percent.

At a meeting attended by the Treasury's Interim Assistant Secretary for Financial Stability Neel Kashkari  and the National Association of Realtors in mid-November, senior Treasury officials said they were optimistic that subsidizing lower mortgage rates with taxpayer dollars would help revive the housing market, sources said.

Treasury officials told the Realtors that the plan could be a more effective way to help homeowners than focusing efforts solely on borrowers who are struggling to meet their monthly payments, the sources said. Democratic lawmakers have been advocating a proposal to modify the mortgages of distressed homeowners.

A source said Treasury officials suggested at the meeting that the Realtors start a grass-roots campaign to press the mortgage rate plan with lawmakers.

Treasury officials described the situation as fluid and said the plan was still being finalized, according to people in contact with the department. The officials expressed concerns yesterday that premature disclosure of the plan could prompt Americans to put off buying homes and hold out for a better rate, sources added.

Treasury spokeswoman Brookly McLaughlin said she would not comment on the matter.

Key to solving financial crisis
Treasury Secretary Henry M. Paulson Jr. has said that a recovery in the housing market is key to solving the financial crisis. Such a rebound would restore confidence in the banking system and support the value of troubled assets backed by mortgages.

Though he has said a mortgage modification plan proposed by Federal Deposit Insurance Corp. Chairman Sheila C. Bair could help the housing market, Paulson has expressed concerns about whether it would reward borrowers who bought houses they couldn't afford. Bair's plan would use tens of billions in federal funds to modify adjustable-rate mortgages for several million financially troubled homeowners.

The initiative under review at the Treasury would be an alternative. Borrowers would have to meet standards set by Fannie Mae, Freddie Mac or the Federal Housing Administrations that include documenting their income, sources said. Fannie and Freddie were put under government control in September. The Treasury plan would not apply to refinances.

Any efforts by the Treasury to lower rates on new mortgages would work in concert with a Federal Reserve plan announced last week to buy $500 billion worth of existing mortgage-backed securities issued by Fannie Mae and Freddie Mac, and $100 billion worth of those companies' debt.

The Fed was pleasantly surprised that 30-year fixed mortgage rates fell by as much as three-quarters of a percentage point in anticipation of their program. Homeowners rushed to refinance. Cheaper monthly payments may bolster consumer spending, the most important component of U.S. economic activity.

'Short-term windfall'
News of the Treasury plan spread quickly through the markets. Shares of home builders rose. At Long & Foster, the Washington area's largest real estate brokerage, top brass informed agents that they should gear up for increased demand from potential buyers.

"This is going to be a short-term windfall that everybody needs to jump on," said Dave Stevens, the firm's president and chief operating officer and a former Freddie Mac official. The move by the Treasury certainly would mean "interest rates will drop," he added.

But it is unclear whether lower mortgage rates will spark home buying, which is a weightier decision for ordinary people than refinancing a loan.

There are also questions about how much the Treasury would spend to buy down the mortgage rate. One industry source said another idea being pushed by trade groups calls for the Treasury to spend $50 billion of its $700 billion financial rescue package to reduce the fees, or points, that home buyers pay when they want a lower rate for a mortgage.

Yesterday, the average rate on a 30-year fixed-rate mortgage increased slightly to 5.75 percent yesterday, up from 5.54 the previous day, said Keith Gumbinger , a vice president at research firm HSH Associates.

"What's not known is the timing of the purchasing of the mortgage-backed securities and how quickly money will be pumped into the marketplace and that matters as to how low the mortgage rates will go," Gumbinger said.

Staff writer Neil Irwin contributed to this report.

© 2008 The Washington Post Company

11/19/2008

HUD designs new Good Faith Estimate to help consumers shop for lower cost home loans

For the first time in more than 30 years, the U.S. Department of Housing and Urban Development today issued long-anticipated mortgage reforms that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table.

In announcing HUD's final changes to the regulatory requirements of the Real Estate Settlement Procedures Act (RESPA), HUD Secretary Steve Preston said that changes in the housing market and increases in home foreclosures demands action. (Read Preston's remarks)

"It has been a long road but today we can finally announce a better way to buy homes in America," said Preston. "Consumers need and deserve to know what they're getting themselves into before they sign on the dotted line. After carefully considering the concerns of consumers and the different businesses in the housing sector, we have developed an approach that empowers the average family to shop for the most appropriate loan to meet their needs."

Last March, HUD proposed reforms to the longstanding regulatory requirements of the Real Estate Settlement Procedures Act (RESPA) by improving disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. Last May, HUD extended the rule's comment period to June 12th to allow for more opportunity for comment on the Department's proposed GFE form.

