Boca Raton Real Estate

Refinancing Loans At an All Time High

Homeowners across the country are rushing in the refinance their exiting home loans at the lowest rate since the 1960s as our economy staggers through what may be the worst recession in decades.Mortgage brokers are experiencing a high demand for refinancing loans for homeowners who want to take advantage of the Federal Reserves actions this past week.

The central bank, cut the federal funds rate from 1 percent to a target rate of zero to 0.25 percent, and said that it would continue putting money into the market for mortgage investments.Mortgage brokers were quoting mortgage rates as low as 4.5 percent to borrowers with strong credit and large down payments. The average rate on a 30 year fixed rate mortgage this past week nationally was 5.06 percent.

Falling interest rates could mean a lot of extra cash in homeowners pockets. It is not a cure all but it is a step in the right direction. Homeowners that had adjustable rate loans, now can save a great deal of money every month in paying their mortgage.

With interest rates at almost a 50 year low and property values still declining, people with good credit can get deals that they never thought would be available, on properties.

The Top Six Mistakes Made Buying Foreclosed Homes

There is nothing that illustrates America's housing bust, more than all the abandoned properties that now exist in all of our communities today. There were more then 750,000 foreclosure filings for the third quarter, in our country. That is a 71 percent increase for the same period last year. For real estate investors though, this is an opportunity of a lifetime, to buy. One persons tragedy can be another's good fortune.The purchase of these foreclosed homes is often a complex and involved process. It does present would be buyers with plenty of opportunities to make costly mistakes.

1) Going at it alone. Unless you know all of the ins and outs of the foreclosure process, do yourself a favor and get an experienced real esate agent who does know the process. These are complex transactions and not your everyday conventional sale.

2) Not knowing the law. Real estate agents are not lawyers and foreclosure laws can change significantly, from state to state. Besides having an experienced agent, line up an attorney who can also advise you on your state's laws and regulations.

3) Thinking short term. It is paramount that people that are buying foreclosed properties are thinking long term. Many foreclosed home purchases may decline in value in the coming months. We are seeing this every day. You have to look at a foreclosed property purchases from a 10 year time horizon. If you think short term, you will likely suffer.

4) Seeing only the purchase price. What you see is not always what you get. By this we mean that even though you get a great deal on a foreclosed property, many of these homes need extensive work and repairs. Count on an additional 10 percent for repairs.

5) Too large of a search area. With all of the inventory on the market today, it is very easy to get overwhelmed. Target a specific area and neighborhood and contact an agent who knows and does business in that neighborhood. Tell the agent what you are looking for and have the agent keep you up to date on any and all listings that would be of interest to you.

6) Taking no prisoners. While buyers can get great deals out there, it is a mistake to assume that the bank will accept any offer.Present your wholesale offer case well both in writing and verbally with the listing agent.

Some Good News From Boca Raton Florida

Holiday Street Parade Marches On!

On Wednesday, December 10^th, community businesses, churches, schools, and civic organizations are all invited to come together in the spirit of holiday cooperation and fun at the annual City of Boca Raton Holiday Street Parade. In its thirty-eighth year, the parade is scheduled to begin at 7:30 p.m. with parade participants moving from S.E. 8th Street and proceeding north on Federal Highway to Mizner Park, marching to the theme of "Dream On.....". There will be a line-up of local bands and choirs, musical entertainers, dancers, cheerleaders, baton twirlers, drill teams, and over 40 colorful floats, all well-lighted for the occasion. Many surprises are planned for the evening, including some special musical treats and an extra-large animal balloon - the new 20-foot Sun-Sentinel delivery dog - will join more than 2,000 participants to brighten up the season in holiday style.

Sponsors of this year's holiday parade include the Sun-Sentinel, WRMF97.9 FM, Mercantile Bank, Florida Health & Chiropractic Medicine, the Marine Toys for Tots Foundation, and the Greater Boca Raton Beach & Park District. Special support sponsors for this year's parade are Brandano Displays, Inc. and Doolan's Amusement Company, snowmakers for Santa's visit.

Make plans now to join the fun along the parade route! The festivities will get young and old alike into the holiday spirit. And don't forget to bring a folding chair!

One In Ten American Homes In Financial Jeopardy

It is estimated that one out of ten American homeowners fell behind on mortgage payments or were already in foreclosure during the third quarter of this year. This is amid job losses and real estate prices tumbling in the world's largest economy. Mortgages 30 days or more overdue, rose almost 7 percent while loans already in foreclosure rose almost 3 percent. These are both all time highs.

Florida ranks sixth in delinquencies nationwide and second in foreclosures started during the same quarter. That averages out to about 9 percent of the states mortgage loans were delinquent. Florida home loans in foreclosure were up 7.32 percent, in the third quarter, up 2.9 percent for the same period last year.

Many people feel that this whole situation was inevitable due to the fact that during the five year boom of real estate, many people bought homes and properties, that they could not afford in the first place. They took interest only loans, with little or no money down and counted on these properties appreciating at an unrealistic rate. It was a game. As many people have discovered the hard way, this game went very, very wrong and many people who played this game got caught.

Palm Beach County Florida, which includes Boca Raton real estate, had 1.307 homeowners facing foreclosure in October compared with 300 a year ago. The county had 2,161 residents in various stages of foreclosure. One positive note is that existing home sales actually have been increasing in South Florida since July due to the fact that prices are plunging. Couple that up with low interest rates and it actually points to a very opportunistic time to buy. Qualified buyers are getting fantastic deals. Sellers are selling for much lower prices that they thought they would ever sell for but they have to keep one very impotant thing in mind. They are selling at all time lows but when they move forward and buy another home, they will also be buying at all time lows. It's a "wash", so to speak. Sometimes though, it's a hard thing to swallow.

Interest Rates at a Three Year Low

Applications for mortgages surged to an all time record as a new Federal Reserve program pushed interest rates down to their lowest level in three years. The Mortgage Bankers Association said both purchase and refinance loans for the week ended November 28, soared a record 112.1 percent.That equals 857.7 applications.

Borrowers are taking advantage of these record low rates, which have dropped dramatically, since the Fed unveiled a plan last week, to buy up $500 billion of mortgage securities, backed by Fannie Mae, Freddie Mac and Ginnie Mae.Borrowers costs on 30 year, fixed rate mortgages, excluding fees, averaged 5.47 percent. That's down .52 percentage point from the previous week.That is the largest drop since 1990.

In the Boca Raton, Florida real estate market, we have seen an increase in buyer activity. People do realize that this is a great time to buy property. Not only are interest rates at all time lows, so are prices for properties. People coming down to the Boca Raton, Delray Beach and Deerfield Beach areas this season, will be looking to buy. The "baby boomers" know that if they want to have a retirement home, there could not be a better time to take advantage of the market conditions.

This is an incredibly time to make an investment in South Florida, especially in Boca Raton real estate. In ten years, we are going to look back and say, I could have bought that home or condo on the beach for x amount of dollars. The smart buyers are seeing this and getting great deals