Helping Washington State homeowners learn more about their mortgage options.
Dawn Appel is a former employee of The Talon Group. She has been couragously battling leukemia. From 8:00 am – 4:00 pm today in Issaquah, you can get your car washed to help raise funds in her honor and to help support her family.
If you can't make it to the car wash but would still like to donate click here.
I can't remember since Mortgage Porter's inception going so many days without writing a post…the simple fact is I have to prioritize where I spend my time and these days, it's working with people who need assistance with a mortgage for a home located in Washington State. With fewer loan originators and increased volumes, any mortgage originator who's worth their salt is inundated in business.
In addition to what's going on during this historic time in the mortgage industry, I was recently "tapped" to help the Washington Association of Mortgage Professionals to serve as their Chair of the Social Media Networking Committee. Why would I do this now? Quite simply, I believe consumers deserve the freedom to choose who they want to work with. WAMP needs help getting their message out to Washington State mortgage originators and consumers. There is so much mis-information out there about mortgage originators (especially mortgage brokers) that I feel I must dedicate a few hours a month to help my fellow Washington State mortgage originator sisters and brothers. In the end, it helps you, the consumer. Without the mortgage broker industry, you would primarily have big banks and credit unions for your mortgage selections. Mortgage brokers and correspondent lenders create competition which is always good for the consumer. I've always believed that you shouldn't sit back and complain about situations that disturb you–we must take action. Hopefully my bit to help the Washington Association of Mortgage Professionals reach out to loan originators and consumers will make some sort of positive difference.
On that note…today I'm at the Washington Real Estate Industry Summit which is featuring Dave Reichert as the Key Note Speaker. This is an all day event so I will not be posting rates today. It should be interesting event and I look forward to reporting back to you with the nitty gritty.
On April 30th, first half of real estate taxes are due for properties located in Washington State. For those homeowners who are refinancing with a closing in April to mid-May, this can cause an inconvenience. Lenders, the title insurance company and the escrow company need evidence from the County that the taxes for the first half of the year have indeed been paid.
Unless your reserve account is waived, taxes are collected on a monthly basis in your mortgage payment and then paid when they are due: first half is due by April 30th and the second half is due by October 31st.
The County typically has a lag time before the processed payments appear once they receive the payment from the mortgage servicer. King County’s website states:
“It may take up to two weeks for your property tax payment to be reflected in our records after receiving your payment”.
For refinances closing before it is reflected in County records that taxes have been paid; they have a few options:
Folks closing their refi’s in October to mid-November will be in the same boat with their property taxes.
UPDATE JUNE 19, 2010: The Home Affordable Refinance Program has become much easier to do since writing this post with both Fannie Mae and Freddie Mac securitized mortgages. This post is pretty outdated (the hazards of writing about mortgages on a blog!) If you need help with refinancing your home in Washington, please contact me.
Here is an updated information on Fannie Mae's Home Affordable Refi.
NOTE: This program is still "evolving". Wholesale lenders/banks and private mortgage insurance companies are still issuing and revising their guidelines. I'll try to update this post with current information as I receive it.
Fannie Mae will be implementing the Making Home Affordable Refi starting April 4, 2009. Some home owners will be free to use any mortgage professional (as long as they are Fannie Mae approved) and others will be forced to return to their mortgage servicer.
First of all, I am only licensed to provide residential mortgages for homes located in Washington State.
UPDATE: IF YOUR MORTGAGE IS OWNED BY FREDDIE MAC, I MAY BE ABLE TO HELP YOU. YOU DO NOT HAVE TO GO TO YOUR MORTGAGE SERVICER (WHO YOU MAKE YOUR PAYMENTS TO).
Currently, for the Home Affordable Refinance, Freddie Mac is requiring that home owners return to their mortgage servicer. To determine if your mortgage is owned by Freddie Mac, click here. If your mortgage is owned by Freddie Mac, I probably cannot help you with an Making Home Affordable refinance. However if your current mortgage is owned by Freddie Mac and you have home equity (you're not upside down); I may be able to help you. Fannie Mae has a larger market-share than Freddie Mac…odds are in your favor, but check Freddie Mac first. UPDATE: Since writing this post, one major bank has informed us they will allow us to originate Home Affordable/Freddie Mac mortgages as long as we broker the loan back to them.
If your mortgage is not owned by Freddie Mac, the next step is to see if it's owned by Fannie Mae. You can determine that by clicking here. Unlike Freddie Mac, Fannie Mae is allowing home owners to use eligible mortgage brokers, bankers and correspondent lenders of their choice. If your mortgage is owned by Fannie Mae (and your home is in WA); I may be able to assist you with your Home Affordable refinance.
Here are some important pointers about Fannie Mae's Home Affordable refinance (homes at a higher loan to value):
What if your existing mortgage is FHA or VA? You may qualify for a FHA or VA Streamline refinance which may not require an appraisal or income verification (you will need a mid-credit score of 620 or higher).
Lenders are currently inundated with refinance and purchase business due to the current low mortgage rates. I encourage you to apply early and be very patient. Washington State home owners can apply using my secure on-line application under "Favorite Links".
The bottom line is, if your home is in Washington I can at the very least help point you in the right direction and at the most, I can help you with your new refinance.
In years past, refinancing was a fairly simple task. Homeowners would contact me wanting to restructure their mortgage to either reduce their monthly payments or perhaps to take equity to improve their home or pay off debts. Back then, a 680 credit score was considered decent (anything over 720 was great) and people had a good idea of what their homes would appraise for and if they didn’t, I could usually determine a value by obtaining sales comps from a title insurance company. It’s just not so anymore. Refinancing can be trickier because there are “wild cards” involved that may not be revealed until you are deeper into the transaction.
I've really enjoyed being out in my garden today doing very preliminary clean up from our winter. We're not out of the woods with "winter weather" yet with lows tonight in the mid 30's.
Hopefully the colder than normal nights don't get the best of my peonies.
I relish these productive days in the sunshine. My grandparents were farmers in Minnesota…maybe that's were I get it from?
HUD is adopting Fannie and Freddie's reporting requirements for declining markets. Per Mortgagee Letter 2009-09, as of April 1, 2009 appraisals for all FHA insured mortgages must include the Market Conditions Addendum. Be preparared for second appraisals and limits to cash-out refinances if your property is determined to be in a declining market. From HUD's letter:
"a declining market is considered to be any neighborhood, market area, or region that demonstrates a decline in prices or deterioration in other market conditions as evidenced by an oversupply of existing inventory or extended marketing times."
In addition to providing three recent comparables (properties similar to home being appraised that have recently closed in the area); appraisers are required to:
To read the entire Mortgagee Letter, click here.
Rhonda Porter is a Licensed Mortgage Originator MLO121324 living in the greater Seattle area. Rhonda began her career in 1986 in the title and escrow industry and began her mortgage career in 2000. She enjoys helping people understand the mortgage process and started writing The Mortgage Porter in late 2006. Read More…
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