Joshua A. Lerette VA FHA FL Mortgage 's Blog

Many will profit from Fannie Freddie failure - Will you?

2008-09-11T07:44:49Z

Mortgages are in the news again today...but this time, the news is good! Especially for people looking to buy or refinance a home, as interest rates have dropped to the lowest levels seen since April.

You've probably heard that Fannie Mae and Freddie Mac were taken over or "bailed out" by the Federal Government over the weekend. The announcement came as the government felt that both of these institutions were potentially unable to meet their obligations. These agencies must pay off maturing Bonds every month, and they do so by selling new Bonds. But during the last twelve months, investor appetite to purchase new mortgage-backed security Bonds has deteriorated. As such, it has become more difficult for Fannie and Freddie to replenish capital to fund more loans. If both Fannie and Freddie became insolvent, the housing market as well as the mortgage market would come under further pressure.

With the Treasury stepping in to provide a "backstop" for the mortgage giants, investors now have confidence to purchase Mortgage Bonds. And the greater interest has helped lower interest rates today.

Call me today, so we can discuss what the news means to you and how you can benefit.

The Wild West ~ Trigger Happy

2008-08-11T07:59:38Z

While it's an illegal breach of privacy for real estate agents or mortgage originators to sell your credit information, it is perfectly legal for credit companies to do so. For a price ranging anywhere from $25 to $100, your name and certain specifics about your credit report - including your address, phone number, mortgage history, and even your FICO score range - are sold by the credit bureaus to mortgage companies. The result is an onslaught of unsolicited phone calls and junk mail as soon as you apply for a home loan.

Unfortunately, no legislation exists to prevent credit bureaus from profiting at your expense. As a "trigger lead", you are simply at the mercy of any number of marketing campaigns designed specifically to discredit the mortgage professional you've come to know and trust.

That's why, prior to applying for any loan program, I suggest that you visit www.optoutprescreen.com to opt-out of future credit bureau solicitations and avoid this problem altogether. Not only will you avoid the hassle of telemarketers, but by opting out you could potentially add 10 to 15 points to your credit score!

In addition, if you do happen to receive phone calls from solicitors, ask them to place your name and number on their Do Not Call list. All telemarketing companies have their own internal Do Not Call list that they must abide by. Be sure to take down the name of both the company and the individual who made the call, and to let the solicitor know that you're doing so. This way, you will have grounds to seek action against them, should they call again.

As you embark on what is likely the largest financial transaction of your life, you should place yourself in the hands of a professional - not some transactional loan officer who purchased your information from the credit bureaus. Remember, only a limited number of sources exist for lenders to obtain mortgage money, so it's extremely unlikely that a borrower will find an unbelievably low rate without an unbelievably high cost.

If, however, you are curious about the programs these mortgage companies have to offer, then listen to what they have to say. Once they've offered you a rate that seems too good to be true, ask them a question or two from the following list.

1.		Where did you get my information? Who gave you permission to call me, and how much did you pay for my information?

		By asking this series of straightforward questions, you demonstrate that you're not an uninformed or unsuspecting mortgage applicant who can be easily victimized.

2.		Why should I be willing to speak with you when you weren't referred to me by someone I trust?

		This question demonstrates that you're interested in a long-term relationship with a trusted advisor.

3.		How are mortgage interest rates determined, and what impacts the rates that you are offering me today?

		Many unprofessional and uninformed individuals believe that home loan rates are based on the 10-Year Treasury Note. This, however, is not true. Mortgage interest rates are actually based on mortgage-backed securities or mortgage bonds. In fact, many times these securities trade in opposite directions, and anyone who's looking at Treasury Notes to determine the lock on your loan will provide you with inaccurate information.

		Asking this question will demonstrate that you're aware of the fact that mortgage rates can change frequently, even hourly, depending on economic news and market volatility. If they can’t share this information with you, what else might they be leaving out?

4.		What impact does the Federal Reserve have on the rate I will be paying for my first mortgage with you?

		The answer here is that it does not. The interest rate that you pay is impacted by the bonds and securities markets. When the Fed changes short term rates, the "Fed Funds Rate" or the "Discount Rate", only rates for items such as Home Equity Lines of Credit (HELOCs), credit cards, and other similar loans are directly impacted.

5.		What are the specific closing costs associated with the rate and program you're offering me today?

		Many times, interest rates will be quoted with origination fees or discount points included in order to deliver the attractive interest rate being offered. While in some cases your situation may warrant paying these fees to get a better rate, you should always be made aware of these fees and options up front. Also, be aware of any fees disguised as a "Funding Fee." In some cases, these fees have been hidden in order to deliver what seems like an exceptionally low rate with "no points or fees."


If you have any questions about this, or any other part of the mortgage process, please call The Tampa Bay Mortgage Pro. I'll be happy to assist you in any way I can.

Fed Pauses - You Shouldn't

2008-08-10T23:56:07Z

The Federal Reserve, taking a break from its aggressive rate-cutting policy, chose not to alter key interest rates Wednesday,
leaving the Fed Funds rate at 2.00% and everyone wondering where interest rates are headed next.

