This Week Could be a Doozie for Mortgage Interest Rates

April 25, 2011 by Leave a Comment

In the past, I've included the scheduled events that may impact mortgage interest rates in my rate weekly rate post.  However, this week is so packed data that I thought it was worthy of a post all its own.  Check this out (items that are bold tend to be the may be the most influential to rates):

Monday, April 25:  New Home Sales

Tuesday, April 26:  Consumer Confidence

Wednesday, April 27:  FOMC Meeting and Durable Goods Orders

Thursday, April 28:  Gross Domestic Product, Initial Jobless Claims, GDP Chain Deflator and Pending Home Sales.

Friday, April 29:  Personal Consumption Expenditures and Core PCE, Employment Cost Index, Chicago PMI and Consumer Sentiment Index (UoM).

Wednesday, we'll learn if the Fed's interest rate decision and possibly gain clues as to their plans with QE2.  Ben Bernanke is going to be having a news conference following the FOMC meeting which many will be tuned into hoping for clarity on his views of the direction of our economy.  You can see the entire week offers plenty of data to be digested.  

Remember, mortgage rates are based on mortgage backed securities (bonds) and are not set by the Fed.  Mortgage rates may are impacted by how MBS are being traded on the bond markets.  When the stock market is rallying or there are signs of inflation, mortgage rates tend to raise higher.  When the stocks are tanking, investors will often seek the safety of bonds which will cause rates to move lower.

Whether or not you should lock or float (not lock) your interest rate depends on your personal risk tolerance.  My general stance is that if you like the rate that is currently available – you should consider locking.  Decide which scenario is worse for you: losing today's rate by not locking or locking todays rate with a rate drop tomorrow.  Please discuss this with your local mortgage professional.  I am a NMLS Licensed Mortgage Originator dedicated solely to Washington State.    If you are interested in a mortgage for a home located anywhere in Washington State, I am happy to help you.

NOTE:  I plan on posting mortgage interest rates today.  Stay tuned!

Filed Under: Economy, Events, The Fed - FOMC

Happy Earth Day

April 22, 2011 by Leave a Comment

When I'm not helping people with financing to refinance or buy their next home or investment property, I love to spend time in my garden.

DSC_0112 
Check out this hummingbird who decided to take a break in one of the cherry trees in the front yard of our Seattle home.

How are you celebrating Earth Day?

Filed Under: Current Affairs

Survey Says: How Consumers Select their Mortgage Originator

April 20, 2011 by 4 Comments

A few weeks ago, I posted a survey with three questions to learn consumers opinion about the Fed's rule on loan originator compensation and how they select their loan originator.  Here are the results.

Please rate the following based on how you will select your next mortgage professional:

  • Years of experience as a mortgage originator (72.7%)
  • Referral from someone you trust (63.6%)
  • I will return to the LO who helped me with my last mortgage (62.8%)
  • Whoever quotes the lowest rate (45.5%)
  • Type of institution (bank, correspondent lender, broker or credit union). (38.6%)

When I'm helping someone with a mortgage for a home located in Washington state, I find that a majority of my new clients are readers of my blog.  I'm also fortunate that many of my clients are referred to me from real estate agents and financial planners.  Home owners I have helped in the past also tend to refer their friends and family and return to me for their next.  I do not advertise (with the exception of my tiny ad on West Seattle Blog), I do not take "up calls" and I do not buy leads…never will.

Thank you for reading my blog and for remembering me when you or someone you know needs a mortgage for a home in Washington.  I feel so fortunate to have my business model where consumers seek my professional advice and assistance with their home loans. 

Filed Under: Polls

Walla Walla Weekend

April 17, 2011 by 1 Comment

Col Solare

Earlier this month we decided to travel to Walla Walla for a "wine weekend". The scenic 4-5 hour drive from Seattle takes you over the Snoquamie Pass via I-90.  I relied on an app from the WSDOT on my Droid to provide us up to the minute pass conditions and information on traffic.

We like to stop in Ellensburg for lunch at the Yellow Church Cafe; I recommend their burgers and the tuna melt.   Ellensburg is a wonderful old town and my husband went to Central so it's a fun place to stretch our legs before heading on towards Yakima (another great area of wine country in Washington) before reaching our final destination.

Some of my favorite places we visited this trip are Rotie Cellars, Seven Hills, El Corazon, Basel Cellars and Zebra Cellars.

DSC00394 We stayed at the Holiday Inn Express which is actually just on the outskirts of Walla Walla.  If you want to be more in town so that you can walk to different wineries and tasting rooms, you may want to check out a local B&B, the Marcus Whitman Hotel or another location.  If you have a favorite spot to stay at in Walla Walla or wineries to visit, please comment and let me know!

Next time we're planning on visiting Red Mountain.  Col Solare is pictured above and they require an advanced appointment tastings.

Check out more of my photos of our road trip to Walla Walla.

Filed Under: Sunday Drive - Neighborhood Tours, Web/Tech

Fannie Mae Homepath Mortgage Incentives are BACK!

April 15, 2011 by Leave a Comment

NOTE:  This program has been extended through October 31, 2011.

Fannie Mae is trying to sweeten the pot for buyers to considering using a Fannie Mae Homepath Mortgage for purchasing a foreclosed home that is now owned by Fannie Mae by offering 3.5% in closing costs on eligible transactions that close by June 30, 2011.

Here are some details for qualifying for the Fannie's Homepath Mortgage special (from the Homepath website):

  • Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer in order to be eligible.
  • The initial offer must be submitted on or after April 11, 2011 and close by June 30, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
  • The sale must close on or before June 30, 2011. No exceptions will be made to this deadline.
  • Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
  • Buyer must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
  • If a buyer's total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.

