The Big Day is HERE – Welcome Blog Tour USA!

July 25, 2007 by 5 Comments

Just a few quick notes before I dash out the door to meet up with ARDELL and Rudy and Joe from Sellius (aka Blog Tour USA).   I’m going to be away from my phone for most of the day since I’m participating in the tour.   You’re welcome to leave a voicemail or email for me; or you can contact Dina or Marilyn if you need immediate assistance with a transaction or lock.

Here is my schedule for today with Blog Tour USA:

  • 10:00 am Zillow
  • 11:00 am Redfin
  • Possible other Seattle sites
  • 7:00 pm Dinner at Ardells

There are people coming Canada and all over.  This is going to be a great event!  More to follow! 

Filed Under: Current Affairs, Travel, Weblogs

Fun at the Carnival of Real Estate

July 24, 2007 by 3 Comments

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No…I didn’t win a prize but this was my first time trying out my luck with the Real Estate Carnival hosted by ARDELL at Rain City Guide.   I’ve never played at the Carnival before and I’m not sure why that is.    Any recognition that Mortgage Porter has received thus far has been from readers on their own; nothing that I applied for or sought out.   I have to say, I’m very surprised and tickled pink like a swirl of cotton candy that I received an "honorable mention" for How an Overdue Library Book Declined a Mortgage.

Here are the real winners of Carnival of Real Estate #51:

  1. Brian Brady "Selling Like a Catholic School Girl"
  2. Peter Comitini "Co-ops Losing Clout with Luxury Buyers"
  3. Jay Thompson "The Combination Real Estate Agent/Lender: One-Stop Shopping, or Half-Assed Service?"
  4. Frank Llosa "Reject THROW-UP Listings.  Do it RIGHT, not RIGHT NOW!"
  5. Brande Bradford "Top Ten Tidbits for Success"
  6. Silicon Valley Blogger "Expected Rate of Decline of Home Prices Next Year"
  7. Greg Swann "Divorcing  the real estate commissions is simply a matter of HUD-1 bookkeeping effected by the mortgage lender"
  8. Richard Kruse "It’s a Bloodbath and Time to Swim with the Sharks"

Hats off to ARDELL who not only hosted this festival but did so while preparing for Blog Tour USA to land in Seattle with dinner at her home on Thursday.   A woman after my own heart!

And I can’t think a better way for Mortgage Porter to celebrate it’s 200th Post!

Filed Under: Weblogs

Refinancing with FHA…now that’s Paris Hilton HOT!

July 23, 2007 by 2 Comments

Parishiltonthatshot What?  You’ve never thought of FHA mortgages as “hot”?  Read about this scenario of a client I recently helped and you just might be cooing “that’s hot”, too! [Read more…]

Filed Under: Debt Restructuring, FHA, Mortgage, Refinance

The West Seattle Parade and the Alki Hot Rod Show

July 22, 2007 by 2 Comments

Img_5308Do Saturdays get better than this? Somehow we managed to escape the rain just long enought ot enjoy the West Seattle Hi-Yu Summer Parade and the Alki Hot Rod Show.   Considering it’s been raining for over a week and that it was dry for these two events, I’d say we lucked out!Img_5315_3      

Young and old lined up California Avenue to watch the Seattle PD Motorcycles maneuver along with your classic beauty queens and parade floats.  The community of West Seattle has a lot of participation in this annual summertime event.   The drill teams were amazing, too.  There had to be some tired feet at the end of the day with all the stomping and dancing!

Img_5375_2What was my big motivation to get out of bed and hustle to grab a spot on the pavement?  Why none other than JP Patches, my childhood hero, of course! 

And this would not be a Seafair event without the infamous Seafair Pirates!   You can hear them coming from blocks away with the boom and smoke of

Img_5382 their cannons.   Good thing they’re followed by the Seafair Clowns so they can wipe the fear from the younger crowd with some giggles.

For more pictures of the West Seattle Hi-Yu Parade, click here.

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Filed Under: Current Affairs

Are You Preapproved for an Interest Only Mortgage?

July 20, 2007 by Leave a Comment

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You better double check with your Mortgage Professional.  As of Sunday, July 22, 2007 underwriting guidelines are tightening up for interest only conventional (loan amounts $417,000 and lower) mortgages.

  • Fixed Rate Mortgages (ex. 30 year fixed with 10 year interest only payments) will be based on the full PITI payment using the Note Rate.  (If there is a temporary buy down, the qualifying is still based on the Note Rate).
  • Interest Only ARMs:  Qualifying is based on the full principal and interest payment (PITI) at the fully indexed rate (index + margin).
  • Negative Am. (deferred interest) ARMs:  Qualifying will be based on the full PITI at the fully indexed rate amortized over the full repayment term using the loan amount based on the amortization cap.   (I am not a fan of Option ARMs and I have never provided one to any of my clients.  For some people, they have probably been very successful tools…most of my clients, once they understood how the mortgage works, would opt for an interest only ARM instead of this mortgage).

So what does this mean?

Previous Guidelines:  If a buyer was preapproved using a 5/1 Interest Only LIBOR ARM based on an interest rate of 6.125% (note: this is NOT a rate quote and is only for purpose of illustrating the guideline changes) earlier this week qualified for a payment in the amount of $2041 (plus taxes and insurance), they could borrow $400,000.

New Guidelines:  The current index for LIBOR is 5.4 plus the margin of 2.375% for this particle loan program = a fully indexed rate of 7.775% for the same ARM mentioned above.   Qualifying the borrower for a $2041 payment based on a 30 year amortization at 7.775% means the borrower now qualifies for a loan amount of $284,200.

