Just a reminder to spring forward before you go to bed tonight or if you’re very proper, set your alarm for 2 a.m. on Sunday, March 9, 2008 to turn your clock forward.
Ah, Spring…I can’t wait!
Archives for March 2008
Shiney New and Temporary Conforming Limits…Not So Fast!
March 7, 2008 by Leave a Comment
I feverishly posted the new FHA and conforming loan limits for Washington State. It was pretty darn exciting since many of us in the industry were hearing whisper figures of $493k or so and voila, our new FHA and conforming limit for a single family dwelling is $567,500 for King, Snohomish and Pierce Counties. This could be a nice bump through the end of this year.
The word is out! Many Seattle, Bellevue, Everett and Tacoma area homeowners are VERY interested and want to take advantage of "conforming rates" now. Not so fast….sorry. (Hey…I’m really hoping that on Monday, I’m eating my words…the proof is in the pudding). So far all that’s happened is that the loan limits have been announced. This whole process needs to trickle from Fannie Mae and Freddie Mac and through all the wholesale lenders before those of us on "the streets" can offer you any benefits.
Be prepared. I fully expect an "add to rate" on loans from $417,000 – $567,500 (or what ever your area conforming limit is). This will be to compensate Freddie/Fannie for the additional volumes and risk they are taking on. The big question is: how much will it be? My best guess is anywhere from 0.25% to 1.00% to what you currently see for conforming.
"WHAT?" You say… "You’re telling me that you just quoted 6.00% for conforming today…and 7.00% for JUMBO…yet the new conforming rate for loans over $417,000 may still be 7.00% if I were locking today?"
Yes…that’s what I’m saying. Again, PURE speculation on my part.
The "new conforming limit" goes back to July of 2007. It’s retroactive for jumbo mortgages still not bought on Wall Street clogging credit lines. I think that’s where we may see the most action: rescuing the Thornburg Mortgages of the world (or at least Wall Street). This from Bloomberg:
Thornburg specialized in so-called jumbo mortgages of more than $417,000, which typically were used to buy more expensive homes. Until recently, such loans were too big to qualify for purchase by government-sponsored entities such as Fannie Mae. Trading for such “non-conforming loans has come to a standstill, cutting off a source of funds for mortgage companies and pushing down the value of their holdings. More than 100 halted operations or sought buyers last year.
The company’s demise would reduce liquidity even more, said Keith Gumbinger, vice president of HSH Associates, a mortgage- market research firm based in Pompton Plains, New Jersey.
“No one has had anything bad to say about Thornburg; they have served the good-quality, high end of the market,” Gumbinger said. “It’s been a good, well-run business that is taking a beating because of market conditions.”
Thornburg is not a part of the subprime melt down they are being sucked into. My best guess is that due to the volume and risk of loans that Fannie and Freddie will take on through the end of this year, consumers will see a benefit in pricing when the credit lines have been relieved.
This may not be the band-aid we’re hoping for. I don’t want to be a "bummer"…I do want to be practical.
My best advise to those in the "new (temporary) conforming market" is to not wait for the new limits to be in effect. Check with your Mortgage Professional to see if they can switch your program to "new conforming" IF it’s a better rate/scenario for you if you’ve all ready began the process under the current guidelines. This is something that I can offer and I would assume most Mortgage Professionals are able to as well.
New Conforming Loan Limits
March 6, 2008 by Leave a Comment
OFHEO just released the temporary conforming loan limits (through 2008). It does not appear as though that every county that received an increase in FHA limits received one with conforming. Here is what I show for Washington State:
King, Pierce and Snohomish Counties
1 Family – $567,500
2 Family – $726,500
3 Family – $878,150
4 Family – $1,091,350
Kitsap County
1 Family – $475,000
2 Family – $608,100
3 Family – $735,050
4 Family – $913,450
Clark and Skamania Counties
1 Family – $418,750
2 Family – $536,050
3 Family – $648,000
4 Family – $805,300
San Juan County
1 Family – $593,750
2 Family – $760,100
3 Family – $918,800
4 Family – $1,141,850
Jefferson County
1 Family – $437,500
2 Family – $560,050
3 Family – $677,000
4 Family – $841,350
This data is still very new and I’m just making it available to you as soon as I receive it. More information will follow.
New FHA Loan Limits are here!
March 6, 2008 by 3 Comments
Great news! HUD has announced the new FHA loan limits for our area:
King, Snohomish and Pierce Counties
Single Family: $567,500 (up $204,710 from $362,790)
Two Family: $726,500
Three Family: $878,150
Four Family: $1,091,350
San Juan County
Single Family: $593,750 (up $230,960 from $362,790)
Two Family: $760,100
Three Family: $918,800
Four Family: $1,141,850
Kitsap County
Single Family: $475,000 (up $114,000 from $361,000)
Two Family: $608,100
Three Family: $735,050
Four Family: $913,450
Jefferson County
Single Family: $437,500 (up $105,000 from $332,500)
Two Family: $560,050
Three Family: $677,000
Four Family: $841,350
Clark County
Single Family: $418,750 (up $113,800 from $304,950)
Two Family: $536,050
Three Family: $648,000
Four Family: $805,300
Clallam County
Single Family: $383,750 (up $158,600 from $225,150)
Two Family: $491,250
Three Family: $593,800
Four Family: $738,000
Island County
Single Family: $381,250 (up to $91,500 from $289,750)
Two Family: $488,050
Three Family: $589,950
Four Family: $733,150
Whatcom County
Single Family: $375,000 (up to $90,000 from $285,000)
Two Family: $480,050
Three Family: $580,300
Four Family: $721,150
Skagit County
Single Family: $373,750 (up to $89,767 from $283,983)
Two Family: $478,450
Three Family: $578,350
Four Family: $718,750
Thurston County
Single Family: $361,250 (up to $86,700 from $274,550)
Two Family: $462,450
Three Family: $559,000
Four Family: $694,799
Kittitas County
Single Family: $328,750 (up $79,000 from $249,750)
Two Family: $420,850
Three Family: $508,700
Four Family: $632,200
Chelan and Douglas Counties
Single Family: $323,750 (up $78,200 from $245,550)
Two Family: $414,450
Three Family: $500,950
Four Family: $622,600
Mason County
Single Family: $310,000 (up $74,400 from $235,600)
Two Family: $396,850
Three Family: $479,700
Four Family: $596,150
Benton and Franklin Counties
Single Family: $275,000 (up $66,085 from $208,905)
Two Family: $352,050
Three Family: $425,550
Four Family: $528,850
Adams, Asotin, Columbia, Cowlitz, Ferry, Garfield, Grant, Grays Harbor, Klickitat, Lewis, Lincoln, Okanogan, Pacific, Pend Oreille, Spokane, Stevens, Wahkiakum, Walla Walla, Whitman and Yakima Counties
Single Family: $271,050 (up $70,890 from $200,160)
Two Family: $347,000
Three Family: $419,400
Four Family: $521,250
According to the Wall Street Journal, these figures will also be our temporary conforming loan limits.