Brian Montgomery, HUD's Assistant Secretary of Housing, Federal Housing Commissioner, said, "We have carefully considered the concerns expressed from every corner of the mortgage market in developing this rule. I am convinced that we successfully balanced the needs of consumers with those in the business of homeownership. None of us can lose sight of the fact that millions of Americans simply don't understand all the fine print of their mortgages and this, in many respects, is at the heart of today's mortgage crisis."

Since 1974, little has changed about the process Americans endure when they buy and refinance their homes. Now, HUD's final reform will improve disclosure of the key loan terms and closing costs consumers pay when they buy or refinance their home.

HUD received approximately 12,000 comment letters following the proposal of its new RESPA rule. In considering those comments, the Department made considerable modifications to its proposal. For example, HUD originally proposed that settlement agents read a closing script at the closing table and that a copy be provided to borrowers. HUD ultimately discarded the script in favor of a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final loan terms and closing costs with those listed on their Good Faith Estimate.

Most industry commenters said HUD's proposed four-page GFE was too long. HUD shortened the GFE form to three pages including an instructional page to help borrowers understand their loan offer. HUD continues to believe that consumers need to be aware of the key aspects of their loan as well as associated settlement costs.

HUD agreed with many commenters who suggested the new GFE allow consumers to compare their estimated closing costs with the actual costs included on their HUD-1 Settlement Statement. To facilitate comparison between the HUD-1 and the GFE, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE. Borrowers will now be able to easily compare their estimated and actual costs in very much the same manner as many of the commenters suggested.

HUD will require the new standardized GFE and HUD-1 beginning January 1, 2010. To view these documents, click on the following links:

HUD's standard Good Faith Estimate
HUD-1 Settlement Statement

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.

Fact Sheet on HUD's final RESPA Rule

• For the first time ever, HUD will require mortgage lenders and brokers to provide borrowers with an easy-to-read standard Good Faith Estimate (GFE) that will clearly answer the key questions they have when applying for a mortgage including:
  • What's the term of the loan?
  • Is the interest rate fixed or can it change?
  • Is there a pre-payment penalty should the borrower choose to refinance at a later date?
  • Is there a balloon payment?
  • What are total closing costs?

• HUD estimates that by improving upfront disclosures on the GFE, and limiting the amount estimated charges can change, consumers will save nearly $700 in total closing costs.
• Based on substantial public comment, HUD withdrew a proposed requirement that closing agents read and provide a 'closing script' to borrowers in favor of a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final closing costs and loan terms with those listed on the GFE.
• HUD's new Good Faith Estimate has been reduced from four to three pages, including an instructional page to help borrowers better understand their loan offer. In addition, the GFE will consolidate closing costs into major categories to prevent junk fees and display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. HUD will specify the closing costs that can and cannot change at settlement. If a fee changes, HUD will limit the amount it can change.
• To help borrowers compare their Good Faith Estimate with their HUD-1 Settlement Statement, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE. Borrowers will now be able to easily compare their estimated and actual costs in the same manner many commenters suggested.
• HUD will require lender payments to mortgage brokers (often called Yield Spread Premiums) to be disclosed in a more meaningful way. These payments are directly dependent on the interest rates that consumers agree to. To ensure that HUD's new requirement will not create a consumer bias against brokers, the Department did rigorous consumer testing and found the new Good Faith Estimate helped consumers to select the lowest cost loan nine-out-of-10 times, regardless of whether the loan was originated by a lender or a broker.
• Loan originators will be required to provide borrowers their Good Faith Estimate three days after the loan originator's receipt of all necessary information. To facilitate shopping, loan originators could not require verification of GFE information (tax returns etc.) until after the applicant makes the decision to proceed.
• HUD will allow lenders and settlement service providers to correct potential violations of RESPA's new disclosure and tolerance requirements. Lenders and settlement service providers will now have 30 days from the date of closing to correct errors or violations and repay consumers any overcharges.
• The new, standardized GFE and revised HUD-1 will not be required until January 1, 2010.

11/12/2008

FHA sets new loan limits                                                                                 Beginning Jan. 1, FHA will insure single-family home mortgages up to $271,050 in low-cost areas and up to a maximum of $625,500 in high-cost areas.                                         (11/12/2008)                                                                                                                          

The Federal Housing Administration approved new mortgage loan limits for single-family homes as prescribed by the Housing and Economic Recovery Act of 2008.

