Great cause, extraordinary talent! Tickets are still available and are now HALF OFF for Noah's concert for kids. Don't miss Sanibel's own musical prodigy, 12 year old Noah Waddell.
CLICK HERE for more information.
What happens on Sanibel & Captiva is broadcast on The Coconut Telegraph.
Tuesday, October 29, 2013
Monday, October 28, 2013
More home loans require smaller downpayments
WASHINGTON – Oct. 24,
2013 – More people are getting home loans with lower credit scores and smaller
downpayments.
Last month, the average FICO score for a closed home loan was 732, down from 750 a year ago, shows data from mortgage tracker Ellie Mae.
The average downpayment was 19 percent, vs. 22 percent a year ago. What’s more, almost one-third of closed loans had FICO scores under 700, vs. 17 percent a year ago. The top FICO score is 850.
“We continue to see things open up ever so slightly month by month,” says Jonathan Corr, Ellie Mae president.
The standards to get a home loan remain tight, mortgage experts say. But lenders are reducing some restrictions as housing prices recover and as higher interest rates curtail their refinance business.
“We’re starting to see some of the banks … get more creative … to drive more volume to the door,” says Jeff Taylor, managing partner at mortgage analytics firm Digital Risk.
Earlier this month, Bank of America dropped its minimum downpayment requirement for non-conforming loans under $1 million to 15 percent from 20 percent. Non-conforming loans, which can’t be sold to Fannie Mae or Freddie Mac, are over $417,000 in most parts of the country.
Wells Fargo also reduced non-conforming loan minimum downpayments to 15 percent from 20 percent in July.
JPMorgan Chase, meanwhile, reduced downpayment requirements in Arizona, Florida, Nevada and Michigan – states that were especially hard hit by foreclosures. The bank’s minimum downpayment is now 5 percent, down from 10 percent, for primary homes and 10 percent, instead of 20 percent for second homes in those states. The change brings downpayment requirements in those states in line with others, says JPMorgan spokeswoman Amy Bonitatibus.
“These markets have shown strong signs of improvement,” Bonitatibus says. Improving home values lessen risk for lenders.
JPMorgan and Wells made their changes in July after a sharp interest rate spike in May cut into the refinance business.
While banks are easing some loan requirements, home lending standards remain tight and will likely stay there, says Cameron Findlay, economist at Discover Home Loans.
New lending rules expected to take hold in January require lenders to make home loans that meet federal standards or face greater liability from borrower lawsuits should the loans go sour. Findlay doesn’t expect lenders to do many loans that fall outside of those standards.
“We’re seeing tweaking of the underwriting standards, but it’s not a wholesale loosening,” says Guy Cecala, publisher of Inside Mortgage Finance. “The pendulum is still too far toward restrictive.”
Last month, the average FICO score for a closed home loan was 732, down from 750 a year ago, shows data from mortgage tracker Ellie Mae.
The average downpayment was 19 percent, vs. 22 percent a year ago. What’s more, almost one-third of closed loans had FICO scores under 700, vs. 17 percent a year ago. The top FICO score is 850.
“We continue to see things open up ever so slightly month by month,” says Jonathan Corr, Ellie Mae president.
The standards to get a home loan remain tight, mortgage experts say. But lenders are reducing some restrictions as housing prices recover and as higher interest rates curtail their refinance business.
“We’re starting to see some of the banks … get more creative … to drive more volume to the door,” says Jeff Taylor, managing partner at mortgage analytics firm Digital Risk.
Earlier this month, Bank of America dropped its minimum downpayment requirement for non-conforming loans under $1 million to 15 percent from 20 percent. Non-conforming loans, which can’t be sold to Fannie Mae or Freddie Mac, are over $417,000 in most parts of the country.
Wells Fargo also reduced non-conforming loan minimum downpayments to 15 percent from 20 percent in July.
JPMorgan Chase, meanwhile, reduced downpayment requirements in Arizona, Florida, Nevada and Michigan – states that were especially hard hit by foreclosures. The bank’s minimum downpayment is now 5 percent, down from 10 percent, for primary homes and 10 percent, instead of 20 percent for second homes in those states. The change brings downpayment requirements in those states in line with others, says JPMorgan spokeswoman Amy Bonitatibus.
“These markets have shown strong signs of improvement,” Bonitatibus says. Improving home values lessen risk for lenders.
JPMorgan and Wells made their changes in July after a sharp interest rate spike in May cut into the refinance business.
While banks are easing some loan requirements, home lending standards remain tight and will likely stay there, says Cameron Findlay, economist at Discover Home Loans.
New lending rules expected to take hold in January require lenders to make home loans that meet federal standards or face greater liability from borrower lawsuits should the loans go sour. Findlay doesn’t expect lenders to do many loans that fall outside of those standards.
“We’re seeing tweaking of the underwriting standards, but it’s not a wholesale loosening,” says Guy Cecala, publisher of Inside Mortgage Finance. “The pendulum is still too far toward restrictive.”
Saturday, October 19, 2013
Housing’s biggest thorn: Student loan debt?
WASHINGTON – Oct. 9,
2013 – Student loan debt is the main culprit hampering the housing recovery,
says Rohit Chopra, the student loan ombudsman for the Consumer Financial
Protection Bureau.
“We are already seeing signs of economic drag from student loan debt,” Chopra says. “The impact on the housing market is the most troubling part.”
Student loan interest rates typically are at 8 percent or above, Chopra says. An estimated 7 million borrowers with student loans are in default, he adds.
“The fact is student indebtedness impacts the credit profile of first-time home buyers,” Chopra says. “Three-fourths of the fall in household formation can be directly correlated to student debt.”
The CFPB will be serving as the new regulator that will oversee student loan servicing and lending. Chopra says the agency plans to address the issue of high student loan debt.
“We are already seeing signs of economic drag from student loan debt,” Chopra says. “The impact on the housing market is the most troubling part.”
Student loan interest rates typically are at 8 percent or above, Chopra says. An estimated 7 million borrowers with student loans are in default, he adds.
“The fact is student indebtedness impacts the credit profile of first-time home buyers,” Chopra says. “Three-fourths of the fall in household formation can be directly correlated to student debt.”
The CFPB will be serving as the new regulator that will oversee student loan servicing and lending. Chopra says the agency plans to address the issue of high student loan debt.
Friday, October 18, 2013
5 ways borrowers can land the best mortgage
RIVERDALE, N.J. – Oct.
10, 2013 – After riding a swift updraft earlier this year, mortgage rates have
steadied at around 4.5 percent for a 30-year fixed loan.
But there’s a good chance they’ll resume their upward path. That’s one of a number of things borrowers need to know now to get the best loan.
“For planning purposes, if I were thinking of getting into the market next spring, I’d be working with numbers in the 5 percent range,” said Keith Gumbinger, vice president of HSH.com, a Riverdale, N.J.-based publisher of mortgage information. That would be up from around 3.5 percent earlier this year.
The market got some rate relief recently, when the Federal Reserve decided to continue its policy of buying bonds to keep mortgage rates low, in an effort to stimulate the housing market and the economy.
But the Fed has also made it clear that it will taper off such buying at some point, as the economy improves.
So does that mean buyers should speed up their timetables and jump into the market before rates start to rise again?
Not necessarily. For one thing, analysts aren’t predicting a huge increase.
And the mortgage rate is “only one part of the (home-buying) transaction,” Gumbinger said.
For most people, the decision to buy or sell is less influenced by the financial markets, and much more influenced by what’s happening in their lives: a new job, marriage, divorce, or the birth – or departure – of children, said Greg McBride, an analyst with Bankrate.com.
And even if rates start to rise, they are likely to remain affordable, by historic standards.
“Mortgage rates are not, and won’t be for some time, an impediment to well-qualified borrowers,” McBride said.
“If the difference between a 4.5 percent and 5 percent rate on your mortgage is the difference between being able to afford a home or not, you’re stretching yourself too far.”
Given the changing mortgage landscape, here are five things borrowers can do to get the best deal:
Do your homework: The first step is to check your credit report with the three credit reporting agencies.
