West Palm Beach mortgage, Boynton Beach , FL home loans, real estate loans, home finance information – Todd Dawkins, www.MortgageCreditCare.com

Florida Housing Market

February 2009 Newsletter

December 27th, 2010 5:36 PM

Market Update

Since my last newsletter we have had a new President take office. Oboma, Oboma, Oboma.

There has been stimulus money spent and the Fed has purchased $115 Billion in Mortgage Backed Securities since the 1st of the year.

One would think that the mortgage rates would get a little better?

Quite the contrary; I have seen over the last 30 days the mortgage rates get worse and credit get tighter. The banks and lenders it seems have added premiums above the spreads they normally add to the FNMA 30 year Bond.

Rates got from 5.5% to 5.75% when they should have been around 5%. I have seen some softening of the rates in the past three or four business days though back down to the 5% range.

I have seen an increase in sales of bank owned, foreclosure and shortsale properties that are priced right. There are multiple offers being made on many of these properties. Interest rates are still low and housing prices are looking attractive.

It is important to have affairs in order if you plan on buying a home in the next year or so. Please consult with me so I can get you "purchase ready".

Stay Tuned,
Todd Dawkins

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       Credit Scores as Important as Ever

Fannie Mae and Freddie Mac have made adjustments to their risk based pricing over the last six months in response to the credit crisis.

Starting in April of 2009 the price increases to interest rates, based on credit scores, will be as follows:

With a Loan to Value (LTV) of 80%:

Credit Score      Price Adjustment
>740                  0.00% (no price increase)
720-739              0.25%
700-719              0.75%
680-699              1.50%
660-679              2.50%
620-659              3.00%

To put this in perspective, a year ago there were no price increases for credit scores > 660.

This is going to make conventional mortgages available only to those people with the best credit scores or LOTS of equity. Everyone else will find it cheaper to get an FHA loan even though they will be paying mortgage insurance (MI).

To Your Financial Health,
Todd Dawkins

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Funny Bone

The Fisherman
A guy is 72 years old and loves to fish.

He was sitting in his boat the other day when he heard a voice say,

'Pick me up.'

He looked around and couldn't see any one. He thought he was dreaming when he heard the voice say again,

'Pick me up.'

He looked in the water and there, floating on the top, was a frog.

The man said, 'Are you talking to me?'

The frog said, 'Yes, I'm talking to you.

Pick me up then, kiss me and I'll turn into the most beautiful woman you have ever seen.

I'll make sure that all your friends are envious and jealous because I will be your bride!'

The man looked at the frog for a short time, reached over, picked it up carefully, and placed it in his front pocket.

The frog said, 'What, are you nuts? Didn't you hear what I said?
I said kiss me and I will be your beautiful bride.'