Since last September, the Fed has cut rates seven times for a total of 3.25%. However, many experts believe that the Fed's
decision this Wednesday, along with comments from the meeting itself, indicate an increased concern over inflation. This means
the Fed could start increasing rates as early as its next meeting, which takes place in August.

The Fed is in a quandary. The economy has slowed, led by a decline in home sales and rising inflation, stemming primarily from
increasing energy prices. The Fed's primary role in relation to the economy is to combat inflation and preserve economic growth.
To combat inflation, the Fed will ultimately have to increase interest rates in coming months.

What Does This Mean to You?

If you're looking to buy a house, consider these key points:

Home prices in some areas are at five-year lows, while personal incomes in that same period have increased. Homes are more affordable for many right now, particularly first-time home buyers.

Sellers are extremely motivated and many buyers in our area have benefited from the unbelievable deals that exist today.

Experts foresee a strong rebound in home prices when the economy begins to recover, according to a new report from the Joint Center for Housing Studies. That means buyers today will be sitting on valuable properties tomorrow. Remember, annualized appreciation for homes exceeded 6.35% from 1940 to 2000.

Housing booms follow housing busts – and the savvy buyers aren't afraid to jump into a tough market. But these savvy buyers
know that homeownership is a long-term investment. Call me to discuss these points and get your purchase strategy on track.
Ultimately, population growth and demographics point to a stronger housing market in coming years.

Even if you're not looking to purchase a home, opportunities still exist. With the Fed taking a breather, this doesn't mean you
should be taking a break. It's never been more important to create a financial plan that makes the most sense to you and your
family's long-term goals. Give The Tampa Bay Mortgage Pro a call today.

Help; How Do I Repair My Credit

2008-07-17T05:28:48Z

Credit repair is a million dollar industry with a lot of scams. Finding a loan with poor credit isn't hard, getting a decent interest rate can be. When you clean up your credit report you end up saving hundreds, if not thousands, of dollars in interest charges.

We strongly recommend you learn what you need to do to repair your credit legally so you can qualify for low rate loans and credit cards.

Debt Settlement and Debt Consolidation can help you get your finances under control so you can get onto repairing your credit faster.

One of the first things you need to do, whether you filed bankruptcy or just need to rebuild your credit, is to set out a plan to rebuild your credit, as well as how you will use your borrowing abilities in the future. Without a good plan of attack on your financing and borrowing usage, you will run the risk of being in financial trouble again within a few years or so. Don't become a repeat statistic. Plan now, for protection later.

You have two options when it comes to repairing your credit ...

hire someone, preferably an attorney who knows the credit laws;
do-it-yourself using a good quality guide and your 3-in-1 credit report;

Whichever way you decide to go, here are just a few tips to keep you on track:

Don't fall for scams that tell you to create a new credit file ... that's credit fraud if you do it, and can make you subject to legal repercussions;
Do read the Fair Credit Reporting Act so you have an idea of your rights while you go through the credit repair process;
Get yourself organized and committed to the process, there is no overnight fix;
If you use an online service, you want to know what the fees will be, monthly or "as you go" is best, and you want to be able to cancel at anytime;
Always act in a cooperative and professional manner when dealing with creditors or collection agencies;
Don't make threats, however subtle, if you can't back them up.

Deciding whether to hire a credit repair firm, or doing it yourself, depends a lot on your willingness to work, as well as your ability to be organized and follow through on the process. If you really don't want to deal with it yourself, and would rather a professional, we recommend one who is well-versed in the use of the Fair Credit Reporting Act to protect your credit, and who will handle all the detail work for you.

Lexington Law Firm is a real law firm that offers real legal assistance in repairing your credit, with unlimited telephone and email support at no extra charge. There are no hidden fees for their services and you can cancel at anytime.

Many other credit repair firms charge by the number of disputes/deletions attempted regardless of whether they were successful, with Lexington you can dispute as many as you like at no additional cost. Stop living with bad credit, learn what thousands already know about how to legally repair your credit online, quickly and easily.

If You Prefer Do-It-Yourself Credit Repair

The first thing you need is a copy of your credit report from all 3 major credit bureaus. Access your credit report from the big three major credit bureaus, Trans Union, Experian and Equifax all on one easy to read report. Start here

Then you need the one book that doesn't fool around or put you on the edge of risk with your credit, Credit Repair Made Simple offers tips, sample letters, and easy instructions you can follow to repair your credit yourself. Written by Brian Eichhorn, president of Cornerstone Credit Counseling, you get great insight into your credit report, and how to improve your rating.

U. S. Government information on the Fair Credit Reporting Act

For additional help and assistance on credit repair, contact The Tampa Bay Mortgage Pro.

5 Key questions to ask your mortgage broker before signing on the dotted line

2008-07-17T05:26:05Z

Now more than ever, Americans are discovering the importance of having a handle on their finances. Budgeting projected monthly expenses and future investments helps consumers determine whether or not homeownership is financially feasible. By addressing the following key questions with The Tampa Bay Mortgage Pro you can gain a better understanding of the mortgage process and ensure you obtain the product that best fits your needs and circumstances.