You can do it for free at AnnualCreditReport.com. If there are any errors, correct them. Then do what you can to improve your credit rating by paying down your debt.
Avoid borrowing to buy a car or other big-ticket item in the months before you apply for a mortgage – and, for that matter, up to the date you finally close on your new home.
You can check your credit score at MyFico.com for $19.95. Anyone with scores below 620 will find it very difficult to qualify for a mortgage; borrowers with scores over 740 qualify for the best rates. It’s a good idea to try to improve your score in the months before you apply for a mortgage, because even a 20-point improvement can make a difference in the rate you can get, according to David Stein, chief operating officer of Residential Home Funding in Parsippany, N.J.
Be ready to offer up a lot of paperwork to document your income, debts and assets. Regulators have cracked down since the housing boom free-for-all, when unqualified buyers and borrowers got or refinanced mortgages they couldn’t actually afford.
Now, borrowers need to show one month’s worth of pay stubs, two months of bank statements and two years of tax returns, according to Stein. During the housing boom, Stein said, lenders “weren’t looking at anything – now they’re looking at everything.”
Then shop around among several lenders for the best rate.
Get preapproved: Even before you start looking for a house, you should get preapproved for a mortgage. This will make you a stronger buyer, because sellers will know you have the financing in place to move forward.
In addition, getting preapproved for a mortgage amount “sets boundaries around what you can afford. Those boundaries dictate what your price range is,” said McBride.
Choose between rates: The standard loan offers a fixed interest rate for 30 years. Adjustable-rate mortgages (ARMs) offer a fixed rate for, typically, the first five or seven years; after that, the rates can rise every year. In exchange for accepting the risk that interest rates will rise, borrowers get a lower initial rate on ARMs. According to the Mortgage Bankers Association, ARMs make up about 7 percent of the current market.
But ARMs make sense only for people who know for sure that they’re going to be in the house for a limited time.
“Forget about adjustable rates altogether unless you have sufficient financial stability that you could absorb a higher monthly payment if your timetable doesn’t pan out,” McBride said.
Decide length of loan: Fifteen-year loans are more popular with refinancing homeowners than they are with first-time homebuyers because many buyers can’t afford the higher monthly payments. The reward for those higher payments is that over time, you’ll pay much less in interest by shortening the life of the loan. And 15-year mortgages come with lower rates.
Sammy Thomas, a consultant living in Ridgewood, N.J., wasn’t looking for a 15-year mortgage when he decided to refinance as rates dipped last year. But with rates on 15-year mortgages then hovering around 3 percent, he decided that was the best deal. The shorter loan also meant that he and his wife, Demi, a teacher, could live mortgage-free sooner. That was especially appealing as they plan for their retirement, said Thomas, 58. In fact, they hope to put extra money on the loan each month and have it paid off in 11 or 12 years.
Lock in your rate: Once you’ve found a good rate, consider locking it in, which you can usually do for no cost, or for a fee that is refunded at closing. It’s not worth betting that rates will fall before you close on the house.
“I rarely tell folks to try to time the bottom of the market,” Gumbinger said. “Mortgage rates almost always rise much more quickly than they fall.”
“Don’t try to guess the way rates are moving,” McBride agreed. “I’m not a fan of people rolling the dice for something as significant as what their mortgage payment is.”
But there’s a good chance they’ll resume their upward path. That’s one of a number of things borrowers need to know now to get the best loan.
“For planning purposes, if I were thinking of getting into the market next spring, I’d be working with numbers in the 5 percent range,” said Keith Gumbinger, vice president of HSH.com, a Riverdale, N.J.-based publisher of mortgage information. That would be up from around 3.5 percent earlier this year.
The market got some rate relief recently, when the Federal Reserve decided to continue its policy of buying bonds to keep mortgage rates low, in an effort to stimulate the housing market and the economy.
But the Fed has also made it clear that it will taper off such buying at some point, as the economy improves.
So does that mean buyers should speed up their timetables and jump into the market before rates start to rise again?
Not necessarily. For one thing, analysts aren’t predicting a huge increase.
And the mortgage rate is “only one part of the (home-buying) transaction,” Gumbinger said.
For most people, the decision to buy or sell is less influenced by the financial markets, and much more influenced by what’s happening in their lives: a new job, marriage, divorce, or the birth – or departure – of children, said Greg McBride, an analyst with Bankrate.com.
And even if rates start to rise, they are likely to remain affordable, by historic standards.
“Mortgage rates are not, and won’t be for some time, an impediment to well-qualified borrowers,” McBride said.
“If the difference between a 4.5 percent and 5 percent rate on your mortgage is the difference between being able to afford a home or not, you’re stretching yourself too far.”
Given the changing mortgage landscape, here are five things borrowers can do to get the best deal:
Do your homework: The first step is to check your credit report with the three credit reporting agencies.
You can do it for free at AnnualCreditReport.com. If there are any errors, correct them. Then do what you can to improve your credit rating by paying down your debt.
Avoid borrowing to buy a car or other big-ticket item in the months before you apply for a mortgage – and, for that matter, up to the date you finally close on your new home.
You can check your credit score at MyFico.com for $19.95. Anyone with scores below 620 will find it very difficult to qualify for a mortgage; borrowers with scores over 740 qualify for the best rates. It’s a good idea to try to improve your score in the months before you apply for a mortgage, because even a 20-point improvement can make a difference in the rate you can get, according to David Stein, chief operating officer of Residential Home Funding in Parsippany, N.J.
Be ready to offer up a lot of paperwork to document your income, debts and assets. Regulators have cracked down since the housing boom free-for-all, when unqualified buyers and borrowers got or refinanced mortgages they couldn’t actually afford.
Now, borrowers need to show one month’s worth of pay stubs, two months of bank statements and two years of tax returns, according to Stein. During the housing boom, Stein said, lenders “weren’t looking at anything – now they’re looking at everything.”
Then shop around among several lenders for the best rate.
Get preapproved: Even before you start looking for a house, you should get preapproved for a mortgage. This will make you a stronger buyer, because sellers will know you have the financing in place to move forward.
In addition, getting preapproved for a mortgage amount “sets boundaries around what you can afford. Those boundaries dictate what your price range is,” said McBride.
Choose between rates: The standard loan offers a fixed interest rate for 30 years. Adjustable-rate mortgages (ARMs) offer a fixed rate for, typically, the first five or seven years; after that, the rates can rise every year. In exchange for accepting the risk that interest rates will rise, borrowers get a lower initial rate on ARMs. According to the Mortgage Bankers Association, ARMs make up about 7 percent of the current market.
But ARMs make sense only for people who know for sure that they’re going to be in the house for a limited time.
“Forget about adjustable rates altogether unless you have sufficient financial stability that you could absorb a higher monthly payment if your timetable doesn’t pan out,” McBride said.
Decide length of loan: Fifteen-year loans are more popular with refinancing homeowners than they are with first-time homebuyers because many buyers can’t afford the higher monthly payments. The reward for those higher payments is that over time, you’ll pay much less in interest by shortening the life of the loan. And 15-year mortgages come with lower rates.
Sammy Thomas, a consultant living in Ridgewood, N.J., wasn’t looking for a 15-year mortgage when he decided to refinance as rates dipped last year. But with rates on 15-year mortgages then hovering around 3 percent, he decided that was the best deal. The shorter loan also meant that he and his wife, Demi, a teacher, could live mortgage-free sooner. That was especially appealing as they plan for their retirement, said Thomas, 58. In fact, they hope to put extra money on the loan each month and have it paid off in 11 or 12 years.
Lock in your rate: Once you’ve found a good rate, consider locking it in, which you can usually do for no cost, or for a fee that is refunded at closing. It’s not worth betting that rates will fall before you close on the house.
“I rarely tell folks to try to time the bottom of the market,” Gumbinger said. “Mortgage rates almost always rise much more quickly than they fall.”
“Don’t try to guess the way rates are moving,” McBride agreed. “I’m not a fan of people rolling the dice for something as significant as what their mortgage payment is.”
