The Importance of Good Signage

March 29, 2007 by 3 Comments

SkcarLast week, I sponsored Jillayne Schlicke’s class at the Seattle King County Association of Realtors on High Impact Blogs and Podcast.

I had a great time.  I thought I was just bringing in a few snacks for the hungry Realtors to keep their brains going during her course…little did I know she would call on me to help the class build their blogs.  It was fun.   What was not fun…was trying to find SKCAR’s office.   

I thought I had it all planned out.   The night before, I entered their address into the car I normally drive and the system mapped it all out.  Simple!   Except my husband decided to drive that car.  I entered the address again into our other car…and no luck!  Our Japenese navigation was fine, our Swedish nav–not!   No problem, I use to be in title insurance and I’m certain I can find their office.

It’s located off I-90 in Factoria–super easy from West Seattle, where I live.  I stopped off at the Factoria QFC for sandwhiches and drinks and proceed to where I think their office should be.   There is an office standing alone with what appears to be appartment buildings.   I don’t see any sign that says SKCAR or Realtor-anything.  The building has the logo above (I snapped the photo above with my Treo 650)…I thought it said IMI or 1001 building.   It just couldn’t be right.   So I do a u-turn and drive down 32nd SE in the oppositie direction until I realize this wasn’t right, either.

That’s when I pulled out my trusty old Treo 650 and hop on the internet to SKCAR’s website which has directions!   Come to find out, their office IS at the lone building I was originally at.   

Good thing I didn’t buy hot sandwhiches with all of my driving around!   Class was great and all is good (just a little more driving than necessary).

Hey SKCAR, how about some signage on the building (beyond the gold lettering on the glass front door)?

Filed Under: Real Estate Agents, Tech/Tools of the Trade, Weblogs

Almost a Duplex in West Hill Auburn

March 28, 2007 by Leave a Comment

Modo1_4This West Hill Auburn home is almost a duplex with complete separate living quarters down stairs.   Pefect for guests or caring for extended family.  And plenty of parking with the carport and garage.

This home was virtually rebuilt in 2005 and features hardwood floors, slab granite counters, stainless steel appliances…I could go on and on!

The seller has all ready bought their next home and are getting ready to move.Modo3

You, or someone you know, can be enjoying taking in the Mt.  Rainier, Cascade and valley views from the expansive deck.   For more pictures and details about this home click here. 

  • Offered at $559,990 Modo2
  • MLS# 27039759
  • 5 Bedrooms/3 Bathrooms

This home is listed by Maureen Donhauser of Windermere West Campus.   I’m not a real estate agent…nor do I play one on TV.  I’m just a Mortgage Planner trying to help out my client.    If you need financing for this fine home, I am more than happy to help you.

Filed Under: Real Estate, Real Estate Agents, Residential Purchase

The Low Down on Fannie Mae Flex

March 28, 2007 by 2 Comments

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Update: This is a classic example of the trouble with writing about mortgage programs…some are no longer available. When researching about mortgages on the internet, please be sure to check the date of the article.

With many of the zero down options tightening up, it's time to return to the mortgage programs that were popular a few years ago before the 80/20s were all the craze.   One such program worth considering is the Fannie Mae Flex (97 and 100).   This is truly a low down program offering either a minimum $500 borrower contribution or 3% flexible contribution.   

The Fannie Mae Flex allows for flexible sources of funds for closing costs and prepaids:

  • Borrowers own funds (including loans against a 401(k) account or cash-valued life insurance policy.
  • Gift or unsecured loan from a relative.
  • Grant from non-profit or employer.
  • Interested party contributions (to be applied to closing costs and prepaids) such as a Builder or Real Estate Agent.

The Flex program utilizes automated underwriting so minimum credit scores, reserves and qualifying ratios are determined by Desktop Underwriter. 

There are no income limitations, such as with My Community programs.   The program is limited to conforming loan limits (currently $417,000 for a single family dwelling).   

There is private mortgage insurance with this program.   However, with a credit score of 620 or higher, a borrower may qualify for LPMI (Lender Paid Mortgage Insurance).   The rate with LPMI may or may not pencil out, depending on the credit score and loan to value.   Also, private mortgage insurance is tax deductible this year if you meet income limitations.

Sorry folks, this program will not work for manufactured homes.

