Archives for January 2007

Calling All Patches Pals!

January 12, 2007 by Leave a Comment

Jp_pg_01You may not know this about me, I am a proud Patches Pal from way back.   My husband and I were actually going to have JP Patches perform our wedding ceremony on April Fools last year, except we decided to have the wedding away as more of an elopement since our local "small" wedding was turning into a circus (pun intended).   Anyhow, long story short, I’m a big fan of JP Patches.

A few Patches Pals at the National Academy of Television Arts and Science are trying to raise money to build a statue to honor JP’s and his long time friend, Gertrude’s, 50 years in Seattle.   Recently, JP was featured in an article in the Seattle Times on why he is so worthy of the statue.   

I’ve been staying in contact with the NATAS in order to keep tabs on the fundraising progress.  I am so pleased to announce that on Saturday, February 10, 2007 at the Red Door Ale House in Fremont. JP, along with Ketchikan and Ggoorrsstt will be unveiling the scale model of the statue and the website where people can go to donate or purchase a Patches Paver (i.e.–buy a brick).  I actually suggested selling “patches” like JP’s old carpet at the City Dump back in June to NATAS—so I am absolutely tickled that this is what they’re doing as part of the fund raiser.

All Patches Pals are invited to this event.  I’ll post more information as I receive it!

Filed Under: Seattle

Snow in Seattle

January 11, 2007 by Leave a Comment

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Our first snow of the New Year.   In my neighborhood, we just received enough to ice over the roads, to make everything look pristine and beautiful and to keep kids from having to go to schools in Seattle.

We are lucky enough to have been one of the 2800 without power this afternoon too.  I am seriously thankful that it we were only in this situation for a few hours in light of the 6 days without power in December.   Apparently a downed tree was the culprit.

This weather created the perfect opportunity for me to blog…my new passion.   I now have a couple post on Rain City Guide.  Even if you skip past my articles, this local blog site is full of information and definitely worth a visit!

Stay warm, Neighbors!

Filed Under: Seattle, Weblogs

How to Pick a Lender

January 10, 2007 by 1 Comment

Picking your mortgage professional is not as easy as selecting a good cantaloupe or watermelon atJ0400581  the market.   As tempting as it may be, I certainly wouldn’t recommend thumping a Loan Officer on the head to see if there’s anything in between the ears or smelling them to see if their fresh!  So how does a potential buyer decide who they should use for possibly the financing one of their largest investments in their lifetime?

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Filed Under: Financial Planning, Mortgage

Do Your Homework Before You Go To School

January 6, 2007 by Leave a Comment

In the December 2006 issue of Seattle Metropolitan Magazine, the cover story was “Seattle’s Best J0408840 Schools, 591 Graded”.   Unfortunately, Seattle Metropolitan excluded an exceptional independent private school located in West Seattle, Explorer West, as well as other private schools, such as the Northwest School and University Child Development School.  I’m particularly disappointed in the magazine’s oversight as I am a proud parent of an EW student.

Here are a few of the reasons why I selected Explorer West for my son’s education.

  • Explorer West, just celebrating their 10 year anniversary, educates grades 6-8 with a student to teacher ratio of 9:1.   
  • PNAIS approved, Explorer West features the traditional academics, has a complete athletics program and an outdoor education program.
  • EW is community focused by having students volunteer at parks and various schools.
  • They offer a program where the 8th Grade Class will be traveling to Rome with their Latin Teacher in the Spring.

I have really enjoyed the parent, student, teacher conferences as the student conducts the assessment of their performance to their teachers and parents.    The school is very focused on developing the students into future leaders and preparing them for high school and college.

Seattle Metropolitan plans on having their “Seattle’s Best Schools” list on the internet soon.  Hopefully they will update their data to include all private and public schools so parents can have a more complete tool for selecting a school for their child. 

Filed Under: Seattle

The “R” Word

January 4, 2007 by 2 Comments

Resolutions.  I was not going to post New Years resolutions since they are everywhere.J0309664_1..however, I can’t pass up this opportunity.  Beyond the perennial lose 10 pounds, start excising, or stop smoking; here are a few goals to consider for your financial health.   I plan on revisiting these goals more indepth on future blogs…so I’ll try to be brief for now.

  1. Have an emergency fund established with at least 3 months of living expenses in an accessible account.   You can also use a HELOC for an emergency fund account IF you have the discipline to leave it alone.   A HELOC can be an excellent tool and should be applied for before you have an emergency situation (loss of employment, medical, or a tree landing on your house from sweet Mother Nature) and may not be able to obtain one.   In the event of an emergency, do you have your finances organized?   A recent article I read from the Financial Planning Association recommends having copies of all your pertinent financial documents in a binder that you can find quickly in the event you need to evacuate your home.

  1. Know your score, or at least what is being reported on your credit history currently.  Credit scores are not only used for determining what mortgage programs and rates you qualify for.   They also impact insurance, credit card rates and auto loans to name a few.  In addition, reviewing your credit will help determine if you credit is being used without your knowledge (identity theft).   You can visit www.annualcreditreport.com for a free credit report.   This is provided by the “big 3 bureaus” and it may not provide your score without paying an additional fee.  As you are allowed one report from each bureau annually, I would recommend that you pull your report from one bureau every four months to keep a constant monitor on your credit activity.  There may be simple ways to improve your credit score that you can determine once you have the information available.

