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Mortgage Rates Set Record Lows

By | October 11, 2011

Freddie Mac released its Primary Mortgage Market Survey for the week of September 26-September 30 this morning. They found that mortgage rates set new record lows for the 5th straight week last week.

The average rate on a 30-year fixed-rate mortgage fell from 4.01% to 3.94%. 15-year fixed rates fell from 3.28% to 3.26%, while 5/1 year ARMs dropped six basis points to 2.96%. The one year ARM actually rose from 2.83% to 2.95%.

Although rates have risen slightly since this survey, they are still hovering right around record lows. The prospect of a technical double dip recession in the United States and the threat of a Greek default has caused investors to seek shelter in Treasury bonds and mortgage-backed securities, driving interest rates to record lows.

If you’ve been thinking about purchasing a new home or refinancing your current mortgage, now could be the time to do so. Fairway Funding Group has some of the lowest rates in the mortgage industry, consistently beating the national average. To find out more about our products and low rates, call us today at 941-993-8086.

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Sarasota History Alive 1st Edition

By | October 6, 2011

There’s a piece of important history in Luke Wood Park that has been covered over with dirt for 60 years. You probably pass it frequently when you head west at the junction of Highway 301 and U.S. 41 across from the new Publix, McDonald’s restaurant and Sarasota Ford.

Just before the Osprey Avenue stop light, and adjacent to the Senior Friendship Center, there is a four leaf clover-shaped mound with brick steps leading to the top of it. This was originally a memorial fountain and reflection pool dedicated to Mable Ringling for her contributions to Sarasota.
The Sarasota Alliance for Historic Preservation is undertaking a major renovation project to bring this beautiful fountain and reflection pool back to life. We, at Sarasota History Alive! have produced a video explaining this community project and how you can get involved. Please watch the video and find out how you can help.

Courtesy of Sarasota History Alive!

 

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How To Make 5.75% Annually On Your Money ‘Til You Retire

By | September 30, 2011

Has the stock market got you down?  Are you sick and tired of the fees and low yields on your CDs?  Have you just had enough of your money not doing enough for you?

What if I told you I could make you 5.75% annually on your money – while locking in your plans for retirement?

5.75% isn’t a pipe dream .. it’s the reality.  Historically low interest rates, the largest property value decline of our lifetime, and a plethora of foreclosure and short sale listings can make you rich.

But First, The Math

Let’s pretend you want to retire to a cozy little pool home somewhere on Florida’s Gulf Coast, and your target price range is around $150,000.  You don’t quite have that on hand, but that’s OK; we’ll pretend you’re only putting 20% down.

$30,000 Down Payment
+$7,500 Estimated Closing Costs
$37,500 Total Up-Front Investment

Assuming an interest rate of 4.5% (which is high!), $2,000 a year in property taxes, and a $1,300 insurance bill, your total monthly payment is just $883.02 … but that same cozy pool house in Florida probably rents for around $1,250 a month!

Now, A Little More Math

Here’s the breakdown of profits you could easily expect to see:

$1,250 Monthly Rental Income
-$883.02 Monthly PITI Payment
-$187.50 Full Property Management (15% Gross Annual Lease)
$179.48 Monthly Net Income
$2,153.76 Annual Net Income
5.74% Annual Yield

How Does That Stack Up?

Thinking about where your money is best spent?  Here’s a quick breakdown.

Annual Return, $37,500 Initial Investment

$431.25 12-month CD (1.15% APY)
$1,087.50 Stock Market (2.9% APY, Based On S&P 500 2011 Average Return)
$2,153.76 Your Future Home’s Positive Cash Flow

 

Other Benefits

Besides the positive cash flow your home can effortlessly create for you, there are some other benefits.  By buying now instead of waiting ’til retirement, you can:

  • Lock In Today’s Extra-Low Interest Rates For The Life Of Your Loan
  • Offset Your Rental Income Tax Liability With The Mortgage-Interest Deduction
  • Grab Your House Before Prices Skyrocket (see our last post: Sarasota Listing Prices Rise 15.86% In 2011)
  • Cement the Plans For Your Future

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Prices On The Rise In Florida

By | September 26, 2011

The following is quoted from the Florida Association of Realtors’ website.  You can see the original article here.

ORLANDO, Fla. – Sept. 26, 2011 – Prices are rising in Florida.

Florida cities have had the largest year-over-year increases in average list prices, according to the latest real estate data from Realtor.com. Based on August data of 2.2 million listings in 146 markets, Florida cities make up nine of the top 10 places for highest year-over-year list price spikes.

Nationwide, the average list price is $320,325, up 2.36 percent year-over-year.

Here are the top 15 cities boasting the highest percentage of year-over-year increases in average list prices.

