The Mortgage Porter

The Magnificent 7 for 2008 are…drum roll please….

February 2, 2009 by Rhonda Porter 2 Comments

I'm still in awe over Larry Cragun's dedication of reading thousands of articles to share his monthly selection of the seven best articles each month…and then to take those posts for the year and fine tune it down to his top seven favorite consumer focused articles is simply amazing. Larry has said on his blog that 2008 is his last year for his Magnificent 7. This makes being recognized as one of the last final seven extra special if not a bittersweet.

Not only am I honored that two of my articles made it to 2008's Magnificent 7, I'm humbled to be included with the others who made it on Larry's list.

Drum roll…the Magnificent 7 for 2008 are…(click here).

Filed Under: Weblogs

Meet Me and My Fellow Rain City Guide Contributers

January 31, 2009 by Rhonda Porter 1 Comment

Ardell, Jillayne and yours truly will at Crossroads in Bellevue at 6:30 pm on February 4, 2009. I’m bummed that Dustin can’t make it (maybe he’ll suprise us). And so far, fellow authors, Craig and Robbie, say they’ll be there too!

It’s a causal meet-up that Ardell is organizing. We’d love to meet our readers, commenters and fellow contributors. For more information or to give us a heads up that you’re stopping by.

By the way, if you visit Rain City Guide’s About RCG page, you’ll see what the four of us are twittering–just like the photo above which was taken at Inman Connect in San Francisco last summer. Sadly, RCG contributors rarely have the opportunity to pile on a bean bag chair together.

Filed Under: Seattle & Washington Real Estate Tagged With: rain city guide, raincityguide

Reviewing an ARM Note for a Neighbor in West Seattle

January 27, 2009 by Rhonda Porter Leave a Comment

I've been working with a home owner in West Seattle who has an adjustable rate mortgage that she obtained almost five years ago from a big "local" bank. She contacted me to obtain rate quotes for refinance because her ARM is set to adjust soon. Here's what a review of her Note reveals:

The Note rate is 4.125% for five years with the first adjustment coming up on May 1, 2009. The index is based on the 1 Year Treasury (CMT) and her margin is 2.75%.

If her ARM were set to adjust today, her new rate would be based on adding the margin of 2.75% to the 1 Year Treasury rate of 0.49% rounded to the nearest 0.125% = 3.25%. (Indices are changing dramatically in our current climate–it's hard to say where the CMT will be on May 2009).

This rate is amortized based on the remaining term of 25 years and every May her ARM will continue to adjust based on where the current index is (1 year Treasury – CMT) plus the margin of 2.75%. This is also limited to specific caps that her Note features of 2% annually and a lifetime ceiling of 10.125%.

Let's assume her rate adjust to 3.25% in May 2009. The highest her rate could be on May 2010 is 5.25% and the lowest is 2.75% (the lowest the rate may ever be is limited to the margin of 2.75%). If rates continuing rising, the worse case scenario would look like this: May 2011 = 7.25%; May 2012 = 9.25%; May 2013 = 10.125% (because of the lifetime cap of 10.125%).

If worse case scenario, the CMT climbs dramatically over the next few months, the highest her rate could be is 6.125% based on her 2% rate caps.

Should this home owner refinance with her adjustment date looming near? It really depends on what her personal financial plans are and if she can tolerate having her rate change annually. Her main risk is where rates may be in the future. The choice is hers.

What would you do?

Are you a Seattle area home owner with an ARM? I'm happy to review your Note for you–no refinance required.

Filed Under: Mortgage Programs, Refinance

Martin Luther King Day

January 19, 2009 by Rhonda Porter 3 Comments

In 1986, King County, where I reside, was renamed after Martin Luther King Jr. Originally our county was named after William Rufus Devane King, a slaveowner and once Vice President under Franklin Pierce, back in 1852. The renaming of King County was official in 2005 and the new county logo, featuring Martin Luther King Jr replacing a “crown” followed in 2006.

Personally, I’m pleased to have our county to be named after Martin Luther King Jr.

Filed Under: Seattle & Washington Real Estate

Condo’s Getting Spanked by Fannie

January 12, 2009 by Rhonda Porter 2 Comments

Fannie Mae’s latest hits to rate will be implemented by lenders any day. Condominiums are really getting spanked with a 0.75% add to fee if there is less than 25% home equity in the property. This will apply to both purchases and refinances for any mortgage except those amortized 15 years or less.

If you are considering refinancing your condo, contact your local mortgage professional right away (I can help you if you’re located in Washington state)…if you’re in the process of buying a condo and are “floating” your interest rate, I highly recommend considering locking.

PS: Cash-out refinances are also getting whammo’d by Fannie. Don’t wait!

Filed Under: Mortgage Rates & Market Updates Tagged With: condo, interest rate