NOW may be the time to refi if you have an ARM or Fixed over 6.5%

November 27, 2007 by Leave a Comment

Last night I posted that the 30 year fixed rate was at 5.625%…this morning, rates have been moving upwards (I’m all ready receiving new rate sheets from this morning for the worse).  Now may be the time to consider taking advantage of rates being below 6%.   

Just to recap…you should consider refinancing if:

  • You have an Adjustable Rate Mortgage with the fixed period ending in 24 months or less.
  • You have a 30 year fixed rate mortgage over 6.5%.
  • You have a piggy back (second) mortgage and enough equity to restructure the debt.
  • You are paying private mortgage insurance.
  • If you are concerned about the value of your home declining now or in the future (there are loan to value limits on refinances).   

If you’re concerned about your credit scores, FHA may be a great alternative for you as long as your credit history is fine.

If you have a prepayment penalty, it may or may not be worth refinancing at this time.  The penalty is considered prepaid interest so it does qualify as deductible mortgage interest (a small consolation).   

Questions?  Ask!  Don’t wait.   Mortgage rates change constantly and these days, mortgage programs do, too.    I’m here to help!   If you are unsure of your scenario, please contact your trusted Mortgage Professional right away.   It may be that you’re doing fine just where you’re at with your current mortgage and you need to do nothing…if so, at the very least, that 10 minute conversation with your CMPS provided you with a little piece of mind during these turbulent times in the mortgage industry.

PS:  NOW may also be a great time to buy and take advantage of 30 year fixed rates under 6.00%!

Filed Under: Refinance

Why you should make sure your condo is on the FHA approved list

November 26, 2007 by 7 Comments

Approved

Editors Update: Loan limits are different than what’s reflected below from when this article was originally written.  Check with your local FHA approved Mortgage Originator to see what your loan limits are (or click on the link in the second paragraph).  

[Read more…]

Filed Under: Condos, FHA, Refinance, Residential Purchase Tagged With: , ,

Getting ready for Christmas

November 25, 2007 by Leave a Comment

Probably the only one in our house who is more excited than me to drag out the boxes of decorations and ornaments is my old cat, Louise.    I just spied her on my dining room table, which is a “no-no”.   You’d never guess this snoopy cat is over 10 years old.Dsc_0003

Filed Under: Just for Fun Tagged With:

A Little Weekend Housekeeping

November 24, 2007 by 2 Comments

I don’t know if it’s because Mortgage Porter has a birthday coming up in a few days…or if it’s just overdue.   I did a little "house keeping" on my blog this morning.  Now that she’s a year old, it’s time to reorganize and unclutter.

My intent with Mortgage Porter is to have it very consumer focused.  And I hope it appeals to real estate professionals, too.   When I write for Mortgage Porter, I picture my clients, the questions they’ve asked and experiences they’ve had.   I want to help them understand the process.    I also like to throw in some personal stories and local events…just for fun!

Here are a few of the changes I’ve made…

A while back, I removed the monthly list of Achieves and created one link.   My goal was to list out every post however as far as I can tell with my Typepad platform, this has to be done manually and it’s been a chore!   You can still find Archives listed by month after you click the Archive link on the left right side of the blog.

I’ve also slimmed down my blog roll and separated the local blogs into their own list.  After I did that, I evaluated the remaining blog links and (this was hard) tried to really narrow it down to the (non-local) blogs I read the most and that are consumer focused.  I also created a link for all the other blogs that I enjoy that might be geared more real estate or mortgage professionals.

Plus, I’ve added a couple of badges that I’m proud of.   From top to bottom on the left:

  • CMPS Certified
  • Mortgage Market Guide
  • Top 12 Women RE Bloggers
  • Larry Cragun’s Magnificent 7 Consumer Articles.   

You can click on any of these badges for more information.

I’m learning that a blog is an evolving process full of tweaks and hopefully improvements.   Nothing is permanent or stagnant.   I’m sure I’ll be continuing to adjust and change Mortgage Porter…it’s kind of like moving around your furniture or cleaning out your closets at home!

Filed Under: Weblogs

ChaToe LaFeet’s First Wine Review

November 23, 2007 by Leave a Comment

Just in time for a Friday funny…at least it’s cracking me up!  My brother-in-law, Mike, just published a review of the wine that my husband and I made and bottled earlier this year:  ChaToe LaFeet.   Here is our first official review:

This week I’ll review a new wine, ChaToe LaFeet, a 2007 Amarone from the upstart West Seattle Winery called Two Dogs Wine. First tasted at a small gathering in Burien we pared the wine with a superb turkey. Once shaken (not stirred) the wine spilled beautifully over a green table cloth. The red over green made for a festive backdrop. Although no tears were shed, eyes did water and noses crinkled while lips were puckered into a deep red foam.

