Did You Get Your Tax Refund or…

April 18, 2007 by 1 Comment

How about something that looks like one?   This arrived the other day to our home in a gold envelope looking very much like an income tax refund.   Per Washington State law, this form of advertising from a mortgage company is illegal.

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That’s just the beginning of what is wrong with this advertisement.   This company appears to be offering to refinance our current mortgage plus give us $44,000.35 (don’t forget that 35 cents) cash in hand at the low rate of 2.20% (obviously a negative amortized/deferred interest ARM)!   The ad shows two asterisks next to the rate… on the bottom of the flier, there is an * in very fine print disclosing an "APR of 6.90% 30 year loan interest rate may increase after consummation".    Duh…ya think?  The fine print also shows this lender is licensed in California, not Washington, to provide mortgages.

My point is, whenever a mortgage company has to resort to "cold marketing"… whether that be phone calling or deceitful pieces of mail aimed to look like something other than what it is (such as your IRS refund), they are not worth trusting your largest asset (your home) and debt (your mortgage) with.   

I always advise getting a referral from someone you trust.   Do your own homework.  If it seems too good to be true, it is.   

Filed Under: Predatory Lending

How Did You Find Mortgage Porter?

April 15, 2007 by 3 Comments

One of the features of having a Typepad blog is that I can see what the input was for Google and various other search engines.   

Here’s a recent sample from today (in chronological order):

I like to read how viewers have discovered Mortgage Porter.   The search phrases are helpful as it shows me what is currently on people’s mind.  And provides me with ideas for future posts. 

There is a definite ethics theme with both lenders and consumers and there are general searches about mortgages.   I’ve added the links to the pages the visitors were referred to (there are a couple links I had to make an educated guess on).

I wish Typepad had a way to show what the most viewed pages are in Mortgage Porter’s history…I’ll have to send them an email!   Meanwhile…I’m just scanning the information as much as possible to get a glimpse of how people are finding this site.

Filed Under: Mortgage, Weblogs

Not Feeling Funny on a Friday

April 13, 2007 by 3 Comments

This is my second day of having a bug.  Not the type Larry Cragun likes!  I’m sick at home.   Luckily, I’m usually pretty healthy.   When I’m not feeling at my best, I don’t know why, but I like to stretch out on the couch and fall asleep watching something stupid on the TV.   I was just getting ready to take a cat nap…and I see one of my cat’s (we have three) has beat me to my spot on the sofa.Img_5011

Thelma is almost the size of my Pug.  I think I’ll let her have the couch…for now.

Filed Under: Just for Fun

Is it better to buy or rent?

April 12, 2007 by 3 Comments

An article in the New York Times was brought to my attention from Tim at Seattle Bubble on whether or not you should buy or rent.    The article is very slanted towards renting and considering the part of the country it’s originating from, they are right.   Our local economy and housing market remains strong and is not experiencing any sort of a slump.   

What I really liked about the article is the on-line calculator to help you determine if you should rent or buy.  The calculator is flexible and friendly with adjusting appreciation, down payment, rent increases and the costs associated with owning a home (funny how many potential home buyers forget about that).   If you’re considering buying a home, I encourage you to check it out.

Tim, where was this calculator when I did my post at Rain City Guide and Seattle Bubble Blog countered it? 

Filed Under: Financial Planning, First Time Home Buyer, Residential Purchase, Seattle, Weblogs

Subprime LTVs and Credit Scores

April 11, 2007 by 4 Comments

Yesterday I received an email a subprime lender promoting their new loan to value (LTV) limits based on credit scores.    I thought it was a good reflection of the current LTV/credit score guidelines for this current market.

100% LTV @ 660 Credit Score

95% LTV @ 580 Credit Score

90% LTV @ 560 Credit Score

85% LTV @ 540 Credit Score

80% LTV @ 520 Credit Score

Interest rates were not provided with the email that I received, however, I would be they’re undesirable.   

Someone with a 660 credit score, depending on what their actual credit history and financial portfolio looks likes, should actually be able to obtain other financing besides subprime, such as FHA or a Flex type program. 

