Category Archives: Hernando County Lender

First-Time Home Buyers in Spring Hill FL Have a Familiar Question

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Spring Hill FL First Time Home Buyers– Get Help Cutting Through The Economic Haze

 

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Spring Hill FL first-time home buyers in 2014 are faced with a question that hasn’t changed for generations: is it more practical to buy right now, or to continue to rent?
Over the past few years, buying has been the easy choice. Nationally, in 2013 it cost 35% less to own a home than to rent according to that year’s study by real estate website Trulia. That despite rising house prices and mortgage rates. But that was last year, and the experts have been pretty unanimous in predicting that interest rates will continue to rise—ending up somewhere near 5.5% by 2014’s end (per the National Association of REALTORS®). In the face of higher interest rates and house price tags, will 2014 be the year when renting becomes more affordable than buying?
While first-time home buyers in Spring Hill FL are faced with increasing house prices and mortgage rates, renters also find another national trend: higher rents. Rents have been on the rise for the past few years, with continued increases expected throughout 2014. According to Axiometrics, the folks with the latest data, apartment rents are on course to rise by 3.04% in 2014. Research firm Reis puts the expected rise at 3.15%— and both say the causes are the potent combination of tight supply and rising demand. Whenever the economy improves, each incremental gain puts even more pressure on rents—which acts as an offset to any financial benefits of renting versus owning.
Where does that leave our typical Spring Hill FL first-time home buyers?

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Most recently, national averages show it is still about 21% cheaper to own rather than rent. According to the Trulia study, by fall of last year, the earliest tipping point at which it would have become more expensive to own rather than rent would have been expected to occur if interest rates hit 6.2%—but only in Spring Hill FL—and only if rents had remained fixed (which didn’t happen, even in Hernando County). Nationally, out here in the real world, Tulia admitted “mortgage rates will not tip the housing market in favor of renting over buying until rates hit 10.5%…”

Spring Hill FL first-time home buyers can be a bit more confident as they take in one more piece of information from the real world of April 2014 (no matter what the experts predicted): over the past few weeks, national mortgage interest rates have been edging down instead of rising! That may well change direction again (probably will), but for now at least, I have to say that it’s a pretty clear call in the spring of 2014: time to get pre-approved and find the perfect home in Spring Hill FL or the surrounding Hernando County Real Estate markets!

Spring Hill Florida Mortgage Rates Might Rise A Little, But What’s It Mean?

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Will Home Values Fall if Spring Hill FL Mortgage Rates Rise A Little Further?

 

 

Right now, mortgage rates in Spring Hill FL (as in the rest of the nation) are higher than they’ve been for 15 months—a trend that’s likely to continue. We have to wonder about the impact higher Spring Hill Florida mortgage rates will have on Hernando county home sales in the coming year.

 

First, some perspective. If mortgage rates do increase in 2014, it’s no ‘done deal’ that home buyers will be put off—nor that a wave of foreclosures will follow. The reason? By past standards, interest rates will still be low, even at the 5½% predicted by the N.A.R. Any hike in mortgage interest rates are coming off the historical 3.52% set in the spring of 2013. Consider: most of us were paying mortgage rates between 7 – 8% throughout the 1990’s! 5½% looks like a fire sale compared with those.

 

Factor Two: surprisingly, a projected rise in interest rates is not predicted to dampen the enthusiasm for acquiring property. The Mortgage Bankers Association predicts that home sales will increase nationally by 10% in 2014. I have no doubt that some Spring Hill first time homebuyers could be waylaid by rising interest rates—after all, a 1% increase in mortgage rates equates to approximately a 10% rise in monthly payments. But overall, buyers who can meet the current lending standards should still be able to afford to own. Given the cost of the renting alternative, they may decide they can’t afford to pass up the right house at the right price.

 

Additionally, there is a strong argument that the principal effect of rising interest rates is less likely to be on Spring Hill Florida home sales than on refis. The Mortgage Bankers Association predicts that refinancing demand will drop by half in 2014 (when you chart that kind of number, it looks like a cliff!). Many homeowners will already have locked in last year’s interest, so they certainly won’t be interested.

 

Any drying up of the refinancing business may have yet another effect. There could be a follow-on effect as lenders start loosening their lending criteria to attract new business. First time buyers that have been locked out of the market until then may (we are now two after-effects later, so this has to be a ‘may’) find themselves suddenly eligible for a home loan.

Given the healthier economy and falling unemployment, the outlook for the Spring Hill Florida housing market in 2014 has reason to look positive.

Thinking of buying a home in Hernando County and want to shop the best mortgage companies in Spring Hill FL? Now’s the time to call me to discuss timing!

 

Steve Fingerman

President

E Loans Mortgage Inc

4117 Mariner Blvd.

Spring Hill FL, 34609

NMLS# 856640

 

Office 352-688-7949

Cell 727-946-0904

 

Hernando County Real Estate Market Becoming Very Attractive To Foriegn Investors

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Hernando County Real Estate Part of Global Investing Picture
Foreign View:U.S.Homeowners Sitting Pretty
Foreign Buyers Snap Up Residential Real Estate

For quite a while, Hernando County residential real estate holders – that is, homeowners – haven’t had to work very hard to come up with a description for the U.S. real estate market. ‘Lousy’ certainly came to mind. ‘Bleak’ was a strong contender. ‘Cautiously optimistic,’ at best a distant third.