After the first taste and subsequent falling onto our knees, hence the Two Dog all fours position, most of us recovered fully. My doctor advised me that my vision will soon return. Stumbling in the dark I spilled the wine on some olive oil and lettuce and discovered a tasty tart salad dressing. I’ll save that for a future article.

When my doctor came back with the chemical analysis he suggested that the wine may be better pared with a Volkswagon as either biofuel or E-85. However, as I pointed out to the doctor, this is a first tasting of this vintage and having no comparison the Porter family tasters bestowed a Bronze medal and expect great things from this new winery.

Be sure to pick up next weeks review-Spilled Milk/Thanksgiving Tears: 
A new Whine Territory?

Yours truely,
Vashon Vinters and Arsenic Tasters

Look out Gary Vanderchuk!

Filed Under: Just for Fun

What to do with your turkey left overs?

November 23, 2007 by 2 Comments

Sandwich

Make a sandwich, soup or perhaps enchiladas…sit down, get comfy and read some great mortgage blog articles.  Here are a couple of recent posts that I highly recommend you check out:

HR 3915 – Getting Warmer by Matthew Graham of Mortgage News Daily

What Gas Stations Can Teach Us About Mortgage Brokerages – Part 1  by Russ of Smart Mortgage Advice

Prequalify Your Loan Officer By Asking: "Where Do Mortgage Rates Come From?" by Dan Green of the Mortgage Reports

Honor Among "Thieves" by Gina Gardner of Lenderama

But I Made My Payments by Mike Mueller of Mike’s Minute

7 Things That Have Changed in the Mortgage Industry by Larry Cragun of Real Estate Undressed

Enjoy!

Filed Under: Mortgage, Weblogs

Happy Thanksgiving

November 21, 2007 by 2 Comments

Birdseye

On Thanksgiving I think back to a dinner I was making for my entire family in my small condo I had just bought in Des Moines.  I was a fairly new single Mom and my son, who was in Kindergarten, was watching me prepare the feast.  One of the dishes was sauteed pearl onions which called for frozen onions; Birds Eye brand to be exact.  Well after my son watched in horror as I made the turkey dance around the kitchen trying to be funny, he was pretty much transfixed to what I was doing in the kitchen.

Dinner was very cozy in my my small dining-living room.  Everything really turned out nice when suddenly my son let out a huge yelp, “nobody eat the onions, they’re bird’s eyes!”

Every time this year I remember that dinner and just get a huge chuckle. 

Happy Thanksgiving to you and your family!

Mortgage Master is closing at 2 p.m. today and we will reopening for business as usual on Monday, November 26, 2007.   I will not be posting mortgage rates on this Friday. 

Filed Under: Current Affairs Tagged With: , , , , ,

Are you occupying or not occupying? THAT is the question.

November 19, 2007 by 10 Comments

Lies

Telling a lender you’re going to occupy (live in) a property and then not doing so is a form of fraud.  I’m amazed at how people what steps people will take in order to shave a little bit off of their interest rate (NOO is roughly 0.5% higher in rate for a 20% down fixed conforming product).

Here are basic lender guidelines for what is considered "owner occupied":

  • You must live in the home for a majority of the year.   Typically, a borrower is agreeing to live in the property for a minimum of 12 months following obtaining a mortgage.
  • The home needs to be located within reasonable distance to your work.
  • The home should make sense with your family (is it large enough for your dependents).
  • You do not have a rental agreement on your "owner occupied" home.
  • You can only have one "primary residence".

Second or vacation homes have these guidelines:

  • Typically located in a "vacation" area and available for year round occupancy.
  • Should be approx. 50 miles away from current residence.
  • The property cannot have "time-share" interest and cannot be rented.
  • You can only have one financed "second home".

If your property does not meet the guidelines above, it may very well be considered an investment property (non-owner occupied) in the eyes of an underwriter.   Recently new guidelines became available that accommodate borrowers helping family members, such as The Family Opportunity Mortgage.

Many of the guidelines are up to underwriter discretion and plain old common sense.  If you are buying a home as "owner occupied", the lender is anticipating that you will live in the property. 

If you have other intentions, it’s important that you openly discuss them with your Mortgage Professional so that you don’t unintentionally commit lender fraud.

The FBI states on their press release from December 2005:

Mortgage Fraud is one of the fastest growing white collar crimes in the United States. Mortgage Fraud is defined as a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan….The borrower makes a few misrepresentations, usually regarding income, personal debt, and property value, or there are down payment problems. The borrower wants the property and intends to repay the loan. Sometimes industry professionals are involved in coaching the borrower so that they qualify. Fraud for Property/Housing accounts for 20 percent of all fraud

When you’re obtaining a conforming mortgage, at application and again at closing, you sign affidavits stating that you intend to occupy (or not to occupy) the property that is being mortgaged.    It is much better for you to be upfront and ask your Mortgage Professional if your situation meets the guidelines of an owner occupied property than to have the lender call your Note due, or worse…how about a little jail time?   

Filed Under: Investment Property, Vacation and Second Homes
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