There’s been a lot of rumbling about whether or not first time home buyers would be able to access the tax credit created by The American Recovery and Reinvestment Act of 2009 towards the purchase of their new home. From HUD’s announcement yesterday: [Read more…]
HUD Approves First Time Home Buyers Using Tax Credit Advance for FHA Loans
May 30, 2009 by 1 Comment
Question from a Mortgage Porter reader: My Loan Officer Didn’t Lock…What Can I Do?
May 28, 2009 by Leave a Comment
Last night, I received this email from a borrower who's dealing with yesterday's dramatic rise in mortgage rates:
I was wondering if there was anything we can do if we asked our lender to lock in Monday (which I would suppose would mean Tuesday am) and he didn't because he was sick. Now he is balking at giving us the rate that he quoted us. We think that the lending institution should make good on their rate, since we HAD decided to lock in and it was their delay that caused the problem. Is there a chance for us?
Monday was Memorial Day and therefore, the mortgage originator probably could not lock and most likely was enjoying a day off. On Tuesday, it sounds like the loan officer took another day off for health reasons.
Unless the mortgage originator provided you a written lock confirmation, I'm not sure that you have a leg to stand on. A rate quote is not a guarantee of rate. In fact, it's only valid the moment the loan originator is providing it. Rates change constantly–yesterday, most of the lenders our company works with issued 5 different rate sheets.
Not being able to reach your loan officer when you want to lock is a risk when floating your mortgage interest rate. If I have the day off (due to health or vacation) I do have a manager who will take care of locks and/or any issues that may arise. Consumers may also find it difficult to make contact with their mortgage professional to lock because they may be working with another client at the moment (either locking another loan or in a consultation).
Not locking your rate at application (if you're closing soon) is gambling the rate not only are your betting that rates will go down, you're risking not being able to lock for the reasons mentioned above and also with constant changing guidelines in this current environment. Locking the rate is also a form of gambling (that the rate will go up). Always consider which worse case scenario you can live with when making the decision to lock or not lock.
With that said, rates may come back down since the Treasury is not done spending their allotment towards mortgage bonds (which has been keeping mortgage rates artificially low). No one can say precisely when this will happen or how much rates will be manipulated lower.
Reminder: No Closings this Friday for King and Snohomish Counties
May 18, 2009 by Leave a Comment
Due to budget restraints in King and Snohomish Counties, the recorders office will be closed this Friday and will not reopen until Tuesday (due to Memorial Day). This means that if you are buying, selling or refinancing a home; the Deed or new mortgage (Deed of Trust) cannot be recorded on these dates. Pierce County's recorders office will remain open Friday, May 22, 2009.
The Talon Group has calendars available with recording schedules for King, Pierce and Snohomish Counties–click here. Each county is doing their own thing to their respective budgets. Just last month, Snohomish County announced that they are closing early on Friday's (if they are not on furlough).
If you have a transaction scheduled to close on property located in King or Snohomish Counties this Friday, May 22, you may want to check with your real estate and mortgage professionals.
What I’ve Learned About Pugs
May 16, 2009 by 1 Comment
I have a 13 year old Pug, Orson. Last month it seemed his hind legs were bothering 
him so I took him to the Vet who thought it was most likely old age and arthritis. He recommended giving him treats with glucosamine to see if that worked. A couple weeks later, his front legs began to give him trouble as well and he began walking with a sway (almost as if he was a little drunk). Orson and I went back to the local Vet and this time the prognosis was not good: possible brain tumor. They referred us to Dr. Sean Saunders of Seattle Veterinary Specialist in Kirkland who specializes in neurology. An MRI revealed that Orson does not have a brain tumor; he has Hansen's Type II invertebral disk disease–as bad as this sounds, I'm relieved since this is probably can be managed with doggy drugs.
What's the probable cause (or at least an aggregator)?
- Stairs. His compact body is jarred going up and down stairs.
- Being walked with a traditional collar. Orson now sports a nice harness for his walks.
- Jumping can also cause injury to the disks in their spine. Orson's not a jumper.
So this weekend, we're cleaning out our home office area. Orson's "movin' on up" from the basement to a kennel in the office. No more stairs for this fellow and I'm happy to share my home office with him.
USDA Loans offer 100% Financing
May 14, 2009 by 2 Comments
EDITORS NOTE: Please check out this updated post (May 2011) on USDA financing for homes located in Washington State. Income limits and the guarantee fee have since changed since publishing this post.
USDA Rural Development loans offer financing of single family dwellings in rural areas to people who meet certain income limits. In King County, the current four-person household adjusted limit is $88,400 maximum income.
This program provides up to 100% financing with flexible underwriting guidelines. There is no mortgage insurance however, similar to a VA loan, there is an upfront fee of 2% of the loan amount (guarantee fee) that can be financed into the new mortgage. Mortgage rates are attractive considering the higher loan to value, no credit score price hits and no monthly mortgage insurance–I've added rates for USDA loans to my rate post that I do on Friday's here at Mortgage Porter.
To see if you and a potential property are eligible, click here.
If you're interested in a USDA loan on property located in Washington State, please contact me. Mortgage Master is an approved lender.
Mortgage Master now has Streamlined FHA 203(k) Loans!
May 13, 2009 by 1 Comment
UPDATE: Please visit our Renovation Mortgage Guide for current information on various mortgages to remodel your Washington state home. [Read more…]
Happy Mother’s Day
May 10, 2009 by Leave a Comment
This photo could have been very close to my Mom's first Mother's Day.
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