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So this months Wall Street Journal report came as a quiet reminder that, for serious-minded investors who view our situation from a less-involved perspective, our residential real estate outlook is neither lousy nor bleak. In fact, the combination of lower residential prices and the international currency environment has created a ‘property-buying binge’ by Asians, Canadians, Europeans and Latin Americans – more than 60% of whom pay in cash.
“There’s this international view that America is on sale,” according to one property manager. He should know; he’s an executive whose Chicago-based company buys foreclosed homes and manages them for investors. A year ago, all of his investors were domestic. Now, one in five is foreign.
Whereas before, most foreign residential real estate investors were interested in ‘trophy’ properties to enhance their personal prestige, the new onslaught is coming from buyers who see that they can earn high returns by buying here, renting, then reselling in the future when the market rebounds. It seems that in many countries, a residential real estate downturn is expected, but has yet to occur. In their estimation, ours is already history.
It looks like “a gift,” according to one developer, who judges that an oceanfront condominium in Rio de Janeiro sells a level 50% higher than an equivalent property in Miami. International or domestic, investment money is always drawn to bargains — but when bargain basement prices are combined with the perceived safety represented by U.S. residential real estate, the lure is apparently irresistible.

“FOREIGNERS SNAP UP PROPERTIES IN THE U.S.” was Nick Timiraos’ headline, with a caption that read, “To many Americans, plowing money into real estate has never looked like such a risky venture. But to many foreigners, U.S. housing has never looked like a smarter investment.”

Thanks, Nick, for giving us some outside perspective; I guess we can adopt the ‘cautiously optimistic’ view with a lot more confidence. If you have been waiting on the sidelines to make your own Hernando County residential real estate investment, I hope you will give us a call when you decide that now is the time to invest in property in Hernando County and the Spring Hill area. We are standing by to help you find the property you’re looking for!
6113 Exchange Way
Hernando County FL, 34202
941-907-9444

E Loans Mortgage Inc

6113 Exchange Way

Hernando County FL, 34202

727-946-0904

Residents Protest Sink Hole Rate Increases

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New Port Richey, Florida — Protesters lined the streets in New Port Richey, targeting a new law that would allow insurance companies to raise their rates for sinkhole coverage by thousands of dollars a year in some cases.

Even if you don’t own property, they warn this will affect you too by crippling Florida’s already fragile economy.

Facing a massive sink-hole insurance rate increase in the thousands of dollars, retiree John Haun says he’s worried he’ll be forced from his home. “My neighbor just got his bill and he got a $5,000 increase in his,” said Haun.

In a room filled with similar worry, The Florida Association for Insurance Reform (FAIR) brought in a bipartisan panel of local politicians, promising to do what they can to repeal the new law that removed the cap on sinkhole insurance premiums.

Sen. Mike Fasano, a Republican representing the 11th District, says he’ll ask state lawmakers to repeal Senate Bill 408.

“That bill was signed into law by our Governor. It has barely gone into effect and we already see the consequences the people of this area will pay,” said Fasano.

State Representative Robert Schenck, a Republican representing the 44th district, actually voted for the original House bill, hoping it would reduce fraud. Now, he says, he’s worried too many people will be hurt.

“Seventy percent of all sinkhole claims that have been paid out, that money has not been put in to fix that property,” said Schenck, explaining his original position on the issue. “So if you guys want to know why we have  so much trouble with sinkhole coverage in Hernando County, that’s why. It’s the rampant fraud.”

Rose Rocco, a Democrat and former Hernando County Commissioner, said fraud should be addressed by the insurance companies and not pushed onto consumers.

“It’s up to the insurance companies or whoever is supplying that service to make sure that they’re paying a claim that’s reasonable and just,” said Rocco. “And to put the blame on people now is unconscionable.”

A mortgage expert also told the crowd it’s not just a concern for current homeowners. People considering purchases of property may be told by banks that they must carry the insurance, which could put a chilling effect on an already depressed real estate market. That could have a ripple effect on the overall economy. Steve Fingerman, with E Loans Mortgage Inc says people will have less money in their pockets.

“You’re all of a sudden gonna be faced with a massive payment increase of $300, $400, $500 a month,” said Fingerman.

Realtors say it’s already having a chilling effect on business, even before the state’s insurance commission decides whether to grant the request from Citizens Insurance to raise the rates.

Some clients, even some from other countries, are already aware of the sinkhole issues, and say they don’t want to take a chance that other insurance companies will quickly line up to follow suit.

Lawrence Sanek, who owns Castle Dream Real Estate, says it’s a problem.

“I have international people saying ‘Tell me about the sinkhole problem. What’s it gonna cost us?'”

The insurance commissioners are not expected to rule on Citizens rate hike request until mid-October, but before then, on September 13 at the Tampa Convention Center, the same commission will be taking public comment in the center’s main ballroom.

The hearing is expected to draw hundreds, perhaps thousand of people.

 
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For More Information Contact

Steve Fingerman

Branch Manager

E Loans Mortgage Inc

Office 352-688-7949

Cell    727-946-0904

(original article writtnen by Eric Glasser at 10news WTSP)