Tag: Orlando Real Estate

Mortgage Regulations Change In 2014

Posted on by Jenny Zamora

With 2014 came a whole new list of regulatory and legal changes for mortgage companies.  These rules and regulations were established with the intention to help both lenders and borrowers from making bad decisions when it comes to home mortgages. Here is a list of regulations that began in January that will affect the mortgage process for potential home buyers according to the Assoc of Mortgage professionals.

New Mortgage Regulations

* Stricter Regulations for the Self-Employed. People that don’t have an IRS form w-2 will be finding it more difficult when you apply for a loan. It’s a much greater task for individuals to prove their debt to income ratio without documentation even if their net worth is high with perfect credit to go along with it.

* A Decreased FHA Loan Limit. The Federal Housing Authority has announced that as of the beginning of 2014 that mortgages shall not exceed the amount of $625,000.00 which is down from the previous amount of $729,750.00. People wanting to apply for a larger loan would have to apply for a “Jumbo Loan”, which will probably involve a much higher down payment.

* A Cap on Loan origination Fees. As of January 2014 points and fees for a new mortgage cannot exceed 3%of the total loan.

* The Ability to Repay Mandate. This regulation was set in place by the (CFPB) Consumer Financial Protection Bureau. Its purpose is to set a standard for lending to make sure that each borrower is a truly qualified borrower. Lenders will now have to follow a set of rules in order to establish a consumer’s income, assets, and current obligations before approving them. This is what the government considers a “Qualified Mortgage”.

As a Realtor in Orlando, I think it’s a great idea that these new rules are now in place. It helps to protect potential homebuyers from getting in over their heads and in the long run, it should decrease the number of future homeowners from falling into default with their lenders. These are signs that the mortgage industry has learned a lesson from the real estate crash of 2007.

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This Spring May Just be the Best Time to Buy a Home in Orlando

Posted on by Jenny Zamora

The Federal Home Loan Mortgage Corporation has some good news for all real estate buyers. Results from a new survey conducted by the Virginia-based government-sponsored enterprise, point toward a slight dip in the mortgage rates across all of America.

The spring buying season has commenced and decreased mortgage rates may be just the extra push that home buyers need to kick-start their spring purchases. The average rate of interest on a standard 30-year home loan reached 4.34 percent in the week beginning April 7. Only a week ago, the rates stood at 4.41 percent.

 What does this mean for Orlando real estate buyers?

Have you been thinking about purchasing a property in Orlando? It would make good financial sense to get started now. According to top Orlando short sales experts, mortgage rates are decreasing overall sectors. The average rate on standard 15-year fixed loans also dipped from 3.47 percent to 3.38 percent, the same week. These dips, though not enormous, are substantial nevertheless and present a good opportunity to make a residential real estate investment.

Fixed mortgage rates are not the only dipping bunch. Hybrid ARMs (adjustable-rate mortgages) also spiraled downwards slightly when compared to their rates a week ago. The rate for single-year ARM reduced from 2.45 percent to 2.41 percent. Five-year ARMs followed the trend, slipping from 3.12 percent to 3.09 percent in the same week.

With the industry heavily divided in its mortgage predictions for subsequent weeks, many realtors are encouraging prospects to gear up on their residential property plans. Real estate agents in Orlando have numerous listings on their hands, owing to the wide selection of residential complexes being constructed in the metropolitan area. Luxury apartments typically find buyers fast and disappear from the hands of listers in a shorter span of time.

What could the future look like?

The Mortgage Rate Trend Index saw 38 percent of analysts predict a steady decline in the rate of fixed and adjustable-rate mortgages over the next week. Another 38 percent predicted steady rates over the next few weeks. A total of 24 percent of participating analysts predicted the rates to rise in the next week. Realtors in Hunters Creek speak of the high spring buying trend in the metropolitan area – something they have been witnessing for years. They expect the spring buying season to be the same, asking potential buyers to make the best of the downward spiraling mortgage rates in the spring buying season.

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Central Florida’s Real-Estate Bust May Just be Over

Posted on by Jenny Zamora

Word is around the Orlando real estate market that Central Florida’s real estate bust has come to its end. There are not one or two, but three different sources that are ready to vouch for the positive turn of events in Central Florida. The three different sources and data contained in their industry reports  – all of which were released within a week’s time, point toward a growing industry.

Three sources, three reports, and several reasons to revel

Industry reports focusing on the real estate and construction market of the US as a whole as well as the states individually show signs of recovery and a rosy future. The sources include the US Bureau of Labor Statistics, the Urban Land Institute, and Economic and Demographic Research’s Florida Office.

The US Bureau of Labor Statistics ranks Florida number one in the nation in terms of state construction growth. The state’s Office of Economic and Demographic Research cited buildings as the reason Florida’s economy was recovering. Further, reports from the Urban Land Institute project a rosy, bubble-free future for Florida’s real estate industry.

While the dark clouds of foreclosures still loom large – Florida sporting the highest percentage of foreclosures in the nation – real estate agents in Orlando and industry experts alike, agree that the numbers are merely recession leftovers.

