Archives for August 2007

Don’t let your ARM smack you (or your friends)

August 4, 2007 by 2 Comments

Arm_2

If you currently have an adjustable rate or balloon mortgage that is scheduled to adjust within the next 12 months, I strongly encourage you to contact a Mortgage Professional as soon as possible.    Especially if you are considering keeping your home beyond the adjustment date. 

Don’t wait.  Here’s why:

  • Odds are your payment will increase significantly (depending on your caps) and you won’t want the new mortgage payment.
  • Underwriting guidelines have tightened significantly.   If you have issues with your credit, it is best to start work on repairing or improving your scores now instead of waiting until it’s time to refi (that’s too late).
  • Lenders are pulling back on programs.   Especially non-conforming loans (loan amounts over $417,000 or credit, assets, income or employment not meeting traditional guidelines) and ARMs.   
  • Some lenders are shutting their doors as they are not able to fund loans they’ve committed to. 
  • Less available loans may translate to fewer buyers for properties.   This will impact sales comps for appraisals.   You cannot count on huge appreciation or values on your home to bail you out of your ARM.   We’ve been fortunate in Seattle so far; I cannot see how this won’t impact our local market home values.

This is truly an urgent situation that requires your immediate attention.   The more time you can give yourself and your Mortgage Professional to determine the best strategy for your next mortgage, the better off you’ll be.   And, if you know that your friends or family members have ARMs that are due to adjust anytime soon, please encourage them to contact a Mortgage Professional as well. 

Take control of your ARM or it just may leave you stinging.

Filed Under: Adjustable Rate Mortgage (ARM), Refinance

KOMO-TV’s Blogger Meet up

August 4, 2007 by 2 Comments

On Thursday evening, KOMO TV invited who they considered to be the "who’s who" of Seattle area bloggers to a "meet up".   Parking was validated, they had great snacks and beverages.   Why on earth would they do this?   According to the Evite:

"KOMO-TV is interested in getting to know bloggers in the area, and what better way to do that than with a little party….Fisher Communications recognizes the significance of the personal media revolution, and they want to listen and pay attention to what you’re saying. I think this is a good way to start."

Many of the real estate bloggers are in San Francisco at the Inman Bloggers Connect…so they missed out on this local function.  Fellow real estate bloggers that were in attendance:  The Tim from the Seattle Bubble, Alex Garcia in Seattle and Deborah Burns, fellow contributor to Rain City Guide.  Img_5528

Ron Holden of Cornichon, one of the top food blogs on the internet, doing a report on wine from the anchor booth with me.

The mysterious West Seattle Blog was not there…darn it!   But they did send a fellow blogger from West Seattle to say "hello".   

It was a very interesting evening to say the least.   

Seattlebloggers

I had the chance to chat with Terry Heaton for a little bit who has been organizing bloggers with news media in other parts of the country.    Chris Pirillo also seemed very involved in orchrastrating this event…I didn’t get a chance to talk with him unfortunately.   As you can see, there were a lot of local bloggers there! 

Filed Under: Weblogs

Friday Fun…Wine Reviews

August 3, 2007 by Leave a Comment

If you love wine, then you must check out Wine Library TV.   Gary Vaynerchuk does hysterical reviews.   He’s serious and wants to "change the wine world" and he just may do it!   

In this episode, he is reviewing one of my favorite wines, Mollydooker.   The 2005 vintage was cult-like huge and highly rated by Robert Parker…the 2006 is what he’s reviewing here.

I wish he would have reviewed Boxer.  If you can find any and you like big fruit bombs wines…pick some up!   I understand that Esquinn and West Seattle Thriftway may have some (not on the shelf, you have to request it). 

The video is a crack up and his reviews are solid.   Fun and substance at the same time.   I enjoy him so much (and wine too) that I’ve added a link to his blog on the lower left side of Mortgage Porter.   

Cheers.

Filed Under: Just for Fun

Cash due at closing

August 2, 2007 by Leave a Comment

EDITORS NOTE:  This post has been updated here.   With all the changes HUD created with the 2010 Good Faith Estimate, they are no longer a practical tool for mortgage originators and actually, no where on the GFE is there a place showing "funds for closing".   Please skip this post and read the one linked above.