This is a sharp contrast to what was available a few months ago for subprime borrowers.   And I’m amazed at how many phone calls I’m still receiving from people who know they have a credit score in the 500 range wanting zero down who are living paycheck to paycheck.   I don’t blame anyone for wanting to own a home, it is touted as the "American Dream".  But a 2-3 year prepayment penalty with a double-digit mortgage interest rate, is not. 

Filed Under: Credit Scores and Reporting, Predatory Lending, Subprime Lending

A Room with a View: The Inn at El Gaucho

April 9, 2007 by Leave a Comment

ElgouchoMy husband and I received a wedding gift to stay at the Inn at El Gaucho in the Bell Town district of Seattle.   Saturday night, we had tickets to see Greg Brown and Bo Ramsey at the Moore Theatre, so we decided to use our present.

Since we were staying there, we also made reservations for dinner prior to our show.   I have to tell you, I was so impressed with the service.  The food was outstanding too.    We had the New York for Two–prepared perfectly.  It’s not cheap–but hey, we don’t go out much and the room was paid for! 

We caught a cab to the show at the Moore.  The Moore Theatre was built in 1907 and is the oldest remaining theater in Seattle.   It is certainly not as flashy as The Paramount and is in need of some TLC.    Regardless, the Moore is an amazing venue.   

We had the fortune to see Greg Brown and Bo Ramsey at the Tractor Tavern a few years ago.  That was an incredible concert.   Greg made you feel like he was long time old friend and was very interactive with the crowd.   His performance then was passionate and lively.   I probably went into this concert with too high of expectations because this show seemed to be lacking that.   It was a bit disconnected and, although he is very talented and has a one of a kind voice, it appeared to me that he just wanted to get the gig down and call it a night.

We walked back to El Gaucho and finished our evening with a flaming Spanish Coffee.   The photo above I snapped with my Treo from our suite, is of The Cyclops bar (it’s a blinking neon eye).  While relaxing in our room, I had a chance to read Seattle Metropolitan Magazine’s list of the Top 10 Neighborhoods…click here to read more.

We should go out more often!

Filed Under: Just for Fun, Real Estate, Seattle

Are You Getting An Income Tax Refund?

April 9, 2007 by Leave a Comment

Lucky you!  If you are, may I offer you a few suggestions?

  1. Look at adjusting how much income you are withholding from your pay.  A refund always feels like a bonus, but in reality, you’ve given the government an interest free loan.   Why not adjust how much is withheld from your paycheck each month by increasing your exemptions?   Give yourself a monthly spiff instead.
  2. Do you have credit cards with a balance over 50% or 30% of your credit limit?  Pay them down to below 50 or below 30% and give your credit score a boost.   
  3. Imagine how satisfied you would feel paying off a credit card with a high interest rate and cutting up the card? 
  4. Invest your refund into a traditional or Roth IRA or other retirement plan.
  5. Start a 529 account for your child.  It’s never too early to start saving for college.
  6. Save your refund towards a down payment or closing costs on your next home.  "Zero and low down" loans are much tougher to qualify for.   Especially if you have credit issues (which in that case, you should probably refer back to items 2 and 3).

Please do not get a income tax refund loan.   These loans are loaded with high interest with all intentions of you not paying them back once your refund shows up.  E-file and try to be patient.

As always, consult with your professional Mortgage Planner, CPA and/or CFP.  Everyone’s personal situation is unique and may call for a specific strategy and complete review of your financial information.

Filed Under: Credit Scores and Reporting, Debt Restructuring, Financial Planning, Residential Purchase

ARMS Defined

April 8, 2007 by 2 Comments

1560492_10151836164426046_1986095200_nAdjustable Rate Mortgages, also referred to as ARMs, come in many shapes and sizes.  This post will be focusing on fixed period ARMs, such as the 3/1, 5/1, 7/1, 10/1…etc. that feature a fixed rate period before adjusting.

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Filed Under: Adjustable Rate Mortgage (ARM) Tagged With: ,
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