Did you know that if your existing mortgage is FHA on your investment property, that it may qualify for an FHA streamlined refi?
Here’s the scoop for a non-owner occupied FHA streamlined refi:
Median Home Prices up 18.5% in King County
March 6, 2013 by Leave a Comment
A few days ago, I shared an article about how the greater Seattle – Bellevue – Everett area is one of the top 5 places in the country to be a home seller. Yesterday’s article in the Seattle Times appears to back that up.
A record-low inventory of homes for sale in King County, very low interest rates and a growing Puget Sound economy combined to push the median price of houses sold in February to $365,000, an 18 percent jump over a year ago.
Only 2,947 homes were listed for sale in King County last month, down from 5,178 a year ago, according to Tuesday’s report by the Northwest Multiple Listing Service.
I’m currently working with several pre-approved buyers who are ready, able and wanting to buy a home in this area. What they need is more inventory.
If you have been considering selling your home, now could be the time. You may find that you have an advantage being listed before other homes plan to go on the market for Spring.
If you are planning on buying a home, I cannot stress enough how important it is to be prepared for competition. It’s crucial to be fully preapproved with a local, reputable mortgage professional.
If you’re considering buying a home in King County, or any county in Washington state, I’m happy to help you with your mortgage needs.
Mortgage Rate update for the week of March 4, 2013
March 4, 2013 by Leave a Comment
This week’s economic calender would be considered a little on the light side if not for Friday’s Jobs Report. Here are some of the economic indicators scheduled to be released this week.
Tuesday, March 5: ISM Services Index
Wednesday, March 6: ADP National Employment Report and the Beige Book
Thursday, March 7: Initial Jobless Claims and Productivity
Friday, March 8: THE JOBS REPORT
Remember, signs of inflation tend to drive mortgage rates higher. You may also notice that when the stock markets are doing well, mortgage rates tend to rise as investors will trade the safety of bonds (like mortgage backed securities) for the potential greater return of stocks.
Mortgage rates are still very low, however they have been trending higher over the last several weeks.
If I can provide you with a rate quote for a home purchase or refinance located anywhere in Washington state, please click here.
What is the Difference Between Fannie Mae Homepath and Freddie Mac Homesteps? [UPDATED]
February 27, 2013 by 3 Comments
EDITORS NOTE: Fannie Mae is no longer offering the FannieMae HomePath mortgage program. If you are considering buying a Fannie Mae HomePath property (foreclosure that is owned by Fannie Mae) in Washington state, I’m happy to help you.
Fannie Mae and Freddie Mac both offer special incentives to entice buyers to properties they have foreclosed on. Fannie Mae’s program is called Homepath and Freddie Mac’s is Homesteps. Although the names some similar, their incentives are VERY different. What Fannie Mae Homepath and Freddie Mac Homesteps do have in common is that the properties are generally in better shape than other distressed homes.
The Seattle – Bellevue – Everett area named as a Top 5 Place to Sell Your Home
February 26, 2013 by Leave a Comment
Wall Street Journal’s Market Watch has named the Seattle – Bellevue – Everett area as one top five markets in the nation for selling your home. From the article:
Homes are flying off the market in Seattle. Listed properties spent a median of 56 days on the market as of January, down 38% from a year ago, according to Realtor.com. That’s almost half the median time homes are listed nationally….
….buyers have been left with a smaller number of homes to bid on, which in turn encourages multiple offers on properties that can push the purchase price higher than the asking price, experts say. There were fewer than 4,000 homes for sale in the Seattle metro area as of January, down 44% from a year prior, according to Realtor.com.
This morning’s S&P/Case-Shiller Home Price Index also provides some positive data revealing that the Greater Seattle’s prices are up 8.2% year-over-year.
For hopeful home buyers, this means they need to make sure they have their ducks in a row before making an offer on a home. Home buyers in competitive markets like Seattle, Bellevue or Everett should contact a mortgage professional early on to start the preapproval process. The preapproval process typically only takes a day or two once the home buyer provides all the necessary supporting documentation. However it pays to get started early just in case there are situations that could be improved (such as credit scores, savings, etc.).
The FHFA released their report on mortgage interest rates showing that rates trending higher since late November 2012 for the 30 year fixed conforming mortgage. If you’ve been following my rate quotes on Twitter, you may have realized this trend. Although rates are still very low, they are trending higher and have been for a few months.
If you are considering selling your home in the greater Seattle area, please don’t rule out buyers who are approved with FHA or VA financing. FHA and VA loans are much easier to underwrite and process in today’s market. In fact, they’re pretty much like a conventional mortgage. Plus buyers who qualify for FHA or VA loans are able to have higher loan amounts than conforming in our area.
Loan Limits for Seattle – Bellevue – Everett
Conforming: $506,000
FHA: $567,500
VA Jumbo: $1 million. $500,000 is the loan limit if the Veteran is looking for a zero down home. After $500,000, the down payment is 25% of the difference between the $500,000 limit and the sales price.
