Orlando Florida Real Estate Resource

Taming the Jumbo Mortgage in the Orlando Florida Real Estate Market

Everyone knows the jumbo loan market has been out of whack for nearly 18 months. "Jumbo" loans, those amounting to more than $417,000, took it on the chin, especially in Orlando Florida's real estate market, when mortgage investors stopped buying subprime and alternative loans. For that reason, jumbo rates can be as much as 1.50 percent higher than conforming rates. Historically, jumbo rates were only about a quarter of a percent higher than a conforming rate, but this new spread has kept many out of the Orlando Florida housing market: especially those that we refer to as, "just jumbo."

So what exactly is "just jumbo?" It's a loan amount that just exceeds the conforming limit of $417,000 and typically reflects a sales price in the $500,000­­-$600,000 range. The Orlando Florida Real Estate market offers many homes in this price category, but the marked difference in rate from conforming to jumbo is slowing down Orlando's real estate sales. What is the difference in payment between a conforming loan at 6 percent and a jumbo loan at 7.50 percent? On a $500,000 jumbo loan, mortgage payments jump from $2,997 to $3,496 a month. That's almost $500 more!

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Orlando Florida Short Sale Q & A

How long does a short sale take in today's Orlando Florida real estate market?
The short sale negotiation process can be quite lengthy, although things keep changing constantly.  A few months ago, it was taking anywhere from 3-4 months...sometimes even longer.  Right now, we're seeing the average timeframe to be about 30 to 45 days.  Some banks are approving short sales in as little as 3 days, while others won't even look at them until 30 days has passed.  The reason for this lengthy process is the multiple parties who have to approve the short sale.  Those with their hands in the pot include the numerous departments within the bank...many not knowing what the others are doing, the investors, the private mortgage insurers, Fannie Mae, and more.  All of these must give their approval.  It's important that as a buyer, you go into a short sale knowing that you'll have to be patient during this long process.

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Orlando Florida Real Estate Resource

Fannie Mae Announces Single National Down Payment Policy;
Replaces Policy Regarding Markets Where Home Prices are Declining

The following post was provided to us by Nate Morris of First Horizon Home Loans

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today announced a new, national policy on down payment requirements for conventional, conforming mortgages the company will purchase or guarantee. Starting June 1, 2008, Fannie Mae will accept up to 97 percent loan-to-value ratios for conventional, conforming mortgages processed through its Desktop Underwriter^® (DU^®) automated underwriting system, and 95 percent loan-to-value ratios for loans underwritten outside of DU, in all geographic locations in the United States, including Orlando Florida. The new national down payment policy will supersede the policy the company adopted in December 2007 that required higher down payments in markets where home prices are declining...such as Orlando Florida has done recently.

"As another part of our 'Keys to Recovery^TM' initiative, we are today announcing that we will be equalizing the down payment requirements for borrowers in all parts of the country, regardless of local market conditions," Marianne Sullivan, Senior Vice President, Single-Family Credit Policy and Risk Management, said. "This new down payment policy reinforces our goal to support successful home-owning, not just home-buying, as we seek to bring liquidity to all communities and help the housing market recover."

The new national down payment requirements of 3 or 5 percent will apply to loans for purchase of single-family, primary residences. Down payment requirements will vary for other occupancy, property and transaction types. The company will implement systems and operational changes over the summer to accommodate the new national policy.

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Orlando Florida Real Estate Resource

Orlando and Seminole County Home Buyers & Sellers - Keller Williams Offices shine on Real Estate Industry Surveys

RISMedia Power Broker Report and Survey

I often hear some potential Orlando Florida real estate clients say "I want a Realtor who's with a big company".  Although this isn't relevant at all, for the simple fact that there are some great Realtors at small companies and there are some horrible Realtors at large companies.  Remember, you're hiring the Realtor...not the company.  But, in case you're wondering...I thought I'd share the latest comprehensive real estate surveys which document how how Keller Williams is dominating the real estate industry.

Every year, RISMedia and REAL Trends release two of the real estate's most comprehensive surveys: the RISMedia Power Broker Report and the REAL Trends 500. Both surveys rank the largest residential real estate brokerages in the U.S. based on both transaction sides and sales-dollar volume, and these reports are frequently used as referral tools and are referenced by thousands. This year, Keller Williams stormed onto the lists with a very strong showing.

KW offices dominated the Power Broker Report - with more offices listed in their top 700 list than any other franchise brand.  The survey also named Keller Williams Realty as the industry leader in terms of number of agent teams.  And, 102 KW offices were listed in the Companies to Watch section - making up 55% of the total list!

As for the Real Trends 500, which lists the top 500 brokerages in the nation, Keller Williams Realty had the second highest amount of offices listed both transaction sides and sales volume, among the top franchise brands.

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Orlando Florida Real Estate Resource

Orlando, and Lake Mary Foreclosures

When reading or watching the news about Orlando Florida Real Estate, it’s easy to begin believing that everyone around you is losing their home to foreclosure.  Don’t be fooled by the media focus on a small fraction of the real estate market.  Here’s just a note on perspective for some of the foreclosure news you are seeing.  

Is it rough out there in today’s real estate market?  Well consider this, in a recent Bloomberg news article there are apparently frightening numbers on forclosure rates - ” U.S. Foreclosures Jump 57%” .  Awful state of affairs - right?  How about this headline for the same article - “99.8% of U.S. Households NOT in Forclosure”  Amazing? Can’t be true? Check the math.

Use the numbers provided in the article - “More than 234,000 properties were in some stage of foreclosure, or one in every 538 U.S. households… “.  Pull out your calculator and work out the percentage - .001859 or .1859% (1 divided by 538).  Yep - that is LESS than two-tenths of one percent.

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