Wishing all Dads a very Happy Fathers Day.
Financing a “Kiddie Condo” for your College Student
June 2, 2011 by 1 Comment
A few weeks ago, I helped a Kent couple purchase a condominium located in Seattle for their daughter to live in while she attends college at Seattle University. They were prequalifed with their credit union, however the credit union was treating the transaction as if it were an investment property even though the couple (we’ll call them Mr. and Mrs. Kent) were not going to rent the property.
Potential Mortgage Rate Movers this Week
May 31, 2011 by Leave a Comment
This week is packed full of scheduled economic indicators that may impact mortgage rates. Mortgage rates are based on mortgage backed securities (bonds). Typically, good news for stocks means that mortgage rates may rise as investors will trade the safety of bonds for a greater return received from stocks. The reverse is also true. Signs of inflation will also impact mortgage rates for the worse. Here are some of the scheduled reports to be released this week:
Obama Administration Proposes Tougher Mortgage Guidelines and Increased Pricing (Rates) to You
February 13, 2011 by Leave a Comment
In a time where our housing marketing is not out the woods and many who want to keep their home are having a difficult time refinancing; the Obama Administration released their proposal for "winding down" Fannie Mae and Freddie Mac. They plan on phasing the government out of the GSEs over the next 5 to 7 years.
Here are some of the highlights of the reform plan as released by the Treasury Department on Friday:
Phasing in Increased Pricing at Fannie Mae and Freddie Mac to "level the playing field". The Obama Administration believes that if they increase conventional mortgage rates, it will help private lending have a fair chance at originating mortgage loans. If you've been reading my blog, you know that Fannie and Freddie have been increasing their pricing by their LLPA's (Loan Level Price Adjustments). Adjustments to pricing translates to higher mortgage rates in addition to what the market pricing would be. Higher rates means that Seattle area home buyers and those seeking to refinance will qualify for less.
Reducing Conforming Loan Limits. Currently in King, Pierce and Snohomish counties, we have a temporary high balance conforming loan limit of $567,500. This plan confirms the governments intent to "rest as scheduled on October 1, 2011 to levels set in the Housing and Economic Recovery Act (HERA).
Phasing in Minimum 10% Down Payment. In my opinion, this isn't a huge deal for Fannie and Freddie mortgages…as long as we still have FHA. Speaking of FHA…
"Returning FHA to its Traditional Role". FHA has become the mortgage du jour in many cases when a borrower doesn't have 20% down payment…you never know what you're going to get with a PMI underwriter. The Administrations proposal for FHA includes:
- allowing current high balance loan limits to expire on October 1, 2011
- increase the annual mortgage insurance (again) by 0.25 basis points
- "lowering the maximum loan to value ratios…and adjusting pricing". FHA plans on increasing the minimum down payment from 3.5%.
Increased mortgage disclosures for consumers. What happened to simplifying the process? I've found that HUD's Good Faith Estimate and the Fed's Truth in Lending have not helped consumers. New disclosures are being worked on and hopefully what ever our government creates, will be more clear and concise than what I've seen.
Here is the entire 32 page Reforming America's Housing Finance Market – A Report to Congress.
Good Bye, Dad
December 6, 2010 by 2 Comments
My father, Ron Christopherson, passed away Friday afternoon, just as the beautiful sun was setting. He was only 64 years old and had been suffering from several heath issues, including cancer. I am thankful that he is no longer in pain and my little sisters and I miss him terribly.
I will be taking a few days off as we plan for his services.
Happy Thanksgiving
November 25, 2010 by Leave a Comment
Happy Thanksgiving to you and your family from ours.
Mortgage Master Service Corporation is closed today and tomorrow. We will reopen for business as usual on Monday, November 29, 2010.
Veterans Day
November 11, 2010 by Leave a Comment
Today we thank and remember those who have served our country.
Mortgage Master Service Corporation is closed in observance of Veterans Day today. We will re-open for business as usual on Friday, November 12, 2010.
Hat tip to my mother-in-law, Ruth Porter, for the Kiss video!
You Don’t Have to Lock Your Rate to Start Your Refi
October 22, 2010 by Leave a Comment
If you are interested in refinancing, or even buying a home, you don't need lock in your rate at application. A majority of the Seattle area clients I work with, delay starting the refinance process until rates reach the point where they are wanting to lock. A mortgage rate lock commits a specific interest rate and program for a certain period of time.
If your are serious about refinancing and rates are within range of your goal but you're not ready to lock, I recommend starting your loan application prior to the lock. This gets one step out of the way and allows your mortgage originator to review your information and to make sure that the rate you're being quoted is accurate. We will provide you with your preliminary loan documentation and work on your credit approval.
One benefit of delaying your lock is that a shorter lock period may be required for processing your transaction. It may also help avoid an extension, should the rate lock expire. The risk, however, is that you miss out on today's very low rates. Borrowers should consider which risk they can tolerate more: the risk of locking in too early and having rates improve or the risk of locking in too late and having rates rise. Personally, I'm not a "floater"…if I like the rate, I lock it….but it is the borrower's choice.
If your home is located in Washington state, where I'm licensed to originate, I'm happy to help you with this. There is no cost to you until the appraisal is ordered and the appraisal can be postponed until you decide to lock. And if you complete your application with me on line (click "apply here") I'm currently offering a $300 credit towards your closing costs when your mortgage funds with Mortgage Master Service Corporation.
So what are you waiting for?
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