Orlando Florida Real Estate Resource

Orlando and Seminole County Home Buyers - Title Insurance Is A Must!

Here's an FYI for all you "I want to wait for prices to drop more" Orlando Florida Real Estate home buyers.   

Waiting may well make your Orlando area home MORE expensive not less! How is that possible if the prices of Orlando Forida Real Estate drop? Unless a home buyer really does pay all cash, even a small increase in intrest rates can wind up wiping out most, if not all of the saving from the price decrease, due to the increased interest costs. And as the article below indicates - interest rates are very likely to be going UP. 

Here is a simplified example: On a $220,000 house, if the price goes DOWN by $10,000 but interest rates go UP by only 3/4%, then an Orlando Florida home buyer will pay $8,600 MORE in interest during the first 10 years and $17,200 MORE during the first 20 years. Pull out your financial calculator and check it out! Oh - the monthly payments are nearly $400 MORE per year too!

[Price NOW $220,000 - With a $20,000 down payment and $200,000 30yr fixed rate mortgage at 6% - will result in $111,263.58 of interest during the 1st 10 years.

If the price drops by $10,000 to $210,000 and Orlando Florida Real Estate intrest rates increase by only 3/4% - With a $20,000 down payment and $190,000 30 yr fixed rate mortgage at 6.75% - this will result in $119,952.26 of interest during 1st 10 years.] 

So to paraphrase an old saying - An Orlando Florida home buyer who hesitates may suffer a big loss! 

Wednesday, May 14, 2008

Odds Of Autumn Rate Hike By Fed Increase After Summer Hold

By: Laura Mandaro

MarketWatch Pulse

SAN FRANCISCO -- Futures traders have increased their bets that the Federal Reserve will start raising rates in late November after a period of holding rates at the current 2% level. The November fed funds futures contract Wednesday mid-morning priced in about a 56% chance that the central bank will raise its key interest rate by a quarter-point when it meets in late October, to 2.25%, up from 48% odds at the Tuesday settlement and only 16% Monday. Odds slipped slightly from levels before the Labor Department said consumer price growth moderated in April. For the late June meetings, traders are pricing in a 6% chance of another quarter-point cut, to 1.75%

Copyright © 2008 MarketWatch, Inc

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Reminder: If you are wanting to sell your Seminole County or Orlando area home in the next 6 to12 months, now is the time to begin putting your plan into place, while time is still on your side. Please contact us for any real estate assistance you may need.

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