  1. Create or review your Will.  I had a pretty cheesy will until I married last year.   My husband and I spent quite a bit of time with an attorney to make sure we have everything set up as we wish it to be instead of letting the government have it.   You would be surprised how easy, with home values, a retirement account, etc. that your net worth can grow.  Whether you have children or not, a will is a must.   After you have a will, it’s a good idea to have your information organized for your loved ones.   A great website to check out is www.readyornot.biz.

  1. Get a mortgage check-up.   If your mortgage has an adjustable rate (ARM), if you are paying private mortgage insurance (PMI) or if you have two mortgages on your home, this could be a great time to review your current scenario to see if you can reduce your monthly payments.   There is no sense in paying more than you need to, unless you plan on selling the home soon.   An Annual Mortgage Review is more in-depth than checking out your mortgage to current rates and products.

  1. Eliminate credit card debts.  It is too easy to fall into credit card debt.  Banks do not want you to ever pay them off with all the interest they earn.   Start with paying additional towards your smaller debts and then work toward the next one.  This is a slow process, but worth it.  It is boggling how much the interest can mount up on these types of loans with no tax benefit to you.  Improving  monthly cash flow reduces stress and allows you to eventually save for more important life items such as retirement and college.

I know this is a few days past New Years…however, it’s always relevant.   I wish you and yours a very happy, healthy and prosperous New Year.   Cheers!

Filed Under: Credit Scores and Reporting, Debt Restructuring, Financial Planning, Identity Theft, Interest Rates, Mortgage

Credit Unions, Banks and Brokers…OH MY!!!

January 2, 2007 by 2 Comments

Recently I found myself drawn into a blog on Rain City Guide.  The topic that got my attention is Wiz authored by Jillayne Schlicke titled “Hot or Not” which featured various tips for first time homebuyers from an USA Today article.   The specific “hot” tip that forced me off of the sidelines and onto the paying field (it was New Years weekend…football…etc.) was: 

"Hot:  The author also suggests comparing rates and fees from three different lending sources: a mortgage broker, a banker and a credit union". 

After a few friendly banters back and forth debating our points, I realized what my real issue was…it’s not the institution, it is the person.   I do believe that a broker is going to offer a consumer more products and rates from many different sources than a bank or credit union…and I’ll still stick by my guns to say a “licensed originator” (banks and credit union loan officers do not have to pass background test and exams and be licensed) is probably better suited to serve a consumers mortgage needs.   Credit unions and banks typically just offer their products and rates.  If a bank loan originator elects to "broker" and not use a bank product, they are often paid a lower commission.   Brokers typically work many different banks (For example, the Broker I work for, Mortgage Master, works with over 80 different lenders, banks, etc.) and all of their products and rates.   

My recommendation is that a consumer should, instead of going to a bank, credit union and mortgage broker for rate and fees, consider these three options:

1)      Referral from a family member, co-worker or friend who has just bought or refinanced their home.

2)      Recommendation from their Realtor and, ask the Realtor why they prefer the lender over others.

3)      Recommendation from their CPA or CFP for the lender they endorse.

If a consumer does not yet have a Realtor, CPA or CFP, then I would recommend they ask a friend, family member and a co-worker for their lender.   

The whole idea of rate shopping is misleading and a potential for disaster for home buyers or people who want to refinance. A rate shopper really needs to be educated before picking up the phone, going to the internet, or picking up the "liars list" in the newspaper.  It really does come down to the individual providing you the quote, their ethics and expertise…how do you measure (or “shop”) for that? 

A mortgage is one of the largest investments most people will make in their lifetimes.  I cannot imagine allowing anyone providing me advice unless they could demonstrate they are competent, dedicated, educated and equipped with the latest mortgage programs available.   

Does licensing or an earned designation prove this?   I think it’s a step in the right direction.   I am one of the few loan originators in the fine State of Washington (grey, rainy and windy today) who has taken the steps to become a Certified Mortgage Planning Specialist (CMPS) and who is looking forward to having brokers become licensed…it’s just too bad the licensing does not apply across the board to EVERYONE originating any type of mortgage loan.   Alas, it’s only for Mortgage Brokers (Countrywide, Washington Mutual, Wells Fargo, Chase Manhattan are just a few of the loan officers who will not have to pass the test).    I predict that once the testing takes place (estimated mid 2007) you will see a shift of loan originators who use to work for brokers, leaping to mortgage banks to either avoid the test and background test, or because they could not pass the states requirements.

The true test of mortgage broker licensing will not be known to us until we actually take the exam late this year.    Measuring the ethics of anyone, let alone a loan originator, can be a tricky task…I guess that’s where I keep coming back to getting a referral from resources you trust. 

Filed Under: Interest Rates, Legislation, Mortgage, Weblogs
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