Fort Lauderdale Real Estate Mortgage Report & Mortgage Rate Update for the Week Of May 26, 2008
May 28, 2008
When you are looking to by your Fort Lauderdale real estate home or condo you are going to want to get the best mortgage rates that you can find. While you are searching for your Fort Lauderdale real estate home or condo it will be much easier if you know in advance that you are approved for a mortgage and you know that you can buy the home you desire.
I work with America’s #1 Mortgage Broker and I can assure you that Brian Brady will get you the best mortgage possible when you are ready to buy your Fort Lauderdale real estate home or condo.
Here’s what Brian has to say this week regarding the mortgage market here in the Fort Lauderdale real estate area:
Fort Lauderdale Real Estate Mortgage Report & Mortgage Rate Update
Fannie Mae is scrapping a “declining markets” policy that required loan underwriters to boost minimum down-payment requirements by 5 percent in areas where home prices are falling or difficult to determine.
Beginning in June, Fannie Mae will instead require 3 percent down payments for conventional, conforming mortgages processed through its Desktop Underwriter automated underwriting system, and 5 percent minimum down payments for loans processed manually. Larger down payments may be required depending on occupancy, property and transaction types.
The new single national down-payment policy will retire a controversial declining-market policy announced in December. The policy, implemented Jan. 15, boosted the minimum down payment required by 5 percent when Desktop Underwriter flagged a property as being located in an area of declining home prices or where it was difficult to assess home values. The policy also applied if an appraiser determined a property was in a declining market.
I’m locking mortgage rates at application for all loan types, regardless of closing date. I’ve been recommending locks for three weeks. Rates improved about .375% so I was incorrect. Why then, should you heed my advice now?Â
I have reviewed Mortgage Backed Securities  pricing for the last 30 days for mortgage-backed securities. When MBS prices go up, mortgage rates come down. In this case, I noticed a meteoric rise in MBS prices in the last week in April (off a low of 99.5). I called for clients to lock on May 2, 2008, when the 30 year fixed rate mortgage was at 5.875%. Today, it has improved to 5.875%
MBS prices improved to 100.75, then retreated to 99.75. I was locking as prices improved to 100.75 again (rates lowered). They closed down today at 100.62. If they retreat below 99.75, we could see a 6.0% 30 year fixed rate mortgage.
Lock all loans. I’m more about not losing money rather than making money when I analyze execution. I think the risk of higher rates, in the next few weeks, is greater than any chance of lower rates.
FHA Loans are back in Fort Lauderdale! Our expensive real estate has dropped in value and the FHA loan limits were increased by The Economic Stimulation Act of 2008.Â
Single-family homes and condominiums are now eligible for FHA loans to a limit of $697,500.Â
Duplexes have a FHA loan limit of $892,950, Triplexes have an FHA loan limit of $1,079,350 and four-unit properties can get an FHA loan up to $1,341,350.
FHA loans are useful because they allow for a downpayment as low as 3%. There are no “declining market limits” imposed on FHA loans.Â
This means that a family looking to buy a duplex, for $800,000, can buy that home for less than $25,000 cash-to-close.
Sellers can contribute up to 6% towards a buyer’s closing costs and the down payment can be a gift from an interested party.
Credit guidelines are relaxed with scores allowed down to 580 FICO score. Alternative credit sources, like utility bills, rent, phone bills, and private loans can be used to build a “thin” credit file.
Also, for non-FHA loans we have another great product, let’s lock all mortgages rates at application, regardless of when its closing.Â
If you want to lock in on a mortgage for the Fort Lauderdale real estate home or condo that you are buying, then now is the time to do so. The bond traders won’t be merciful next week unless recessionary data is overwhelming.
 Jump on these low rates now.
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If you are interested in learning more about buying a home or condo in Fort Lauderdale or anywhere in South Florida; or if you need any information about the Fort Lauderdale real estate market, please feel free to contact me and it would be my pleasure to assist you.You can contact me at the number shown below or please feel free to contact me by the form below and I, or one of my assistants, will be sure to get right back to you within a few hours, if not sooner.
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Robin Sing-Cunningham
robins@robinashley.com
Access USA Realty
Local Fort Lauderdale | South Florida : 954-709-7461
My Assistants:
Barry Johnson: bjohnson@robinashley.com