Homeownership & Lifestyle

Homeownership is more than a mortgage — it’s about community, lifestyle, and long-term planning.

This section includes personal insights, community involvement, and home-related topics that reflect the broader experience of owning and living in the great Pacific Northwest.

Did You Get Your Tax Refund or…

April 18, 2007 by Rhonda Porter 1 Comment

How about something that looks like one? This arrived the other day to our home in a gold envelope looking very much like an income tax refund. Per Washington State law, this form of advertising from a mortgage company is illegal.

That’s just the beginning of what is wrong with this advertisement. This company appears to be offering to refinance our current mortgage plus give us $44,000.35 (don’t forget that 35 cents) cash in hand at the low rate of 2.20% (obviously a negative amortized/deferred interest ARM)! The ad shows two asterisks next to the rate… on the bottom of the flier, there is an * in very fine print disclosing an “APR of 6.90% 30 year loan interest rate may increase after consummation”. Duh…ya think? The fine print also shows this lender is licensed in California, not Washington, to provide mortgages.

My point is, whenever a mortgage company has to resort to “cold marketing”… whether that be phone calling or deceitful pieces of mail aimed to look like something other than what it is (such as your IRS refund), they are not worth trusting your largest asset (your home) and debt (your mortgage) with.

I always advise getting a referral from someone you trust. Do your own homework. If it seems too good to be true, it is.

Filed Under: Homeownership & Lifestyle Tagged With: junk mail

A Real Estate Agent’s Guide for Subprime Buyers

March 19, 2007 by Rhonda Porter 2 Comments

Unless you’ve just been rescued from a deserted island, you have heard the news about what’s going on in the subprime mortgage industry. It’s not a pretty site and in fact, it’s getting dicier every day with Alt-A lending (not quite subprime lending…it’s more of the stated income and 80/20 types of loans) tightening up, many people you helped find homes for during the past couple years no longer qualify for a mortgage. [Read more…]

Filed Under: Homeownership & Lifestyle Tagged With: real estate agents, subprime

Do You Need to be Concerned?

March 11, 2007 by Rhonda Porter Leave a Comment

This is the beginning of my official “what to do if you have a subprime mortgage” series. I truly want to help as many homeowners as possible who have subprime loans get out a potential pickle.

I’ve posted many warnings about the changes in the subprime market and lack of mortgages for consumers with credit scores under 620.

The first step is… determining IF you have a subprime mortgage. The mortgages that are receiving a lot of attention in the press these days are 80/20 mortgages. Not all are subprime.

Here are a few questions to consider (you should dig out all the papers from your last mortgage…this is important):

Do you have a prepayment penalty (this will be on your Note* and disclosed on your final Truth in Lending). If you do have a prepayment penalty, when is the penalty period over? Some slick loan officers might have told you that it’s “only a penalty if you prepay more than 20% of the principle” or they might have called it something like a “commitment period”…dig out your Note and check it out.
How much time do you have before your rate is scheduled to adjust? Again, this calls for you to dig out the Note* you signed at the escrow company when you obtained your last mortgage. If you have less than one year before the rate adjust, please contact your Mortgage Professional to make sure you’re on track. Often times, the subprime mortgages are fixed for 2 or 3 years on the first mortgage. If mortgage is subprime or not, please do check to see when your ARM (if you have a short term fixed rate) is scheduled to adjust.
How much will your payment adjust? Your Note will show you what your interest rate is based on. You may either have an ARM or a balloon payment with your mortgage. If your mortgage is subprime, the adjustments to your payment are typically steep. Caps (the limit on how much your rate can adjust) will be on the Note.
If you’re unsure of questions, please contact your Mortgage Planner. They can confirm whether or not your existing mortgage is “subprime”. Since you have your mortgage papers out of your filing cabinet and you have your Mortgage Planner on the phone, schedule an Annual Review of your mortgage to assess if it is still the right course for you in light of the current market conditions.