Don't forget, the Fannie Mae Homepath Mortgage does not require an appraisal and there is no private mortgage insurance for credit scores over 660.   Fannie Mae will lend up to the high balance conforming loan limit, which is currently $567,500 in the greater Seattle area.   For more information, click here.

NOTE:  If you're considering a Fannie Mae HomePath Mortgage…I recommend checking out FHA rates which are currently lower, offers down payments as low as 3.5% and the mortgages are assumable.  It never hurts to compare your options!

If you have questions or would like a rate quote for a home located anywhere in Washington, please contact me!

Filed Under: Fannie, Freddie and FHFA, Homepath, Residential Purchase

The Importance of Having a Will

April 14, 2011 by 1 Comment

My father passed away last December after a battle with skin cancer and COPD.  He was not a financially wealthy man.  He was rich with love from his daughters, grandchildren, family and friends.  I'm not sure if he was being optimistic or was in denial about his health, he never created a will despite his failing health.

A few weeks after we buried Dad, I went to his bank to see what I was suppose to do.  At the very least, I wanted them to know that he was no longer living and to close the account to prevent any charges or activity that should no longer be happening.  The person who "helped" me wouldn't even speak to me without a will.  In fact, he hinted that if I opened an account, it might be easier to assist me.  I was so upset and emotional that I stormed out.  I was looking for guidance and received nothing…silly me.

If you don't create a will, then the State of Washington has specific laws as to what will happen with any real or personl property and who will be the beneficiary of the estate.  This is referred to as "intestate".   Dad's "estate" is probably is not enough to hire an attorney over.  If there's anything to help reimburse the cost of his burial, we'll be pleasantly surprised.   

By the way, this site has been the most helpful that I've found so far with trying to figure out what to do: This site has been probably the most helpful that I've found so far regarding Dad's estate:  http://www.wa-probate.com/

If you're drafting or updating your will, you may want to consider an estate planner or attorney who specializes in this matter to help you determine if you need a trust and to avoid possible death taxes. 

Please take time to create a will for you and your loved ones.  Make sure your wishes are honored and let someone know where your will is.  If you have a will, when was the last time you updated it?   Please don't leave this matter up to Washington State laws.  If my Dad would have had a will, I believe this issue would have been easily resolved by now.

Filed Under: Financial Planning

Avoiding Suprises with Funds Due at Closing

April 12, 2011 by Leave a Comment

EDITORS NOTE:  This is an updated version of this post which was written at a time when mortgage originators could more freely use the Good Faith Estimate as a tool to communicate with their clients.   Due to HUD's 2010 GFE and the accompanying restrictions, this is no longer probable.  In fact, nowhere on today's Good Faith Estimate is funds for closing disclosed!  Seattle area borrowers and homebuyers can still avoid surprises at escrow…hopefully these "updated" tips will help!

Your closing date on your new home is a couple of days away, your feeling a little case of the jitters…the last thing you want to deal with is to be surprised with what funds are due at your signing appointment with the escrow company.   

Here's how you can clear up the funds to close issue:

  1. Your Mortgage Professional can provide you with an updated worksheet atleast 5 days before closing to review your funds due at closing.  The worksheet may seem similar to what was used when you were obtaining quotes from your mortgage professional prior to locking or being in contract with your purchase and sales agreement.
  2. Verify with your Mortgage Professional if the worksheet is factoring in your earnest money deposit, deposits with the lender and any other credits (from the seller or real estate agents, for example).
  3. Request your Mortgage Professional obtain an estimated HUD-1 Settlement Statement from the escrow company at least two days before closing to review it for any corrections or modifications for both of you to review.  
  4. Bring a copy of your Good Faith Estimate with you to your signing appointment.  Page 3 of your estimated HUD-1 Settlement Statement will reflect if there are any discrepancies between what was quoted on your last Good Faith Estimate (which can only be reissued under specific circumstances).  Some fees have different tolerances which the mortgage company may be held responsible to "cure".

What if there are errors?  Try not to panic. Depending on how much time there is prior to the scheduled funding, the lender may be able to redraft loan documents if needed.   A majority of our loans are funded within our credit lines so unless it involves someone having to be re-approved for a higher loan amount, loan documents can be emailed fairly easily to the escrow company.   Often times, it could just be correcting a few documents and not the entire loan package.

The closing table can be an emotional time.   It's in your best interest to have as many of the details worked as far in advance as possible.   If you have questions or concerns, speak up.  This is not the time to be bashful.   This is your mortgage and one of the largest financial transactions you will make in your lifetime…get involved and take action!

Filed Under: Escrow and closing

What If the Government Shuts Down

April 8, 2011 by 1 Comment

I'm getting a lot of questions from Seattle area real estate agents, home buyers and home owners about what may happen with regards to mortgages in process.   Here's a few potential issues that I see:

  • 4506T (tax transcripts that are ordered from the IRS) may not be issued.  All conventional, FHA, VA and USDA loans require 4506Ts prior to funding. 
  • FHA loans may not be able to obtain insurance.  Our company CAN FUND FHA and PROCESS loans.  Obtaining the FHA insurance takes place after funding.
  • Transactions where HUD is the seller may be impacted. 

If you have a mortgage transaction in process, you may want to check with your mortgage originator to see if there are any possible implications to your transaction.

Hopefully this is a moot point post and our elected officials in Congress can come to an agreement on our budget.

Here's a 44 page outline of HUD's plans in the event the Government shuts down.  Hat tip to Kary Krismer.

Filed Under: Current Affairs
« Previous Page
Next Page »