The Mortgage Porter

Mortgage Rates Improving - 30 Year Under 5%!

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties).  The conforming rate quote below is based on owner occupied, "full doc" purchase with a sales price of $500,000 and a loan amount of $400,000.  Rates are priced based on a low-mid credit score 740 or higher unless otherwise noted.    This scenario includes reserves (taxes & insurance)not being waived.   Rates quoted are priced based on a 45 day lock with no prepayment penalties.  

Refi's are requiring a 60 day lock and therefore, a rate-term refi is approx. 0.125% higher in rate or higher in fee (points)...cash out refi's are a whole other story with Fannie/Freddie price hits.

30 Year Fixed Priced w/1 Pt:  4.875%% (APR 5.030%).

15 Year Fixed Priced w/1 Pt:  4.375% (APR 4.637%).

10/1 ARM 5/2/5 CAPS w/1 Pt:  4.500% (APR 5.808%).

7/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 4.125% (APR 6.257%).

5/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 3.750% (APR 6.389%) ~ priced with 0 points:  4.125% (APR 6.393%).

Conforming High Balance. Pricing is based on the same criteria above (including zero points) except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $625,000 and a $506,000 loan amount.  

30 Year Fixed w/ 1 Pt: 5.000% (APR 5.147%). 

Jumbo/Non-Conforming. I now have jumbo loans available up to 1 million.  The quotes below are based on a loan amount of $650,000 with 80% loan to value and 740+ credit scores. 

30 Year Fixed w/ 1 Pt:  6.125% (APR 6.369%)

7/1 ARM w/ 1 Pt:  5.750% (APR 6.862%)

5/1 ARM w/ 1 Pt:  5.125% (APR 6.849%)

FHA.  Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.

30 Year Fixed @ 1 Pt:  5.125% (APR 5.951%) 

FHA 203(k) Rehab - Streamline.  Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.

30 Year Fixed @ 1 Pt:  5.375% (APR 6.077%)

FHA-High Balance. Pricing based on 1 discount/origination point and loan amounts from $417,001 - $567,500 for King, Snohomish and Pierce Counties with credit scores of 660 or higher.

30 Year Fixed @ 1 Pt: 5.250% (APR 6.935%).

USDA Rural Housing.  100% financing subject to income and location of home (generally available in towns of 10,000 or less in a rural area). 

30 Year Fixed @ 1 Pt:  5.250% (APR 5.552%)

VA. Pricing based on credit scores of 620 or better based on loan amount of $417,000.   For VA loan amounts over $417,000, please contact me.

30 Year Fixed @ 1 Pt:  5.125% (APR 5.568%) 

Prime Rate(what HELOCs are based on):  3.250%. 

Rates are as of Thursday, July 31, 2009 at 1:30 p.m. and may change at any time.  Available programs may change at anytime as well.   This is not a guarantee nor is it a commitment of interest rate. 

We are currently averaging several rate sheets per day in this volatile market with new rate sheets being issued about every 3 hours.  For your personal rate quote with or without points, please contact me.

Most rates quotes above are priced with 1 point; 1 percent of the loan amount as an origination fee reflected a majority of the time on line 801 (line 808 in the rare event the mortgage is brokered and not closed in our credit line) of the Good Faith Estimate/HUD-1 Settlement Statement.  Zero points means no points are paid or reflected on lines 801, 802 (Discount Points) or 808 of the GFE/HUD.

Stay tuned with what's going on in the market by subscribing to Mortgage Porter (upper left corner) and Mortgage Porter Twitter for live rate updates (click Follow).

Understanding Your Property Taxes from Talon Title

Hat tip to The Talon Group, my preferred title and escrow partners for property located in King, Pierce, Snohomish, Kitsap and Thurston Counties.