What documents must I provide and what might delay the mortgage approval process?
Prepare to be inundated with personal, income, employer, asset and liability questions. Get a head start and avoid any potential delay in your mortgage approval by checking your own credit file and gathering the required documents a couple of months prior to shopping for your mortgage.

The following are just a few of the necessary documents you will need to supply in order to complete your mortgage application:

Earnings: W-2 forms, recent pay stubs and tax returns for the past two years.

Employment: Copy of a recent paycheck stub that displays your full name, Social Security number, your year-to-date earnings and the name and address of your employer.

Additional income: Documents to show you have other sources of income, which may include a second job, overtime, commissions and bonuses, interest and dividend income, Social Security payments, alimony, child support, VA and retirement benefits.

Debts: A full list of your outstanding debt and creditors, such as credit cards, car loans, student loans, child support, etc., along with the minimum monthly payment and balances.

Assets: Records of investments including real estate and auto titles, stock/bond certificates and mutual funds.

Get a full checklist of application requirements by contacting The Tampa Bay Mortgage Pro at 727-488-7355.

What are the qualifying guidelines for my loan?
Once you have completed the mortgage application, you will be presented with the products that best fit your financial situation. The loan programs offered will require that you meet several income, employment and credit guidelines. Work with The Tampa Bay Mortgage Pro to ensure you fully understand your loan options and qualifying guidelines.

Visit http://thetbmortgagepro.com for more mortgage product information.

How will my down payment affect the cost of the loan?
The more money you can afford to put down the better. A large down payment will either reduce your mortgage payments and/or enable you to purchase a bigger, more expensive home. Generally, lenders require a down payment anywhere between 2.25 percent and 25 percent of the homes sale price. Contact The Tampa Bay Mortgage Pro. at 727-488-7355 to discuss down payment options for your new loan program.

What is the annual percentage rate of the loan?
Use the annual percentage rate, or APR, as a general guideline when comparing your loan options. The APR is designed to represent the true cost of the loan, preventing lenders from concealing fees and upfront costs from the borrower. Though the APR is a good comparison tool, it does not always include all costs that you will pay. Ask The Tampa Bay Mortgage Pro to clarify what is and is not calculated into your loan''s APR so that you can determine which program best fits your financial needs.

Is there a prepayment penalty on the loan?
Prepayment penalties ensure that your lender is compensated for a certain amount of money when you, the borrower, decide to pay off your loan earlier than what was originally agreed. Not all loans enforce prepayment penalties, but those that do, have penalties that range anywhere from one to three percent of the loan amount. Work with The Tampa Bay Mortgage Pro to examine lender policies before committing to a loan.

By asking the right questions, you can gain a better understanding of the mortgage process and be confident that you are getting the product that best fits your financial situation.

Fed keep short-term key rates the same

2008-06-25T14:11:03Z

Federal Chairman Ben Bernanke and Central Bank end a nine-month rate slashing and keep the current federal short-term key rate at 2%. With on going concerns of inflation the Fed's majority voted to keep the key rate the same with only Dallas Federal Reserve Bank president Richard Fisher voted for a rate hike at the meeting. Rising cost of oil and other goods still place a strain on our current economy, but oil dropped almost $3 this afternoon after an unexpected announcement of oil surplus. You can read more here. Reading this lead me to remember an article on CNNMoney in the Fortune section suggesting that oil prices will crash much like the housing market, read that article here.

Understand The Credit Scoring System

2008-06-09T10:56:27Z

Gain a better understanding of the factors
that determine your eligibility for a loan.

The importance of financial responsibility is oftentimes overlooked in a materialistic nation comprised of excessive credit card offers, stretched lines of credit and the weakening dollar. In order to boost financial responsibility and provide more accurate information to credit bureaus, the company that calculates FICO scores has introduced a revamped credit scoring system. Many consumers will benefit, but others may face higher interest rates which may affect their monthly mortgage payments. Become one step closer to financial confidence by gaining a true understanding of the factors that influence your credit score.

Determining Your Credit Score
The restructured FICO credit scoring system, created by the Fair Isaac Corporation, is reported to go a bit easier on consumers who make an occasional mistake, yet really crack down on those who have multiple late payments and delinquencies. The weight put on certain factors, like late payments, have changed, while the benefit of authorized-user status has been dropped from the scoring system altogether. These changes may strengthen or slump your score by 20 or more points. Get to know the other factors that impact your credit score by reviewing the details below.

Length of Credit History
The longer your credit history, the better. Lenders like to see that you can manage your credit accounts responsibly over time. Now that credit scoring model ignores authorized-user accounts, it is important for those “piggybacking” to establish their own credit on a new and separate account. The omission of authorized-user accounts from future FICO credit reports will enable credit bureaus to protect lenders from those trying to misrepresent their credit risk.

Payment History
Payment history is one of the most influential factors in determining your credit score. As mentioned earlier, future FICO credit reports will forgive a few late payments, but if your account shows multiple late mortgage payments and delinquencies you may see your FICO score drop.