Wednesday, October 16, 2013
Real estate Q&A: Explore options for mortgage relief
FORT LAUDERDALE, Fla. – Oct. 10, 2013 –
Question: I
want to avoid foreclosure. I have applied for a loan modification with my bank
and also applied for the Florida’s Hardest-Hit Fund Principal Reduction Program
for relief. Now I am worried that I’ve hurt my chances for the loan
modification. Did I mess up? – Jim
Answer: Probably not. When trying to save your home, it’s important to explore every avenue of relief available to you. While some programs are to the exclusion of others, I see no issue with applying to your lender and to the various agencies that are there to help.
But this advice comes with some warnings. Check that the program allows you to apply for other assistance. Don’t apply for the same assistance again until you get an official denial on your first application. Don’t be afraid to apply again after you have been denied, as criteria change from time to time. Be wary of anyone trying to get money from you upfront, because there are plenty of predators looking to take advantage in your time of need. When dealing with a third-party agency, make sure that it’s sanctioned by your lender or the government program to which you are applying. Make sure to fill out your application completely and to respond to the numerous requests made quickly and completely.
Have realistic expectations and expect realistic results. Most lenders do not offer principal reduction, but they will help you get to a payment you can afford. Most importantly, don’t give up. Keep trying even when the process becomes difficult and frustrating. It is no fun dealing with corporate policies and a bureaucratic maze, but for most people there is relief available.
About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program.
The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.
Answer: Probably not. When trying to save your home, it’s important to explore every avenue of relief available to you. While some programs are to the exclusion of others, I see no issue with applying to your lender and to the various agencies that are there to help.
But this advice comes with some warnings. Check that the program allows you to apply for other assistance. Don’t apply for the same assistance again until you get an official denial on your first application. Don’t be afraid to apply again after you have been denied, as criteria change from time to time. Be wary of anyone trying to get money from you upfront, because there are plenty of predators looking to take advantage in your time of need. When dealing with a third-party agency, make sure that it’s sanctioned by your lender or the government program to which you are applying. Make sure to fill out your application completely and to respond to the numerous requests made quickly and completely.
Have realistic expectations and expect realistic results. Most lenders do not offer principal reduction, but they will help you get to a payment you can afford. Most importantly, don’t give up. Keep trying even when the process becomes difficult and frustrating. It is no fun dealing with corporate policies and a bureaucratic maze, but for most people there is relief available.
About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program.
The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.
Monday, October 14, 2013
Mayor thinks DC trip will get results
October 9,
2013
By JIM LINETTE
Saturday, October 12, 2013
Sanibel officials to get Lake 'O' briefing in Washington DC
September
27, 2013
Congressman
Trey Radel, R-Southwest Florida, has invited leaders from Sanibel to a
congressional fly-in and briefing on Oct. 3 in Washington, D.C., to provide
testimony regarding the economic and environmental impacts of the Lake
Okeechobee freshwater releases.
The Sanibel delegation participating in the
briefing includes Mayor Kevin Ruane, Vice Mayor Doug Congress and Natural
Resources Director James Evans. The discussion will take place from 9 a.m. to
12:30 p.m. in the Rayburn House Office Building and is being hosted by Radel
and Congressman Patrick Murphy, D-Port St. Lucie, who represents the east coast
areas impacted by the releases.
The meeting includes three panels to address
federal, state and local issues, priorities and initiatives to address short
and long-term relief efforts.
Mayor
Ruane will testify regarding impacts to the local business community and
tourism industry; the importance of passing the Water Resources Reform and
Development Act (WRRDA) to provide federal funding for the C-43 West Basin
Reservoir Project and other long-term solutions; and the need for the U.S. Army
Corps and South Florida Water Management District to consider all short- and
long-term storage options, including revisiting the LORS 2008 regulation
schedule.
"We
commend Congressmen Radel and Murphy for providing this forum," said
Ruane. "Our focus of this trip is to convince our federal government to
appropriate the necessary funding to implement the long-planned but too often
delayed implementation of the capital projects that will truly solve the issues
related to Lake Okeechobee freshwater releases."
The
fly-in and briefing will be broadcast live on YouTube.
For
more information, contact Sanibel City Hall at 472-3700.
Friday, October 11, 2013
Cayo Costa hearing packs house
October
3, 2013
The public
let the Florida Department of Environmental Protection know what it thought,
Thursday night and soon the ball will be in the state's court.
But
opponents to the sale of parcels on Cayo Costa and North Captiva didn't leave
without getting a little good news.
The
Florida DEP held a public meeting on the State Conservation Land Assessment on
Thursday at the Joseph P. D'Alessandro building in Fort Myers to give the
public and conservation experts a chance to speak up on the possible sale of
more than 80 parcels of state-owned conservation land, including 10 sites on
Cayo Costa and North Captiva islands.
About
10 minutes into the meeting, the 10 became nine, as it was learned that one
parcel on Cayo Costa was dropped from the list of possible surplus land that
could have been put on the selling block.
The
property was one of three taken off the list. It was 1.9 acres on the
peninsula, and the news brought applause from nearly everyone.
When
someone asked why that property was on the list in the first place, Marianne
Gengenbach, chief of environmental services for the state DEP, said she didn't
know, saying only that it was a sign that the process was working.
"The
list has been shrinking because of public input. All public input is logged and
we are paying attention," Gengenbach said.
Gengenbach
said the main idea of the meeting was to explain their process to the people
and address misconceptions people may have about the process.
"This
is our chance to go out, explain our process, and then listen," Gengenbach
said.
The
Florida Legislature allocated $20 million for Florida Forever, the state's
conservation and recreation lands acquisition program.
It
also approved spending of up to an additional $50 million funded by the sale of
state-owned lands no longer needed for conservation purposes.
In
turn, the DEP organized a land assessment, with nearly 170 parcels, totalling
5,200 acres, put up for consideration. Of those, two dozen sites on Cayo Costa
and North Captiva were considered.
Gengenbach
said one of the concerns people have had is that they fear the land will be
sold to a developer and turned into a mansion or even a Wal-Mart.
And
the nearly packed house let them know how they felt, with everyone opposed to
the sale of the local properties while singing the praises of Cayo Costa State
Park for its environmental importance. Nearly everyone took to the podium for
their three minutes to oppose the possible sale.
"What
strikes me is the complicated process is going in the wrong direction. I would
like to see this done in the direction of retaining property and buying
more," said Richard Shine.
"With
ownership comes a responsibility of taking care of the island," said Margi
Nanney, who has owned on Cayo Costa for 38 years. "Florida has been a
champion in preserving land and now I feel betrayed."
"The
state has lost its compass and the train has come off the tracks," former
Lee County commissioner Ray Judah said. "Our state is based on the
environment drawing people from around the world to our beaches."
Philip
Buchanan of the Pine Island Civic Association said he was stunned this is even
being considered.
"We're
flabbergasted that this is even occurring. The environmental importance of Cayo
Costa goes without saying," Buchanan said. "Maybe those in
Tallahassee don't know about the sea turtles nesting or the endangered species
like the indigo snakes or all the tourists and the jobs tourism creates."
As
of Thursday, 78 parcels, or 3,400 acres, remain on the chopping block, among
them, seven parcels on the south end of Cayo Costa and two on the south end of
Captiva.
The
first public meeting was in Pensacola, the final two will be held next week in
Viera and Orlando.
-
Associate editor Tiffany Repecki contributed to this report.
Thursday, October 10, 2013
Fla. senator to Congress: Let us oversee Okeechobee
TALLAHASSEE, Fla. –
Oct. 4, 2013 – State Sen. Joe Negron, R-Stuart, asked federal lawmakers
Thursday to give control of Lake Okeechobee to Florida during a congressional
hearing on the adverse economic and health impacts of water releases into
estuaries on both sides of the state.
The request to wrest control of the lake from the U.S. Army Corps of Engineers came as members of Congress, working amid the shadow of the ongoing federal-government shutdown, repeatedly expressed bipartisan support for longstanding efforts to clean waterways east and west of the lake and to secure funding so more water can be directed to the south.
