You Don’t Want to Miss this Conversation

July 16, 2008 by Leave a Comment

Dustin Luther of Rain City Guide and 4realz has been hosting weekly "radio shows" where people can call in, chat via the internet or do both while guest have a conversation with a panel selected by Dustin.   As a contributor to Rain City Guide, I’ve participated in a couple of these interesting sessions.  Recently we had a great discussion about the proposed changes to how appraisals are ordered for conforming mortgages…tomorrow’s conversation promises to be just as informing when Dustin interviews Lawrence Yun, Chief Economist for the National Association of Realtors.  The conversation is centered around the Effect of the FDIC/Treasury Actions on Homebuyers and the Real Estate Industry.

Tune in tomorrow, July 17, 2008 at 5pm PST.

I’m planning on being a part of the conversation–if you would like to learn how you can attend, click here.

Update:  If you missed the live broadcast, you can hear the discussion here:

Filed Under: Podcasts

New Risk Based Pricing for FHA Mortgage Insurance

July 16, 2008 by Leave a Comment

UPDATE: Please visit our FHA Guide for up-to-date information on FHA mortgage loans for homes located in Washington state. [Read more…]

Filed Under: Mortgage Rates & Market Updates

Documenting Alternative Credit with FHA Loans

July 15, 2008 by 15 Comments

EDITORS NOTE: This post was originally published in 2008. Underwriting guidelines ALWAYS change. Please contact me if you have any questions.

FHA insured loans, which are quickly becoming the mortgage of choice unless you have 20% down payment and 720 credit scores, allows people to obtain mortgage financing if they are shy on an established credit history reported to the credit bureaus.  Typically, a borrower needs to the following shown on their credit report for it to be considered “established”: [Read more…]

Filed Under: Home Buying, Credit & Financial Strategy, Mortgage Programs Tagged With: , ,

June’s Magnificent 7 Consumer Articles

July 9, 2008 by 1 Comment

Nommag72008_2Larry Cragun is at it again…reading thousands of posts and determining which one’s cut the mustard to be nominated for his monthly Magnificent 7.   At the end of the year, he has the gynormous task of reviewing his monthly nominees from 2008 and narrowing all 84 post down to the Magnificent 7 of 2008.   I’m thankful he does this because, as much reading as I do, Larry always seems to find important consumer focused articles that I’ve missed.

It’s always an honor to be considered one of the Magnificent 7 and for June Have You Co-Signed For a Mortgage? was recognized.

Do check out my fellow nominees by visiting Real Estate Undressed…and please thank Larry for his dedication.

Filed Under: Weblogs

Have Your Credit Monitored for FREE

July 8, 2008 by Leave a Comment

Recently, one of the big three credit bureaus, Transunion, settled on a class action lawsuit for re-selling consumers private information.  The settlement includes providing consumers with free credit monitoring or a possible cash payment…but you must apply for this benefit by September 24, 2008.  You are eligible if you have obtained credit from January 1, 1987 to May 28, 2008–including mortgages, car loans, credit cards, etc.

For more information, or to apply, visit www.listclassaction.com.

I encourage you to take advantage of this opportunity.  It just takes a few minutes to sign up!    This is especially important as banks are cutting back credit limits for credit cards and home equity lines of credit which may greatly impact your credit score.  More on that to follow.

Filed Under: Credit Scores and Reporting

A Sunday Cruise–in the Puget Sound

July 6, 2008 by Leave a Comment

I went on my first trip on our new boat, a 17 foot Arima.  Let me begin by saying, I’m not really into boating–I can barely dog-paddle and have a fear of water.   My hubby knows this (and I know I married a man who loves the water).   Anyhow…it was time for me to "face a fear" and take a Sunday cruise.  I thought I my first trip would be a quick hour tour just to get familiar with the boat…we stayed out four hours and I loved it!   

We left West Seattle and headed over to Blake Island to cruise by Tillacum Village.  All our kids have managed to go there via field trips–I have yet to experience it.

From there we went north towards Bainbridge Island.  (I was only equipped with my life jacket and my flip video camera–so the pictures aren’t as nice as I would like them to be).   The homes along the waterfront are incredible.   My husband wanted to show me this salmon fish farm. 

We passed the Walla Walla ferry on our way to Bremerton.

At Bremerton’s Navel Ship Yard, we noticed a couple subs along with other naval ships, including the USS Stennis (CVN 74). 

On our way back home to West Seattle, we passed the "back side" of Blake Island…

Next time…I’ll bring a "real" camera (and a picnic basket)!

Filed Under: Seattle, Sunday Drive - Neighborhood Tours

Independence Day

July 3, 2008 by Leave a Comment

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In observance of Indepenence Day, Mortgage Master will be closing at 2:00 pm today, July 3, 2008,  and will re-open for business as usual on Monday, July 7, 2008.   Should you need assistance with a mortgage for a property in Washington State, please give me a call or email…I’ll be around this weekend.     

As the bond markets will be closed tomorrow, I will be posting rates this morning (not Friday).

I hope you and yours have a safe, sane and FUN fourth of July!

This photo is from the Statue of Liberty at Alki, West Seattle.    

Filed Under: Current Affairs

A Question Regarding Mortgage Rates for Investment Property

July 1, 2008 by Leave a Comment

One of my clients contacted me with this question:

"We’re in the early stages of thinking about buying a rental house.  If we were to buy a house for $260,000, how  much would we have to put down and what would the payments be like for a 30 year mortgage?"

Mortgage interest rates for investment properties are priced based on loan to value (how much money the investor is putting into the property) and the lowest mid-credit score of the borrower(s).   The price breaks are based at 70, 75 and 80% loan to value (LTV).   Based on a sales price of $260,000; here is what current rates would look like using a 30 year fixed rate mortgage and a mid-credit score of 720.

Non Owner Occupied with 20% Down — Loan amount of $208,000 with a rate of 6.875% (APR 7.074%).  Principal and Interest (P&I) = $1366.41 plus taxes and insurance (on all payments shown).

Non Owner Occupied with 25% Down — Loan amount of $195,000 with a rate of 6.750% (APR 6.952%). P&I = $1264.77.

Non Owner Occupied (NOO) with 30 % Down — Loan amount of $182,000 with a rate of  6.625% (APR 6.830%).  P&I = $1165.37.

Another option to consider may be a 30 Year Fixed Rate with the 10 Year Interest Only payments.  You must qualify at the fully amortized rate and after 10 years, assuming you still have retained the mortgage, the mortgage balance at that time will be amortized for 20 years.  If you never pay additional towards your principal during the first 10 years, your mortgage balance will be the same as when the mortgage was originated.  Here are rates based on the same scenario above with the interest only feature.

NOO with 20% Down — Loan amount of $208,000 with a rate of 7.250% (APR 7.439%). Interest only payment of $1248.00.

NOO with 25% Down — Loan amount of $195,000 with a rate of 7.000% (APR 7.188%).  Interest only payment of $1137.50.

NOO with 30% Down –Loan amount of $182,000 with a rate of 6.875% (APR 7.066%). Interest only payment of $1042.71.

I’ve written more about about financing investment properties here.

Do you have a mortgage question for me?  Send me an email, I’m happy to help and your question may help others.

Filed Under: Investment Property
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