Beginning Jan. 1, FHA will insure single-family home mortgages up to $271,050 in low-cost areas and up to a maximum of $625,500 in high-cost areas, according to U.S. Department of Housing and Urban Development Secretary Steve Preston. The February 2008 Stimulus Package temporarily raised the FHA maximum to $729,750 through December 31, 2008. The new $625,500 maximum, however, represents a significant increase over the $362,790 limit that was in effect prior to the Stimulus Package.

"In today's environment where access to credit is being restricted, we need to make mortgage loans readily available to households throughout the country, and especially in high-cost areas," Preston said. "These new loan limits will ensure FHA can to continue help struggling homeowners refinance into safe, affordable government-insured loans, and allow many first-time buyers take advantage of today's buyers market"

For several years, FHA's loan levels were below the cost of the average home in communities across the nation. As a result, families who needed FHA mortgage insurance to qualify to buy a home were effectively locked out of the process. In some cases, borrowers turned to exotic subprime loans.

FHA mortgage insurance makes home financing more available to low-income and first time homebuyers. This is because the mortgage is backed by the full faith and credit of the government, freeing lenders from assuming the risk of default.

Higher FHA loan limits do not cost the government any money because the FHA Insurance Fund is fully supported by premiums paid by borrowers who receive FHA-insured mortgage loans.

The Housing and Economic Recovery Act pegs the national conforming mortgage loan limit to a house price index chosen by the new Federal Housing Finance Agency (FHFA). For 2009, the national conforming limit will remain at the current level of $417,000.

The Act says that the new FHA loan limits will be set at 115 percent of the median house price in a given area, as determined by HUD, but can not be lower than 65 percent of the conforming loan limit (the national floor). Also, the FHA mortgage limit cannot exceed 150 percent of the national conforming loan limit (the national ceiling).

Home Equity Conversion Mortgages

The Act also pegs the national mortgage limit for FHA-insured reverse mortgages to the national conforming loan limit. The FHA product known as the Home Equity Conversion Mortgage (HECM) will therefore have a national mortgage limit of $417,000. Unlike the new forward mortgage loan limits, the new HECM loans limits are effective on loans insured or after Nov. 6. This is the first time that a single limit applies to these mortgages nationwide. As in previous years, the special exception areas of Alaska, Hawaii, Guam, and the Virgin Islands may have higher loan limits. Starting in January 2009, counties in those areas may have loan limits of 115 percent of area median prices, where that amount is above $417,000, up to a ceiling of $625,500.

Reverse mortgages allow homeowners age 62 and older to borrow against the value of their homes without selling them. Homeowners can select a lump-sum payment, monthly payments or tap into a line of credit. No repayment is required as long as a homeowner lives in a home with a reverse mortgage. The reverse mortgage is repaid, with interest, when a homeowner sells the home or dies.

Vicki L. Hoover, CLC

President

H & S

Title

and Escrow, Inc.                  

151 Regions Way, Ste. 1-A               Destin, Florida  32541 Phone:    850-650-6621

Cellular:  850-585-2590    Fax:    850-650-6807 e-mail:      vhoover@hstitleandescrow.com:   www.hstitleandescrow.com website

11/11/2008

Housing market shows signs of a rebound

ORLANDO, Fla. – Nov. 10, 2008 – Pending home sales slipped 4.6 percent nationwide in September from August but remained 1.6 percent higher than a year earlier, a sign that the battered housing market is “still in a broad period of stabilization,” the National Association of Realtors’ chief economist said Friday in Orlando.

October’s housing numbers could be worse, though, economist Lawrence Yun said, because of the stock market’s stunning plunge and the further erosion of consumer confidence as the economy continues to weaken.

Yun spoke during the opening day of the National Association of Realtors annual conference and exposition in the Orange County Convention Center, where about 20,000 Realtors from throughout the country are meeting.

“October was the height of the economic crisis,” Yun said, and “the shock factor for consumers” has not yet been fully reflected in home sales.

He noted, though, that some of the hardest-hit areas of the country, including Florida and California, are showing “consistent, solid gains” in pending sales.

Orlando and Tampa are among key Florida markets showing rebounds in existing-home sales this year, he said, as lower prices have helped draw buyers in increasing numbers.

Incoming NAR President Charles McMillan, a Realtor from Irving, Texas, said during a news briefing that the 100-year-old trade association is urging Congress to act swiftly to direct more relief to the housing sector.

One proposal, he said, is for the government to use part of its $700 billion economic package for a short-term program to “buy down” mortgage rates by 1 percentage point, a move to make more buyers eligible for loans, especially first-time buyers.

“Qualified buyers with unblemished credit can’t get loans,” he said, so more must be done “to get more homebuyers back into the marketplace.”