Contact The Tampa Bay Mortgage Pro at 727-488-7355 to discuss affordable mortgage products that will enable you to maintain excellent credit and payment histories.

Amount Owed
Another significant factor that is reviewed by the credit bureau is the amount owed on your credit accounts. Having a mortgage and several credit cards will not classify you as a high risk borrower, but owing a lot of money on several accounts will. Make an effort to keep all credit balances low so credit bureaus and lenders do not assume you've overextended your financial capacity.

New Credit
Opening several credit accounts over a short period of time may present you as a risk to lenders. This is especially so for those who do not have a long, established credit history. Try to keep new credit accounts to a minimum.

Credit in Use
Be aware of the types of credit accounts you use. This includes credit cards, financial accounts, retail credit accounts, installment loans and mortgage loans. The FICO scoring program analyzes all active credit profiles when determining your financial responsibility.

Remember, higher credit scores are the most desirable to lenders; but if yours takes a dip, no need to fret, you may still qualify for certain loans and mortgage products. Review your finances and work with The Tampa Bay Mortgage Pro so that you may better understand the role your credit score plays in your pursuit of an affordable mortgage product.

Have a fantastic Memorial Day Weekend

2008-05-23T12:05:18Z

I hope everyone has a wonderful extended Memorial Day weekend. Please remember to always be safe, especially if you will be boating here in the Tampa Bay area.

Please remember our fallen heroes and why we are able to enjoy this beautiful country.

For all your financing needs, remember The Tampa Bay Mortgage Pro!

God Bless This Wonderful Country

Joshua A. Lerette - Mortgage Planner

City of St. Petersburg Police Officer Down Payment Assistance

2008-05-20T15:35:19Z

Every day St. Petersburg Police Officers risk their lives to protect ours, The City of St. Petersburg recognizes that and so do I. The City of St. Petersburg offers a Police in Neighborhoods (P.I.N.) Home Buyer Loan Program that gives St. Petersburg Police Officers $14,000 as down payment assistance. The funds can be used towards the down payment and/or closing cost on a purchase of a property within the city limits of St. Petersburg.

With that, when financing your purchase with Joshua A. Lerette, The Tampa Bay Mortgage Pro, St. Petersburg Police Officers will also receive an additional $1000 off their closing cost in appreciation for their heroic services provided. The $1000 off closing cost applies on all purchase and/or refinance transactions.

The City of St. Petersburg's $14,000 down payment assistance is a mortgage at 0% interest with a 7 year term. The loan is forgiven during years 1-4 at 10% and 20% for years 5-7. At the end of 7 years, as long as the Officer continues employment within the City of St. Petersburg Police Department and keeps the home as their primary residence, the loan will be completely forgiven. If for any reason the Officer chooses to end their employment with the City of St. Petersburg Police Department or no longer resides in the property as a primary residence, the loan will become due and payable.

How to qualify for St. Petersburg Police Officer Down Payment Assistance

First, the Officer will submit a request for permission to participate in the program to the St. Petersburg Police Department. The department will then determine the employment status with the SPPD and if qualified, forward the request recommending the Officer to the St. Petersburg Housing Department. The Officer will then have to meet with the Housing Department and complete a P.I.N. Loan Application. Once the Officer has completed their P.I.N. Loan Application, they will then need to apply with a City of St. Petersburg approved lender for their mortgage needs. You may contact The Tampa Bay Mortgage Pro for all your mortgage needs. A complimentary pre-approval and credit analysis may be obtained over the phone, on-line, or in person, whatever is more convenient. Once approved for financing, the City of St. Petersburg will transfer closing documents and checks to the title company for closing of the mortgage and purchase transaction.

For more information about the City of St. Petersburg Police in Neighborhoods (P.I.N.) program or other down payment assistance programs in Pinellas County, you may contact Joshua A. Lerette, The Tampa Bay Mortgage Pro.

FHA - Introducing Risk-Based Pricing

2008-05-14T13:39:39Z

The Federal Housing Administration(FHA) will start charging upfront mortgage insurance premiums based on the borrower's credit score and down payment starting July 14, according to the Department of Housing and Urban Development. Upfront premiums paid at closing will range from 1.25% to 2.25% under the new pricing schedule that will apply to all FHA loans. Currently all FHA borrowers pay a 1.5% upfront premium regardless of risk. By charging slightly higher premiums based on credit risk, HUD expects to create a more financially sound FHA program and reach more borrowers struggling to keep up with their payments on high-cost subprime mortgages. Risk-based pricing will also be used for refinancing delinquent borrowers under the FHA Secure program starting in July. HUD is expanding the FHA Secure program so that borrowers who have missed two or three payments in the previous 12 months can be refinanced into FHA-insured mortgages. The risk-based pricing notice and a mortgagee letter with the underwriting standards for the expanded FHA Secure program are posted on the FHA website, which can be found at http://www.fha.gov.