NOTE: Congress has been discussing rolling back loan limits. This is another reason to consider selling now if you have a home that would be impacted with reduced loan limits.
By the way, I have been in the real estate industry for just shy of 27 years. My first fourteen years were in the title and escrow industry and for the last 13 years, I have been a mortgage originator at Mortgage Master Service Corporation. I’ve worked with many real estate agents over my career and I’m happy to recommend one to you if you are considering selling or buying a home.
Mortgage rate update for the week of February 25, 2013
February 25, 2013 by Leave a Comment
This week is packed with economic indicators that may impact the direction of mortgage interest rates. Mortgage rates have been slowly inching higher since the end of last year. Rates are still very low and you can still get a 30 year in the 3’s – the rate just cost more than it did a month ago.
Here are a few of the economic indicators scheduled to be released this week:
Tuesday, February 26: S&P/Case-Shiller Home Price Index, New Home Sales and Consumer Confidence
Wednesday, February 27: Durable Goods Orders and Pending Home Sales
Thursday, February 28: Initial Jobless Claims, GDP – Gross Domestic Product and Chicago PMI
Friday, March 1: Personal Consumption Expenditures and Core PCE, ISM Index and Consumer Sentiment Index (UoM)
Tomorrow, Fed Chairman Ben Bernanke will be in front of Congress to begin his two day testimony on monetary policy. In addition, $85 billion in automatic budget cuts are set to go into effect on Friday unless Congress takes action.
Remember, mortgage rates are based on mortgage backed securities (bonds) and when stocks are performing, mortgage rates tend to rise. This is because investors will trade the safety of bonds for the possible higher return available from stocks.
The only way to secure today’s mortgage rate is by locking it! You can see examples of “live” mortgage rates I’m quoting by following me on Twitter @mortgageporter or Facebook/WashingtonMortgagePro.
If I can help you with your refinance or home purchase on property located anywhere in Washington state, please contact me.
FOMC Minutes and Tid Bits
February 21, 2013 by Leave a Comment
Yesterday the Fed released minutes from last month’s FOMC meeting. The minutes reveal the committee is debating easing or ceasing the purchase of mortgage backed securities before the end of this year.
A number of participants stated that an ongoing evaluation of the efficacy, costs, and risks of asset purchases might well lead the Committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labor market had occurred.
The Fed cannot continue to keep mortgage rates at their manipulated lows forever. Industry experts estimate that if the Fed was not involved with keeping mortgage rates low with the buying of mortgage backed securities, rates would be closer to “jumbo” rates (about a full point higher in rate).
Other points I of interest from the minutes – at least to me 🙂
…some participants were concerned that the recent increase in the payroll tax could have a significant negative effect on spending, particularly on the part of lower-income consumers.
Effective the beginning of this year, did you notice your pay check is 2% less? Congress allowed the expiration of the payroll tax cut to expire during the “fiscal cliff”. During 2011 and 2012, Americans caught a break and only paid 4.2% of their incomes for social security; we’re now back to paying 6.2%. If your monthly gross income is $5000, then your monthly take home pay is $100 less than what you had before this payroll tax.
If you’re a home owner who has not refinanced in the last year, you may want to contact your local mortgage professional to see if it makes sense. Reducing your mortgage rate can help off set the payroll tax and reduce the amount of interest you’re paying on your mortgage. Click here if you would like a rate quote for homes located anywhere in Washington state.
Participants remarked on the ongoing recovery in the housing market, pointing variously to rising house prices, growth in residential construction and sales, and the lower inventory of homes for sale. A number of participants thought it likely that higher home values and low mortgage rates were helping support other sectors of the economy as well, and a couple saw the housing market as having the potential to cause overall growth to be stronger than expected this year…
In the greater Seattle area, home prices continue to increase and I’m hearing from home buyers that they wish there was more inventory to chose from. If you’ve been considering selling your home, this could be a good time to meet with a real estate agent. If you need me to refer one to you, I’m happy to do so!
….Nonetheless, it was noted that mortgage credit remained tight and the fraction of homeowners with mortgage balances exceeding the value of their homes remained high.
Those seeking a mortgage, whether it’s for refinancing or buying a home do need to qualify and it is a “full doc” process. However, it’s not impossible. You need to be prepared to provide all income and asset documents, have steady employment and good credit. If you are considering buying a home (or even refinancing) in the next 12 months, I recommend starting with a preapproval now.
Home owners who are still upside down with the loss of their home equity may still be able to take advantage of today’s low rates if:
- they qualify for the Home Affordable Refinance Program (HARP 2.0). This is eligible for conforming mortgages securitized by Fannie Mae or Freddie Mac prior to June 1, 2009 on primary residences, second homes or investment properties. Or…
- the existing mortgage to refinance is FHA, an FHA streamlined refinance may be possible for primary residence or investment properties. Or…
- the existing mortgage is VA or USDA.
If you are looking at buying a home or refinancing anywhere in the state of Washington, I’m happy to help you!
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