Every year my son’s Great Grandma, better known as Nona, makes me a Rhubarb Custard Pie. It’s usually after my birthday because she waits until the rhubarb is ready from her garden…and it’s worth the wait! I’m one lucky lady.
Happy Mother’s Day
May 9, 2008 by 1 Comment
A little song for all of us Moms in honor of Mother’s Day this Sunday.
Hat tip to my friend, Lisa Wallace-Baker who shared this with me back in November.
The Mortgage Rates You’ve Been Waiting For: Conforming-Jumbo under 6!
May 9, 2008 by Leave a Comment
EDITORS NOTE: THIS POST IS FROM 2008 – THE MORTGAGE RATES QUOTED ARE NO LONGER VALID. For a current rate quote on your home located in Washington state, click here.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 5.625% (APR 5.776%)
30 Year Fixed with 10 Year Interest Only: 6.000% (APR 6.140%)
15 Year Fixed: 5.250% (APR 5.500%)
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 – $567,500 for properties in King, Snohomish or Pierce Counties. (For other conforming-jumbo loan limits in Washington state, click here); specifically priced for a sales price of $650,000 and a $520,000 loan amount.
30 Year Fixed: 5.750% (APR 5.898%)
30 Year Fixed with 10 Year Interest Only: 6.250% (APR 6.386%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down). The specific scenario used to price the rates below is a sales price of $850,000 with a loan amount of $680,000.
30 Year Fixed: 7.500% (APR 7.758%)
FHA. Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed: 5.750% (APR 6.527%).
FHA-Jumbo. Pricing based on loan amounts from $362,791 – $567,500 for King, Snohomish and Pierce Counties. For other loan limits in Washington State, click here.
30 Year Fixed: 5.875% (APR 6.649%)
VA. Pricing based on credit scores of 620 or better based on loan amounts up to $417,000.
30 Year Fixed: 5.875% (APR 6.188%)
Prime Rate (what HELOCs are based on): 5.000%
This is just a small sample available of rates and products. Rates are as of Friday, May 9, 2008 at 8:00 a.m. and may change at any time. Follow me on Twitter to see rates I’m quoting. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate.
For your personal rate quote for your Washington State property, please contact me.
Washington Correpsondent Lenders are forced to have Consumer Loan License
May 7, 2008 by Leave a Comment
Today’s Mortgage Brokers Commission meeting was attended by many concerned mortgage brokers and correspondent lenders (brokers with warehouse lines of credit) who feel as though they’ve had a real doozy pulled over them by recent legislation, specifically SB 6471. Deb Bortner of DFI (bad photo compliments of my Treo) insists that it was not DFI’s intentions to rope in the correspondent lenders who are licensed as mortgage brokers to be regulated by the Consumer Loan Act.
Many Washington State correspondent lenders (and we, loan originators who work for a correspondent lender) are feeling very frustrated (to sugar coat it). A majority of us have abided by the State’s licensing laws, paid our dues, passed our background checks and the exam…even if we were not a “true” broker. We played along and played by the rules. In an attempt to “capture” a few Correspondents who apparently do not broker (they’re direct endorsed lenders, like Mortgage Master, except we will broker a small portion of our loans), who were exempt from the Mortgage Brokers Practice Act, the State decided to deem any mortgage broker with a warehouse line (i.e. Correspondent Lenders) will now be regulated under the Consumer Loan Act. Correspondent Lenders can retain both licenses and be held liable accountable under both acts, or just maintain their newly required Consumer Loan License. There’s significant expenses for both licenses which I may or may not get into in a future post.
After Deb Bortner defended DFI’s position, she handed the floor over to the audience and here’s a few of the comments from “the floor” of brokers that I found interesting (I’m paraphrasing, since I was not able to write fast enough and I’m not quoting the individual broker):
“This [obtaining a consumer loan license] goes against every value we have in our business. We can now hire felons, are no longer required to do continue education and the consumer will pay. What you’re doing is STUPID.”
“This is a nasty little bill with nasty little consequences.”
“We are Correspondent Lenders. We are different than Mortgage Brokers and we are NOT a Pawn Shop.”
“I wish the media was here to see all of these mortgage brokers fighting for the consumer.”
“For half of the mortgage industry to have to go through the licensing again is crazy.”
“Everyday that goes by is less chance of closing a loan. We [correspondent lenders] have the ability to draw docs and close loans quicker and more efficiently than true mortgage brokers.”
“How many lenders were actually not licensed through the loophole? It seems the motivation here is more taxes.”
“What is DFI going to do with all the extra money?”
Mortgage Brokers and Correspondent Lenders, your next chance to hear what DFI has to say is next week in Bellevue on Tuesday, May 13–however you must RSVP by this Friday, May 9, 2008. For more information, click here. As of midnight, June 11, 2008, if you have a warehouse line of credit and you’re a mortgage broker or correspondent lender, you need a Consumer Loan License.
Update on Mortgage Broker/Correspondent Lender DFI Meeting
May 6, 2008 by 2 Comments
Thanks to Jillayne Schlicke for posting this because I personally didn’t receive anyword from DFI (I do receive emails regarding the Mortgage Broker Commission meetings)…this one hits close to home as the company I work for, Mortgage Master, is a Correspondent Lender. DFI did send an email to the President of our company however NOTHING was on their site when she told me about this.