“I’m sorry that we have a dysfunctional Washington,” U.S. Rep. Trey Radel, R-Fla., told South Florida residents and officials who trekked to Washington for the hearing.
“This is an issue that affects all of our state. When people in Great Britain or Germany or in Chicago, New York come and visit, our snowbirds, our vacationers that come visit and see this, I don’t care if it’s the east coast or the west coast, it affects Florida,” Radel continued. “We don’t want those trips to be canceled, we want more people to come to enjoy our beaches and help our economy.”
Radel hosted the hearing with U.S. Rep. Patrick Murphy, D-Fla.
Many members of Florida’s congressional delegation, along with members of the House Committee on Transportation and Infrastructure and other federal lawmakers, made an appearance and brief statements throughout the morning hearing in the Rayburn House Office Building.
U.S. House Minority Leader Nancy Pelosi, D-Calif., called the South Florida water situation “an issue of national significance … that requires our immediate attention.”
Pelosi was among those lending support to the Water Resources Reform and Development Act, which has been approved by the House Committee on Transportation and Infrastructure. The act includes funding for a reservoir to serve as a holding area for freshwater releases coming from the lake.
Speakers from South Florida governments and environmental organizations testified in support of restoration projects that will redirect the overflow from the lake. A few residents, given time to speak, pushed for the federal government to acquire agricultural land south of the lake where the overflow could be stored and cleaned before it reaches the St. Lucie and Caloosahatchee estuaries.
U.S. Rep. Alcee Hastings, D-Fla., defended the farmers, ranchers and sugar growers south of the lake, saying they have reduced pollutants from exiting their land.
Negron, one of four state legislators who spoke during the session, pitched his idea for the state to take control of the lake, saying the intent is to have more consensus from different state agencies before releases are made.
“The Army Corps of Engineers has been running this project for decades. They have failed, and they need to be replaced with those of us in Florida that we can vote for or against, and people that have our best interest at heart,” Negron said.
The Army Corps, which didn’t have representatives at the meeting due to the shutdown, tries to maintain the water level of the lake between 12.5 feet and 15.5 feet to lessen stress on the dike, which is basically a 30-foot-high earthen structure that surrounds the lake.
Residents who live along the estuaries have been fighting the Army Corps over the impact of the releases since May.
Reps. Matt Caldwell, R-Lehigh Acres, and Heather Fitzenhagen, R-Fort Myers, both appeared as panel members.
Sen. Arthenia Joyner, D-Tampa, was invited to speak by U.S. Rep. Corrine Brown, D-Fla.
Negron received a little more support in asking members of the state’s congressional delegation to urge President Barack Obama to return to the Treasure Coast for a firsthand look at the millions of gallons of polluted water that have been dumped out of the lake.
Obama played a round of golf in February with Houston Astros owner Jim Crane and golfer Tiger Woods at the Floridian, a secluded and exclusive golf course community along the Martin-St. Lucie County line.
“Nine holes of that golf course is right along the St. Lucie River,” Negron said, “so he knows our community well.”
Negron’s request repeated an unanswered Sept. 24 letter by Gov. Rick Scott to Obama. The request is hoped to spur federal funding for projects that clean the water coming out of the lake.
Radel supported the request, asking other members of the state’s congressional delegation to write a bipartisan letter to Obama asking him to see the impacts of the water releases on the St. Lucie and Caloosahatchee estuaries. No agreement was reached on the letter.
The request to wrest control of the lake from the U.S. Army Corps of Engineers came as members of Congress, working amid the shadow of the ongoing federal-government shutdown, repeatedly expressed bipartisan support for longstanding efforts to clean waterways east and west of the lake and to secure funding so more water can be directed to the south.
“I’m sorry that we have a dysfunctional Washington,” U.S. Rep. Trey Radel, R-Fla., told South Florida residents and officials who trekked to Washington for the hearing.
“This is an issue that affects all of our state. When people in Great Britain or Germany or in Chicago, New York come and visit, our snowbirds, our vacationers that come visit and see this, I don’t care if it’s the east coast or the west coast, it affects Florida,” Radel continued. “We don’t want those trips to be canceled, we want more people to come to enjoy our beaches and help our economy.”
Radel hosted the hearing with U.S. Rep. Patrick Murphy, D-Fla.
Many members of Florida’s congressional delegation, along with members of the House Committee on Transportation and Infrastructure and other federal lawmakers, made an appearance and brief statements throughout the morning hearing in the Rayburn House Office Building.
U.S. House Minority Leader Nancy Pelosi, D-Calif., called the South Florida water situation “an issue of national significance … that requires our immediate attention.”
Pelosi was among those lending support to the Water Resources Reform and Development Act, which has been approved by the House Committee on Transportation and Infrastructure. The act includes funding for a reservoir to serve as a holding area for freshwater releases coming from the lake.
Speakers from South Florida governments and environmental organizations testified in support of restoration projects that will redirect the overflow from the lake. A few residents, given time to speak, pushed for the federal government to acquire agricultural land south of the lake where the overflow could be stored and cleaned before it reaches the St. Lucie and Caloosahatchee estuaries.
U.S. Rep. Alcee Hastings, D-Fla., defended the farmers, ranchers and sugar growers south of the lake, saying they have reduced pollutants from exiting their land.
Negron, one of four state legislators who spoke during the session, pitched his idea for the state to take control of the lake, saying the intent is to have more consensus from different state agencies before releases are made.
“The Army Corps of Engineers has been running this project for decades. They have failed, and they need to be replaced with those of us in Florida that we can vote for or against, and people that have our best interest at heart,” Negron said.
The Army Corps, which didn’t have representatives at the meeting due to the shutdown, tries to maintain the water level of the lake between 12.5 feet and 15.5 feet to lessen stress on the dike, which is basically a 30-foot-high earthen structure that surrounds the lake.
Residents who live along the estuaries have been fighting the Army Corps over the impact of the releases since May.
Reps. Matt Caldwell, R-Lehigh Acres, and Heather Fitzenhagen, R-Fort Myers, both appeared as panel members.
Sen. Arthenia Joyner, D-Tampa, was invited to speak by U.S. Rep. Corrine Brown, D-Fla.
Negron received a little more support in asking members of the state’s congressional delegation to urge President Barack Obama to return to the Treasure Coast for a firsthand look at the millions of gallons of polluted water that have been dumped out of the lake.
Obama played a round of golf in February with Houston Astros owner Jim Crane and golfer Tiger Woods at the Floridian, a secluded and exclusive golf course community along the Martin-St. Lucie County line.
“Nine holes of that golf course is right along the St. Lucie River,” Negron said, “so he knows our community well.”
Negron’s request repeated an unanswered Sept. 24 letter by Gov. Rick Scott to Obama. The request is hoped to spur federal funding for projects that clean the water coming out of the lake.
Radel supported the request, asking other members of the state’s congressional delegation to write a bipartisan letter to Obama asking him to see the impacts of the water releases on the St. Lucie and Caloosahatchee estuaries. No agreement was reached on the letter.
Wednesday, October 9, 2013
Average 30-year mortgage rate down to 4.22%
WASHINGTON – Oct. 4, 2013 – Average U.S. rates on fixed mortgages fell
for the third straight week to their lowest point in three months, as a decline
in consumer confidence and the onset of the government shutdown forced rates
down.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan dropped to 4.22 percent from 4.32 percent last week. The average on the 15-year fixed loan declined to 3.29 percent from 3.37 percent.
Both are the lowest averages since early July.
Rates began to fall last month after the Federal Reserve held off slowing its $85-billion-a-month in bond buys, which have kept rates low. They fell further this week as the shutdown prompted investors to sell stocks and buy Treasury bonds. Mortgage rates tend to follow the yield on the 10-year Treasury note.
The 10-year note traded at 2.63 percent Thursday morning, down from 2.71 percent on Sept. 23.
The Federal Housing Administration, which guarantees about 30 percent of U.S. home mortgages, says that if the partial shutdown continues for an extended period and the agency’s funding runs out, it wouldn’t be able to continue approving loans.
In that case, “We do expect that potential homeowners will be impacted, as well as home sellers and the entire housing market,” the FHA said in a contingency plan.
