There are no scheduled economic indicators due to be released today. However, mortgage rates are trending lower this morning due to steepened worries from the Euro-zone, namely Spain and Greece. How could Greece and Spain’s pain cause lower mortgage interest rates? Investors are seeking the safety of bonds, like mortgage backed securities. As I write this post (6:35 PST), the DOW is down about 121 and the Euro has fallen to a two year low.
What May Impact Mortgage Rates the week of July 23, 2012
July 23, 2012 by Leave a Comment
Thank You, JP
July 22, 2012 by Leave a Comment
I learned tonight of the passing of my childhood hero, JP Patches. If you didn’t grow up in the greater Seattle area in the late 70’s, you my not have had the privilege of knowing how wonderful JP Patches is. Some of my earliest childhood memories are of starting our morning off in our Renton home first (having to) watch Zoom until JP Patches came on. I was so excited just to hear the theme song start of the early morning coo-coo clock sounds. JP Patches made my day. I loved his funny skits and that he was always kind and seemed to know what was going on. He provided normalcy while my parents were going through a divorce and trying to work things out with their relationship He played my favorite cartoons and I would wait on the edge of my seat with ever other kid within KIRO’s viewing area, hoping he would mention my name when he peered at us through the ICU2TV. I remember being absolutely honored in kindergarten when the photographer for our class photo called me Getrude because of my dress that my Mom made me. (I love that dress, by the way).
He is my childhood hero.
When my husband and I were making plans for our wedding. We actually had hired Chris Wedes (JP) to perform our ceremony. He said he had never officiated a wedding before, which we were fine with. We had planned on doing the ceremony with JP at our home.
The home wedding plans wound up being not what wanted to do. When we decided not to have him perform our ceremony, he was gracious and I promised him a bottle a wine. He was so gracious.
Much to my surprise, my husband surprised me on my birthday with…my most favorite clown…the best present ever! I’m wearing a t-shirt that I had bought years ago and proudly wore all the time. Of course, JP autographed it for me.
Not only was I thrilled to have JP as a guest in our home, and my birthday guest were all equally thrilled. He has the ability to make everyone feel like a child again.
I love JP. This year, when I decided to try painting on black velvet, I wanted to have my first painting to be of JP.
J.P. is so loved and will be very missed. I can’t help but feel grateful that he has been a part of my life. Than you, Chris Wedes for J.P. Patches.
Mortgage Porter Moves…
July 18, 2012 by 2 Comments
After six years of pounding out posts about everything mortgage, I’ve finally moved my blog to WordPress. To my friends who have been encouraging me to do this with your playful jabs and jeers, THANK YOU!!
Today is the first day for my revamped blog to be unveiled so if you happen to catch any broken links or something that doesn’t seem right, please let me know.
Thanks again for reading my blog!
What may impact mortgage rates this week: July 16 – 20
July 16, 2012 by Leave a Comment
This week is packed with scheduled economic indicators that may influence mortgage rates. Let's face it, mortgage rates have been extremely low and have been for quite a while. Its very easy to assume they will stay this way for months or a few years – do keep in mind that this is an election year and, even if not an election year, things change. Even when rates stay low, banks may add on risk based pricing or price a program to where it's not very attractive to control their inventory. All I'm trying to say is please don't take the current low interest rate environment for granted. With that said, here are some of the economic indicators scheduled to be released this week that may impact mortgage rates:
Monday, July 16: Retail Sales and Empire State Index. NOTE: Retail sales came in weaker than expected today.
Tuesday, July 17: Consumer Price Index, Industrial Production and Capacity Utilization. NOTE: Fed Chairman Bernanke is on Capitol Hill tomorrow and Wednesday for his semi-annual testimony on the economy.
Wednesday, July 18: Housing Starts, Building Permits and the Beige Book
Thursday, July 19: Initial Jobless Claims, Existing Home Sales and the Philadelphia Fed Index
I'm writing this post late Monday evening taking in the last of the Seattle sunset. I am astonished at how low mortgage rates have been for this amount of time. Despite the low mortgage rates, mortgages are getting a little trickier to obtain depending on your circumstance. Many banks are turning their noses up at borrowers who do not have their existing mortgage with them – pretty pathetic when you consider how much our of tax dollars went to bailing them out, in my humble opinion.