"The upper mortgage limits also will apply to loans purchased or guaranteed by government-sponsored mortgage companies Fannie Mae and Freddie Mac, FHA officials said."
More information will follow as I receive it. Remember, these higher loan limits are only through the end of 2008.
Whoo hoo…It’s Like Deja Vu All Over Again!
March 5, 2008 by Leave a Comment
If you’re not from the Seattle area, you may not know that Deja Vu is a strip gentlemens club…check out where WaMU placed their billboard. I understand it’s now down.
A huge hat tip to Citizen Rain for making me smile. Whoo hoo!
A Welcome Diversion: Larry Cragun’s Magnificent 7
March 5, 2008 by Leave a Comment
With all the turmoil and continued tightening in the mortgage industry…some days can seem a little dreary. I especially welcome Larry Cragun’s Magnificent 7 articles for a nice diversion. Truth be told, I always look forward to seeing what article’s Larry is recommending at Real Estate Undressed (it’s too bad he doesn’t include HIS incredible consumer 
articles). He’s crawls the web and finds excellent blogs that are new to me…and maybe new to you too!
For February 2008, I’m honored to have been recognized with my post: Bait and Switch Mortgage Advertisements
In addition to my post, Larry is recommending the following consumer focused articles:
Carol Williams of Carol’s Wenatchee – Not All Home Inspections are Created Equal
Dan Melson of Searchlight Crusade – How to Get Out of Prepayment Penalties
Dan Rafter of Property Crossroads – The worst of the predators: Going After the Elderly
Jennifer Kirby of Minneapolis Real Estate Blog – Home Owners Want to be Lied To
Jeremy Hart of NRVLiving – Real Estate. Simplified. – There is Blood in the Streets – What are You Going to Do?
Nigel Swaby of Salt Lake Real Estate Blog – FHA Wants to Help You Refinance
Take a break, check out these posts and be sure to thank Larry for his time and efforts in bringing these articles and blogs to our attention.
New Mortgage Porter Poll: Do You Care Who Your Mortgage Company Is?
March 1, 2008 by 7 Comments
As a Correspondent Lender, we work with just about ever bank and some lenders you may not have heard from. Every so often, I’ll have a client request a specific bank. The conversation may go something along the lines of:
Client: Can you please lock my loan at Wells Fargo (or Washington Mutual, Countrywide, etc.)?
Me: We work with many banks. However, I usually select by who is offering the best rate or best product for your scenario.
Usually the client is fine with getting the best rate or product. Sometimes, they may request to not be locked with a certain lender due to a bad previous experience. I’ll advise the client that I won’t lock them at that specific bank; however, I cannot guarantee they won’t wind up at that bank since mortgages are often transfered. The request to be with a specific bank has really dwindled lately. I’m assuming clients are happy to have qualified for a mortgage with today’s tightened guidelines and to have secured a low rate.
I have been wondering…does a potential borrower care if they found out their mortgage was locked in (brokered) with a specific lender?
Would it matter to you if I lock your mortgage with Countrywide, WaMU, IndyMac, Wells Fargo, Chase, Flagstar, Wachovia or DiTech? (Note: these banks are mentioned in no specific order and does not represent a complete list of lenders we work with). How about a bank you’ve never heard of before? Or if the bank was a "subprime lender" yet they offered a lower rate than a prime lender?
Voila, we have our first poll at Mortgage Porter on the right side of this page. Please vote!
Update: I will keep this poll available until March 8, 2008.
Pole Results:
- Yes. There are banks I don’t want to support. (8)
- No. I don’t care. I just want the lowest rate. (8)
- It doesn’t matter (4)
New Feature: On-Line Loan Application
March 1, 2008 by Leave a Comment
I am so pleased to announce that I have now have a secure on-line loan application on Mortgage Porter. You can find it at "Favorite Links" (right under my big head).
So if you would like me to assist you with a mortgage for your property located in Washington State and you are interested in financing for purchase, refinance or second mortgage, you can complete the application and I will be promptly notified.
Of course, I still welcome email, phone call interviews, web-conference and an old fashioned face to face consultation. There are times in our busy schedules when we need flexibility and so I’m very happy to have this resource available to you.
Should you elect to complete an on-line loan application, you will be prompted to enter your email address and to create a password. The secure site will walk you through the rest.
I look forward to adding more new features to Mortgage Porter. Any ideas?
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