Currently, I'm helping a couple buy their first home with this program.   They are utilizing a gift from their parents for the down payment and the real estate company they are working with rebates part of the commission which will cover their closing costs (including a 1% discount towards their interest rate).   The couple will not have to dip too deep into their savings or 401(k).   The current interest rate for the 30 year fixed rate is in the low 6%s with a loan to value of 97%.   They will pretty much be getting into their first  home with the earnest money investment of approx. $2,500 (special thanks to Mom and Dad).

Here's a quick re-cap of the Fannie Mae Flex program:

  • Low down payment
  • Higher debt to income ratios allowed
  • Forgiving of credit scores

Remember, always check with your Mortgage Planner to see which strategy for your home financing best suites your personal needs.

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

Would You Like Your Mortgage Blended, Shaken or Stirred?

March 27, 2007 by 4 Comments

Mpj028975400001Many home owners have two mortgages on their properties.  A first mortgage and a second mortgage that may either be fixed or a home equity line of credit.    Do you know what your effective rate is?   Basically, this is if you factor in what your paying on both mortgages, and then figured out what your interest rate is on your payment.

Here’s how to determine what your “blended rate” is:

[Read more…]

Filed Under: Interest Rates, Mortgage, Refinance Tagged With: , , ,

My Biggest Fear

March 26, 2007 by 4 Comments

FearNext to snakes, spiders, deep water and falling down stairs (okay…I have a few phobias!)…and actually this is no laughing matter.   There is so much hype in the media right now about the subprime industry and home owners in trouble with 80/20 loans and interest only ARMs, etc.    Many people are contacting me to confirm they’re okay or to see if the need to refinance.   So far, none of them need to refi (but I’m glad they’re checking with me).  Either they’re planning on selling or their ARMs won’t be adjusting for a couple more years and they’re actually quite happy with payments once they step away from the fear factor.   These home owners with ARMs and/or 80/20 financing are prime targets for unsavory loan originators to scare them into a refinance (there are even ads on TV soliciting home owners to do so) when they don’t need to.   Costing them at least a couple thousand dollars in their equity and rewarding some loser with a commission they shouldn’t have.   

How do they do this?  For starters, the local title companies can provide list of home owners if they have financing through certain lenders (like New Century, for example), or if they financed within a certain time period with an ARM.   The lender may call you (ignoring if you’re on the DNC) or send you a letter stressing their "sincere concern" over your current mortgage scenario.   Please don’t buy into it.   

  1. Contact your Mortgage Planner if you have any concerns with your current mortgage.   Now may be a good time for a credit and mortgage review–you may not need to refinance (everyone’s situations vary).
  2. Get a second opinion if you feel you need one.   Ask a friend, co-worker or family member for a referral.   Most professional Mortgage Planners are happy to discuss your situation without running your credit.  (If your Mortgage Planner all ready ran your credit, you can provide your scores to the person you’re getting the second opinion from). 
  3. Do not do business with lenders who have to "cold call" for business.  Rely on either your past Mortgage Planner or get a referral. 

Bottom line, don’t panic.  The worst decisions are made when someone is being emotional and scared.   Lenders who are predatory prey on the emotions of scared people.    This type of loan originator is ultra smooth…could probably out-sell me (and I’m sure has) on my best day.  (I do not view my career as "sales").  Take a deep breath and do some homework.  Make the hoopla over subprime loans into a personal opportunity to review your credit and get your finances in order.   It will save you in the long run.   

With all this said, some people are in trouble…they are not the majority and regardless, it is unfortunate.  If you are in financial troubles or if you feel you may be near it, please do contact your Mortgage Professional (or get a referral) right away. 

Filed Under: Mortgage, Predatory Lending, Subprime Lending

My Surprise Party

March 25, 2007 by Leave a Comment

They did it…my family and friends SURPRISED me on my birthday!  Not only did they throw a wonderful party…JP Patches, my childhood hero, was there.

I decided to take Friday off from work and blogging.  All I wanted to do (to my husband’s dismay) was stay at home and work in the garden.  Last Friday, it was beautiful out!  My sister in law tricked me into a pedicure at Southcenter and forced me to have a margarita and an appetizer with her at Bahama Breeze (hey, how come I’m not sensing any sympathy from my readers?).   I just wanted to get home and watch the sunset–relax!  Plus, my husband and son were going to treat me to a nice dinner.  NOT!!! 

