Orlando Mortgage Blog

No vote last night and still waiting...Read More

The fed's done today on their $300 Billion purchase that started last March. So who's going to pick up the slack in buying MBS's and continue to help keep rates down? Anyone...? 

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Worries over just how strong this "recovery" really is after today's housing report turns Wall Street off today. Funny that there really could be a correlation with the $8,000 home buyer tax credit going away November 30 and the large drop in new home sales...duh...hummm. Do you think it could spur the move-up market and values the same way if they opened it up...can't say "them folks were just going to buy anyway...cuz they haven't been".

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The $8,000 home buyer tax credit is due to go away November 30...maybe not according Senator Dodd this afternoon. A little more help getting rid of some inventory to loosen up the market would be great.  Read On...

Rates could go up in the next several months when the Feds stop buying...hey fence sitters...Read More Now.

The current tax credit goes away November 30. There's a movement to extend it...Read more.

Every so often I go back and look at a few of my previous blogs and this one from June 21, 2007 is still relevant today...I mean really!:

I was just thinking...

Humorous Mortgage Ads!

• What's the difference between home ownership and foreclosure? Prompt Payments...

Misleading ads. I've been in the mortgage business many years and even I'm tired of them. Aren't you? First of all you can't get your key in the front door until you remove the flyers and their industrial strength rubber bands from around the knob (careful not to trip over the latest gift from the phone book fairy today). It only takes five minutes to thumb through the 2 inch stack of flyers and official looking envelopes in today's mail. You did get a pizza coupon that you place under the Realtor® fridge magnet with it's 2005 calendar.

Before starting on tonight's takeout dinner, you sit down to relax and the phone (on the other side of the room) rings and it's a mortgage consultant wanting a moment or two to complete a "very important survey". After hanging up on them, you click the remote to see the same mortgage commercial on all 184 satellite channels. It's telling you they know yur "Smart" (unlike everyone else that thinks you're dumber than a rock, right?) as if that alone will make you want to call them to apply for a mortgage. The blurred disclaimer at the bottom of the ad looks like it was badly hand printed by a three year old with a broken pencil (apologies to all three year olds). The message? You're so smart you might want to actually read it?

You decide to keep flipping and other than the same "Breaking News" report you watched at 7 AM this morning it's another company advertising another Great Rate (the rate is 6 inches tall on your new big screen TV and can be read by those folks up there in the space shuttle) but you can't read the details on the disclaimer block before it disappears faster than the last biscuit on a boarding house platter at meal time. You're ready for it next time.

Your remote has a "FREEZE" action button and you zap it before it even knows you're trying! Aha! That 5.625% rate with the 5.98#@*% APR has two points in it (that's just $4,000 on the $200,000 loan you've been thinking about) and it was available the week of March 15, 2007. GREAT! Ok, then you remember today was June 21, 2007. That was over 90 days ago. When you call to see if it is available you are told no, "We're not a lender, we just provide quotes from various lenders." But, they ran that "Great Rate" in their ad for 3 months. They did make certain to disclose that "rates are subject to change" in the ad. That makes it ok, right?

Bill Wilbanks /  www.OrlandoMortgageMasters.com 

Our ZERO Points Means ZERO

We quote Total Points Folks!

This is very important. Companies quote "ZERO POINTS" every day in all the national ads, but it's a play on words in far too many cases. After stating they have zero points they proceed to state (if they even bother) that it's plus a $2,500 origination fee and other 3rd party fees like title and appraisal (and many others). This was actually quoted on a $200,000 quote from a well known national advertiser in the fine print. Well, divide $2,500 by $200,000. Isn't that a 1.25% fee on that mortgage size? BUT, if it's not shown as POINTS, but a flat fee instead...they boldly advertise ZERO POINTS. Get it now?

Many who market this way simply run a rate and an APR (annual percentage rate) in their ad which is the minimum required by law and don't reveal the dollar origination and closing fees and you must give them your basic information to get a written estimate. How many dollars does an additional .10% APR mean to the average rate shopper? Without calculating it, even I can't say. That's why the Rate VS. APR quote is so effective.

Bill Wilbanks

email your comments or questions: omm222@hbwireless.com

It may be your only refinance option as values fall. 

• Is your home worth less than what you paid?
• Think refinancing has passed you by? Maybe not.
• You may be able to qualify at up to 105% LTV.
• Take advantage now. It can go away mid-2010.

Rates, terms and product are subject to change daily. It is a requirement that FNMA own your current mortgage. You may easily check that on our website as well for free. Please call for current quotes when you are ready. Rate is generally LTV and credit score driven. This is a no cash out program.Total monthly debt ratio may not exceed lender guidelines. Other PMI options may be available subject to the LTV/credit score requested. This example assumes 720+ credit score and a primary or second home refinance. Additional LTV and credit score options are available and pricing as well as terms and level of qualifying difficulty will apply. PMI coverage is currently available on primary residences up to 90% LTV in Florida but subject to change. No loan approval is promised or implied in this example.