Florida Property Tax Estimator

Here is a tool I found that calculates the expected taxes you will pay if the Super Homestead exemption passes. https://midas.fgcu.edu/cob/taxsim/

Insurance Industry is BOOMING In Florida

Looking for a new business to start? Insurance may deserve your consideration. Big insurers reported $150 BILLION in profits over the last 3 years - even after paying off billions in hurricane claims! Insurance companies have also have the benefit of reduction in expenses due to state legislation that reduced the costs of re-insurance (the insurance insurance companies get). Governor Crist is not too happy about the fact that these large companies are making such record profits and yet have not reduced insurance rates commensurate with their profits! He all but accused them of collusion which is a serious federal offense and breaks anti-trust laws. If he can prove it - there will be a major shake down in the insurance industry! And who will benefit? Us! The everyday consumer! Lower rates, here we come!

Fed Cuts Fund Rate

As you probably already know, the FED cut the fund rate yesterday. What does that mean? Well, it affects short term rates (ARMs, HELOCs, and credit cards) that use the Fed funds rate as an index. It doesn't directly impact 30 year fixed rates on mortgages, though. Over the last 7 years there has been no direct or inverse relationship between the 30 year fixed rates, and the Fed funds rate (e.g. in Jan 01 the fed funds rate was 6.01% and 30 year fixed was at 7.03% by Dec 01 the Fed fund rate was all the way down to 4.25% and the 30 year fixed rates were up to 7.07%). There is a lot of uncertainty about what the Fed's move will do in the marketplace, although one thing is for certain: there is a lot of volatility. If you are waiting for a better 30 yr fixed rate, you could be waiting for a very long time. Historically (that is in the last 20 years) rates are very low. They have been as high as the high teens). If you would like a mortgage consultation, contact a reliable mortgage lender. Contact me if you would like to get the name and number of one!

Beware of Condo Conversions

Okay, the cat is out of the bag. It turns out that some developers cut corners when they were "rennovating" apartment buildings for condo conversion. This is so disappointing to me because it hurts the public trust. If you're considering buying an ex apartment building, just beware of some of the potential dangers. If you're not certain, just avoid them all together because unfortunately there doesn't seem to be a way to confirm or verify that a good job was done before closing on a contract. Unless you can observe the construction / rennovation project as it is happening.

Mortgage Rates Down This Week!

Average rates on 30 year fixed loans on a national basis dropped to 6.31% that was the lowest since May. Last weeks the rate was at 6.46% according to Freddie Mac. An estimated 2 million loans will start adjusting with the market over the next 18 months. Loans that have an introductory period with a lower that average interest rate, but begin to change according to some predetermined index after a certain number of years are called ARMs (adjustable rate mortgages). They were very popular over the last 5 years, and a lot of them are beginning to "mature" so to speake. Bush officials met with large mortgage servicers on Wednesday to talk about solutions to the challenge.

Buyers Believe

This is a call to all buyers out there who are dragging their feet on their next real estate purchase. Now is a great time to buy! You will be paying less for what you get than people who bought six months ago! Real estate has always been a sound investment and it doesn't depreciate for long. Once the market begins to pick up again, you will not have such a buyer's market!

Westchase Super Target going up!

I was out at Westchase the other day and they are putting a brand new Super Target on the south side of Westchase (near Hillsborough and Countryway). There were also other retail shops going in with Target as the anchor of course.

State Budget Cuts

Governor Crist weighed different options on how to cut $1 billion from the state budget. At the same time he is considering increasing spending for low income families.

Positive Signs in Real Estate Market

There are underlying signs of improvement in the new home market according to a recent UF study. Experts have sited our high growth rate as a factor supporting a quick recovery from the recent real estate setbacks. They also site the moderate production of new homes to help keep things in balance. Their main concern, though is the turmoil in the investor market securities backed by sub prime loans. Institutional investors have slowed and/or stopped their purchase of these securities due to the high rate of foreclosure and default. The problem this creates is a lack of funds banks can use to re-lend to new borrowers.

Tampa Bay Youth Culture

The clean young adult scene in the Tampa Bay area is always improving. This weekend (September 8,9) a local church (The Sanctuary) is hosting a young adult / youth worship conference by a dynamic / prophetic worhip leader by the name of Jason Heilman. Young adults in our area are demanding something to fill the void in their hearts that only heartfelt worship can do.

Rates Jump on Jumbo Loans

Jumbo loans appear to becoming more costly. Word on the street is that the rates went from the high sixes to the mid eights last week. That is a pretty significant hike. I think this is a result of the turmoil in the Alt-A lending environment.