Rates have jumped recently. Note this graph.
Today had better than expected news about the economy. Money moved into stocks - out of fixed instrument. Isn’t it a paradox, as things get better rates get worse? So it will be regarding home prices – as things start heading up, so will the prices.
For a detailed explanation of today visit Real Estate Undressed .com
Sure, we all want like to dream about that nice mansion.
That is why watching my wife Kathleen make Street Of Dreams mansions award winners was so fun. But as I speak with a lot of people where we shop in Issaquah, the perception is that only the rich can buy here.
Starter home prices have been falling, in fact all across the board prices have dropped.
Not only that we are the beneficiaries of the ARCH program. There are many ARCH controlled, or approved, homes on the market. It is a bit of headache going through the ARCH approval process, but at this time it isn’t necessary.
After a reasonable period of time the seller may sell an ARCH home to anyone. The income restrictions are removed. ARCH still controls the sales prices, but that seems to be reasonable, in fact in this market gives a buyer an advantage.
We are experienced with ARCH, we want our local merchants employees to live here, in Issaquah - even Issaquah Higlands. If you investigate, you may not have to work in Issaquah and drive to Puyallup.
FHA financing is also available for ARCH which give people an easier qualifying situation. I am extremely experienced in FHA. FHA helps with lower down payments and when recent credit has been good, but where there may be a credit score problem or past credit problems.
Give us a call if you want some help. Lar
Our local MLS, NWMLS has received information from members about various prospective property buyers whose activity is questionable. Some situations involve prospective buyers representing themselves as investors, or agents of investors, arranging complicated financial loans with various parties, and seeking substantially greater financing than the property is worth.
Suspicious, mortgage activity has risen by over 40% from 2006. The number of suspicious activity reports had already grown by over 40% in 2006 from 2005. These statistics, while sounding very high, may understate the level of suspicious activity because many borrowers have or will refinance their loans.
For yourselves, your clients and your customers, please verify that people are who they say they are, be watchful for unusually complicated terms, and stay alert to behavior that indicates a lack of sincerity.
Dont count your rate until its locked. See todays article on real estate undressed for this important topic. Then call me. Lar
So every little bit helps. This is going to help most with FHA loans, but “The upper mortgage limits also will apply to loans purchased or guaranteed by government-sponsored mortgage companies Fannie Mae and Freddie Mac, FHA officials said.”
Take note, FHA has many advantages. Don’t skip over this lightly. To start with, where else can you get a 95% cash out refi? Nowhere else now. Or even a 97% refi? FHA does have its version of Mortgage Insurance but the rates are as good or better than conventional.
And now the limits are TEMPORARILY raised to help the crises and the pain. They Are to be in affect in 30 days so start now.
They are:
King County, Snohomish and Pierce Counties
Single Family: $567,500
Two Family: $726,500
Three Family: $878,150
Four Family: $1,091,350
Again:”The upper mortgage limits also will apply to loans purchased or guaranteed by government-sponsored mortgage companies Fannie Mae and Freddie Mac, FHA officials said.” That will help Jumbo loans be refinanced to conventional.
Cash-Out Refinance up to 95% for existing or new FHA mortgages.
- Cash-Out up to 95% of your properties value.
- Consolidate first and second mortgages into single loan.
- Bill consolidation programs.
- Easier credit and income qualifications.
- FHA regulated closing costs.
- Consolidate first and second mortgages* into a single loan.
- No FICO score or credit score requirements
- Competitive rates for borrowers with a Bankruptcy older than two years.
- Competitive rates for borrowers with a Foreclosure older than three years.
- Easier credit and income qualifications.
- FHA regulated closing costs.
- No Cost Interest Rate Reductions programs.
- No Income or Credit Qualifications*.
- Zero cost refinance options available.
- Easily switch amortization for adjustable to fixed or vice versa.
- Easily shorten or lengthen term of your existing loan.
- Easier credit and income qualifications.
- Refinance your mortgage at competitive rates even with mortgage lates, if directly due to adjusting mortgage.
- Qualify for refinance even if currently in foreclosure.
