The Family Opportunity Mortgage helps families who are buying or refinancing homes for college students, elderly parents and disabled adult children. Without this program, these transactions would often have to be considered as “investment properties” with higher interest rates and closing costs. Now, it can essentially be treated as a primary residence.
Family Opportunity Mortgage…now at Mortgage Master Service Corporation
September 12, 2007 by 12 Comments
Should I refi my VA loan?
September 11, 2007 by 1 Comment
A gentleman from Bremerton called me wondering if he should refinance out of his VA adjustable rate mortgage. The start rate is 5.125%, however it’s scheduled to adjust in a few months. VA ARMs (and FHA) have the best caps available at 1%. The most his ARM could adjust worse case scenario would be to 6.125%. And his VA loan does not have any mortgage insurance (unlike an FHA loan, which could possibly justify refinancing).
He’s also considering possibly selling in a year or so.
The adjusted rate is very close to what I could currently offer him with a new conventional loan (a new VA loan would provide a higher rate). If he was considering living in this home "forever" and the thought of having an adjustable rate mortgage was causing him emotional grief (low risk tolerance); then I might recommend a different strategy.
His estimated mortgage balance is $224,000. I did not ask if the existing ARM is a 3 or 5 year fixed (I was driving during our conversation). Here’s some figures to consider:
- Worse case adjusted principal and interest payment for 5/1 VA ARM @ 6.125% = $1460.40 (amortized for 25 years).
- Worse case adjusted principal and interest payment for 3/1 VA ARM @ 6.125% = $1378.97 (amortized for 27 years).
- Conventional mortgage refinance (assuming 80% loan to value; which offers a better rate than a VA 30 year fixed) principal and interest payment @ 6.000% based on a loan amount with closing costs financed: $1378.40.
If the VA borrower has the 5/1 ARM scenario, it would take him just over 4 years to break even on the closing costs of the new refinance. If the VA borrower has the 3/1 ARM scenario, it would take over 9 years to break even using the conventional refinance.
What would you recommend?
A Near Perfect Storm: The US Housing Market
September 10, 2007 by 4 Comments
Washington Mutual’s Chairman and CEO, Kerry Killinger, referred to the U.S. housing market as "a near perfect storm".
Killinger said at a a Lehman Brothers financial services conference:
"the combination of rising delinquencies, higher foreclosures, more housing inventory, increasing interest rates on many mortgages and greatly reduced availability of mortgages due to limited liquidity is creating what we call a near perfect storm".
On a side note, both Washington Mutual and Countrywide have been aggressive "dealers" in the Option ARM markets. Washington Mutual’s flyer explaining Option ARMs states "It’s both easy and smart". If you’re a reader of Mortgage Porter, you know I disagree. Option ARMs are not easy and not smart for a majority of home owners.
"Roughly 28% of Washington Mutual’s loans held are in these riskier option-ARM mortgage products, according to Plesser. By contrast, pay-option loans comprise more than 40% of Countrywide’s interest-earning assets". According to this article in Business Week.
What should you do to weather out the storm? Be prepared. Have a plan. Contact your Mortgage Professional today.
More good news from Talon Title
September 10, 2007 by Leave a Comment
|
Another memo showing how The Talon Group is stepping up to the plate during these historic times in our industry for their previous clients:
|
|
|
I just love to share some good news. Group hug? |
Go Hawks!
September 9, 2007 by Leave a Comment
Breast Cancer 3 Day Marathon in Seattle
September 9, 2007 by Leave a Comment
Larry 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.
The 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.
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.
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.
Mount Rainier from Vashon Island.
Recent Comments