Breast Cancer 3 Day Marathon in Seattle

September 9, 2007 by Leave a Comment

Img_5874_4Larry Swanberg is my friend and co-worker at Mortgage Master.   Today he is a marathoner finishing up the last leg of the Breast Cancer 3 Day (60 miles over three days) which happens to be in my neighborhood of West Seattle.   He is walking in honor of Tammy, his wife who lost her battle with breast cancer a few years ago.

This marathon is full of heroes and stories.   Breast cancer touches so many lives.  In our office alone, we have Michelle who is bravely battling this disease and Mary who has recovered.  We lost Tammy (Larry’s wife) who was once a Mortgage Professional at Mortgage Master.   I have family and friends who are fighting as well:  Michelle, Suzy and Vianne.

I set my alarm early this morning so I could be out on sidewalk cheering the marathoners on.   One of my neighbors did a fabulous "cheer station" including mini bags of M&M’s and plenty of pink decor.

Img_5879The participants are a very entertaining group.  It was a parade of pink with bras, boas, beads and bikers!   We are lucky to have beautiful weather today.  Hopefully it won’t be too hot for this brave spirited group by the time they reach Memorial Stadium where the marathon wraps up.

I’m proud of Larry, the courageous (fun!)marathoners and the brave people battling cancer.

For pictures of this event, click here.

Filed Under: Current Affairs

Andrew Will’s 2005 Release Party on Vashon Island

September 9, 2007 by Leave a Comment

This was our first time being invited to Andrew Will on Vashon Island.   It was a perfect day…how can you beat the weather and a short ferry trip to Vashon Island?   We weren’t sure what to expect at Andrew Will…it was delightful.

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We sampled 5 new 2005 releases (which is a stellar vintage for Washington wines BTW).   And throughout their compound, they had wonderful snacks from salty olives, breads, cheeses and salads to brick oven pizza cooked right before our eyes.  There was a one-man-techno-band that seemed to work in with the laid back atmosphere.  And did I say we tasted the 2005 releases?

Andrew Will is normally not open to the public.   I highly encourage you to get on their mailing list so you can enjoy a day such as this!

To cap it all off, we uncorked a bottle of 2005 Two Blondes to enjoy with my husband, his brother and sister and law who live on Vashon before heading back to West Seattle.

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Mount Rainier from Vashon Island.

Filed Under: Just for Fun, Sunday Drive - Neighborhood Tours Tagged With: ,

Get your free issue of YOU Magazine

September 8, 2007 by Leave a Comment

September’s issue of YOU Magazine is now available and features the following articles:

And so much more!   

I’m still working on my latest issue of e-Mortgage Porter, an emailed monthly newsletter.   If you would like to receive an issue in your email in-box, just let me know.

Filed Under: Financial Planning, Just for Fun, Recipes

Mortgage Master is approved for FHASecure!

September 7, 2007 by 2 Comments

UPDATE:  EFFECTIVE ON FHA CASE NUMBERS ISSUED AFTER DECEMBER 31, 2008, THIS PROGRAM IS NO LONGER AVAILABLE.

Since Mortgage Master Service Corporation has been a FHA endorsed lender since our inception, we are also approved for FHASecure.  This program is designed to help home owners who after their non-FHA ARM resets, have become delinquent.   

Here's more info:

  • The mortgage being refinanced must be an adjustable rate mortgage that has adjusted (reset).  The mortgage being paid off cannot be a FHA mortgage.
  • The home owners mortgage payment 6 months prior to the reset must show no instances of making late mortgage payments.
  • Missed mortgage payments may also be included in the new loan (subject to having enough available home equity).
  • The reset of the non-FHA ARM monthly payment must be what caused the home owners inability to make their monthly payments.
  • The home owner needs to qualify for the new FHA mortgage (have sufficient income and resources per FHA guidelines).
  • Loan amounts are subject to current FHA Loan Limits
  • Subordinate financing (non-FHA second mortgage) is allowed if the new FHA loan is not enough to pay off the existing first lien, closing costs and arrearages.   
  • Expanded loan to values up to 97.75%.
  • Payment-to-income-ratio and debt-to-income-ratios remain at 31/43.
  • FHA upfront and monthly mortgage insurance applies.
  • Loan applications must be signed no later than December 31, 2008.