Buyers wouldn’t disappear. But some would linger in limbo until the government reopened and a backlog of applications cleared.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was steady at 0.7 point. The fee for a 15-year loan also was unchanged at 0.7 point.
The average rate on a one-year adjustable-rate mortgage was unchanged at 2.63 percent and the fee held at 0.4 point.
The average rate on a five-year adjustable mortgage dipped to 3.03 percent from 3.07 percent. The fee rose to 0.6 point from 0.5 point.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan dropped to 4.22 percent from 4.32 percent last week. The average on the 15-year fixed loan declined to 3.29 percent from 3.37 percent.
Both are the lowest averages since early July.
Rates began to fall last month after the Federal Reserve held off slowing its $85-billion-a-month in bond buys, which have kept rates low. They fell further this week as the shutdown prompted investors to sell stocks and buy Treasury bonds. Mortgage rates tend to follow the yield on the 10-year Treasury note.
The 10-year note traded at 2.63 percent Thursday morning, down from 2.71 percent on Sept. 23.
The Federal Housing Administration, which guarantees about 30 percent of U.S. home mortgages, says that if the partial shutdown continues for an extended period and the agency’s funding runs out, it wouldn’t be able to continue approving loans.
In that case, “We do expect that potential homeowners will be impacted, as well as home sellers and the entire housing market,” the FHA said in a contingency plan.
Buyers wouldn’t disappear. But some would linger in limbo until the government reopened and a backlog of applications cleared.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was steady at 0.7 point. The fee for a 15-year loan also was unchanged at 0.7 point.
The average rate on a one-year adjustable-rate mortgage was unchanged at 2.63 percent and the fee held at 0.4 point.
The average rate on a five-year adjustable mortgage dipped to 3.03 percent from 3.07 percent. The fee rose to 0.6 point from 0.5 point.
Tuesday, October 8, 2013
White House: President ‘committed’ to Everglades restoration
WASHINGTON – Oct. 1,
2013 – The White House highlighted its continued support for working with
Florida to restore the Everglades, after Gov. Rick Scott requested that
President Barack Obama personally inspect damage caused by increased water
releases from Lake Okeechobee.
“The president remains committed to the administration’s partnership with the state of Florida in our shared goal of restoring the Florida Everglades,” White House spokeswoman Joanna Rosholm said in an email last week. “The administration has identified the Everglades as one of five high-priority, nationally significant ecosystems, and views rehabilitating the Herbert Hoover Dike as a priority.”
The Herbert Hoover Dike at the south end of Lake Okeechobee is delicate. Made of dirt, it currently can’t take excess water, and the Army Corp of Engineers has released water into the Caloosahatchee River and St. Lucie Canal to keep pressure low. The dike also acts as a dam. Strengthening it and allowing more water flow will enable engineers to send more water south rather than pumping it into the river and canal, where some waterfront homeowners and tourist industries have been harmed by excess fresh water flow.
Rosholm also noted that four U.S. Army Corps of Engineers projects are also expected to reduce the lake discharges, but they await congressional approval.
Last week, Scott wrote to Obama and asked him to tour Lake Okeechobee in an attempt to draw attention to complaints about how water releases have impacted the health of estuaries on both sides of the state.
U.S. Reps. Patrick Murphy, D-Fla., and Trey Radel, R-Fla., will hold a panel briefing Oct. 3 in the Rayburn House Office Building in Washington about the impact of the discharges. Among the scheduled panelists are state Sen. Joe Negron, R-Stuart, state Rep. Matt Caldwell, R-Lehigh Acres, and Florida Department of Environmental Protection Secretary Herschel Vinyard.
“The president remains committed to the administration’s partnership with the state of Florida in our shared goal of restoring the Florida Everglades,” White House spokeswoman Joanna Rosholm said in an email last week. “The administration has identified the Everglades as one of five high-priority, nationally significant ecosystems, and views rehabilitating the Herbert Hoover Dike as a priority.”
The Herbert Hoover Dike at the south end of Lake Okeechobee is delicate. Made of dirt, it currently can’t take excess water, and the Army Corp of Engineers has released water into the Caloosahatchee River and St. Lucie Canal to keep pressure low. The dike also acts as a dam. Strengthening it and allowing more water flow will enable engineers to send more water south rather than pumping it into the river and canal, where some waterfront homeowners and tourist industries have been harmed by excess fresh water flow.
Rosholm also noted that four U.S. Army Corps of Engineers projects are also expected to reduce the lake discharges, but they await congressional approval.
Last week, Scott wrote to Obama and asked him to tour Lake Okeechobee in an attempt to draw attention to complaints about how water releases have impacted the health of estuaries on both sides of the state.
U.S. Reps. Patrick Murphy, D-Fla., and Trey Radel, R-Fla., will hold a panel briefing Oct. 3 in the Rayburn House Office Building in Washington about the impact of the discharges. Among the scheduled panelists are state Sen. Joe Negron, R-Stuart, state Rep. Matt Caldwell, R-Lehigh Acres, and Florida Department of Environmental Protection Secretary Herschel Vinyard.
Monday, October 7, 2013
Noah's Concert For Kids - Sanibel's 12 year old music prodigy!
John R. Wood Island Real Estate Presents An evening of music with Sanibel Island’s own music prodigy, 12 year old Noah Waddell, to benefit the Capital Campaign for Golisano Children’s Hospital of Southwest Florida.
Join us in supporting Sanibel-Captiva Cares with their goal of raising $10 million on the islands to help build a new facility for Golisano Children’s Hospital at HealthPark.
Proceeds to Benefit Golisano Children's Hospital of Southwest Florida.
Date: Saturday,November 2, 2013
Time: 8pm
Place: BIG ARTS, 900 Dunlop Rd, Sanibel Island
Contact:
Joe Modelli, President of John R. Wood Island Real Estate for more information
(239) 472-2411
joe@sanibelmarketplace.com
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Friday, October 4, 2013
Sellers can use FHA, VA loans as marketing tool
WASHINGTON – Sept. 27, 2013 – Homeowners
who have a mortgage insured by the Department of Veterans Affairs or Federal
Housing Administration are often unaware of one feature: The buyers may be able
to take over the homeowner’s loans under the same terms.
This prevents the buyer from having to take out a new mortgage, and it may be an incentive that can be used as a marketing tool to sell a home – particularly at a time when mortgage rates are on the rise, The New York Times reports.
“You could now have a seller saying, ‘I have a great house to sell you and a great mortgage to go with it, which is better than my neighbor, who only has a great house,’” says Marc Israel, executive vice president of Kensington Vanguard National Land Services and a real estate lawyer.
The New York Times offers the following example of how it works: If the seller’s loan balance is $150,000 and the home’s sales price is $200,000, the buyer who wanted to assume the loan would need to come up with the $50,000 difference. They could come up with the difference either by paying cash or through some other type of financing.
The advantage to buyers is that they may be able to snag a lower mortgage rate by assuming the seller’s loan. It also can be cheaper than applying for a new loan thanks to fewer settlement fees. An appraisal is not required, but buyers must still prove their creditworthiness.
Another potential perk to assuming the seller’s loan: Buyers will be further in the amortization schedule than on a new loan, which could mean more of the monthly payment would go toward the principal, says John Walsh, president of Total Mortgage Services in Milford, Conn. If the seller has paid a 30-year loan for seven years, the buyer would then have only the 23 years remaining.
FHA loans, however, do require that borrowers pay for mortgage insurance for the life of the loan.
This prevents the buyer from having to take out a new mortgage, and it may be an incentive that can be used as a marketing tool to sell a home – particularly at a time when mortgage rates are on the rise, The New York Times reports.
“You could now have a seller saying, ‘I have a great house to sell you and a great mortgage to go with it, which is better than my neighbor, who only has a great house,’” says Marc Israel, executive vice president of Kensington Vanguard National Land Services and a real estate lawyer.
The New York Times offers the following example of how it works: If the seller’s loan balance is $150,000 and the home’s sales price is $200,000, the buyer who wanted to assume the loan would need to come up with the $50,000 difference. They could come up with the difference either by paying cash or through some other type of financing.