Your closing date on your new home is a couple of days away, your feeling a little case of the jitters…the last thing you want to deal with is to be surprised with what funds are due at your signing appointment with the escrow company.   

Here's how you can clear up the funds to close issue:

  1. Your Mortgage Professional should provide you with a "fine tuned" Good Faith Estimate 5 or more business days before closing for review.   Check out the amount due for closing and if you are being credited for the earnest money deposit and any funds you have provided to the lender.   Also verify if any credits to you are reflected by the seller.   If you are unsure at all, ask–don't assume.   This is the best time to make any adjustments, if needed.
  2. Verify with your Mortgage Professional if the GFE is factoring in your earnest money deposit.
  3. Your Mortgage Professional should obtain an estimated HUD-1 Settlement Statement from the escrow company 2 days before closing to review it for any corrections or modifications.   
  4. You may want to request seeing a copy of your estimated HUD-1 Settlement Statement prior to your signing appointment.   Currently this is not standard practice.   
  5. Bring a copy of your Good Faith Estimate with you to your signing appointment.   The lender fees shown in Section 800 of the HUD should be close to those shown on your Good Faith Estimate.

What if there are errors?  Try not to panic. Depending on how much time there is prior to the scheduled funding, the lender may be able to redraft loan documents if needed.   80% of our loans our funded within our own credit line so unless it involves someone having to be re-approved for a higher loan amount, loan documents can be emailed fairly easily to the escrow company.   Often times, it could just be correcting a few documents and not the entire loan package.

The closing table can be an emotional time.   It's in your best interest to have as many of the details worked as far in advance as possible.   If you have questions or concerns, speak up.  This is not the time to be bashful.   This is your mortgage and one of the largest financial transactions you will make in your lifetime…be responsible and take action.

Filed Under: Escrow and closing

Latest Telephone Scam

August 1, 2007 by Leave a Comment

I often work from my home office.  For a while I was getting deluged with phone calls from people with foreign accents telling me that I had applied to obtain a mortgage from them!   I quit answering the phone when I don’t recognize the number or if the number is blocked.   The calls dwindled.

Here’s the new twist on the same scam…I’ve received a couple of these calls now.  The person says they’re from the “National Debt Center”.   They go on to say that they represent many of the credit card companies you have debts with (it’s not hard to name a few of the big players and get lucky with guessing a card you may actually have).    

Until this afternoon, the phone number was blocked…I just filed a complaint with the Do Not Call site.   We are on the DNC list and still get these obnoxious calls.   When I informed this caller that we’re on the DNC, she slammed the phone down.   Other times, this only seems to be a mental game to callers.   

They can sound pretty convincing…they’re crooks.  Don’t fall for it.  The area code from this caller was 113.   Look out.

Filed Under: Predatory Lending

Larry Cragun’s Magnificent 7 for July 2007

August 1, 2007 by Leave a Comment

Mag7

Larry has such dedication (not to mention wit, style and knowledge…you really should check out his blogs) to review consumer related real estate content month after month to award his Magnificent 7.   I’m honored to have Joe Buyer and the Lending Treehouse of Horrors: Part 2 included along with the following July’s nominees:

Condo sellers – review rules and bylaws by Teresa Boardman

How to use interest only loans to your advantage when planning your finances by Dan Green

Don’t hire an agent who lets you shoot yourself in your foot by ARDELL

New appreciation for the sandwich generation by Lisa Dunn

10 lessons learned by moving last week by The Housechick

Property flipping by Teresa Boardman

Thanks, Lar!   

Filed Under: Weblogs

My Recent Interview by Todd Carpenter

August 1, 2007 by Leave a Comment

Last week Todd Carpenter, who is indeed one of the lending pioneers of blogging, interviewed me at REMBEX Blog Fiesta.   I am very flattered to be interviewed by Todd and to be associated with the great real estate bloggers he’s featuring on his site.   The interview is more about why I blog…Todd’s introduction sums it up:

"Rhonda Porter is an example of why I think traditional media has seen it’s best days. As a mortgage professional, there’s nothing more annoying than watching the nightly news stumble through a story about the industry. It seems like they never get a story completely right. An industry expert can offer insight and understanding for a particular niche that no general reporter could ever hope to. For this reason, I believe an Army of Davids like The Mortgage Porter will eventually change the way most people get their news."

To read the interview, please click here.   

Filed Under: Interviews
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