This program is not intended for home owners to stop making their mortgage payments once their ARM adjusts.   In fact, this is straight from the HUD Mortgagee Letter 2007-11:

"FHA reserves the right to reject for insurance those mortgage applications where it appears that a loan officer or other mortgage employee suggested that the homeowner could stop making their payments…"

I'm pleased to be able to offer this program and thankful that Mortgage Master has maintained their status as a HUD Approved Mortgagee. 

The best option is to refinance prior to your ARM adjusting (before you're delinquent).  As always, I suggest that you contact your Mortgage Professional if your ARM is scheduled to adjust within two years or less in order to make sure you're in the best position possible to refinance.   

Filed Under: FHA, Refinance

The Talon Group supports Children’s Hospital

September 6, 2007 by Leave a Comment

Here’s a memo that I just received from the Talon Group, the local title and escrow company that I prefer to use:

"As you are aware, the title industry has recently gone through some changes in regard to charging for selected customer service products. Please know that we continue to enjoy assisting your business efforts wherever we can and value our relationship with you. With that in mind, we’d like to take this opportunity to turn this into a positive for the community.

Beginning September 1st, Talon will be donating the equivalent of all customer service proceeds collected to Children’s Hospital. Children’s is ranked as one of the best children’s hospitals in the country according to U.S. News & World Report. Childrens believes that all children have unique needs and should grow up without illness or injury. It’s hard to argue with that! The Talon Group has been involved with Children’s pledge drives in the past, and we’re hopeful that we can turn the negative in our industry into a positive for the community.

All proceeds donated to Children’s Hospital will mirror what we are required to collect as set forth by the State Insurance Commissioner. You may ask "What happens if I overpay may account?". Your overpayment will correctly show as a credit towards your account for future charges. Again, we are only donating the equivalent amount of what we are forced to collect per state statute.

I want to thank you for your understanding and hopefully together we can do some great things…."

It’s nice to have some good news from the real estate industry!
Filed Under: Title Insurance

Larry Cragun’s Magnificent 7 for August

September 6, 2007 by Leave a Comment

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Once again, I’m honored to be included with the other nominees of Larry Cragun’s Magnificent 7.    The post receiving Larry’s nod is one that I wrote in early August at Rain City Guide, If your loan ain’t vanilla, you may be in for a rocky road.

If you’re looking  for some excellent consumer content, you may want to visit Larry’s site, Real Estate Undressed, to check out his recommendations.

Filed Under: Weblogs

Question from a reader: Are the 30 year fixed interest only fixed for the full 30 years?

September 5, 2007 by Leave a Comment

The answer is yes, the rate is fixed…BUT… The rate is fixed for 30 years however depending on if you select the 10 year or 15 year interest only period, once the interest only period is over, the mortgage will be amortized at the same rate for the remainder of the term.

For example, let’s assume your mortgage balance is $350,000 and the rate for the 30 year fixed with interest only payment is 6.50%.

The interest only payment is: $1895.83

If you have the 10 year interest only product (usually a slightly better rate), the payment will adjust to a fully amortized mortgage based on the remaining 20 year term.   The new payment would be:  $2609.51

If you opt for the 15 year interest only product, the fully amortized mortgage based on the remaining 15 year term  be:  $3048.88

Both of the above scenario’s are assuming that there are no additional payments made towards the principal during the interest only period.   NOTE:  borrowers may need to qualify at the fully amortized payment (not the interest only payment).