The advantage to buyers is that they may be able to snag a lower mortgage rate by assuming the seller’s loan. It also can be cheaper than applying for a new loan thanks to fewer settlement fees. An appraisal is not required, but buyers must still prove their creditworthiness.
Another potential perk to assuming the seller’s loan: Buyers will be further in the amortization schedule than on a new loan, which could mean more of the monthly payment would go toward the principal, says John Walsh, president of Total Mortgage Services in Milford, Conn. If the seller has paid a 30-year loan for seven years, the buyer would then have only the 23 years remaining.
FHA loans, however, do require that borrowers pay for mortgage insurance for the life of the loan.
Thursday, October 3, 2013
Confused by local taxes, budgets? Here’s help
MIAMI – Sept. 25, 2013 – This time
of year, the Miami Herald is bursting with articles about local government
budgets and property taxes. Within the next week, cities that haven’t done so
already will adopt tax rates and spending plans for the year to come.
The new budget year starts Oct. 1.
While property taxes are familiar to anyone who has ever owned a home, Florida has some unusual wrinkles in its tax system that newcomers – and even many longtime residents – might find puzzling.
Here are some frequently asked questions and answers:
Q. Why are taxes and budgets in the news so much this time of year?
A. Local governments in Florida start their fiscal year on Oct. 1, and must have their budgets and tax rates set before then. Most city commissions received a proposed budget from their city manager in July and have been talking about it (and possibly making revisions) since then.
Q. What is happening now?
A. By now, local governments either have adopted a budget and tax rate or are about to do so. Under state law, every local taxing agency must hold two public hearings before adopting the budget. Every property owner should have received a letter from the county property appraiser about a month ago announcing the proposed tax rates along with times and dates for the hearings.
Q. Why do some of these public hearings seem to be scheduled for 5:01 p.m.? What’s with the “01”?
A. To make it easier for people with 9-to-5 jobs to express their views to local leaders, the Florida Legislature has mandated that public hearings on the budget must be held after 5 p.m. Complying with the letter if not the spirit of the law, some localities – Miami-Dade County, Homestead, Doral and Coral Gables, for example – set their hearings for 5:01 p.m. Other municipalities hold their budget hearings at 6 or 7 p.m. In fairness to the county, its budget hearings can be very long, and residents can still sign up to speak even if they show up late.
Q. To whom do I pay property taxes?
A. The Big Three taxing agencies are your county, your school board and your city or town. Smaller amounts go to agencies such as the Miami-Dade Children’s Trust, the South Florida Water Management District, or the hospital districts in Broward County.
Q. What is a “TRIM Notice”?
A. That’s the letter you receive from the county appraiser every August informing you of current and proposed tax rates, the assessed and taxable value of your home, and your tax bill if the proposed rates are approved. It is not a bill.
Q. Is my TRIM notice available online?
A. Yes, you can see your TRIM notice at your county property appraiser’s website by clicking the “property search” feature, entering some information about your home (such as your name or address) and then clicking on the link to see the TRIM notice. You can do the same for other people’s property, too, since these documents are public records.
Q. What does “TRIM” stand for?
A. It stand for “Truth in Millage,” which was an Act of the Legislature, originally passed in 1980.
Q. What is “millage”?
A. It’s a property tax rate. A “mill” is $1 in tax for every $1,000 in taxable real estate value, or 0.1 percent.
Q. Is there a state limit on tax rates?
A. The maximum tax rate for a municipality in Florida is $10 per $1,000 in taxable property value, or 1 percent.
Q. How much is a typical tax bill including all local taxing authorities?
A. Adding together schools, counties and others, the bill usually will exceed 2 percent of taxable home value per year.
Q. How is my property-tax bill calculated?
A. You can multiply the tax rate by your taxable home value. For example, if your taxable home value is $100,000 and the tax rate for your city is $5 per $1,000 (or 0.5 percent), then your tax bill is $500. You would then have to repeat this procedure for your county, school board, etc.
Q. My TRIM notice mentions “assessed” and “market” values as well as a “taxable” value. What’s the difference?
A. Market value is the county appraiser’s estimate (usually conservative) of what you would get for your home if you sold it. “Assessed” is the value of your house for tax purposes, before the homestead exemption is applied. Taxable value is the value of your home after the homestead exemption.
Q. What is a “homestead exemption”?
A. Owner-occupied homes in Florida receive a $50,000 exemption from tax for all purposes except schools. For school-tax purposes, the exemption is $25,000. In other words, you can subtract these amounts from your home’s assessed value before calculating your tax bill. The exemption is not available to commercial property such as office buildings or shopping centers, or to vacation homes or rental property.
Q. Why is my home’s assessed value less than the market value?
A. Under the “Save Our Homes” provision of Florida’s Constitution, the maximum annual increase in the assessed value of a house with a homestead exemption is either 3 percent or the rate of inflation, whichever is less. This year, it is 1.7 percent.
Q. Historically, don’t property values in South Florida go up faster than 3 percent?
A. Yes, sometimes much faster. Even after the recent housing bubble, home prices in many areas remain much higher than they were a decade ago. Save Our Homes is supposed to protect property owners from these increases.
Q. So “Save Our Homes” is good for homeowners, right?
A. It depends on how long you have owned your home. If you bought your home 15 years ago, your assessed value, as limited by Save Our Homes, probably is still much less than the market value. So you save money. But if your neighbor bought an identical home next door this year, he or she is paying tax based on the full market value of the house, less the homestead exemption. The result can be dramatically different tax bills for properties with about the same market value.
Q. So the government can charge me double the tax as my next-door neighbor? Is that legal?
A. Save Our Homes has survived several legal challenges. In effect, the government is “rewarding” people for living in Florida for a long time, and “punishing” newcomers. In a 1982 case called Zobel v. Williams, the U.S. Supreme Court struck down an Alaska program that allocated income from state-owned oil leases based on the number of years each resident lived in the state. In an 8-1 decision, the court held that states can’t discriminate based on length of residency. “Could states impose different taxes based on length of residence?” Chief Justice Warren Burger asked, in his opinion for the majority. “Such a result would be clearly impermissible.” This case has been cited in challenges to Save Our Homes; but so far, it hasn’t done any good.
Q. What happens if I move within Florida?
A. Save Our Homes benefits are portable from one home to another within the state. If you sell a house with a market value of $250,000 and an assessed value of $150,000, you get to deduct the difference ($100,000) from your new home’s value. Example: If you buy a new house for $300,000, your assessed value would start at $200,000.
Q. If my city keeps the tax rate the same, what happens to my property-tax bill?
A. In most cases, you pay slightly more. In the case of an owner-occupied home this year, you probably would pay 1.7 percent more, the maximum allowed under Save Our Homes.
Q. My city cut the tax rate, but my tax bill went up a little anyway. What gives?
A. Assuming you have a homestead exemption, your city probably passed a very small tax cut, the value of which was less than the increase in your assessed value. For example, Coral Gables this year approved a 2014 tax rate of $5.629 per $1,000 of taxable property value, down from the current rate of $5.669. The owner of a home assessed at $375,000 would pay about $1,865 in property tax, assuming the owner qualifies for the homestead exemption, and that the home’s taxable value increased by 1.7 percent. That’s an increase of about $23. If the city didn’t cut the tax rate, the increase would have been $36.
Q. Why would my city approve such a tiny tax cut?
A. You’d have to ask the city commissioners or city manager. But it must be nice for incumbents to be able to advertise “cut taxes” on their campaign flyers at reelection time.
Q. Is the city of Miami’s tax rate really more than triple that of the town of Cutler Bay?
A. Yes, but it’s not an apples-to-apples comparison. Miami is looking at a tax rate of $8.43 for 2014, compared with $2.5702 for Cutler Bay. But Cutler Bay residents pay an additional $2.4627 to Miami-Dade County for fire protection, while city of Miami residents do not. The reason: Miami has its own fire department, but most local cities don’t. Even after adding in the fire tax, however, Miami residents pay about 67 percent more than Cutler Bay residents.
