Naples Real Estate News 02/22/08
MORTGAGE RATES - Buyers waiting for lower property prices could lose out even if prices do drop a bit more. Rates on 30-year mortgages rose to the highest level in seven weeks, breaking above the 6 percent level, and heightened worries about inflation could cause further increases. To put this into perspective for those looking to purchase in Naples, Bonita Springs or Estero, for every $10,000 drop in the purchase price you will save about $60.00 per month or less than $15.00 per week at an interest rate of 6.0% for a 30 year fixed rate mortgage. Another way to look at is for every 0.125% increase in the mortgage interest rates you pay an about additional $2.83 per month in interest over the life of a 30 year fixed rate mortgage this amounts to approximately $1,020.
HOMEOWNERS INSURANCE - As the big insurance companies continue to pull up stakes in Florida, smaller unheard-of companies have filled some of the void, lowering rates and giving homeowners an alternative to state-run Citizens Property Insurance Corp., which has about 9 percent fewer policies than it did in November 2007.
FORECLOSURES - The Senate could vote on a proposal as early as next week that would empower bankruptcy judges to change the terms of a homeowners’ mortgage, a move opposed by financial groups. Meanwhile, a bankruptcy judge is considering a ban on unexpected and somewhat questionable fees lenders sometimes levy against homeowners emerging from bankruptcy, a move also opposed by lenders.
LUXURY HOMES - Is now the time to buy a $1 million home? A BusinessWeek.com survey of million-dollar homes in 20 markets across the country shows that buyers have plenty to choose from, and that their money will get them a lot of space and high-end amenities.
PROPERTY RIGHTS - In a victory for private property rights, a circuit judge yesterday ruled that the destruction of about 130,000 residential citrus trees constituted a “taking” under the state constitution and homeowners must be compensated for their loss of property.
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4 Responses to “Naples Real Estate News 02/22/08”
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Not sure what I think of judges changing the terms of mortgages. Sure it might help (and I stress might) some people facing bankruptcy, but then judges are deciding home much a bank should make on a loan. This means that those that are paying their bills will end up picking up the tab as banks have a bottom line they will protect. If to many people get readjusted down banks will just raise interest rates on future loans.
This is a great point, there are many people out there just looking at the just price tags when there are many other factors to consider. There are tons of great homes out there for sale, now more than ever.
Ken - I think Wall Street is driving the bottom line results too much and have lost sight of the socio-economics associated with a company. I not read too many mission statements recently from the banks and lenders to see how they address their socio-economic responsibilities.
The other side of the coin here is that a performing loan at a lower rate than a non-performing loan and its associated carrying costs. Right?
Gainesville - yes there many reasons for individuals to consider other aspects associated with a purchase of real estate.