If you would like me to provide a mortgage rate quote for your home purchase or refinance on a home located anywhere in the beautiful State of Washington, please click here. We are a correspondent lender who has been serving Washington since 1976.
Freddie Mac HARP 2.0 Loans Getting Tougher
July 12, 2012 by 15 Comments
One of the lenders that we work with for Freddie Mac HARP 2.0 refi’s has announced today that they are not accepting applications for loans locked after July 20, 2012.
The bank states they’re doing this to get a handle on their pipeline. If you’re in the process of refinancing via HARP 2.0 and you have a loan to value that exceeds 105%, you may already know that the process seems to be taking a couple months.
If you qualify for a HARP 2.0 refinance: if you have lost equity in your home and your current mortgage is securtized by Freddie Mac prior to June 1, 2009 – please do not delay starting your HARP 2.0 refinance… your options may be dwindling.
If your home is located in Washington state, I’m happy to help you with your refinance.
Survey Says!
July 10, 2012 by Leave a Comment
According to Fannie Mae’s Monthly National Housing Survey, many Americans believe that home prices are on the rise. If you are shopping for a home in the Seattle area, you probably know this to be true and may have experienced a bidding war or two.
If you are considering taking advantage of today’s very low mortgage rates and home prices, it’s crucial that you get preapproved by a qualified local mortgage originator.
A preapproval means that you have provided your supporting income and asset documents to prove you have the ability to purchase the home. If you have not provided income and asset documents to your lender, you are most likely not “preapproved” and may only be “prequalified”.
I’m happy to assist with the financing of your home located anywhere in Washington state. It all starts with a review of your financial scenario – click here to start the application process.
Should I do an FHA streamline refi if my rate is 4.875%?
July 6, 2012 by 18 Comments
This is a scenario I’m reviewing for one of my clients who lives in Seattle. His existing mortgage is a 30 year fixed FHA at 4.875%. He closed on this loan after June 1, 2009 so it does not qualify for FHA’s reduced mortgage insurance premiums*. However, he can still take advantage of today’s low mortgage rates as long as the refi meets HUD’s “net tangible benefit” requirements of reducing his payment by at least 5%.
HUD’s Net Tangible Benefit requires that the “PIMI” (principal, interest and mortgage insurance) payment be reduced by at least five percent or the refinance cannot happen. This has been an issue for home owners who would like to refinance from their FHA 30 year fixed to an FHA 15 year fixed as HUD does not make an exception for those who would like to shorten their mortgage term if the payment increases — even if the borrower qualifies with documenting their income (some FHA streamlines do not require income to be documented).
The Seattle client I’m working with is doing a “credit qualifying” FHA streamline refi for a 30 year fixed. His current principal and interest is $1171.55 and the monthly mortgage insurance payment is $95.90 for a total PIMI payment of $1,267.45. His new PIMI payment needs to be less by at least 5% ($63.37) which means his new PIMI needs to be $1,204.08 or lower.
As of 10:00 am this morning (July 6, 2012) I’m quoting 3.375% for a 30 year fixed FHA streamline refi with no appraisal (apr 4.554) with a base loan amount of $212,750. After his upfront mortgage insruance premium credit from his existing FHA insured loan and interest rate credit, he’ll need to bring in about $1200 at closing. He won’t have a mortgage payment due until a month after closing and receiving a refund of his existing reserve account balance a couple weeks after closing.
But what about the new PIMI? Principal and interest is $957.01 and the monthly mortgage insurance is $210.85 for a total PIMI of $1,167.86. The new refinance meets HUD’s net tangible benefit requirement.
The Seattle homeowner is reducing their payment by $100 per month. **And after 60 payments and when the loan balance reaches 78% loan to value, the monthly mortgage insurance will terminate.
**UPDATE 12/19/2012: FHA mortgage insurance will not be cancelled on new mortgages effective January 2013. It will remain on the life of the loan (until it is paid off or refinanced to a non-FHA mortgage).** Read more here.
*NOTE: If the FHA mortgage being refi’d was endorsed by HUD prior to June 1, 2009, the savings would be even greater as it would qualify for reduced mortgage insurance.
If you have an FHA insured mortgage and are interested in an FHA streamlined refinance on your home located anywhere in Washington, please contact me. I’m happy to help you!
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