St. Petersburg School Employees - Introducing FREE Home Loan Downpayment Assistance

2008-05-07T14:42:19Z

A+ teacher housing loan

Introducing the A+
Down Payment Assistance Program

The City of St. Petersburg says the A+ Teacher Housing Loan was, "founded on the premise that a great city requires great schools and great schools require great teachers." If you ask me, I believe it's a great way to pay back the under appreciated, wonderful people that help mold the minds of the future in this wonderful city of St. Petersburg. The A+ Teacher Housing Loan was also designed to attract and retain educational professionals who are committed to teach in our community’s schools and live in our community’s neighborhoods.

The A+ Teacher Housing Loan provides home purchase assistance to qualified instructional personnel in a public elementary, middle or high school within the municipal boundaries of St. Petersburg. The funds given by the city may be used for a down payment and/or closing costs for the purchase of a new or existing home with a sales price that does not exceed $215,500.

Each year, so long as the qualifying teacher is actively employed at a St. Petersburg school, 10% of the A+ Teacher Housing Loan will be forgiven. If the loan recipient continues employment and lives in St. Petersburg for ten years–this loan will be completely forgiven.

Maximum Household Annual Income

Household Size	Maximum Income
1	$45,720
2	$52,200
3	$58.800
4	$65,280
5	$70,560
6	$75,720
7	$81,000
8	$86,160

A+ Teacher Housing Loan Qualifications

1. Credit underwriting criteria
a) Maximum Debt to Income Ratio for this loan program is 41% of the applicants monthly gross income including the principal, interest, tax, insurance, installment loans, and revolving debts.
b) All of the applicants judgments and collections must be paid at or before closing.
2. You must pre-qualify first with Joshua A. Lerette, The Tampa Bay Mortgage Pro. Once you find a home you want to purchase, your loan package to the city for review and approval.
3. All properties must meet the City of St. Petersburg's Property Maintenance Minimum Standards and/or Florida State Statue 553, prior to occupancy.
4. All applicants must provide a minimum of 1% of the purchase price towards the homes purchase from their own funds.
5. Applicants of the A+ Teacher Housing Loan must attend, and be certified by, an approved and accredited Home Buyer Educational Course prior to closing.
6. Once the home is purchased, all A+ Teacher Housing Loan recipients must attend an approved Family Budgeting and Basic Home Maintenance Course.
7. If the A+ Teacher Housing Loan recipient ceases employment in a St. Petersburg school or no longer occupies the assisted home as a homestead property, the remaining loan balance will be required to be repaid to the city.

For Further information on the A+ Teacher Housing Loan, contact Joshua A. Lerette, The Tampa Bay Mortgage Pro!

Tax RefundsWhat do I do now?!?!?

2008-05-05T08:53:20Z

Consider using your tax return
to maximize your future financial situation.

As tax season settles, consumers throughout the nation anxiously await their tax refund and rebate. According to the latest IRS estimate, tax refunds will be almost 5 percent higher this year, with an average $2,480 returned to taxpayer's hands. This financial boost couldn't come at a better time. Get ahead of the tough economic situation by spending your tax rebate wisely.

Below are a few suggestions on how to make the most of your tax refund and rebate:

Refinance to a Lower Rate

Yes, that new flat screen television is tempting, but in order to get the most out of your rebate dollars consider maximizing your current investments. By refinancing to a fixed and/or lower interest rate, you can improve your mortgage savings and your financial situation for years to come.

Map out your current mortgage expenditures and evaluate your potential savings by visiting http://thetbmortgagepro.com or by calling me at 727-488-7355. You may be surprised to find that refinancing will not only make the most of your investment, but also provide you with peace of mind, which is invaluable during this time of economic uncertainty.

Spruce Up Your Space

Is your kitchen or bathroom looking a little dingy? If so, consider a renovation. Home renovating and remodeling can drastically improve the value of your home.

On average a kitchen and or bathroom remodel will yield a return on investment of 80 to 100 percent. Investing in a kitchen or bathroom not only provides an unparalleled return, but allows you, the homeowner, to enjoy the benefits of this investment before you place your home on the market. If your tax refund isn't enough to cover the cost of your new gourmet kitchen, use can use a home rehabilitation loan for the difference. Work with Joshua A. Lerette to determine the best rehabilitation product for your particular remodeling project.

Upgrade Your Home

With home prices at all time lows, why not upgrade and improve your quality of life? Whether you are planning to grow your family, acquire the perfect vacation home or move to a smaller, more manageable property, your tax refund can play a large part in covering the closing costs and other fees associated with this new purchase.

Contact Joshua A. Lerette at 727-488-7355 to determine the best mortgage product for your ideal home and lifestyle.

For many taxpayers, refinancing and increasing the longevity of their financial savings and investments makes better financial sense than putting the money in a savings account. So before you stash your money or splurge on the latest gadgets and toys, consider the long-term benefits of better mortgage product and home investment improvements.