Here is the email from the reader:

"Currently, we have a subprime loan with a 2-year penalty which expires  March 2008. We were told that it is a 40 year fixed at 8.83% and if we refinanced prior to the 2-year penalty expiration date, there will be a 6-months of interest penalty. However, we recently reviewed our loan documents and with a better understanding called the lender. The lender confirmed that we have a subprime loan and the rate will be adjustable after the two years.

We are considering the 30-year fixed, 10 year interest only, but want to be sure that the rate is definitely fixed for the full 30 years. We are in our mid-40s and have no intentions of selling our home, and consider this home to be our retirement home. From your financial expertise, do you think this is a good option for us?"

It’s difficult to provide advice for someone when you don’t have their entire financial picture.   This couple does not live in Washington State (where I’m licensed to practice).   

Here are factors that I would consider if I were their Mortgage Professional:

  • How much funds do they have currently reserved for their retirement?  (With their current loan being subprime, I’m assuming they are underfunded.   Most Americans are).
  • What do they anticipate their retirement income to be in 20 years?
  • How is the appreciation/depreciation in their current region and with their home?
  • In 20 years, when they retire and their income is different, can they afford the 20 or 15 year amortized payment? 
  • Are they needing the interest only payment to make current ends meet?
  • What are their financial goals for retirement?  To have no mortgage?  To be debt free?   To hang onto their house with the mortgage as a tax favored debt? 

I would caution against doing "band aid" loans that will need refinancing when you’re at retirement or close to then.   Depending on what you anticipate your income to be, should you need to refinance out of a 15 or 20 year term mortgage because your income is less, you may not be able to qualify.   You may want to consider a traditional 30 year fixed or a Fannie Mae or Freddie Mac 40 year fixed rate (without the balloon or adjustment that you have with your current mortgage).

Here are the rates I quoted last Friday (just to give you an idea of how these rates may vary from product to product):

30 Year Fixed: 6.125% (APR 6.281%).  Payment per $1000 = $6.08.

30 Year Fixed with 10 Year Interest Only:  6.500% (APR 6.653%).  Payment per $1000 = $5.42.

40 Year Fixed:  6.500% (APR 6.646%).  Payment per $1000 = $5.85.

I give them huge kudo’s for reviewing their loan documents and contacting their lender and for getting second opinions.   Their Mortgage Professional should review all possible mortgage options with this couple and make sure they understand the terms and any consequences. 

Filed Under: Financial Planning, Mortgage, Refinance

This is sure to trigger your anger

September 5, 2007 by Leave a Comment

I just received this email:

Dear Mortgage Brokers,

This notice is to inform you that our 24 Hour Mortgage Trigger Database has recently been updated. This means that we are able to offer you data from either:

Equifax, Experian or Trans Union

Our leads come with:

FICO, Name, Address, Phone Number, Amount of Aggregated Revolving Debt, Mortgage Loan Amount, Lender Name, Loan to Value, Monthly Payment on Mortgage – Credit Cards – Automobile

We can target all 50 states by: County, Zipcode, Zipcode Radius, City & Major Metropolitan Area.

Response within 24 hours is required to guarantee this price.

Give me a call and I can have you setup to get leads the same day."

When  you visit their website (I’m not promoting here), they offer:

"… specific credit information on consumers based on actual credit records. This database covers 50 states and over 300 million people. From this database, selections can be made on credit score, amount of debt, late payments, mortgage type and monthly payments. This data is primarily used to identify individuals based on their current credit situation and purchase indicators."

If President Bush really wants to stop predatory lending , or as he said last week regarding Loan Originators “if you’ve been cheatin’ somebody, we’re gonna find you.”   Perhaps he could start by not allowing the major credit bureaus from reselling the (currently not so) private information of consumers.   

In the meantime, I highly encourage you to write to your elected officials to tell them to stop "trigger lists".   There is NOTHING good about this practice.

Filed Under: Credit Scores and Reporting, Identity Theft, Legislation, Predatory Lending
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