It’s true that mortgage rates are higher than they have been for many years. And, on November 2^nd the Fed raised interest rates another ¾%. That means that mortgage rates are probably going to be even higher.

It’s true that housing sales have dropped off significantly since the interest rates have gone up. However, that does not mean that housing prices have to go down, particularly in this market. Let me tell you why.

There continues to be a dramatic housing shortage, and it doesn’t look like that’s going to change any time soon. Does it make sense to lower the price of something when the demand is high and there is a shortage of the item?

“There doesn’t appear to be any end in sight,” Nadia Evangelou, a senior economist and director of forecasting for the National Association of Realtors told USA TODAY.

Depending on who you ask, experts believe there is a nationwide housing shortage of between 2 million to nearly 6 million newly built homes.

Sure, mortgage rates are high, but you could refinance when mortgage rates go back down.

If you have to move, you have to move. If you are thinking about downsizing, you don’t want to miss out on the costs savings of living in a smaller house. Give us a call, and we can discuss your mortgage options.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

During the buying frenzy that we had some months back, some prospective buyers were making offers that included forgoing a home inspection. It was not uncommon for a seller to receive 10 to 12 offers on a property, many of which were for more than asking price. In order to compete with other buyers, an offer forgoing the home inspection was an attempt to make the offer more competitive. Obviously, with no home inspection, the process would go faster, particularly when eliminating the time necessary to make repairs for items that might need attention. That’s great for the seller, but not a good idea for the buyer.

Don’t Do it!

Things have slowed down from the buying frenzy that we were seeing before. However, forgoing a home inspection was never a good idea. Just one item being overlooked could add thousands of dollars of costs required in the purchase of the home. The average cost to replace a roof in Florida is $9,200. For the average single family home, the cost to replace an air conditioner is about $6,500.

A thorough inspection is a critical step in purchasing a home. Home inspections can uncover potentially life-threatening problems like mold or faulty wiring that could cause a significant fire.

The top five things home inspectors look for

• Foundation. The foundation is the workhorse of a house.
• Roof. Roof quality and performance can also make or break a house deal.
• Plumbing. Is there anything worse than a leak?
• Electrical systems.
• HVAC system.

If you are buying a home, you need to know exactly what you are getting. A home inspection, performed by a professional home inspector, will reveal any hidden problems with the home so that they may be addressed BEFORE the deal is closed. You should require an inspection at the time you make a formal offer. Make sure the contract has an inspection contingency. Then, hire your own inspector and pay close attention to the inspection report. If you aren’t comfortable with what he finds, contact your Realtor to discuss options and renegotiation.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

A loan is considered jumbo if the amount of the mortgage exceeds loan-servicing limits set by Fannie Mae and Freddie Mac — currently $715,000 for a single-family home in all states.

Pinellas County is one of the most desirable Florida Locations. Surrounded by waters of Gulf of Mexico and Tampa Bay, and white sand beaches – it’s a perfect place to live and visit. Clearwater and St. Petersburg beaches have been rated #1 in America. Beachfront, Waterfront, Boating and Golfing communities are all here for your enjoyment.

Obviously, the requirements for a jumbo are higher because a higher loan amount involves more risk. To receive a jumbo loan, you may have to have plentiful cash reserves and adequate documentation. Your credit score must be 680 or higher.

You’ve Come to the Right Spot!!

With our unique mortgage options, you can own the home you love now. Our underwriting approach may allow you to qualify for more financing than traditional lenders offer. We offer flexible down payments ranging from 3% on loans for less than $715,000 and 10% on jumbo loans.

Although we do offer jumbo loans for as little as 10% down, the better pricing is found with a 20% to 25% down payment.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site www.ClearwaterMortgageBroker.net or call at 727 447-2418

One of the most frequent questions we are asked is “what is going to happen in the real estate market”. Unfortunately, we are unable to look into a crystal ball and see what’s going to happen.

Clearly we have seen things slow down somewhat from what we have seen in the recent future. The recent  rise in mortgage rates have taken some people out of the market, particularly in the low end of the market. Our Realtor friends have told us that they are not getting the multiple offers and as many offers over list price that we were seeing in the recent past. Many housing economists warn that continued weakening could see home price corrections hit some regional housing markets.

It’s going to depend on where you live. Markets that have seen some of the higher increases could seen single digit declines. In the areas like middle America, we could see small increases.

At the Fed’s next scheduled monetary policy meeting takes place on September 20-21, most experts are predicting additional rate hikes, although they may not be as dramatic this time, depending on what goes on in the economy in the next few weeks and months. While mortgage rates are not directly tied to the Federal interest rate, they are certainly related.

If you are considering purchasing a home, you should probably not wait. With likely mortgage rate increases coming and possible housing prices increasing, you can probably purchase more house for your money now than if you wait.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

According to Market Watch: “Word on the street is that the Federal Reserve may raise rates by 1% at their July 26 meeting — as they try to quell inflation that now sits at a 40-year high. Barron’s recently noted that: “With inflation so hot, the Fed’s next rate hike might be the biggest in decades.”