Based on a recent NAR survey, 35 percent to 40 percent of all recent home sales across the country were “distress sales,” such as bank-owned foreclosures or “short” sales in which the lender agrees to take less than the amount owed, said Yun, the Realtor economist. In Florida, he said, distress sales might be as high as 50 percent or 60 percent of all recent closings.

11/05/2008

Subject: Lender Teaser Rates

In such a volatile time of great uncertainty, now is when you will see more teaser programs and rates than ever before.  Just a few things to look for on a lenders rate sheet to tell if they are legitimate or competitive rates:

1.     Look out for disclaimers that state a rate can not be locked in until borrower is qualified.  The only thing needed from a borrower to lock in a rate is a property address and a credit score.  A full approval is not needed.  This disclaimer gives the lender time to come back and say “rates have changed since working on approval”, therefore losing the attractive rate published.

2.     Look out for the small print!  Many Lenders will put in small print “all rates quoted with an origination fee”, which means their rate published .25% lower than every one else’s is because they are charging the borrower an automatic 1% of the loan amount at closing.  Origination and points should be an option to the borrower, not an automatic charge.

3.     Look out for rates that are advertised way below others.  These are the ones who will get the borrower at closing.  All legitimate lenders’ rates should be within .25% of each other.

Although rates are volatile at the moment and changing several times a day,  and based on credit score, loan size, and purchase type, it’s important to know that you can trust Mortgage One to be honest with your Buyers and put their best foot forward throughout the entire transaction, beginning to end!

Have a great day!

Thank You!

Stacy Holland Loan Officer Mortgage One of the South 877-711-0411 850-936-4075 Fax: 850-515-0477

www.mortgage1one.com

USDA Rural Housing Loans - More People Will Now Qualify!!!

• November 04 '08 04:46PM | Sue Botelho-USDA Rural Housing Mortgage Pro

Today, the final ruling was published to simplify the USDA Rural Housing program's income limit structure for the USDA Guaranteed Rural Housing Program. These income structural changes will become effective on January 20, 2009, unless they receive adverse comments by January 5, 2009. They had put an advance notice out about trying to do this on April 10, 2008 and have not yet received any adverse comments so this should be a non-issue.

In essence, the current income limit structure that is based on household incomes from one to eight persons (in the household) would be restructured as follows:

1-4 person households will be qualified using only the 4-person limit and 5-8 person households would be qualified using only the 8-person limit.

What does this mean? It means that a lot more people will be able to qualify for this program! Currently, most counties in Florida have the following income limits in place:

1 person $49,550 2 person $56,600 3 person $63,700 4 person $70,750

5 person $76,400 6 person $82,050 7 person $87,750 8 person $93,400

Under the new rules, the following would be the norm:

Any household having between 1 and 4 persons living in it would have max income of $70,750

Any household having between 5 and 8 persons living in it would have max income of $93,400

As you can see, this will certainly help to qualify a lot more people into a rural housing loan!

I have had clients that were single that made $54,000 and were only $4,450 above the 1-person limit but because they were over at all, were not able to qualify.

As a buyer, this is an opportunity to buy real estate with NO MONEY DOWN and qualify with higher income limits!

As a Realtor®, this is a HUGE opportunity to sell homes with no money down to people with much higher income levels!

At this point, we are not using these levels but in order for us to be able to use these changes, the new income limits must be approved and in use at the time our files are sent to the USDA Rural Development office. Currently, the earliest date for that occurring is January 20, 2009.

If you have buyers sitting on the fence, it is certainly possible to have them write contracts that don't close until January 21, 2009 and allow your buyers to get the benefit of this program. And if it's a short sale, it may take that long anyway!

 We are a National Trainer in this program and would love to work with your buyers if you are a Realtor®. If you are a buyer looking for financing, please know that we are experts in Florida, Alabama, Georgia, North Carolina, South Carolina and Tennessee for this program and we can secure this financing for you. Please feel free to contact me or to have your clients contact me! 

Sue Botelho

Loan Officer/Branch Manager Northstar Mortgage Group, LLC Destin, FL 850-424-6866 904-212-1641 (fax)

11/04/2008

Stacy Holland  Loan Officer Mortgage One of the South 877-711-0411 850-936-4075

www.mortgage1one.com

2009: Year of the thaw

Why the great credit freeze of 2008 won't turn into the Great Depression of 2009.

By Janice Revell <http://money.cnn.com/2008/11/04/pf/forecast_economy1.moneymag/mailto:jrevell@moneymail.com>, Money Magazine senior writer

Last Updated: November 4, 2008: 9:43 AM ET

(Money Magazine) -- Well, we were partly right. At this time last year, we said that the stock market would be increasingly volatile in 2008, that home prices would fall further and that a subprime blowup could propel the economy downward.

