TOP STORY - Rates Creep Up

A recent survey and a rate increase could mean more competition for homes

Recent indication is that first time home buyers are getting tired of sitting on the sidelines. According to a recent online poll taken by the National Apartment Association, 17 percent of renters plan to make the jump to home ownership in the next year; 41 percent of the 2,041 respondents planned to be home owners within two years. Only 31 percent planned to still be paying rent five years from now.

Another factor that could very soon contribute to an increase in home buying could be rising mortgage costs. Fixed-rate mortgage rates rose to 6.32 percent, the highest it has been since October. After months of aggressively dropping interest rates, many lenders are worried that the Fed will be forced to raise rates back up. As interest rates rise, so do mortgage rates. According to a press release on freddiemac.com, Frank Nothaft, Freddie Mac vice president and chief economist said that, "Mortgage rates jumped this week after a number of Federal Reserve officials, most notably Chairman [Ben] Bernanke and Vice Chair [Donald] Kohn, expressed concern over a threat of inflation." We may very well be seeing the beginning of the end of the super-low mortgage and potential buyers may realize that with rising rates, now may be the time to jump in. Nothaft added, "Moreover, pending home sales for April unexpectedly rose by 6.3% and mortgage applications for home purchases ... were also up last week."

* www.kw.com

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Wedding Registry FHA Programs

In Florida, April through June and October through December are the busiest months for weddings. Newlyweds find the beach, the beautiful blue-green water and the area's weather to play a big factor in their decision for a destination wedding and that means many family, friends and guests are traveling to join in the big occasion. With that in mind, many of the newlyweds select to set up wedding registries so their guests have a convenient way for wedding gifts, so they are not having to be mailed, toted on airlines or possibly lost during travel.

Many of the popular registries are through specialty department stores like Dillards, Macy's, Waterford, etc., while others are through Home Depot, Lowes, Target, etc.

But what about a registry that is for a particular purpose. Like an account for monetary gifts to allow the newlyweds to put a down payment on a new home. After all, they are getting married to start a new life together, and with a buyer's market being in play, what better idea than an FHA bridal registry account. Lending options vary and with prices rapidly increasing many couples need help.

Many wedding ettiquite books shun away from requesting money at a wedding, while others provide formal and informal ways to politely ask.

SO HOW DO YOU ESTABLISH SUCH AN ACCOUNT:

Just as you might register at a department store for wedding gifts, the Bridal Registry program allows couples to register with a lender and open up an interest-bearing account. Family and friends can deposit wedding gifts of cash into this account and then these gifts can then be applied toward a down payment on a home.

One such lender is SunTrust Mortgage, a subsidiary of SunTrust Banks. Through SunTrust Mortgage, you can open a bridal registry savings or checking account at SunTrust Bank. When a wedding guest makes a deposit, the bank sends a card to the bride and groom to let them know. If you do not have a SunTrust Mortgage in your area, you can ask your lender for details.

WHAT MAKES THIS ACCOUNT DIFFERENT THAN FROM JUST OPENING A REGULAR SAVINGS ACCOUNT?

By using the FHA Bridal Registry-type account, it saves from the couple having to keep track or document where the monies come from. You can always open a regular old savings or money market account to hold your down payment fund, but you might need to document where the money came from. That's easy enough when the money comes from your paycheck, but if some of the money comes from gifts, be prepared to document the source. So if you choose this option, it is best to encourage gift-givers to give checks from their personal accounts so the monies can be traced.

In a nut-shell, an FHA Bridal Registry is a great option when thinking about choosing a registry for a wedding and it provides a way for the couple to establish a savings to make a payment on a house. Visit your lender and ask them about the FHA bridal registry progam. You'll be so glad you did.

* Information obtained from SunTrust Mortgage Programs, and US Dept. of Housing & Urban Development.