Have you ever tried to hold a beach ball underwater? It’s hard to keep that air-filled ball down, isn’t it? It keeps trying to pop back up no matter how long you apply downward pressure. In fact, if you aren’t careful it will end up in your face, with your friends and family members laughing as you go searching for your sunglasses in the water. This analogy is no laughing matter, however, when it comes to our nation’s economy or your personal financial situation. Fixed mortgage rates have been low - extremely low - artificially stimulated by the purchase of Mortgage-Backed Securities (MBS) by an entity that is typically not engaged in the open market in this sector.

On November 25th 2008, the Federal Reserve announced that it would purchase $500B of these securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. This move by the Fed was designed to help with the availability of credit and to lower fixed mortgage rates. The “B” in “$500B” stand for billion, which remember is a thousand-million, so we’re talking about a lot of money. On the news alone, the price of these securities shot up like a rocket, which immediately began lowering fixed mortgage interest rates. For the purpose of this article, just keep in mind that fixed mortgage rates move in the opposite direction of these publically traded securities. This began a flurry of refinances, with 30 year fixed rate percentages available at historic lows, some days even in the in the mid to high 4’s. Additionally, as intended, many individuals got “off the fence” and entered the market to purchase homes while the “cost” of the money was low.

Then on March 18th 2009, the Fed announced that it would add $750B to the $500B to keep the program going throughout the remainder of 2009 and into the first part of 2010. This brought the total purchase commitment to $1.5T, with the “T” standing for trillion. Now, remembering that a billion is a thousand-million, a trillion is a thousand billion. It may be easier to think of like this…a trillion is simply one hundred thousand million. It actually isn’t much easier, though, because the numbers are so staggering that most of us cannot comprehend them. As I write this, we are now just weeks away from the end of this $1.5T MBS purchase program, and while rates have been low now for well over a year and a half, the question is “where do we go from here?”

This is the “ball” we need to keep our eye on, but only time will tell where rates end up after this program has ended. There has been much speculation as to whether rates will rise immediately, or if it will happen gradually over time. Will the private sector fill in the vacuum in the absence of the Fed MBS purchases? Will housing purchases slow down as a result? How will the economy overall be affected? What will the current administration do next if there is a dramatic change in the mortgage market? So many questions remain unanswered.

If you took advantage of the timing to refinance your home from a higher rate loan, or benefitted from the purchase or sale of a home as a result of the rate environment, that’s great. If not, however, this is a good time to pick up the phone and call an industry professional that you trust and respect. I realize that many of you may be in a precarious position based on declining market conditions that have made it difficult to refinance or sell your current home. If you are not aware, there are programs currently available that have been implemented with these situations in mind, but time will not permit me to address those in this article. My purpose in writing on this particular subject is to simply make you aware of the conditions that led to a low interest rate environment and the associated timelines for its termination. Currently there is only $55B remaining until the scheduled March 31st ending date. Keep in mind that this program relates to fixed rate first mortgages, while an entirely different discussion is what the future holds for second mortgages, mostly home equity lines of credit (HELOC) that are tied to the prime rate, which is also currently at historic lows. What we do know is that at some point, like our hypothetical beach ball, these rates too will begin to rise. In fact the manager of our office, 35 year industry veteran Dan Coffey, often says that mortgage rates tend to take the stairs down, and the elevator up. Let’s hope this time they don’t hitch a ride on one of the remaining space shuttle launches!

Remember…keep your eye on the “ball”, and don’t hesitate to call if I can be of service.

Mark Minck is a Mortgage Loan Officer with HomeBanc, N.A. He specializes in residential real estate mortgage lending of primary, secondary and investment homes. His Gainesville office provides local processing and closing of all loans and he is available for a no-cost, no-obligation financing phone consultation at 352-642-1776, or can be e-mailed at mark.minck@homebanc.com. HomeBanc, N.A. is an equal opportunity lender and more information about this excellent lending institution is available at www.homebanc.com.

We have all been there. Sitting back in our chair, birds chirping, windows open with the fresh spring breeze blowing through the curtains. Then we see it. Dust particles flickering in the sunlight, tiny fingerprints covering the windowpane and the flowers from Valentines Day are wilted on the end table. Bliss then turns into Stress. It hits you, that dreaded annual task…Spring Cleaning!!

After all, you would rather be enjoying a picnic in the park. You work hard enough at your job, running errands, caring for your children, going to school and tending to everything else in your life. But if you know a little about the task and how to do it right it really is not that bad and the results are invigorating!

There are varying origins of spring cleaning. Iranians continue the practice of “khooneh tekouni” which means “shaking the house” just before the New Year. Another origin of spring cleaning is traced to the ancient Jewish practice of cleansing the home in expectancy of the spring-time holiday of Passover. In North America and northern Europe, spring cleaning was performed because of those regions’ continental and wet climates.

Spring cleaning is done to cover those tasks that need to be performed once or twice a year like waxing floors, windows, washing baseboards, etc. or the cleaning that has accumulated because we are too busy to attend to it. According to the BLS of the U.S. Department of Labor released 2008 results from the American Time Use Survey, “21 percent of employed persons did some or all of their work at home. Multiple jobholders also were much more likely to work at home than were single jobholders. And self-employed workers were more likely than wage and salary workers to have done some work at home”. What does this mean, that we are spending more time in our homes thus creating more “dirt” and most of us have less time to clean that dirt.

There are cleaning companies that provide this service, just make sure to do your research and ensure they have general liability insurance, workman's compensation, and bonding. Ask to see these certificates and papers!

If you choose to do it yourself here are some tips on getting it done in an efficient manner.

1. Make sure that every move you make, every step you take is getting something done. Complete one room at a time. Decide what products and equipment you want to use and have those with you in that room along with garbage bags to place garbage, garage sale items, and the unsure bag or box. The unsure bag/box is where you will put everything that in your heart of hearts you know you don’t use but just can’t let go. You will put a date on it and place it in the garage where you can not see it. If in 6 months time you have not gone to that bag in search of that unsure item, LET IT GO!
2. Once you start cleaning a room you are going to start at one point and work your way around the room working top to bottom left to right and back to front. Work on the area in front of you as to not get overwhelmed.
3. Work smarter not harder. A great cleaning tool is the magic eraser. It will remove marks from doors, walls, etc. Read directions before using. Microfiber cloths are great too.
4. If it isn’t dirty don’t clean it and once it is clean it is not going to get cleaner, stop scrubbing.
5. If something is difficult and the current method of cleaning or product is not working, try something different. If you have build up on a shower door and your product is not working, wet the glass and take a razor blade at a sharp angle to it and it will cut through soap scum therefore saving your shoulder some undo stress.
6. Be cognizant of your time and use both hands, cleaning gets done almost twice as fast!
7. Get family members involved, you will be surprised and pleased with the results.