This will obviously have a dramatic impact on purchases and refinancing out of interest only products.   This is still very new and we’ll see if non-conforming products follow suit.

Here’s what you need to do:

  1. Agents:  Contact your Mortgage Professional today to see if you have clients who are preapproved for conventional financing with any interest only payments.   Confirm your buyer is still qualified.  (Your LO may need to check Fannie Mae guidelines).
  2. Buyers/Borrowers:  If you’re using interest only products with loan amounts of $417,000 or less, contact your Mortgage Professional to verify you are still approved.
  3. Buyers:  Now more than ever, it’s crucial that you meet with a Mortgage Professional prior to buying a home to become preapproved.   With mortgage programs and underwriting “tightening”, there will be less options compared to just a few months ago.
  4. Buyers/Borrowers:  Having solid credit is also more important.   You should review your credit a couple times a year.  If your scores are below 680, work on improving your credit.
  5. Borrowers who currently have ARMs:  Do not wait until just before your ARM is about to adjust if you are considering retaining your home.   Contact your Mortgage Professional six months in advance to review your credit in case you need to make adjustments and/or repairs.

This is not the time to be hiding or not dealing with your mortgage…guidelines are changing quickly and you need to be proactive and responsible with your largest investment.   If you need help, find a qualified Mortgage Professional such as a Certified Mortgage Planning Specialist, who has been acquired additional training and education or get a referral from someone you trust and respect.

Filed Under: Adjustable Rate Mortgage (ARM), Interest Rates, Mortgage, Refinance, Residential Purchase

Ben Bernanke Bits

July 20, 2007 by Leave a Comment

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I have been glued to the television watching two days of testimony from Fed Chairman Ben Bernanke to the House and Senate.   Maybe I’m a mortgage nerd, I find this amazing.   

I’m convinced a majority of our elected officials are there just to grandstand and don’t have a clue about their personal mortgages!   Many of our representatives are treating Mr. Bernanke as if he personally doled out inappropriate subprime mortgages in an abusive fashion.    Other random tid-bits that I found interesting from the Q&A sessions are:

  • Bernanke mentions the "wealth effect" that home ownership provides Americans. 
  • The lower third of Americans have less than $500 in savings.   It is crucial to have at least 3 months of gross income in savings in the event of an illness, unemployment, etc.   
  • Bernanke stated that home owners with ARMs (adjustable rate mortgages) should call their lenders well in advance prior to their rate/payment adjusting.   I recommend calling at least six months prior to a scheduled rate increase to have your credit reviewed in the event corrections or repairs need to make sure you’re in the best position to refinance.
  • Suitability was defined by Bernanke as being more about affordability and the ability to repay a mortgage and less about selecting the right program out of the dozens or so available for a borrower.
  • Many borrowers took out mortgages without understanding the terms. 

I watched as much of the two day testimony as possible…ah, I’m glad I’m not Ben!

To read his prepared testiomony, click here.

Filed Under: Mortgage

Blog Tour USA in Seattle

July 20, 2007 by Leave a Comment

2 Bloggers on 1 RV with faces of bloggers plastered all over the exterior visiting 24 cities..Blog Tour USA will be arriving in Seattle next week on July 25.

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Ardell will be touring the guys from Sellsius around town to see our fine city and then she will host a dinner at her home in Kirkland.   I’m really looking forward to meeting Rudy and Joe of Sellsius and other fellow local real estate bloggers.   I’m bringing dessert for the event…sweet!

Filed Under: Travel, Weblogs

A Tribute to John Wickwire

July 19, 2007 by Leave a Comment

Johnwickwire_3I was very fortunate in my real estate career to have worked with many talented people. I began at Safeco Title in 1986…one year later, Chicago Title Insurance Company purchased Safeco and that’s when I first met John Wickwire.   I was maybe 19 or 20 years old and worked in the title unit that was next door to "Unit 2", where John was in command.   After a few years of being a Title Technician, I begged and pleaded to become a sales person (management wanted me to be at least 21 years old)…after a year as a home equity rep, I had the opportunity to call on mortgage and escrow companies in south west King County.  With all of John’s years in the title biz, we wound up sharing many accounts together.

John was like a Dad to all.  He probably sometimes cared too much about his co-workers.  His heart was always in the right place and his brain was a sharp as a tack.  He’s one of the few Title Officers who could quickly weigh out risk and make a decision that would make sense.   He was not the typical "text book" T.O.  After 5 years at Chicago Title, I moved to another title company to be paid commission and it would be another four years before our paths would cross again.

Chicago Title was starting a "boutique" title company in King County:  Washington Title Company.   I was one of the first people hired to start it (I was actually hanging around with four others waiting months for it to "open"…what was I thinking?!).   John came over once we were open as our first Title Officer and eventually became the Chief Title Officer.   He was a great addition to our maybe 8 or so employees at that time!  (Now Washington Title in King County has been renamed Ticor…and has a few more employees than when they started).

JohnJohn was a rock.  Everyone relied on his experience, brilliant mind, leadership and dry sense of humor.  He was old fashioned yet cutting edge at the same time.  You can ask anyone, John was the best.

John was born on July 19, 1947 and passed away on September 12, 2005.  He’s a Dad to three beautiful daughters.  There is not anything on this earth he was more proud of or had more love for.  Two of his daughters are pictured here with John on the day he received an award for his dedication and contributions to the title insurance industry.

On the corner of the bar at Pike Place Bar and Grill is a bronzed plaque reserving a seat for their favorite patron.   We miss you, John!   I just wanted to wish you a happy birthday and to let you know we think about you all the time.

Filed Under: People, Title Insurance
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