Mortgage Porter Milestone

I can’t think of a better way to celebrate that I’ve somehow manage to blow past Mortgage Porter’s 100th post than a little song and dance!

Happy Friday!

Blown Interview

Morgan Brown, the blogger behind Blown Mortgage, has recently added podcast interviews on his site.   His most recent interview features Tony Gallegos who is an FHA expert.   I am very flattered that Tony mentioned Mortgage Porter as one of his favorite blogs.    Check out Tony’s interview (not just because of the Mortgage Porter compliment) to learn more about FHA loans.   With the correction of the subprime market, FHA loans are on the comeback.

Watch for my interview from Morgan Brown to appear on Blown Mortgage in the near future (I’ll post a link).

How Did You Find Mortgage Porter?

One of the features of having a Typepad blog is that I can see what the input was for Google and various other search engines.   

Here’s a recent sample from today (in chronological order):

I like to read how viewers have discovered Mortgage Porter.   The search phrases are helpful as it shows me what is currently on people’s mind.  And provides me with ideas for future posts. 

There is a definite ethics theme with both lenders and consumers and there are general searches about mortgages.   I’ve added the links to the pages the visitors were referred to (there are a couple links I had to make an educated guess on).

I wish Typepad had a way to show what the most viewed pages are in Mortgage Porter’s history…I’ll have to send them an email!   Meanwhile…I’m just scanning the information as much as possible to get a glimpse of how people are finding this site.

Is it better to buy or rent?

An article in the New York Times was brought to my attention from Tim at Seattle Bubble on whether or not you should buy or rent.    The article is very slanted towards renting and considering the part of the country it’s originating from, they are right.   Our local economy and housing market remains strong and is not experiencing any sort of a slump.   

What I really liked about the article is the on-line calculator to help you determine if you should rent or buy.  The calculator is flexible and friendly with adjusting appreciation, down payment, rent increases and the costs associated with owning a home (funny how many potential home buyers forget about that).   If you’re considering buying a home, I encourage you to check it out.

Tim, where was this calculator when I did my post at Rain City Guide and Seattle Bubble Blog countered it? 

The Importance of Good Signage

SkcarLast week, I sponsored Jillayne Schlicke’s class at the Seattle King County Association of Realtors on High Impact Blogs and Podcast.

I had a great time.  I thought I was just bringing in a few snacks for the hungry Realtors to keep their brains going during her course…little did I know she would call on me to help the class build their blogs.  It was fun.   What was not fun…was trying to find SKCAR’s office.   

I thought I had it all planned out.   The night before, I entered their address into the car I normally drive and the system mapped it all out.  Simple!   Except my husband decided to drive that car.  I entered the address again into our other car…and no luck!  Our Japenese navigation was fine, our Swedish nav–not!   No problem, I use to be in title insurance and I’m certain I can find their office.

It’s located off I-90 in Factoria–super easy from West Seattle, where I live.  I stopped off at the Factoria QFC for sandwhiches and drinks and proceed to where I think their office should be.   There is an office standing alone with what appears to be appartment buildings.   I don’t see any sign that says SKCAR or Realtor-anything.  The building has the logo above (I snapped the photo above with my Treo 650)…I thought it said IMI or 1001 building.   It just couldn’t be right.   So I do a u-turn and drive down 32nd SE in the oppositie direction until I realize this wasn’t right, either.

That’s when I pulled out my trusty old Treo 650 and hop on the internet to SKCAR’s website which has directions!   Come to find out, their office IS at the lone building I was originally at.   

Good thing I didn’t buy hot sandwhiches with all of my driving around!   Class was great and all is good (just a little more driving than necessary).

Hey SKCAR, how about some signage on the building (beyond the gold lettering on the glass front door)?

My Encounter with The Seattle Bubble Blog

Mpj040113000001 My husband teases at me when I talk about the Bubble Bloggers…not because they’re funny (they can be), it’s simply the phonetics.   Our local bubble bloggers are a very serious and determined group of individuals.  In a nut shell, they believe that Seattle’s home values will plummet or burst like a popped bubble and when this happens, it will reek havoc for current home owners.   Many of them feel it is much better to rent than to own a home for financial purposes.     The Seattle Bubble is probably the most well known local blogs on this topic.   

Recently, an article I posted on Rain City Guide, The Great Rent vs. Own Debate, was featured (or should I say, "flogged") on the Seattle Bubble and Priced Out Forever (these blogs share writers).    Eleua, one of the "bubble bloggers" asked me if they could do this and I must tell you, I was a bit nervous about how this would all shake down.  For starters, where ever there are numbers and stats, there is opportunity for debate.  Numbers can be twisted and recalculated to prove anyone’s theory.   I must say they were very fair and kind in their "flogging" of my post.

Here are some points they make on why it’s better to rent than to own a home (I’m not going to debate these points in this post):

  • Renters are not responsible for repairing or maintenance of the building.   (I do spend many weekends at Home Depot with my husband to work on our house…and I love it).
  • Freedom to pick up and move when your lease is up without the cost of selling a home (approx. 8-10% of the sales price including commissions, 1.78% excise tax for King County and closing costs).
  • You can invest the funds you would use for down payment and earn interest on it (your home equity does not earn interest).
  • You may be able to rent a nicer home than what you can afford to buy for the same payment.
  • The standard tax deduction may be better than the deductions you’re allowed as a home owner itemizing your mortgage interest and taxes.  (As always, check with your CPA regarding any tax matters).
  • And of course, home values are going to tank once the Seattle bubble bursts.

I wrote The Great Rent vs. Own Debate over an exchange of comments on one of Rain City Guide’s post where I stated something along the lines of "owning a home is an automatic savings plan for some borrowers".    I still believe this to be true based on what I’ve seen in my past seven years as a Mortgage Consultant.   

Many people are not putting away money into savings accounts, retirement, planning for college…you name it.   When you make a mortgage payment (assuming it’s not interest only), you are applying a small portion of that mortgage payment towards reducing the principle balance.   For Americans who do not put 10% of their gross income (or anything) into an investment vehicle (no…not a new car!), this is their only source of savings.   They are at least putting some money away where they do not have immediate access to it (unless they treat their home equity like an ATM).   

I will be the first to admit that a big reason why I have bought homes is emotional.  I have "a need" to own a home.  I grew up renting and moving around quite a bit as a kid. I feel grounded and I have control over the home…it’s mine!   With that said, owning a home has proven to be the best investment for me.  I would not have realized the appreciation and profits from renting that I have as a home owner over the past 18 years.   

Home ownership is not for everyone.   Especially people who are careless with their credit and spending.   You need to be responsible, plan for repairs and improvements and make your mortgage payments on time.  Buy a home because you want to live in it and you want to be your own "home sweet home".

Another Option for People with Subprime Mortgages

Dan Green did an excellent post today on…what else?   Subprime mortgages.   He suggest that subprime borrowers look at refinancing now (if they plan to not sell their home) instead of waiting until the prepayment period is over.    His thoughts, which are valid, are that there may not be products available in the future when the time is right for a person to refinance out of their subprime loan.    To read Dan’s post, click here. [Read more…]

Hey All You Blogging-Wanna-Be Realtors Out There

Jillayne_1 Jillayne Schlicke will be teaching a course at SKCAR on Tuesday, March 20, 2007 from 9:00 – 1:00.   For more information on "New Media – High Impact Blogs & Podcast (Hands On Version) Seminar" or to register (which is required), click here.   Attend and receive 4 clock hours and I’ll be serving lunch.   I hope to see you then!