So what if you do have a subprime mortgage? In some ways, you might consider yourself lucky if you have taken steps to improve your credit and you can pay your debts on time you should be able to refinance when your prepay is up just fine. If times are tough and your mortgage and other bills are a struggle, you might be in for a rocky road with many of the mortgages that helped you buy your home no longer available and you should maybe consider steps such as budgeting and credit repair to help you be in a good position to refinance when the time is right with your mortgage. (Actually, we should all budget and take care of our credit).

*Your Deed of Trust is recorded to secure the Note (promissory note). The Note contains other details, such as prepayment penalties, than the Deed of Trust, which is recorded to become public record. You should have received a copy of the Note (along with a stack of other papers) from the escrow company when you obtained your last mortgage. Bottom line…dig out all of your papers and if you have to, contact your Mortgage Planner and provide it to them for review.

Be proactive and responsible. Take the necessary steps to make sure you’re in a good place before your mortgage rate adjusts.

Wondering if now is the right time to refinance?

Every situation is different. I can run the numbers for your specific loan and help you decide if refinancing makes sense — no obligation, no pressure.

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Rhonda Porter · Licensed Mortgage Advisor · NMLS #121324 · Washington State

Filed Under: Homeownership & Lifestyle Tagged With: subprime

The 12 Gifts of Christmas

December 26, 2006 by Rhonda Porter Leave a Comment

My friend and colleague, Marian York, recently shared a gift with me that I would like to in turn, share with you. Marian is the Author of “The Loving Dictionary” (her book is linked below), she is a renown speaker and is the founder of The WORDpower Institute NW.

The following is Marian’s December WORDpower Tip, although Christmas was yesterday, I think this is appropriate all year long:

The 12 Gifts of Christmas

Here are twelve special gifts you can share with the people in your life! They don’t cost anything and come in every size, shape and color!

1) The Gift of Patience…Take a deep breath and count to 10 before responding.

2) The Gift of Understanding…What unfulfilled need for love, respect or kindness might lie beneath their behavior?

3) The Gift of Support…What’s one small thing I could do to make their life easier?

4) The Gift of Appreciation…How have they contributed to my life or to the lives of others?

5) The Gift of Communication…When was the last time I “told” them how much I appreciate them?

6) The Gift of Thoughtfulness…What makes them feel really happy, valued or safe?

7) The Gift of Forgiveness…Was their oversight or mistake really worth the loss of the relationship or friendship?

8) The Gift of Interest…How much do I know about this person? Or listen to them?

9) The Gift of Acceptance…Can I see their warts in perspective to all of their good points?

10) The Gift of Trust…Do I say what I mean and do what I say?

11) The Gift of Mastery…How can I use my skills and talents to enrich their lives?

12) The Gift of Humor…What could I say or do to put a smile on their heart today?

I hope you and yours have a wonderful holiday and a peaceful, healthy and happy New Year.

Filed Under: Homeownership & Lifestyle

Another Snowy Day in Seattle

November 29, 2006 by Rhonda Porter Leave a Comment

Well…it’s “kind of” a snowy day. The roads in my neighborhood appear to be pretty dry with patches of ice to keep drivers on their toes. We are expecting another blast of snow later today, so schools are closed and therefore, I am working from home. The timing of our snow day works great for me as my 2007 calendars arrived last night. My husband had to actually pick them up from FedEx as they did not make deliveries yesterday (UPS did). For the past 4-5 years, I use a photo that I have personally shot for the calendars. The photo I selected for 2007, I must confess, I did not take. My husband is the photographer! It is from our Honeymoon in Italy from April earlier this year. It was actually pretty tough to decide what photo to use for the calendar this time. The photo that is featured on my 2007 calendar is of the Capri Arch. Here are some of the “runner up” photos that didn’t make the cut.

If you’re considering traveling to Italy, I highly recommend www.initaly.com. They are very accommodating and offer wonderful places to stay, including if you are traveling with children, or are looking for a wine country adventure, etc. I am happy to recommend places that we stayed during our Honeymoon as well.