Aside from what it means for our national economy as a whole, the Fed’s “patience” could be good news for home buyers.

Interest rates on home loans were expected to increase this spring, but it appears those rates will likely remain stable following the Federal Open Market Committee’s decision Wednesday to hold the line on interest rates.

That’s good news for potential homebuyers. On a $100,000 loan at an interest rate of 4.5 percent, the homeowner would have monthly payments – without taxes and insurance – of $506.69. If interest rates rose from 4.5 percent to 4.75 percent, those monthly payments – without taxes and insurance – would rise to $521.65. The higher interest rate would mean a higher monthly payment of $14.96 and $5,386.33 in interest over the life of a loan.

You’ve been trekking up and down the street of your favorite subdivision, with your favorite Realtor®, and you’ve narrowed your options down to a home you can live with that’s vacant or a dream home that you’ve imagined for the past twenty years of your life… the only catch is that it is Tenant occupied. I hate to sound like a character in Speed, but “Pop quiz, hotshot… What do you do? What do you do?” 

You answer that question with some of your own: 

• How soon do I need to be in there?
• How much time is left on the lease?
• Would the Landlord/Realtor® be willing to coordinate and find other accommodations for the Tenant?
• How long will it take the transaction to close?

You might recall that a few months ago we shared some big news for Central Florida homeowners in regards to the Mortgage Debt Cancellation Relief Act. Well, we have an important update on Mortgage Debt Forgiveness to share with you tonight.