Q. What other factors contribute to the big difference in tax rates between cities?
A. Many factors contribute; here are some examples:
• Services offered. As the above example shows, cities don’t all provide the same services. In addition to fire service, some cities provide their own libraries, opting out of the county system – and the accompanying tax.
• Wealth of city. Miami’s median household income is $30,270, according to the U.S. Census Bureau, compared with $65,188 in Cutler Bay or $108,403 in Pinecrest. Wealthier cities tend to have more high-value real estate and lower tax rates.
• Type of city. Miami is a big city with big-city problems such as violent crime – such as 69 murders last year compared to one in suburban Cutler Bay. Dealing with such problems can be costly, as in bigger police departments, and higher labor costs.
• Age of city. Older cities tend to have heavier pension burdens. Pension costs accounted for 14 percent of Miami’s budget, compared with 6 percent in Pinecrest. However, part of the reason is that in Pinecrest, only police officers have a pension program; non-uniformed employees have a less expensive 401(k)-type savings plan, and the village doesn’t have a fire department. In Miami, pensions are widespread. Pinecrest was created in 1996, Miami, 100 years earlier, in 1896.
The new budget year starts Oct. 1.
While property taxes are familiar to anyone who has ever owned a home, Florida has some unusual wrinkles in its tax system that newcomers – and even many longtime residents – might find puzzling.
Here are some frequently asked questions and answers:
Q. Why are taxes and budgets in the news so much this time of year?
A. Local governments in Florida start their fiscal year on Oct. 1, and must have their budgets and tax rates set before then. Most city commissions received a proposed budget from their city manager in July and have been talking about it (and possibly making revisions) since then.
Q. What is happening now?
A. By now, local governments either have adopted a budget and tax rate or are about to do so. Under state law, every local taxing agency must hold two public hearings before adopting the budget. Every property owner should have received a letter from the county property appraiser about a month ago announcing the proposed tax rates along with times and dates for the hearings.
Q. Why do some of these public hearings seem to be scheduled for 5:01 p.m.? What’s with the “01”?
A. To make it easier for people with 9-to-5 jobs to express their views to local leaders, the Florida Legislature has mandated that public hearings on the budget must be held after 5 p.m. Complying with the letter if not the spirit of the law, some localities – Miami-Dade County, Homestead, Doral and Coral Gables, for example – set their hearings for 5:01 p.m. Other municipalities hold their budget hearings at 6 or 7 p.m. In fairness to the county, its budget hearings can be very long, and residents can still sign up to speak even if they show up late.
Q. To whom do I pay property taxes?
A. The Big Three taxing agencies are your county, your school board and your city or town. Smaller amounts go to agencies such as the Miami-Dade Children’s Trust, the South Florida Water Management District, or the hospital districts in Broward County.
Q. What is a “TRIM Notice”?
A. That’s the letter you receive from the county appraiser every August informing you of current and proposed tax rates, the assessed and taxable value of your home, and your tax bill if the proposed rates are approved. It is not a bill.
Q. Is my TRIM notice available online?
A. Yes, you can see your TRIM notice at your county property appraiser’s website by clicking the “property search” feature, entering some information about your home (such as your name or address) and then clicking on the link to see the TRIM notice. You can do the same for other people’s property, too, since these documents are public records.
Q. What does “TRIM” stand for?
A. It stand for “Truth in Millage,” which was an Act of the Legislature, originally passed in 1980.
Q. What is “millage”?
A. It’s a property tax rate. A “mill” is $1 in tax for every $1,000 in taxable real estate value, or 0.1 percent.
Q. Is there a state limit on tax rates?
A. The maximum tax rate for a municipality in Florida is $10 per $1,000 in taxable property value, or 1 percent.
Q. How much is a typical tax bill including all local taxing authorities?
A. Adding together schools, counties and others, the bill usually will exceed 2 percent of taxable home value per year.
Q. How is my property-tax bill calculated?
A. You can multiply the tax rate by your taxable home value. For example, if your taxable home value is $100,000 and the tax rate for your city is $5 per $1,000 (or 0.5 percent), then your tax bill is $500. You would then have to repeat this procedure for your county, school board, etc.
Q. My TRIM notice mentions “assessed” and “market” values as well as a “taxable” value. What’s the difference?
A. Market value is the county appraiser’s estimate (usually conservative) of what you would get for your home if you sold it. “Assessed” is the value of your house for tax purposes, before the homestead exemption is applied. Taxable value is the value of your home after the homestead exemption.
Q. What is a “homestead exemption”?
A. Owner-occupied homes in Florida receive a $50,000 exemption from tax for all purposes except schools. For school-tax purposes, the exemption is $25,000. In other words, you can subtract these amounts from your home’s assessed value before calculating your tax bill. The exemption is not available to commercial property such as office buildings or shopping centers, or to vacation homes or rental property.
Q. Why is my home’s assessed value less than the market value?
A. Under the “Save Our Homes” provision of Florida’s Constitution, the maximum annual increase in the assessed value of a house with a homestead exemption is either 3 percent or the rate of inflation, whichever is less. This year, it is 1.7 percent.
Q. Historically, don’t property values in South Florida go up faster than 3 percent?
A. Yes, sometimes much faster. Even after the recent housing bubble, home prices in many areas remain much higher than they were a decade ago. Save Our Homes is supposed to protect property owners from these increases.
Q. So “Save Our Homes” is good for homeowners, right?
A. It depends on how long you have owned your home. If you bought your home 15 years ago, your assessed value, as limited by Save Our Homes, probably is still much less than the market value. So you save money. But if your neighbor bought an identical home next door this year, he or she is paying tax based on the full market value of the house, less the homestead exemption. The result can be dramatically different tax bills for properties with about the same market value.
Q. So the government can charge me double the tax as my next-door neighbor? Is that legal?
A. Save Our Homes has survived several legal challenges. In effect, the government is “rewarding” people for living in Florida for a long time, and “punishing” newcomers. In a 1982 case called Zobel v. Williams, the U.S. Supreme Court struck down an Alaska program that allocated income from state-owned oil leases based on the number of years each resident lived in the state. In an 8-1 decision, the court held that states can’t discriminate based on length of residency. “Could states impose different taxes based on length of residence?” Chief Justice Warren Burger asked, in his opinion for the majority. “Such a result would be clearly impermissible.” This case has been cited in challenges to Save Our Homes; but so far, it hasn’t done any good.
Q. What happens if I move within Florida?
A. Save Our Homes benefits are portable from one home to another within the state. If you sell a house with a market value of $250,000 and an assessed value of $150,000, you get to deduct the difference ($100,000) from your new home’s value. Example: If you buy a new house for $300,000, your assessed value would start at $200,000.
Q. If my city keeps the tax rate the same, what happens to my property-tax bill?
A. In most cases, you pay slightly more. In the case of an owner-occupied home this year, you probably would pay 1.7 percent more, the maximum allowed under Save Our Homes.
Q. My city cut the tax rate, but my tax bill went up a little anyway. What gives?
A. Assuming you have a homestead exemption, your city probably passed a very small tax cut, the value of which was less than the increase in your assessed value. For example, Coral Gables this year approved a 2014 tax rate of $5.629 per $1,000 of taxable property value, down from the current rate of $5.669. The owner of a home assessed at $375,000 would pay about $1,865 in property tax, assuming the owner qualifies for the homestead exemption, and that the home’s taxable value increased by 1.7 percent. That’s an increase of about $23. If the city didn’t cut the tax rate, the increase would have been $36.
Q. Why would my city approve such a tiny tax cut?
A. You’d have to ask the city commissioners or city manager. But it must be nice for incumbents to be able to advertise “cut taxes” on their campaign flyers at reelection time.
Q. Is the city of Miami’s tax rate really more than triple that of the town of Cutler Bay?
A. Yes, but it’s not an apples-to-apples comparison. Miami is looking at a tax rate of $8.43 for 2014, compared with $2.5702 for Cutler Bay. But Cutler Bay residents pay an additional $2.4627 to Miami-Dade County for fire protection, while city of Miami residents do not. The reason: Miami has its own fire department, but most local cities don’t. Even after adding in the fire tax, however, Miami residents pay about 67 percent more than Cutler Bay residents.