Keeping You Informed

Joshua A. Lerette is dedicated to keeping you informed of the latest Tampa Bay and Florida market trends and mortgage options. Take advantage of your mortgage broker's knowledge to improve the long-term financial benefits of your tax refund and rebate. Visit me online at http://thetbmortgagepro.com, or call me today at 727-488-7355, to learn more about the most cost-effective loan options that will fit your current situation and help you obtain your ownership goals.

Give it your best shot...Proof that "one person" can make a difference!

2008-04-30T14:06:25Z

Freedom Rock

Freedom Rock, as it is now dubbed, since 1999 has been a site millions have visited to pay tribute to the soldiers, past and present, that fight for our freedom . This giant granite bolder sits near Hwy 25 near the Quarry it came from, Schillberg Rock Quarry in rural Iowa.

Prior to '99, the rock was known as "the graffiti rock" due to the local kids covering it with names and obsceniteies. Since it's first Memorial Day painting, the rock has been undisturbed until the next Memorial Day when the rock's artist paints it clean with white paint and starts a fresh, new mural.

You may be wondering who could have thought of such a wonderful tribute to our fallen heros, brave soldiers, and leaders of our country...well the answer is Ray (Bubba) Sorensen II. Sorensen's inspiration began after watching 'Saving Private Ryan' when he was 19. Sorensen believed that patriotism was at an all time low and their was an inadequate amount of it being taught in our school system. This is what drove him to make a difference, and oh what a difference he has made!

Too many times you hear people say, "I'm just one person, what can I do?" Let this rock and this young man be an example of what just one person is capable of doing. With increadible act of gratitude, one person was able to pay tribute to our servicemen and servicewomen, raise awareness, and forever change an eye sore on a small rural town in Iowa! Here are some more amazing pictures of "Freedom Rock"

God Bless Our Troops

Introducing the Family Opportunity Mortgage

2008-04-29T11:52:18Z

Shelter your loved ones with the Family Opportunity Mortgage

Now you can obtain mortgage financing in Florida for your college-bound children, disabled adult children, or elderly parents without the expense asssociated with purchasing an investment property.

Program Conditions:

Parents of college-bound students may qualify if:

You don't own a second home in the same location
Your child is enrolled at a college near the purchase property

Parents of disabled adult children may qualify if the disabled adult child:

Will occupy the property as their primary residence
Is unable to qualfiy on their own

Note: Parents may own and maintain a primary residence.

Adult children of elderly parents may qualify if the parent:

Will occupy the property as thier primary residence
Is unable to qualify on their own

Note: Adult children may already own and maintain a primary residence.

Mortgage program available for conforming loan amounts only. Fixed, ARM, and Interest Only loans available.

Call The Tampa Bay Mortgage Pro today to learn more about this mortgage and many others to fit your borrowing needs! Or visit me at www.thetbmortgagepro.com

Joshua A. Lerette - The Tampa Bay Mortgage Pro

727-488-7355

josh@netratemtg.com

Fed expected to cut rates this week

2008-04-28T10:18:38Z

Central bank expected to lower federal key rate again this week, but then likely to take a break.

Fed Chairman Ben Barnanke and the Federal Reserve are poised to lower the key rate again by one-quarter percent this week after their two day meeting on Wednesday. Economist believe this to be the last rate cut for some time due to increasing concerns of rising energy and food prices.

Since September the Fed has been slashing the key rate drastically to balance out the effects of the housing, credit and financial problems we faced after the burst of the housing bubble. Since September, the Fed has cut the key rate from 5.25% to the current 2.25% which is expected to be dropped to 2% this week.

The Fed's rate cuts - which take months to work their way through the economy and affect activity - along with the government's $168 billion stimulus package of tax rebates for people and tax breaks for businesses - should help strengthen the economy in the second half of this year, Fed officials said.

The Fed key rate explained.

This rate, called the federal funds rate, is what banks charge each other on overnight loans and affects a wide range of interest rates charged to people and businesses. This key rate does not have a direct effect on long term interest rates such as the 30-year fixed mortgage. The Mortgage-backed security prices are highly correlated with the prices of U.S. Treasury bonds. This means the price of a mortgage-backed security backed by 30-year mortgages will move with the price of the U.S. Treasury five-year note or the U.S. Treasury 10-year bond based on a financial principal known as duration. (In practice, a 30-year mortgage's duration is closer to the five-year note, but the market tends to use the 10-year bond as a benchmark.) This also means that the interest rate on 30-year fixed-rate mortgages offered to consumers should move up or down with the yield of the U.S. Treasury 10-year bond. (A bond's yield is a function of its coupon rate and price.)

Economic expectations determine the price and yield of U.S. Treasury bonds. A bond's worst enemy is inflation. Inflation erodes the value of future bond payments--both coupon payments and the repayment of principle. Therefore, when inflation is high, or expected to rise, bond prices fall, which means their yields rise. (There is an inverse relationship between a bond's price and its yield.

What does this mean to consumers?

Due to the cut in the key rate, the prime lending rate for millions of consumers and businesses would fall by a corresponding amount, to 5%. The prime rate applies to certain credit cards, home equity lines of credit and other loans. Both rates would be the lowest since late 2004.