So this is another shout out to all the mortgage brokers in Washington State, especially those impacted by SB 6471, which in my opinion seems to have been passed this quite conveniently by telling WAMB this would not impact mortgage brokers. WRONG. Mortgage brokers who have a warehouse line (correspondent lenders) are going to be dramatically impacted by this law.
Meeting Of The Mortgage Broker Commission To Discuss The Impacts Of SB 6471
May 7, 2008, at 1:00 p.m.
Renton Community Center, Banquet Room (100 max capacity)
1715 Maple Valley Highway
Renton, WA (Driving Directions)
Please attend and pass the word!
How to Apply On-Line for a Mortgage Preapproval
May 6, 2008 by Leave a Comment
I recently had this excellent question from one my readers who is interested in getting preapproved:
I began filling out the loan application on the web, but stopped once I reached the part about the specific property, as I don’t currently have a property in mind. I believe what I am seeking to do [is] a true preapproval letter. I did read your post which clarified the difference between prequalification and preapproval. Is there a way to submit the full-doc information to you electronically to start the process for preapproval?
Mortgage Porter’s On-line Application (under Favorite Links) allows you to apply for mortgage preapproval before you have a property address. This is question is very valid because there is not a formal way to select that the property has not yet been found. Ideally, home buyers should get preapproved before they make an offer on a home. Anyhow, where the application asks for a property address, simply enter:
123 TBD St., Your City, WA, Your Zip (NOTE: I’m only licensed to help those who need a mortgage in Washington State).
During these historic times in our mortgage industry (and actually, in any time) it’s crucial to get preapproved BEFORE you begin to shop for your next home.
I’m really glad that I was emailed this question so I could address it…otherwise, I might not have caught this. Thanks!
My 22nd Anniversary in the RE Biz
May 3, 2008 by 14 Comments
I should stop saying how long I’ve been around the real estate industry! On May 1, 1986, a very bright-eyed and naive young Rhonda Christopherson, began my first “real job” at Safeco Title Insurance Company as a doc-puller (we were bought a year later by Chicago Title, where I worked in Unit 5).
After 14 years in the title industry, I made the move to mortgage and I’ve been helping Washington families with their Mortgage Planning needs for the past 8 years…the rest is history!
Yes…that is Chuck Knox, that was my hair style in the 80s and yes, I’m wearing yellow Reeboks with actual jersey.
What’s a Lock Confirmation?
May 1, 2008 by Leave a Comment
A lock confirmation is a written document that your Mortgage Professional should provide you once your interest rate is locked. In fact, if you don’t receive a Lock Confirmation once you have instructed your loan originator to lock, demand one. No skirting from the Loan Originator allowed!
Your Lock-In Agreement/Confirmation should include the following information:
- Date the loan was locked
- Borrowers Names
- Property Address
- Loan Amount
- Lock Expiration Date
- Interest Rate
- Origination Fee
- Discount Point
- Whether or not there’s a Prepayment Penalty
- ARM information (Margin, Index, Adjustment Caps, Life Cap and if it features a Conversion Option)
- Any lock in fees (including non-refundable) if any. This generally applies towards locks with longer lock periods.
- Terms of the lock (see below)
- Signature place for borrowers
- Signature of Loan Originator
- Name and Address of Mortgage Company
Why is this so important? For starters, once you agree to lock in a certain interest rate, a clock begins ticking and counting down towards the lock expiration date. If you get too close to that date, you may need a lock extension which could have a fee depending on what the pricing is at that time.
Equally, and possibly more important, you want to make sure that your Loan Originator has in fact locked your mortgage rate. There are some Loan Originators out there who will say they have locked in your rate when in fact, they have not. They’re gambling the market with hopes of still locking in your rate at what they have told you, but they’ll make a little extra on the back end OR the rate you want isn’t quite available so they’re gambling the market will improve and they’ll lock you once that rate appears. But what if it doesn’t? Having a document that shows that the Loan Originator committed that rate to you may help you should you need to make them honor the rate (you may have to seek their manager or higher).
It’s quite possible, especially in this volatile of a market where we are averaging two rate changes per day, that you may give the LO permission to lock in your rate and when they go to do so (even if it’s the moment you hang up the phone), the rates may be changing. A Mortgage Professional will be upfront with you and let you know if this has happened (for better or worse). An actual Lock-In Agreement/Confirmation should not be provided until the rate is actually locked in.
Changes to the loan application may also impact the mortgage rate which would then change the lock. For example:
- Credit score changes during the transaction discovered from a new report may impact the rate for better or worse.
- Changes in loan to value (after the appraisal is received).
- Change in level of documentation for the loan.
- Loan programs being terminated or guidelines tightened.
- Investor pricing changes with less time permitted than what the lock will allow.
- Information on loan application not accurate, misrepresented or changes (such as employment or the Underwriter determines occupancy to be different than stated on application).
Again, a Mortgage Professional will notify you of these changes and how they impact you as soon as they become aware.
Some lenders also offer a Forward Lock Agreement which is different than a confirmation…I’ll give you the scoop on a Forward Lock in another post soon. Stay tuned!
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