As we enjoy another beautiful Florida day we are reminded why rightfully, Fort Lauderdale Florida, lives up to its nickname as “Yachting Capital of the World” by hosting the Fort Lauderdale International Boat Show annually.  The show features billions of dollars worth of super yachts, mega-yachts, boats, yachts, electronics, engines and thousands of marine accessories from major marine manufacturers, distributors and builders from around the world. The boat show takes in a total of more than 3 million square feet of show space, both on land and in the water, at multiple sites which are all connected by the Ft. Lauderdale Boat Show Transportation Network.

Fort Lauderdale draws in millions of dollars of revenue each year from the yachting industry.   The marine industry in Fort Lauderdale creates jobs, brings a world-renowned annual boat show each fall, increases tourism dollars and not to mention boosts demand for waterfront real estate – keeping up property value.

Live where you vacation…ever thought you’d like to stay on vacation forever, it’s possible if you consider purchasing property in Fort Lauderdale, Florida.   This is the place for your year round home or vacation home.  Properties come in every category and price range.  On the ocean, beachfront or other waterfront property.

 Although it will still take some time to rebuild consumer confidence, as mentioned by Ron Shuffield, President of EWM Realtors in a  recent Market Update ,  many people paying cash for their homes today are finding deals at reduced prices.   Sellers are anxious to make a decision to leave their properties so  for buyers with cash or those with the ability to borrow money is a great time for them to buy.

This article was written by:  Elizabeth Lindgren

President Obama has signed into law “The Dodd-Frank Wall Street Reform and Consumer Protection Act (H.R. 4173)”.  

The new legislation will protect consumers from unfair credit card interest rate hikes, Bank overdraft fees will be better regulated, College Student Loans will provide clear information about the obligation, more information will be provided about the cost and risks of Mutual Funds and other investment products so the investor will be better informed.

Under the new provision you will be less likely to be pushed into a risky loan with a high interest rate.  Lenders will not be allowed to pay mortgage brokers a commission based on the interest rate for a home loan. So there’s not an incentive for a mortgage broker to put you into a high interest rate loan.  Prepayment penalties are limited or prohibited, depending on the type of loan. Before your loan is approved, lenders are now required to determine if you realistically can pay your mortgage payments, factoring in insurance and tax.  If you are denied credit or if you are approved for a rate other than the rate your lender gives its best customers for that credit product – you are now entitled to receive a credit score.  This means that for the first time, consumers who receive such a credit disappointment will be entitled to information from the lender, including their credit score, for free.

 For more Information and Resources please visit:

http://www.whitehouse.gov/wallstreetreform

This article was written by:  Elizabeth Lindgren

Are you borrowing money under FHA financing to purchase your  new home?    If so,  you do want to sign the Purchase Contract and make sure your lender gets a new FHA Case number before a new bill that will increase FHA’s annual premiums is signed into law by President Obama. 

  H.R. 5981 is a bill that passed the Senate and will allow FHA to increase its annual premiums.  The increase can go from the present 0.55 percent to 1.55 percent.

 With an FHA loan the borrower does pay monthly mortgage insurance and an upfront premium that can be paid cash at closing or financed into the loan amount – most borrowers choose to finance since this will allow for less cash due to close.   Although the upfront Mortgage Insurance premium is expected to be lowered, by increasing the monthly premium your monthly mortgage payment will still be higher. 

 What this means to a consumer for example, based on a  home Purchase Price of $350,000 with the present minimum down payment  of 3.5 percent.  Your  Monthly  “MIP” or Mortgage Insurance Premium can increase as follow:

                                                   Today                             Proposed

  Loan amount          $345,350.00                          $341,128.00                                   

 MIP @  0.55%          $158.29         vs.   MIP@1.55%  $ 440.62

 The mortgage insurance payment can increase up to $282.33  

 Beside paying more,  the higher payment may affect the debt-to-income ratio required by the Lender to qualify, the option would be a lower sales price.    Other than a VA loans which provides no down payment loans to eligible U.S. Veterans, in South Florida at the present time, FHA is the program available to purchase a home with Down Payment as low as 3.5 percent of the Sales Price. 

FHA requires that the property is used as Primary Owner Occupied.    Income, funds to closing and borrower’s credit is carefully verified.   Because seller contribution towards the closing cost is allowed and gifts from family members, charitable organizations, employers, and government entities are permitted –provided that none of the parties financially benefit from the sales transaction- this program has help many South Florida families purchase a home.

Other changes may also be made to the current program.  At present FHA is soliciting comment on three specific measures to reduce financial risk and preserve affordable mortgage financing for responsible consumers:  1) Increase downpayment requirements for new borrowers; 2) Reduce allowable seller concessions from 6 percent to 3 percent; and 3) tighten underwriting standards for manually underwritten loans. 

  Please click here, for a copy of  HUD’s Press Release on the policy change.   To submit your letter, please click here, once on this page, click “submit Comment” at the top to send your letter.   

  This article was written by:  Elizabeth Lindgren