What Orlando Real Estate Experts Have to Say

What’s more, is that several industry experts are in agreement with the views expressed in the three reports. According to Cecelia Bonifay, who chairs the Urban Land Institute (Central Florida), the real estate industry has gained momentum throughout the nation, and Florida is no exception. She notes how all factors were aligning themselves for an extremely “positive marketplace” and adds that the positive sentiments were shared by almost all sectors of the US economy. Bonifay also points out that the recently released reports were essentially different because the recovery has become broader and spread across pretty much all economic sectors.

Leo Nimkoff, the Chair of the Commercial Council of the Orlando Regional Realtor Association is another expert who agrees that Florida’s real estate bust has approached its end. He reasons that people moving into Florida have helped the state grow – something top Orlando Realtors will agree with. Orlando itself has seen its fair share of new constructions, many of which are multimillion-dollar projects like the $56 million Crescent Central Station complex.

According to Nimkoff, people moving to Florida to settle permanently or the ones moving temporarily for work, generate jobs that go well beyond real estate and construction. Retails, restaurants, and malls spring up to meet the demands of a growing Floridian population and jobs get generated for the locals in such retails, restaurants, and malls.

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Things to Consider Before Installing a Pool in your Yard

Posted on by Jenny Zamora

A pool in your backyard can make summers fun for your whole family. You can have guests over and enjoy backyard gatherings all summer long. But before you have that pool installed, there are some items to consider that may or may not change your mind.

Pool Security

If someone sneaks into your yard and gets hurt in your pool, you could be held responsible. What kinds of security measures are you installing to go along with your pool? You could install a pool alarm, or you could put a privacy fence up around your yard to keep everyone else out.

Pool Safety

When considering getting a pool, the first thing young families think about is safety. If you have children, it’s important to use a locking safety fence or a pool net. This will help keep your children away from the pool when they are unattended. Make sure older children know pool rules and not to swim without an adult present. If you live in a warmer climate where swimming is a daily activity, swim lessons for families are a great way to get the entire family ready for safe pool use.

Maintenance Costs

Pools are a lot of fun, but they are also a lot of work. You have to know how to measure the pH of your pool water so that you can add the right amount of chemicals. The chemicals, filters, and vacuuming equipment necessary to keep a pool maintained can be expensive. That does not include the special supplies you need to close the pool for the winter and then open it in the spring.

Your Home Value

An inground pool may help to raise your property value, but an above-ground pool may not. When it comes to your home’s value, you also have to wonder if the increase in your home’s value will be more than what it cost to have the pool installed. What if the pool does decrease the value of your home? Would it still be worth it to have one installed? Do your research. If you live in an area where pools are common and highly desirable, a pool will probably increase the appeal of your home. However, your home value most likely won’t increase enough to cover the total cost of the pool.

Zoning Regulations

Will your town even let you have a pool in your yard? Many municipalities have very specific zoning regulations on installing a pool. You may have to also install a fence and some other safety features, based on local regulations. In some areas, your pool has to be a certain distance from your property line, which may not leave a lot of room for the pool itself.

Energy Bill

If you choose to get a heated pool, then your energy bills are going to go way up. Even the simple matter of having a filter and pool vacuum that runs several hours a day can add costs to your energy bills.

When you bring up the idea of installing a pool in your backyard for your family, you may get a rousing cheer of approval. But you may want to really think this through before you actually put a pool in your backyard.

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Selling Property: Additions That Can Increase Home Value

Posted on by Jenny Zamora

If you are trying to sell a property in Orlando, you know that making your home stand out from the competition can be difficult. However, there are some additions that can increase a home’s value and make the house easier to sell when it hits the market.

1 Count the Bathrooms

Never underestimate the power of an additional bathroom in your home. Everyone can use another bathroom. This is particularly true if the home you want to sell only has one bathroom; most buyers won’t even consider a home with only one bathroom. If your home has two stories, make sure there is at least one bathroom on the main floor because buyers in today’s market have come to expect that.

2 Garages are Good Bets

Many home buyers also expect to have a garage to protect their vehicles. While most buyers want an attached garage, if adding one to your existing house isn’t possible, you can add a detached garage to your property to increase the value. This is bonus square footage that can be used to house a vehicle or for storage.

3 Media Rooms Sell

Another smart addition to a home is a media room. You may not have to add on to your house to get a media room. You can take an existing space within your home and convert it to add the media room. For example, you might finish a room in your unfinished basement or loft area. Buyers in today’s real estate market are looking for homes with all of the bells and whistles, so you will get your money back on this investment.

4 Home Offices are Hot

You can also increase your home’s value and help it sell quickly by adding a home office. Most home buyers like having a dedicated space in the house to use for the computer, printer, and fax machine. However, more people are working at home today than at any other time in history, so lots of buyers need home offices for their jobs. This one feature could make your property stand out from all of the rest.

5 Outdoor Space is Nice

A final addition is an outdoor space. Many buyers want a home that provides outdoor entertainment space, so this is a good return on your investment. You might build a deck or patio in the backyard. You can even add furniture to the area. Swimming pools are also a good idea. “A pool is a lasting investment in both your home and in your life. It can add value to your property,”

Making smart decisions can help you increase your home’s value and make it easy to sell. You just have to spend your dollars wisely.

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