But not in our wildest dreams did we foresee anything like the kind of jaw-dropping, stomach-churning ride that lay ahead. The economy in recession (as most experts now believe)? The Dow off 40%? Credit markets frozen worse than Sarah Palin's hometown? Precious few saw all that coming.

Peering into the future is tricky in the best of times. But even though predictions always turn out to be flawed - it's impossible for even the smartest experts to nail this stuff perfectly - you cannot build a future without first guessing what challenges you'll face on the way there.

History is your best guide. It has taught us that recessions tend to push inflation lower; that stocks usually recover before the economy does; and that jobs recover later. Most of all, history shows us that downturns don't last forever - and that it's when people are most disheartened that rebounds begin.

The economy

The prediction:The recovery will begin in the second quarter of the year.

As 2008 draws to a close, fears of a recession seem almost quaint. For many people spooked by the vicious credit crisis and the 2008 stock market meltdown, the real fear now is the D-word. Six in 10 Americans believe a depression is somewhat or very likely, according to a recent poll by CNN/Opinion Research Corporation.

Take a deep breath, people. The catastrophic 10% annual decline in economic output that marks a depression is simply not going to happen, according to even the most pessimistic mainstream economic forecasters. The gloomiest of the bunch aren't calling for anything remotely close to the crushing 25% unemployment rate seen during the Great Depression that began in 1929.

That's partly because back in the days when people were cooking up bathtub gin, the unprecedented actions taken by the U.S. and European governments this past fall to help stabilize the global financial system weren't even imaginable.

Still, few of us will feel like popping champagne corks in 2009. The consensus among nearly 50 economists polled each month by Blue Chip Economic Indicators is that a recession (officially defined as two or more consecutive quarters of declining gross domestic product) started in July and will continue throughout the first three months of 2009 (see the chart attached).

<<FOR_charts.03[1].jpg>>

The economists estimate that the economy - staggering under the credit crunch and one of the worst housing busts this nation has ever seen - will continue to shrink by 0.1% in the first quarter. It will then start growing again, but sluggishly. GDP growth is forecast to hit about 2.5% by the end of 2009, below the U.S. economy's long-term annual growth rate of about 3%.

But this recession, even if it's relatively short and shallow, is likely to leave you feeling queasy for quite some time after it's officially over. One reason: The unemployment rate is expected to keep rising throughout 2009, to 7% by the end of the year (see the chart). Many other economists think it could top 8%.

"If you define recession by GDP, it could be over by the spring," says Maury Harris, chief U.S. economist at UBS. "If you define it instead by the unemployment rate, which tells you a lot more about how people are feeling, you'll probably have to wait until 2010 for things to start improving."

To be sure, the U.S. government has been pulling out all the stops to alleviate the credit crisis, including a massive injection of capital into the troubled financial system.

But it's not just banks that need cash. Thanks to the bursting of the housing bubble, consumers can no longer borrow against their homes with abandon. Because consumer spending represents 71% of gross domestic product, any reduction in it could be a big drag on the economy.

Meanwhile, home prices are set to fall further <http://money.cnn.com/2008/11/04/pf/forecast_home3.moneymag/index.htm?postversion=2008110409>. "You can throw every policy you want at the housing market, but you can't stop the fundamental price correction that is still required to offset the speculative excesses of the bubble," says Jared Bernstein, a senior economist at the Economic Policy Institute.

Add the cost of the bailout to the record $455 billion federal deficit (some economists think the deficit could reach close to $1 trillion in 2009) and you can expect still more pain - in the form of higher taxes to pay for it all.

"I don't care who gets elected in November," says Barry Ritholtz, CEO of research firm Fusion IQ. "Your taxes are going up."

The wild card

The mideast tensions over Iran's nuclear program are already mounting. If there's a military flare-up in the region, the price of oil - about $65 a barrel at press time, down from a record high of $147 in mid-July - could skyrocket again, sending the U.S. economy into a much longer and deeper recession.

The action plan

Keep your eye on three key signs that the overall economic picture is improving. These clues can help you decide when to make moves you may have put on ice for now, such as starting a business or moving to a bigger home.

Check the three-month TED spread

It's the difference between the interest rate at which banks borrow from one another (known as Libor) and the rate on three-month T-bills. The wider the spread, the more skittish banks are about lending. It's now just under 3%, far above historical levels; when it drops below 1% you'll know the credit market is almost back to normal.