I am currently recommending Rhonda Porter (Click Here), who has no financial interest to or with our companies. Her Phone number is 206-718-9488
Long ago a hero of mine, T Bowering Woodbury, taught that “When the going gets tough, the tough get going.”
This is a lesson I have tried to remember, do, and appreciate in others.
I thought of that today in a different way. It hit me when I saw some not so good news about the mortage industry. We could use a turn around, a bottoming out of bad news.
However it is, the version of the quote that went through my mind today is, “When the going gets tough, The going gets tougher.”
The news? The mortgage insurance companies are tightening their underwriting standards. Great! We haven’t heard much about the mortgage insurance companies have we? Whereas in the past we have only seen them as a money hungry evil grubby premium sucking arm of the industry we now must recognize they are having their losses too.
This announced policy hurts where we need it not to hurt. The home buyer that doesn’t have 20% to put down. In the past it was almost a given, if Fannie or Freddie approve the loan, hey the M I companies will too. Not so going forward.
For you or those you care about here are some nuggets from my years of experience:
1 – This makes it even more important for first time home buyers to use a lender that is FHA approved. FHA provides an alternative to mortage insurance.
2– For home buyers that are not putting 20% down give yourselves more time in the process to get excited that the deal is done. An extra step could blow you out.
3– Verify with your local bank, such as Key Bank, your ability to use them for purchase money seconds. That is the term they use where they provide the difference in down payment to make the loan a 80% loan to the first mortgage holder. This will make the process tougher to coordinate, but this may now be your best option. B of A, U S Bank, and many credit unions have in the past offered these loans, just check. I know Sandi Collins at Key Bank, Issaquah, Gilman has helped many of my clients, that is why I mention them.
4– Do everything possible to up your credit score, bring more down payment to the table, add to your cash reserves, etc. These all add strength to the loan, strength that may be needed.
Tags: mortgage+insurance, key, issaquah
The short term adjustments the fed makes does not usually correlate to a lower 30 year mortgage.
Our Las Vegas loan officer has also been a stock broker and is usually full of good information regarding the trend in mortgage rates.
Here is a portion of an article he just posted.
I still think that it is possible for rates to move lower. The reason will be the stock market. It is obvious that the Fed fears a recession and that became more than clear today. The market rallied about 160 points and then sold off. If this continues then a flight to quality strategy by investors could move more money into bonds and then rates go down.
Click here for the full article on mortgage rates.
Tags: interest+rates, fed+cut
Yesterday some of you panicked. I know this even as I suspected it would be when the .75 Fed Rate cut happened.
I became involved in a conversation with borrower who started a loan application for a refi with Lending Tree. As rates went down he moved to a local lender. Then yesterday jumped ship, to his cousins ship.
This is why this could be a mistake. Local lender has the loan approved and locked, ready for documents to be signed. Borrower was quoted a slightly better rate by cousin. Local lender has agreed to match that rate. Already Lending Tree and local lender have pulled the borrowers credit. Borrower has paid for two appraisals.
Cousin has done one thing that I rarely see by professionals in this business. He has lied about Washington DFI laws regarding some of what local lender has done. Why lie? To get the loan of course.
Every Pro that I have seen in this business would have encourged the borrower to finish with local lender. The rate is good the loan is done. To do otherwise puts the borrower in jeapordy. Many unforseen things can happen.
Cousin obviously needs the deal and that is the worse reason to use the Cousin. My guess, the borrower had an hunch about cousin, or would have started there.
I was just looking at a rate sheet and I was pleased to see rates are lower than they have been for a long time. You might call one of our approved lenders and see how much lower than 6% you can go. It might brighten up your day.
PS: I took this photo in the Bellevue Hyatt Regency, looking to the lobby from the food court.
If you know someone with a sub-prime loan it is time for them to take action. They need to call their loan servicer today. The loan servicer is the one collecting their payments. The industry has agreed to rewrite most of these loans. This means they can avoid the prepayment penalties. This is big. Those who are current on their mortgage have the best chance for a re-write of their loan. Even those who are late on their payments may get consideration. The industry has chosen to take this action voluntarily. They should not delay one day on making the changes to their loan.
For another article on this topic: Click Here