I should also mention…I believe in my quarterly newsletter, I printed that JP was not doing public appearances any more.  This is not true. This was a story my husband had told me when we went to Fremont to see the unveiling of JP and Gertrude’s statue to trick me since he knew I’ve always wanted a JP Patches birthday party.   Please do hire JP and be sure to buy a Patches Paver to help fund his statue and support Children’s Hospital.

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This was such a treat. Cheers to JP, my husband, family and friends.  Thank so much for making this a birthday I’ll never forget and will always cherish.    Filed Under: Just for Fun

My Encounter with The Seattle Bubble Blog

March 24, 2007 by Leave a Comment

Mpj040113000001 My husband teases at me when I talk about the Bubble Bloggers…not because they’re funny (they can be), it’s simply the phonetics.   Our local bubble bloggers are a very serious and determined group of individuals.  In a nut shell, they believe that Seattle’s home values will plummet or burst like a popped bubble and when this happens, it will reek havoc for current home owners.   Many of them feel it is much better to rent than to own a home for financial purposes.     The Seattle Bubble is probably the most well known local blogs on this topic.   

Recently, an article I posted on Rain City Guide, The Great Rent vs. Own Debate, was featured (or should I say, "flogged") on the Seattle Bubble and Priced Out Forever (these blogs share writers).    Eleua, one of the "bubble bloggers" asked me if they could do this and I must tell you, I was a bit nervous about how this would all shake down.  For starters, where ever there are numbers and stats, there is opportunity for debate.  Numbers can be twisted and recalculated to prove anyone’s theory.   I must say they were very fair and kind in their "flogging" of my post.

Here are some points they make on why it’s better to rent than to own a home (I’m not going to debate these points in this post):

  • Renters are not responsible for repairing or maintenance of the building.   (I do spend many weekends at Home Depot with my husband to work on our house…and I love it).
  • Freedom to pick up and move when your lease is up without the cost of selling a home (approx. 8-10% of the sales price including commissions, 1.78% excise tax for King County and closing costs).
  • You can invest the funds you would use for down payment and earn interest on it (your home equity does not earn interest).
  • You may be able to rent a nicer home than what you can afford to buy for the same payment.
  • The standard tax deduction may be better than the deductions you’re allowed as a home owner itemizing your mortgage interest and taxes.  (As always, check with your CPA regarding any tax matters).
  • And of course, home values are going to tank once the Seattle bubble bursts.

I wrote The Great Rent vs. Own Debate over an exchange of comments on one of Rain City Guide’s post where I stated something along the lines of "owning a home is an automatic savings plan for some borrowers".    I still believe this to be true based on what I’ve seen in my past seven years as a Mortgage Consultant.   

Many people are not putting away money into savings accounts, retirement, planning for college…you name it.   When you make a mortgage payment (assuming it’s not interest only), you are applying a small portion of that mortgage payment towards reducing the principle balance.   For Americans who do not put 10% of their gross income (or anything) into an investment vehicle (no…not a new car!), this is their only source of savings.   They are at least putting some money away where they do not have immediate access to it (unless they treat their home equity like an ATM).   

I will be the first to admit that a big reason why I have bought homes is emotional.  I have "a need" to own a home.  I grew up renting and moving around quite a bit as a kid. I feel grounded and I have control over the home…it’s mine!   With that said, owning a home has proven to be the best investment for me.  I would not have realized the appreciation and profits from renting that I have as a home owner over the past 18 years.   

Home ownership is not for everyone.   Especially people who are careless with their credit and spending.   You need to be responsible, plan for repairs and improvements and make your mortgage payments on time.  Buy a home because you want to live in it and you want to be your own "home sweet home".

Filed Under: Financial Planning, Mortgage, Residential Purchase, Seattle, Weblogs

T.G.I.F!

March 23, 2007 by Leave a Comment

Happy Friday… need a hug?

After too much subprime news… I thought I try to spread some happiness in the bloggo-sphere.   I first saw this video thanks to fellow CMPS, Todd Ballenger. 

The Free Hugs Campaign is nothing short of inspirational and a great way to start your weekend!  Feel free to pass this along and share the love with those you care about. 

Peace out.

Filed Under: Just for Fun
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