With that said, currently if you are in the market for a home equity line of credit, a lower interest rate credit card, or even commercial lending, then you should benefit from the rate cut on Wednesday. Contrary, if you are currently seeking a 30-year fixed mortgage, with the current fears of inflation, it is in your best interest to consult in your mortgage specialist to determine whether you should lock in your rate now. You may always contact The Tampa Bay Mortgage Pro 7 days a week, days and evenings via the web at http://www.myloansbyjosh.com/ or you can call at 727-488-7355.

Things to remember...how you can help a transaction close smoothly.

2008-04-25T10:46:56Z

I have many of my strategic partners ask, "what can I do to make this transaction go as smooth as possible?"

Here are just a few tips and scenarios I have come across in the years of doing business that buyers agents may not be educated to do in traditional training.

1) Once an executed contract is completed, contact the financing professional with pertinent information. i.e. listing agents contact info, contact information of title agency handling the closing, copy of survey if seller has one completed within 10 years and no structural changes have been made, copy of escrow check and agency holding escrow, and copy of all inspections once completed.

2) With the tightening and ever changing underwriting guidelines and huge losses reported by lenders, every transaction is being closely scrutinized. With that said, if you are listing furniture to be left with a property, make sure to include that furniture is being left as a seller's convenience and holds no bearing value on the property if that is the case. Even then, be prepared to still produce a list of furniture being left with an estimated value of furniture. Lenders are in the business to finance homes, not furniture. So even if furniture is said to be left as a convenience to a seller, underwriters highly frown upon this. If a borrower is planning to buy the furniture, it may not be included in the purchase price of the property. Although some lenders say they have tight relationships with their lenders and make things happen, underwriters have a job to do and that job is to make sure they are "investing" in a good investment. If they approve a loan that should not be approved as written, they run the risk of losing their job. Would you risk your job for one transaction? A property that is fully furnished with high end furniture and plasma screen TV's will be a hard sell that it holds no influence on a buyers perspective on a property and holds no value.

3) Work with the financing agent, not against. Our main goal is to produce a satisfied client. Financing is an industry with many uncontrollable facets just like being a Realtor. We rely on so many other parties to divulge information and sometimes they do not fully cooperate and can slow down our process. Some hic-ups may occur. The truth is, buying a home can be a very nerve wrecking ordeal for a buyer and also a seller. I think we sometimes neglect this because we deal with it every day. The key is to address these bumps in the road and resolve them in a manner which we keep everything stress free. The best thing a financing specialist can do is keep all parties in a transaction informed. If a bump in the road occurs, all parties need to work together to resolve the situation, close the transaction and not alarm our buyers and our sellers. As a result, we will produce a happy, satisfied client with referrals to come for years.

I hope these three things can help you down the road. If there is anything you would like to add please comment. I would love to hear your insight. Have a wonderful day.

To All Your Financial Success,

Joshua A. Lerette - The Tampa Bay Mortgage Pro

Arming Yourself During a Mortgag and Real Estate Downturn

2008-04-24T13:08:37Z

Preparing for a economic slump will ensure you and your family come out on top.

As news about the collapsing economy is disseminated throughout the nation, many consumers begin to take the necessary precautions to ensure they aren't left in the dust. Keeping your assets and investments in line throughout the remainder of this economic downturn is essential to financial survival.

A few temporary financial adjustments will not only help you maintain a comfortable lifestyle, but will also ensure you do not lose your hard earned cash and investments, including your home. Stay on top of this economic downturn by analyzing your current financial status and by employing a few of the tips below.

Down With Debt
Pay down debt as soon as possible. According to MarketWatch, building credit card balances, especially from holiday debt, can really start to eat into your finances. The quicker you implement a debt reduction plan, the better.

Look into tackling current and anticipated debt by applying for a home equity line of credit. By using the equity in your home, you may qualify for a sizable amount of credit at an interest rate that is often times lower than most credit card rates. Your home is likely to be your largest asset, which is why many homeowners use their credit lines to finance a large purchase and/or to fund living expenses for an extended period of time.

Call The Tampa Bay Mortgage Pro today at 727-488-7355, or visit http://myloansbyjosh.com to learn more about home equity lines of credit and other affordable loan options.

Bulk Up Your Savings and Emergency Funds
By prioritizing spending based on needs like shelter food and utilities, and depositing the remaining balance in a savings account, consumers become better equipped to confidently deal with the slow economy. Starting a savings account or an emergency fund provides a safety net for those who are worried about their job and financial stability. Even putting a little away at a time is better than no savings at all.

Handling Finances on the Home Front - Buyers Sellers and Borrowers

Buyers, now is your chance to be picky! The real estate market is slow and homes are taking longer to sell, so you can afford to look around for what you really want. According to Money Magazine, there are 3.9 million homes for sale nationwide, up a third from two years ago. Sellers are eager to sell and get their home off the stagnant market, so look to get the home of your dreams for a great bargain.