Where to find it: Go to Bankrate.com <http://www.bankrate.com/>, search for the three-month Libor rate and the three-month T-bill rate, and then subtract the T-bill rate from Libor.

Track real estate inventory

Historically, the number of months' worth of inventory on the market has reliably predicted home prices. Six months of inventory appears to be the sweet spot for a healthy market; right now it's 10 months. The National Association of Realtors puts out the inventory data each month, usually between the 22nd and the 25th.

Where to find it: Go to the Research section of realtor.org <http://www.realtor.org/research>.

Watch initial jobless claims

The number of new people filing for unemployment benefits, released every Thursday morning by the Labor Department, has been running between 450,000 and 500,000 a week lately.

"When you see those numbers start to come down below 400,000, that'll be a very good sign that the worst of the pain is over," says Brian Wesbury, chief economist at First Trust Advisors.

Where to find it: Do a search for jobless claims <http://search.money.cnn.com/pages/search.jsp?magazine=web&source=money&query=%22jobless+claims%22&invocationType=search%252Ftop&QueryText=jobless+claims&search.x=0&search.y=0&search=Search> on our Web site.

First Published: November 4, 2008: 9:14 AM ET

Ann E. Buroker

Mortgage Consultant

Wells Fargo Home Mortgage
M1772-011
34851 Emerald Coast Parkway, Suite 150
Destin, Fl 32541
850-269-4060 Tel

850-585-2293 Cell

866-568-5076: Fax Comm
850-269-0345 Fax
email: Ann.E.Buroker@wellsfargo.com

APPLY ONLINE: http://www.AnnBuroker.net

I can do loans in all 50 States!

We are also able to get rates under 5% with an origination fee or discount point being paid on a conforming 30-year fixed rate!   I quoted an ARM today for a jumbo loan with a purchase price of $950,000 and the rate was 5.375% (this program does have down payment requirements of 30-40% depending on the occupancy, but if you have a cash buyer, they may want to explore taking a mortgage instead and keeping their money with rates so low).

Also, think about your personal situation right now. We might be able to help you save money on your own mortgage. Call me today and we can explore what options are available for you.

Sincerely,

Sue Botelho and Mike Roche
Northstar Mortgage Group, LLC
850-424-6866
sue@northstarmg.com

12/16/2008
Fed slashes key rate to near zero

Last summer, Fannie reduced the number of mortgaged properties any borrower could have to 4 total.  I believed that would actually HURT the market recovery because good solid investors would not be able to buy houses in one of the best markets EVER to buy rental properties, and I guess someone at Fannie agreed, to quote their "Announcement 09-02":

"Fannie Mae is committed to providing financing opportunities for high-redit quality, bona fide investors.  Experienced investors play a key role in the housing recovery and Fannie Mae's continued support for investor borrowers is consistent with its mission to provide stability, liquidity, and affordability to the nation's housing system."

So GOOD investors are no longer restricted to 4 properties.  If they are qualified, they can now have up to 10!  So pick up the phone and call your investors

Here's the basic guidelines:

• Credit Score of 720 or higher
• Downpayment:  25% on Single Family and 30% on 2-4 family
• No bankruptcy or foreclosure in past 7 years
• No 30-day lates on any mortgage for past 12 months
• Full documentation of all rental income (2 years tax returns)
• 6 months reserves on ALL properties (that means that if their PITI payments are $1,000 each on 6 properties, they will need $6,000 (times) 6 months, or $36,000 in reserves.)

This goes into effect on March 1st, 2009, so start showing your buyers their new investment property TODAY!!!

Michael Hoover
Chief Financial Officer
H&S Title and Escrow, Inc.

151 Regions Way 1A
Destin, FL 32541
850-650-6621

Our "Hearts and Souls" are in every closing.

www.hstitleandescrow.com

Justin Honeycutt

Loan Officer/Branch Manager

NOLA Lending Group, LLC

Cell: 850-687-0883 Fax: 985-612-1179 jh@nolalending.com

Last Week in Review

Forecast for the Week

02/9/2009

You will hear a lot of spins on this, ie: rates are going to 4%, but this may not happen.  The bonds they will be buying will most likely be the 4.5 – 5.5% coupons, which is what are being sold right now, but it will keep rates at least where they are now and most likely they will go a bit lower.

January 8 of this year was the day that mortgage interest rates hit their all-time low; we anticipate seeing that again soon so if you are looking to refinance your personal home or if you have a client that is looking to purchase, NOW IS THE TIME TO MAKE APPLICATION!

