Florida Mortgage Trends

Get Ready to buy a house!

November 23rd, 2011 12:48 AM by Scott Bray


Recently on Sunday November 6th AmeriBest was quoted about how First Time Buyers can prepare to buy a new home in the Florida Today Real Estate section.

Rates again the lowest in 50 years & with tax refunds coming up soon - now truly is the best time to PREPARE to buy.  So please call us to get ready now!  We'll have you in your new house in the next 90 Days!!

Here's the article to read from the Florida Today Newspaper:


Section F Sunday, November 6, 2011

Current market ripe for renters to turn into owners




in the housing


in recent years have

increased the number of

people renting, rather than

owning, their home. But

most renters – backed by

those in the housing industry

– plan to move on

to homeownership.

That’s a good move, say

local real estate agents and


“Why give the landlord

your paycheck?” asked

Scott Bray, vice president

of residential lending for

AmeriBest Mortgage. He’s

seeing a lot of renters who

are tired of paying rent and

instead are buying their

own home.

That’s a more rewarding

option, he said, and also

financially smart.

Home prices have

dropped to the levels of

the 1990s – yet today’s

buyers get to purchase at

those prices with today’s

dollars. Also, interest rates

are at even lower levels – 4

percent or less – the lowest

since records started being

kept. The psychological

drive to own a home adds

pride of ownership to the

equation, and you get a tax

writeoff on top of it.

“I don’t know what’s

left,” Bray said.

Some reasons that renters

are trying to buy:

Low cost. Buyers that

Bray works with are paying

current rents of $650

to $1,250. That’s easily

within range of a monthly

payment on a mortgage.

“I’m sure I can get 90

percent of those people in

a bigger house than they

have now for less than

they’re paying now,” he


Potential buyers put off

by the need for a down

payment should still investigate

their options. FHAbacked

loans require just

3.5 percent of the purchase

price up front, and buyers

can use money gifted by

a parent or other source.

Many lenders also working

with government agencies

that offer down payment


A couple examples,

from Bray:

Consider renters who

are paying $1,000 monthly

and decide to buy a home

priced at $120,000. They

could get an FHA-backed

30-year loan at 4 percent

interest for a monthly

principal and interest payment

of $558.

Property taxes, hazard

insurance and mortgage

insurance would bring the

monthly payment up to an

estimated $930. That’s less

than their monthly rent,

plus as owners they get tax

advantages and potential


If they bought a

$70,000 home at the same

interest rate, their principal

and interest payment

would be $325, and estimated

property taxes,

hazard insurance and

mortgage insurance would

bring the total to $590.

“Some of the most

inexpensive small apartments

I see my clients renting

are well over the $650

per month rent level. They

could buy a nice $70,000

home and still have a

lower estimated mortgage

Current market ripe for

renters to turn into owners

payment, plus the chance

for income tax deduction

and home value appreciation,”

Bray said.

Tax savings. Rent goes

to landlord for the privilege

of living in the home,

and offers nothing more.

Homeowners not only

build equity, or ownership,

in their home, but

much of their payment is

tax deductible.

When tax time

rolls around, they can

deduct mortgage interest

payments and property

taxes from their income.

So they don’t pay income

tax on the money that

goes to those expenses.

That benefit alone can

amount to two months

of free rent a year, Bray

estimated. He recommends

that potential

buyers consult with their

tax professional before

making a move.


Posted in:General
Posted by Scott Bray on November 23rd, 2011 12:48 AM


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