February 4, 2012
At last year's Mortgage Tech Summit, I presented a session on my "talking" good faith estimates and rate quotes. This is something that I do for my clients to help review their personal mortgage scenario.
On February 9 and 10, I'll be in Scottsdale at MTS to share how I am able to work with clients I really enjoy from my blogging and other social media efforts. I'm often contacted by mortgage originators across the country wanting my advice...
February 2, 2012
I'm pricing out a scenario for one of my returning clients where I helped them with their refinance for their home in Seattle in May of 2009 to a 4.5% 30 year fixed rate. During that time, 4.5% was the lowest rate any of us had seen. Now mortgage rates have been in the high 3s to low 4s depending on current pricing and scenarios. I thought it would be interesting to share the quotes I've provided my client because I know many others have rates...
February 1, 2012
January 30, 2012
This week is loaded with scheduled economic data that may influence mortgage rates ending with the big daddy: The Jobs Report. Remember, good news that causes the stock market to rally may cause mortgage rates to deteriorate and the reverse may be true. This is because investors will trade the safety of bonds for stocks and vice versa. Signs of inflation may also drive mortgage rates higher. Here's whats on deck for this week:
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January 27, 2012
From my email bag:
My husband and I are in the process of looking for a lender we are negotiating an offer at this time. We are both paid with W2-s and fear that we will be asked for our tax returns since we have plenty of write-offs as we are in sales. In this case, will the lender look at our adjusted income on our tax forms instead of the yearly salary?
The lender will most likely have to use a net-...
January 24, 2012
I was recently contacted by a home buyer in Seattle who wanted to know what mortgage programs we have available for a sales price of $500,000 with a 10% down payment. With less than 20% down, the loan will probably have mortgage insurance unless they can find a Fannie Mae Homepath property.
Let's review some scenarios assuming the home buyers have excellent credit (scores over 740) and a 30 day closing with a loan amount of $450,000. With a...
January 21, 2012
Private mortgage insurance is what lenders may require when a borrower has less than 20% equity in a property. Private mortgage insurance (pmi) protects the lender against default, it does not protect the property owner.
Private mortgage insurance (pmi) is often something that borrowers do their best to avoid because of the additional cost. However if the 20% down payment (...
January 19, 2012
It's not unusual these days to have a lender request a "letter of explanation" from a home buyer or someone who is refinancing their current property. I letter of explanation (or LOE) is often used to help provide more information to the underwriter or lender based on information that is disclosed on an application or credit report. LOE's may address anything from gaps in employment to inquires on a credit report and is intended to help explain or...
January 15, 2012
Here are a few photos from my garden in West Seattle. I ran out to take these photos moments ago when the snow was beginning to look like it was mixed with rain. As I write this post, we're back to big fluffly snow flakes.
January 10, 2012
If you obtain a new mortgage next year for a refinance or purchase (for any purpose) and it is securitized by Fannie Mae or Freddie Mac or insured by FHA, you're helping to pay for the recently passed payroll tax cut bill.
From the FHFA:
“On Dec. 23, 2011, President Obama signed into law the Temporary Payroll Tax Cut Continuation Act of 2011. Among its provisions, this new law directs the Federal Housing Finance Agency...