Q. What other factors contribute to the big difference in tax rates between cities?
A. Many factors contribute; here are some examples:
• Services offered. As the above example shows, cities don’t all provide the same services. In addition to fire service, some cities provide their own libraries, opting out of the county system – and the accompanying tax.
• Wealth of city. Miami’s median household income is $30,270, according to the U.S. Census Bureau, compared with $65,188 in Cutler Bay or $108,403 in Pinecrest. Wealthier cities tend to have more high-value real estate and lower tax rates.
• Type of city. Miami is a big city with big-city problems such as violent crime – such as 69 murders last year compared to one in suburban Cutler Bay. Dealing with such problems can be costly, as in bigger police departments, and higher labor costs.
• Age of city. Older cities tend to have heavier pension burdens. Pension costs accounted for 14 percent of Miami’s budget, compared with 6 percent in Pinecrest. However, part of the reason is that in Pinecrest, only police officers have a pension program; non-uniformed employees have a less expensive 401(k)-type savings plan, and the village doesn’t have a fire department. In Miami, pensions are widespread. Pinecrest was created in 1996, Miami, 100 years earlier, in 1896.
Wednesday, October 2, 2013
Average U.S. 30-year mortgage rate down to 4.32%
WASHINGTON – Sept. 27, 2013 – Average U.S. rates on fixed mortgages fell
this week to their lowest point in two months. The decline follows the Federal
Reserve’s decision last week to hold off slowing its monthly bond purchases.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan dropped to 4.32 percent from 4.50 percent last week. The average on the 15-year fixed loan declined to 3.37 percent from 3.54 percent.
Both are the lowest averages since July 25.
Mortgage rates are nearly a full percentage point higher than in May, when the Fed first signaled it might slow its $85-billion-a-month in bond buys. But last week the Fed kept the pace steady after lowering its outlook for economic growth.
The bond purchases are intended to lower long-term interest rates, including mortgage rates.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was steady at 0.7 point. The fee for a 15-year loan also was unchanged at 0.7 point.
The average rate on a one-year adjustable-rate mortgage slipped to 2.63 percent from 2.65 percent. The fee was unchanged at 0.4 point.
The average rate on a five-year adjustable mortgage dipped to 3.07 percent from 3.11 percent. The fee held at 0.5 point.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan dropped to 4.32 percent from 4.50 percent last week. The average on the 15-year fixed loan declined to 3.37 percent from 3.54 percent.
Both are the lowest averages since July 25.
Mortgage rates are nearly a full percentage point higher than in May, when the Fed first signaled it might slow its $85-billion-a-month in bond buys. But last week the Fed kept the pace steady after lowering its outlook for economic growth.
The bond purchases are intended to lower long-term interest rates, including mortgage rates.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was steady at 0.7 point. The fee for a 15-year loan also was unchanged at 0.7 point.
The average rate on a one-year adjustable-rate mortgage slipped to 2.63 percent from 2.65 percent. The fee was unchanged at 0.4 point.
The average rate on a five-year adjustable mortgage dipped to 3.07 percent from 3.11 percent. The fee held at 0.5 point.
Tuesday, October 1, 2013
Home prices rise 12.4% in July – highest in 7½ years
WASHINGTON (AP) – Sept. 24, 2013 – U.S. home prices rose 12.4 percent in
July compared with a year ago, the most since February 2006. An increase in
sales on a limited supply of available homes drove the gains.
The Standard & Poor’s/Case-Shiller 20-city home price index reported Tuesday improved from June, when it rose 12.1 percent from a year ago. And all 20 cities posted gains in July from the previous month and compared with a year ago.
Still, the month-over-month price gains shrank in 15 cities in July compared with the previous month, indicating prices may be peaking.
Stan Humphries, chief economist for real estate data provider Zillow, said home prices should continue to rise but at a slower pace. Mortgage rates have increased more than a full percentage point since May. And more homes are being built. That should ease supply constraints that have inflated prices in some markets.
“This ongoing moderation is good for the market overall,” Humphries said.
Home prices soared 27.5 percent in Las Vegas from a year earlier, the largest gain. San Francisco’s 24.8 percent jump was the second largest and the biggest yearly return for that city since March 2001.
The index covers roughly half of U.S. homes. It measures prices, compares them with those in January 2000 and creates a three-month moving average. The July figures are the latest available. They are not adjusted for seasonal variations, so the monthly gains reflect more buying activity over the summer.
Since bottoming out in March 2012, home prices have rebounded about 21 percent. They remain about 22 percent below the peak reached in July 2006.
The housing market has been recovering over the past year, helped by steady job growth, low mortgage rates and relatively low prices.
Sales of previously occupied homes rose in August to a seasonally adjusted 5.5 million annual pace, according to the National Association of Realtors. That’s a healthy level and the highest in more than six years.
But the Realtors’ group cautioned that the August pace could represent a temporary peak. The gain reflected closings and largely occurred because many buyers rushed to lock in mortgage rates in June and July before they increased further. The Realtors said buyer traffic dropped off noticeably in August, likely reflecting the higher rates.
The average rate on a 30-year fixed mortgage was 4.5 percent last week. That’s near a two-year high. It’s still low by historical standards.
Rates rose in May after Chairman Ben Bernanke suggested the Federal Reserve could slow its bond purchase program before the end of the year.
But the Fed surprised markets last week by deciding against reducing the $85-billion-a-month in bond buys, which have kept longer-term interest rates low. The Fed said a key reason for its decision was the sharp increase in mortgage rates and other interest rates.
The Fed’s decision could ease rates temporarily, although many economists expect the Fed will ultimately slow the purchases, perhaps as early as December. Rates would likely rise after that.
The Standard & Poor’s/Case-Shiller 20-city home price index reported Tuesday improved from June, when it rose 12.1 percent from a year ago. And all 20 cities posted gains in July from the previous month and compared with a year ago.
Still, the month-over-month price gains shrank in 15 cities in July compared with the previous month, indicating prices may be peaking.
Stan Humphries, chief economist for real estate data provider Zillow, said home prices should continue to rise but at a slower pace. Mortgage rates have increased more than a full percentage point since May. And more homes are being built. That should ease supply constraints that have inflated prices in some markets.
“This ongoing moderation is good for the market overall,” Humphries said.
Home prices soared 27.5 percent in Las Vegas from a year earlier, the largest gain. San Francisco’s 24.8 percent jump was the second largest and the biggest yearly return for that city since March 2001.
The index covers roughly half of U.S. homes. It measures prices, compares them with those in January 2000 and creates a three-month moving average. The July figures are the latest available. They are not adjusted for seasonal variations, so the monthly gains reflect more buying activity over the summer.
Since bottoming out in March 2012, home prices have rebounded about 21 percent. They remain about 22 percent below the peak reached in July 2006.
The housing market has been recovering over the past year, helped by steady job growth, low mortgage rates and relatively low prices.
Sales of previously occupied homes rose in August to a seasonally adjusted 5.5 million annual pace, according to the National Association of Realtors. That’s a healthy level and the highest in more than six years.
But the Realtors’ group cautioned that the August pace could represent a temporary peak. The gain reflected closings and largely occurred because many buyers rushed to lock in mortgage rates in June and July before they increased further. The Realtors said buyer traffic dropped off noticeably in August, likely reflecting the higher rates.
The average rate on a 30-year fixed mortgage was 4.5 percent last week. That’s near a two-year high. It’s still low by historical standards.
Rates rose in May after Chairman Ben Bernanke suggested the Federal Reserve could slow its bond purchase program before the end of the year.
But the Fed surprised markets last week by deciding against reducing the $85-billion-a-month in bond buys, which have kept longer-term interest rates low. The Fed said a key reason for its decision was the sharp increase in mortgage rates and other interest rates.
The Fed’s decision could ease rates temporarily, although many economists expect the Fed will ultimately slow the purchases, perhaps as early as December. Rates would likely rise after that.
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