Sellers, the key to selling your home is setting a reasonable asking price. A recent study of the New Jersey real estate market uncovered that homes priced too high eventually sold for less than similar ones initially priced lower. List your home for an amount that's just under what comparable houses sold for over the past few months. This will help you attract both buyer interest and fair offers. Contact The Tampa Bay Mortgage Pro at 727-488-7355 or on the web at www.myloansbyjosh.com for a list of Realtors in your area that can assist you in the selling process.

Borrowers, take advantage of your mortgage planners knowledge to improve your home equity and prepare for the opportunities available on the upside of this economic downturn. Interest rates are fluctuating. What may have been a good time to refinance can change within a weeks' time. Contact The Tampa Bay Mortgage Pro at 727-488-7355 to discuss the best loan program for your financial situation. By analyzing your plan with your mortgage planner you can be sure to have a full understanding of your current loan product and its alternatives. Your specialist's knowledge of the market conditions and most cost-effective mortgage products can help you finance your property affordably.

Keeping You Informed...
The Tampa Bay Mortgage Pro is dedicated to keeping you informed of the latest market trends and mortgage options. Visit me online at http://myloansbyjosh.com, or call today at 727-488-7355, to learn more about the best loan options for your specific financial situation. Together we can obtain your ownership and financing goals.

Mortgage Terminology to Know Before Locking into a Loan - Great for First Time Home Buyers

2008-04-24T12:56:35Z

Whether you are a first time home buyer or looking to refinance a loan that you are already locked into, consumers agree that mortgage and loan terminology can often be confusing and sometimes overwhelming. Along with having to shop for a lender, consumers also have to shop and compare the total cost of the loan, including the interest rate, fees, points, prepayment penalties, the loan term and more. When making one of the most important financial decisions of your life, knowledge is key.

Below are a few mortgage terms and term details to know before locking into a loan.

Interest Rates
One of the first and most obvious terms to consider is the loan's interest rate. The interest rate is used to calculate your monthly payments and will determine how much you'll pay over the life of the loan. When comparing your mortgage options, take a close look at the annual percentage rate (APR). This figure combines the yearly interest costs and other fees charged by a lender over the life of the loan. Contact The Tampa Bay Mortgage Pro today at 727-488-7355 for an itemized list of what is included in each APR calculation for your new loan scenarios so that I can help you make a fair mortgage program comparison.

Points
Points are a type of pre-paid interest issued by the lender as an alternative to charging higher interest rates on the loan. One point is equal to one percent of the loan principal (the actual amount of your loan). If you opt to finance your home at a lower interest rate, the discount points are often paid at the time of closing. Consumers looking to live in their home for 10 to 20 years or longer may find that having more points with a lower interest rate will pay off over time whereas consumers who only plan to live in their home for 5 to 7 years may find a loan with a higher interest rate and fewer points the better option. Contact The Tampa Bay Mortgage Pro today to discuss different loan options available depending on the future plans for your new home or visit me online at http://myloansbyjosh.com to view current loan programs.

Closing Costs
Processing a mortgage application can be time consuming and costly. Typically this process takes anywhere from two to eight weeks. Avoid any mortgage closing delays by contanting The Tampa Bay Mortgage Pro a few months before you consider to purchase or refinance for a complimentary credit analysis so we can eliminate any possible problems and get them out of the way.

Closing costs, which may consist of title insurance costs, lender attorney fees, appraisal fees and more, can add thousands of dollars to your borrowing costs. When looking for your next mortgage, work with The Tampa Bay Mortgage Pro to collect a good faith estimates (GFE) of lender closing costs and fees. Though lenders aren't required to provide a GFE of settlement charges before the borrower applies for the loan, federal law does require them to provide it at least three days after. Work closely with The Tampa Bay Mortgage Pro and take the time to understand the fees associated with your closing cost so that you can make an informed decision.

The Loan Term
When shopping for a mortgage program that will fit your current and anticipated finances it is important to understand the number of years your loan will be active. Typically, mortgages with shorter terms carry higher monthly payments, while mortgages with longer terms spread payments out over the long life of the loan. Consumers who can afford the high monthly payments of a short term loan can save a lot of interest over time. Visit The Tampa Bay Mortgage Pro online at http://myloansbyjosh.com or contact me directly at 727-488-7355 to help find the loan terms that will best fit your situation.

Prepayment Penalty
Loans with longer terms may seem affordable now, but what happens when your financial outlook changes and you'd like to refinance before the term is complete? Paying your loan off too early may result in a prepayment penalty or fine. To help determine if your current loan has any prepayment penalties, contact me today at 727-488-7355.

Having a general understanding of the mortgage business and what goes into a home loan will ensure that you properly compare your loan options. Working with an experienced mortgage planner enables you to shop thoroughly and determine the best mortgage program for your specific financial needs.

Keeping You Informed...
As a borrower, it is important to watch the market and stay in touch with The Tampa Bay Mortgage Pro who is dedicated to keeping you informed of the latest market trends and mortgage options. Visit me online at http://myloansbyjosh.com, or call today at 727-488-7355 to obtain custom loan options that will fit your current situation and help you obtain your ownership goals.