How does that effect mortgage rates? There is no direct link between the Fed and mortgage lenders. However, if the Fed is raising rates, you can rest assured that mortgage rates will go up. In fact , it is said that mortgage lenders very often factor in the increase in their own rates in anticipation of what the Fed is expected to do.

With interest rates going up a full point this month, and maybe another full point next month, you aren’t going to be able to afford as big a house as you were before. If you are considering purchasing a house in the future, you should meet with Ruth Schoenherr to see how much house you can afford in today’s market.

One can only assume that the rising interest rates are going to put the brakes on today’s red hot real estate market. One can only assume that the prices of more expensive homes will be affected the most.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Mortgage rates have gone up.

They have gone up over a point since April. But it’s not going to get any better, and it will most likely get a lot worse.

Why is the Fed raising rates?

High inflation — consumer prices rose in May at the fastest pace in 40 years — will likely force the Fed to raise interest rates several more times in the coming months. Fed officials may even resort to additional large rate increases in a bid to cool off inflation.

Therefore, if you are considering purchasing a property any time soon, now is the time to do it, and in doing so, you will save thousands of dollars in interest  that you would have paid if you had waited to apply for a loan.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Buying a house today is quite different than in times past. There is such a shortage of homes that people are making ridiculous offers, usually over the asking price. In today’s world, a buyer should be prepared to make offers on multiple properties before you make a successful bid.

Now is still a good time to refinance you mortgage, with interest rates still at all time lows,

and the likelihood that rates will go up soon. There are several reasons to refinance.

• Lower Your Mortgage Rate. A common reason for homeowners to refinance is simply to lower their mortgage rate.
• Shorten the Term of Your Loan.
• Consolidate Debts.
• Cash Out.
• Go from an Adjustable Rate Mortgage to a Fixed Rate.

There are also things to consider. There are refinancing programs out there with no closing costs. While that option may be tempting, typically those programs come with a slightly higher interest rate. Over the life of your mortgage, you could pay thousands more in interests.

You also might have the option of lengthening the term of your loan. This probably will make your monthly payment lower. That might be OK for the short term, but if you are going to stay in the house a while, you will pay more money in interest over the life of the loan.

You might have the option of having less than 20% equity in your house after you refinance. It might be nice to have the extra cash in your hand. But keep in mind in your equity is less than 20%, you may be required to carry PMI insurance. For a conventional mortgage, you can expect to pay a PMI premium between 0.3% and 1.5% of the loan amount. The premiums are tacked directly on to your payment. The unnecessary cost of the PMI insurance will reduce the benefit of refinancing your loan.

You should discuss your plans with Ruth Schoenherr. Ruth is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Businessman talking to a couple

FHA stands for Federal Housing Authority. FHA Loans offer some advantages that may not be available through other avenues. They were designed to help a first time buyer to be able to own a home. The down payment is only 3.5% if you have a credit score of 580 or more.

The FHA does not issue loans directly. They go through independent companies that are FHA approved.

We can help you submit an application.

FHA loan requirements

To apply for an FHA loan, you have to meet several requirements that include;

• Being a resident of the USA
• Have a valid social security number
• Be of legal age
• Provide bank statements for the last 30 days and any documentation for deposits made.
• Have a minimum credit score of 500.
• Proof of income
• Good payment history of bills

Additional information provided before the FHA loan process include:

• For veterans, a certificate of eligibility
• Provide the names and locations of employers for the last two years
• Filed personal tax returns for the past two years
• If self-employed provide a valid business balance sheet
• Pay for credit report
• Provide details for a savings account and open loans
• Give an approximate value for all personal property
• Provide a gross monthly salary for your current job

The maximum amount of the loan depends upon the part of the country you are located in. They will loan up to $970,800 in high cost areas.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

According to new predictions from Zillow, Tampa came in No. 1 as the hottest housing market of 2022. Other cities in the Sun Belt region seeing a boom of interest from buyers include Jacksonville, Florida; Charlotte and Raleigh, North Carolina; and San Antonio.

Part of this situation is caused by the fact that since the pandemic, more and more people are working from home, and if you are working from home, why not have a home in a warm climate?

Increased local taxes in other parts of the country are contributing to the situation. The fact that we don’t have a state income tax makes Florida an attractive location also. Ever wonder how we get by with no sales tax? One thing that helps is the lodging tax – the amount of tax due on living/sleeping accommodations. Here in Pinellas County the lodging tax is 12% and the sales tax is 7.2%. Have you checked into renting a place on the beach lately? The rates are high enough, but all the add on taxes and fees are through the roof. Obviously the tourists are helping us with our tax situation.

Buying a house in this area has become a challenge that we haven’t seen before. Even if a buyer finds a listing that has just come on the market, and makes an offer thousands of dollars above the listing price, the buyer is likely not going to accept the offer, and will probably get dozens of offers in a bidding war.

Before you go out and face the insanity of trying to purchase a house in the market, you should have a phone consultation with Ruth Schoeneer. Ruth can give you some great advice and make sure your lending situation is in great shape so that your offer will be seen as an attractive choice.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.