For you personally, I have attached an application to this email so that if you have a rate in mind (ie: 4.75%) that you would like to get on a 30-year fixed rate mortgage, I would suggest that you complete this application, fax/email it back to me, along with the estimated value of the property you are wanting to refinance and how much you currently owe, and if rates get to the point you want with no points and no origination fees, we can get you automatically locked in at that point.  There is a VERY SMALL WINDOW of locking in sometimes and if we have this in our hands, we can do it for you quickly.

Thanks, and have a great day!

 Sue Botelho

Loan Officer/Branch Manager

Northstar Mortgage Group, LLC Destin/Ft. Walton Beach, FL

850-362-6901 850-362-6905 (fax)

02/18/2009

Tax Credit for Homebuyers from
Dean Carrier
Compass Bank
34851 Emerald Coast Pkwy., #100
Destin, FL 32541
Toll Free - 866.545.1784
Cell - 850.974.7696
Office - 850.269.6992
dean.carrier@compassbank.com
First-time homebuyers who purchase homes from the start of the year
until the end of November 2009 may be eligible for the lower of an
$8,000 or 10% of the value of the home tax credit.  Remember a tax
credit is very different than a tax deduction – a tax credit is
equivalent to money in your hand, as opposed to a tax deduction which
only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above
$150,000 and single filers with incomes above $75,000.  Buyers will have
to repay the credit if they sell their homes within three years.


--------------------------------------------------------------------------------

Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs — This provision
is designed to help promote energy-efficient investments in homes by
extending and expanding tax credits through 2010 for purchases such as
new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for
energy efficient improvements for more than one million modest-income
homes through weatherization.  According to some estimates, this can
help modest-income families save an average of $350 a year on heating
and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To
HUD-Assisted Housing—This provision provides a total of $6.3 Billion
for increasing energy efficiency in federally supported housing
programs.Specifically, it establishes a new program to upgrade
HUD-sponsored low-income housing (for elderly, disabled, and Section 8)
to increase energy efficiency, including new insulation, windows, and
frames.

Expanding Housing Assistance—This provision increases support for
several critical housing programs. It includes $2 Billion for the
Neighborhood Stabilization Program to help communities purchase and
rehabilitate foreclosed, vacant properties.


--------------------------------------------------------------------------------

More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President
Obama’s plan to help struggling borrowers before they are faced
with a default on their mortgage.

According to reports, the Obama administration is discussing plans to
help borrowers who are struggling to stay afloat, but who have not yet
fallen behind on their payments. At this point, details are scarce;
however, reports indicate that President Obama is looking to spend
approximately $50 Billion to directly help homeowners before they face
foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be
good for the housing industry as a whole. That’s because, assisting
struggling borrowers before they default should help stop the wave of
foreclosures, which are estimated to top two million this year. That, in
turn, will help stabilize home prices.

The Economic Stimulus Plan is huge, and impacts a number of industries.
I’ve highlighted some of the major provisions that may impact you now
and in the future.

As always, if you have any questions or would like to discuss how this
may specifically impact you, I’d be happy to sit down with you. Just
call or email me to set up an appointment.



02/17/2009

A good article from MMG weekly. Please call me with any questions.

Interesting note that supports our views on the unlikelihood of rates
moving much lower - last Friday, Jack Koskinen, interim chief
executive of Freddie Mac, said that home loan rates are near the
bottom and that any further decreases will be small. Mr. Koskinen
commented on mortgage rates after he attended the meeting between
President Obama and the CEO's of the financial services companies
on Capitol Hill. Perfect opportunity to get the word out to clients who
are sitting on the fence waiting for that 4% rate...now is the time to
purchase or refinance as rates are at historically low levels, and not
likely to move much lower.

Wendy Kotowske
Home Mortgage Consultant
Wells Fargo Home Mortgage
(850) 269-5803 Tel
800-870-4497 Toll-free
850-499-1336 Cell                        
866-608-9271 Fax
I can do loans in all 50 states.

Wendy.Kotowske@wellsfargo.com email address
www.wfhm.com/wendy-kotowske website

03/18/2009

The Federal Reserve announced
that it will be purchasing a total of $1.25 trillion in mortgaged-backed securities and $300 billion in Treasuries.  What does this mean to someone looking to purchase or to refinance?  It means that rates should stay at least where they are for a while and possibly go a little lower.

Interesting note that supports our views on the unlikelihood of rates
moving much lower - last Friday, Jack Koskinen, interim chief
executive of Freddie Mac, said that home loan rates are near the
bottom and that any further decreases will be small. Mr. Koskinen
commented on mortgage rates after he attended the meeting between
President Obama and the CEO's of the financial services companies
on Capitol Hill. Perfect opportunity to get the word out to clients who
are sitting on the fence waiting for that 4% rate...now is the time to
purchase or refinance as rates are at historically low levels, and not
likely to move much lower.

