NEWS FLASH: Mortgage Master now offers Bridge Loans

I’m pleased to announce that Mortgage Master Service Corporation is once again, offering bridge loans to our clients. A bridge loan allows a home owner to tap equity from their current home for down payment on their next home before their current home has sold.  With a bridge loan, there are no monthly mortgage payments and the interest that accrues is paid off at the closing of the buyer’s listed home.

For home owners in the greater Seattle Tacoma area who want to buy a new home, a bridge loan can be a great resource, especially in a hot real estate market. A bridge loan can allow a home owner to buy their next home and use equity of their existing home for down payment before their existing home is sold or closed. This makes it possible for home owners to buy their next home “non-contingent” on the sale/closing of their current residence.

A home buyer considering a bridge loan should discuss this with their Loan Officer and Real Estate Professional.   The buyer will need to be approved factoring in mortgage payments for their current residence, the new home AND the bridge loan (interest only payments, even though no payments may be due on the bridge loan).

A possible down side to a bridge loan is if the home buyer’s property that is listed does not sale right away or if they have a sale that fails for what ever reason.  It is quite possible a buyer could be stuck with two mortgage payments from their former AND the new home.   There is usually a gap of one month before the payment on the new home is due.  However, it also takes time for closing to take place once an offer is made on the buyer’s former property.

Bridge loans are intended to be short term financing (6 months).   If you are considering a bridge loan, you may want to discuss market conditions with your real estate agent and make sure that your listing is “priced to sell” so you’re not in a position to become strapped with two mortgage payments for too long.

If you are selling a home and interested in learning more about our bridge loans, please contact me.  And of course, if you are interested in buying or refinancing a home located anywhere in Washington state, please click here for a no-hassle mortgage quote.

Mortgage Rates improved last week

Freddie Mac’s Prime Mortgage Market Survey (PMMS) was released this morning showing that mortgage rates dropped last week.


Freddie Mac’s PMMS rates are based on the average of conforming rates from the previous week with loan to value of 80% or less. The rates quoted do include some discount points and do not include closing cost. It’s important to note that these rates are from last week and that rates available today will most likely have a different price (similar as stocks).  For current mortgage rates on homes located in Washington state, click here for a rate quote.

Quote from Ken Kiefer, Chief Deputy Economist:

“The 30-year mortgage rate is down a quarter of a percentage point from where it was a year ago and the spread between the 30-year fixed and 5/1 adjustable rate mortgage is the lowest since 2009. With the FOMC minutes showing continued support for gradual increases in policy rates from many participants and inflation rates remaining low, there isn’t much upward pressure on long-term rates at the moment. Whether that changes due to a tighter labor market and the economic impact of tax reform remains to be seen.”

If you’re considering buying or refinancing a home located anywhere in Washington state, where I’m licensed, I am happy to help you!

 

 

NEW! WSHFC now allowing Non-Traditional Credit

The Washington State Housing Finance Commission (WSHFC) is now allowing borrowers without established credit (aka “non-traditional”) to qualify for a mortgage.

Here are some of the requirements: [Read more…]

The Fed Raises Fed Funds Rate by 0.25%

In Janet Yellen’s last meeting as the Fed Chair, the FOMC has increased the Fed Funds rate by 0.25% to 1.50%. From the press release:

“Information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate. Averaging through hurricane-related fluctuations, job gains have been solid, and the unemployment rate declined further. Household spending has been expanding at a moderate rate, and growth in business fixed investment has picked up in recent quarters. On a 12-month basis, both overall inflation and inflation for items other than food and energy have declined this year and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.”

The Fed states it’s likely there will be additional increases to the Funds Rate next year. [Read more…]

Avoid being naughty to your mortgage preapproval

‘Tis the season to spend, spend, spend give. I love this time of year and I admit that it can be hard for me to not splurge a bit. Overspending doesn’t have to be in the form of extra presents under the tree, it could be getting together with family and friends at a restaurant – or even cooking up something extra special at home. There are endless ways to spend your hard earned cash this time of year whether it’s your savings or using a credit card.

If you’re thinking about buying a home, refinancing or are in the mortgage process, it can be quite easy to forget about your credit or savings during the holidays. [Read more…]

2018 FHA Loan Limits for Washington State

iStock-000018668640XSmallHUD has just announced FHA loan limits for 2018. Due to the increased value of homes, the FHA base loan amount was increased to $294,515 for single family dwellings. FHA loan limits also match the conforming high balance limits in applicable counties. Not all counties saw an increase in FHA loan limits.

Loan limits for 2018 are in effect with FHA case numbers issued in 2018.

Here is a complete list of FHA loan limits for all counties in Washington. [Read more…]

2018 VA Loan Limits for Washington State

MortgageLoan limits for VA mortgages have been announced and, like last few years, will follow the conforming loan limits.

Technically, VA loans do not have “loan limits” like conforming and FHA mortgages. The “loan limit” that is referred to with a VA loan is highest loan amount a Veteran can borrower without making a down payment.  It’s really a great benefit to those who have served our county.  [Read more…]

2018 Conforming Loan Limits for Washington State

MortgageConforming loan limits are increasing again this year with the “base” loan limit for a single family home raised to $453,100.

Conforming high balance areas for King, Snohomish and Pierce counties have have higher limits for 2018 as well.

San Juan County’s high balance loan limits are unchanged from 2017. [Read more…]