1. Miami
Average list price: $640,332
Year-over-year increase: 27.4%

2. Fort Myers-Cape Coral, Fla.
Average list price: $443,570
Year-over-year increase: 26.27%

3. Central-Fla. rural service area

Average list price: $405,809
Year-over-year increase: 19.41%

4. Punta Gorda, Fla.

Average list price: $267,066
Year-over-year increase: 16.37%

5. Macon, Ga.
Average list price: $193,520
Year-over-year increase: 15.98%

6. Sarasota-Bradenton, Fla.
Average list price: $466,785
Year-over-year increase: 15.86%

7. Naples, Fla.

Average list price: $713,087
Year-over-year increase: 15.13%

8. West Palm Beach-Boca Raton, Fla.
Average list price: $591,895
Year-over-year increase: 14.68%

9. Ocala, Fla.
Average list price: $193,360
Year-over-year increase: 12.07%

10. Lakeland-Winter Haven, Fla.
Average list price: $181,409
Year-over-year increase: 11.48%

11. Orlando, Fla.
Average list price: $319,419
Year-over-year increase: 10.56%

12. Portland-Vancouver, Ore.-Wash.
Average list price: $314,537
Year-over-year increase: 10.52%

13. Boise City, Idaho
Average list price: $212,588
Year-over-year increase: 10.43%

14. Springfield, Illinois
Average list price: $174,537
Year-over-year increase: 9.12%

15. Shreveport-Bossier City, La.
Average list price: $211,414
Year-over-year increase: 8.34%

Source: Melissa Dittmann Tracey, Realtor® Magazine Daily News

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The Buying Power Of Cash (or, How To Pay For Something When You’re Flat Broke)

By | September 23, 2011

How To Pay CashThe beauty of being a cash buyer is that you’re considered the crème de la crème of the buying world.  Buyers want to be you; sellers want to know you; brokers want to break their backs for you.  But if you’re not a cash buyer?

What if you are one and didn’t know it?

Lots of our really savvy buyers take advantage of today’s record-low interest rates to do cash-out refinances on their properties in other states.  By tapping their home’s worth, they’re able to make cash offers for properties and pay much less for condos and foreclosures than they would if they secured a mortgage. (Check out our sidebar to see up-to-date interest rate information.)

Many lenders are requiring large downpayments for second, vacation, and investment homes. This is particularly true of condos, which have higher foreclosure rates and look riskier to banks.

In the real estate world, untapped equity = cash. And that’s your real estate tip for the day!

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Market Survey Shows Falling Mortgage Rates

By | September 15, 2011

For the second time in as many weeks, the rate on the 30-year fixed rate mortgage, the most common type of mortgage in the United States, has hit record lows according to Freddie Mac’s Primary Mortgage Market Survey.

The average contract rate on a 30-year FRM fell to 4.09%, down from 4.12% the week prior. The average rate on a 15-year fixed rate mortgage fell from 3.33% to 3.30%, while 5/1 ARMs rose slightly, from 2.96% to 2.99%. One-year ARMs dropped from 2.84% to 2.81%.

Mortgage rates have been falling as a result of rallies in the treasury and mortgage-backed securities market. These rallies were spurred by poor economic data in the United States and the possibility of an economic conflagration in Europe prompted by a possible Greek default. The possibility (or maybe even inevitability) of a Greek default would damage the major Euro-banks, which have huge exposure to Greece.

If you’ve been thinking about purchasing a new home or refinancing your current mortgage, now could be the time to do so. Fairway Funding Group has some of the lowest rates in the mortgage industry, consistently beating the national average. To find out more about our products and low rates, call us today at 941-993-8086.

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In Remembrance

By | September 10, 2011

Click For Full Size

Hello Friends,

I want to share with you a snapshot of 9-11.. It’s a picture of me in front of Air Force One at the Sarasota Bradenton International Airport on September 11, 2001. Skip and I had plans to fly to Kansas City but our journey ended that morning. We found ourselves stuck in Atlanta for 2 days. My brother in law published this in his newsletter, The Paper Source. He very eloquently captured how this day would change us forever..

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Pelican Cove Market Snapshot

By | August 31, 2011

Sarasota is fortunate to have many unique communities and neighborhoods that appeal to many different people. It is one of the things that makes Sarasota so desirable for so many.  One of the true hidden gems is a condo community called Pelican Cove.  The Cleary Group has been selling real estate in Pelican Cove for over 15 years and have helped both Buyers and Sellers achieve their real estate goals there.  We were approached by the Sarasota Herald Tribune to do an interview about the community, which we were very excited to do.  Below is the link for the article, it will give readers a detailed look into this truly outstanding community.

 http://www.heraldtribune.com/article/20110827/ARTICLE/110829654

 

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Ten Tax Tips for Individuals Selling Their Home

By | August 23, 2011

The IRS recently released a publication titled “Ten Tax Tips for Individuals Selling Their Home”.

If you are thinking about selling your home, this is some good information directly from the IRS concerning the gain or loss on the sale, first-time homebuyer credit and change of address.

To view the publication please visit: http://www.irs.gov/newsroom/article/0,,id=243682,00.html

 

 

 

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“Shop for a Cause” at Macy’s in Sarasota

By | August 11, 2011

On Saturday, August 27, 2011, Macy’s will host its 6th annual “Shop for a Cause” benefiting charities nationwide. The Riverview High School (RHS) Foundation will be selling tickets for $5 each. When you shop with these tickets on that date you will receive 25% off on all regular, sale and clearance merchandise throughout the store. And, you will be eligible to win a $500 gift card, no purchase necessary.

To purchase tickets contact any RHS Foundation member or visit their website at www.RHSFoundation.org. This is a great way to support our local school while getting some big savings!

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