Wendy Kotowske
Home Mortgage Consultant
Wells Fargo Home Mortgage
(850) 269-5803 Tel
800-870-4497 Toll-free
850-499-1336 Cell                        
866-608-9271 Fax
I can do loans in all 50 states.

Wendy.Kotowske@wellsfargo.com email address
www.wfhm.com/wendy-kotowske website

01/26/2009

May 22, 09:

Sorry for the confusion, but now HUD is making statements that suggest that the pull back on their Mortgagee Letter has been misinterpreted and that they may still move forward with allowing these monies to be used as down payment and/or closing costs.  We do not have details surrounding why they pulled back the initial Mortgagee Letter although our FHA liaison said that per FHA Headquarters, the Mortgagee Letter is temporarily on hold while the Administration works out additional details.

As a result of the miscommunication on this one, we will wait for a formal “HUD Mortgagee Letter”, before we attempt to further communicate their position.

May 21, 09:

As you know HUD made an announcement on May 12 that they were going to allow homeowners to use the $8000 tax credit as down payment monies by empowering state agencies, non profits and HUD approved Mortgagees to lend the monies to home buyers.  HUD drafted HUD Mortgagee Letter (2009-15), however, the letter was never officially released. HUD has since reversed their position on allowing the monetization of the tax credit over concerns that the proposal too closely resembles the now illegal practice of seller funded down payment assistance programs.  IRS officials were also concerned that the proposal could create income tax issues.

The government may continue to seek other alternatives associated with boosting affordability and circumventing the 3.5% down payment requirement, but until further notice they have apparently killed this initiative. 

Mortgage Advisor

Cell: (850) 420-5170

Fax: (850) 835-8404

Email: amanda.shepherd@mortgagefamily.com

Website: http://amandashepherd.phhmortgage.com

04/01/2009
These are words from the mortgage market guide about our rates and future rates.  This is good information to pass on to your "on the fence" buyers….

When shopping for a home, the natural tendency of any buyer is to want to pay the lowest price possible. It's important to keep in mind, however, that the sales price is not the only factor that determines what your monthly payment will be. In fact, the impact of higher interest rates can easily nullify any benefit of waiting for a lower price.

Why Should I Rush to Buy?

While you may have heard discussions in the media about the decline of property values in many markets, the rate of decline appears to be stabilizing.

That being said, it would not be unreasonable for you to want to hold out for an additional decline of 10%, hoping to capture the best possible price. However, as property values have declined in many areas to 2003 levels or lower, waiting longer to pull the trigger could be a mistake. Many markets are reporting that lower property values have been bringing out investors and the result has been multiple offers on many properties. Properties priced correctly are not declining and, in fact, are creating a lot of interest.

Interest Rate Complacency

The problem is that many home buyers have been lulled into a sense of complacency because of extremely low interest rates. Since the Federal Reserve initiated its program of buying mortgage-backed securities, which control the rates people pay for their home loans, rates had been range bound, bouncing between 4.50% to 5.00% for a 30-year fixed-rate loan.

But do not be confused by this. These rates are artificially low! Historically, interest rates have been above 6.00%. And any rate obtained below this number is a great deal, especially on homes with price tags from 2003!

Markets are Unforgiving

The last two weeks of May showed just how unforgiving the markets can be for people who choose to procrastinate. In just five days, interest rates from many lenders increased anywhere from .50% to 1.00% as fixed-income investors demanded more for their money.

For anyone who was waiting for prices to drop even more, a 1.00% increase in your interest rate would bring a higher monthly principal and interest payment on a home, even if the price of that same home had fallen an additional 10% in value.

If you're waiting for home prices to fall even lower, be aware that while holding out for a lower price may help you win the battle, you could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go higher from here.

Clock is Ticking on Free Money

If you, or someone you know, is planning on purchasing a home this year, be aware that you must take possession before 12/01/2009 to be eligible for a first time homebuyer tax credit of up to $8,000. In a survey conducted in March by Move.com, nearly 50% of home buyers are currently unaware that this free money exists in the marketplace. And since over 50% of all buyers are first-timers in today's market, this could impact a lot of people who aren't in the know.
If you have questions about this update, give us a call.  Waiting for the lowest price could really cost you more in the long run.

 

As you can see from below we do not have a clear communication for what they plan to do. Once we have formal information we will pass it along. Amanda