National Night Out is Tuesday, August 4, 2009

Neighborhoods across the county will be holding events to get to know each better on the evening of Tuesday, August 4, 2009.  If you live in Seattle, you can register your "block party" with the Seattle Police Department.   Our neighborhood in West Seattle has enjoyed this chance to get together for the past couple of  years with a fun pot luck with someone from the SPD stopping by to answer our questions, informing us of recent crime trends or things to be aware of.

If you live in the Bellevue area, Crossroads Mall will be holding a National Night Out event from 4:00 - 7:00  p.m. with games and goodies for the kids.

The City of Renton will be hosting a Night Out event at the Highlands Community Center from 4:00 - 7:30 pm with free food and games.

NATIONAL NIGHT OUT is designed to:

• Heighten crime and drug prevention awareness;
• Generate support for, and participation in, local anti-crime programs;
• Strengthen neighborhood spirit and police-community partnerships; and
• Send a message to criminals letting them know that neighborhoods are organized and fighting back.

It's not too late to plan an event for your neighborhood.  Being aware and knowing your neighbors is a great first step in preventing crime.  You can start by contacting you local police department.

If you know of a local Neighborhood Night Out event, please share it with us and post it in the comment section.

Update:  I'll add neighborhood events as I receive them via comments to the body of this post.

High Point in West Seattle, will be holding a large Night Out event at Commons Park.

Kenmore City Hall from 6 p.m. – 9 p.m.   Join the Kenmore Police Department at the annual National Night Out Against Crime event. The police chief will barbeque hamburgers and hotdogs for Kenmore citizens. Information will be available on block watches, house checks, personal safety, fingerprinting and ID cards for kids, bicycle registration cards and home fire prevention. FREE!

Recording fees increasing Monday, July 27

Effective today, recording fees are going up statewide due an increase with the homeless housing fee from $10 per recorded document to $30 per HB 2331.

Recording your Deed of Trust or Deed in the State of Washington now cost $20 more each.

Hat tip to The Talon Group.

Sunday Drive: Skillet's Gourmet Streetfood

Hopefully you won't have to drive too far to find Skillet Streetfood...in fact this mobile delight travels throughout the week to several Seattle neighborhoods, including West Seattle, Queen Anne, Capitol Hill, Fremont, SODO, Bothell and Redmond.   

Last weekend, I decided I could wait no longer...I had to check out the infamous Skilletfeaturing gourmet bites created in an airstream trailer. 

My nose found Skillet before my eyes did at the West Seattle location just a block or so away from the Farmers Market.

I had the Steak Sandwich with a Melon Mint Fresca.  It's not cheap eats--it is "gourmet" and very delicious.  The fries are perfection.

   

You can read more of my review and others on Yelp by clicking here.  

Mortgage Rates for the Seattle Area

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties).  The conforming rate quote below is based on owner occupied, "full doc" purchase with a sales price of $500,000 and a loan amount of $400,000.  Rates are priced based on a low-mid credit score 740 or higher unless otherwise noted.    This scenario includes reserves (taxes & insurance)not being waived.   Rates quoted are priced based on a 45 day lock with no prepayment penalties.  

Refi's are requiring a 60 day lock and therefore, a rate-term refi is approx. 0.125% higher in rate or higher in fee (points)...cash out refi's are a whole other story with Fannie/Freddie price hits.

30 Year Fixed Priced w/1 Pt:  5.125% (APR 5.283%).

15 Year Fixed Priced w/1 Pt:  4.500% (APR 4.764%).

10/1 ARM 5/2/5 CAPS w/1 Pt:  4.875% (APR 6.041%).

7/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 4.375% (APR 6.257%).

5/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 3.875% (APR 6.389%) ~ priced with 0 points:  4.125% (APR 6.393%).

Conforming High Balance. Pricing is based on the same criteria above (including zero points) except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $625,000 and a $506,000 loan amount.  

30 Year Fixed w/ 1 Pt: 5.250% (APR 5.401%). 

Jumbo/Non-Conforming. I now have jumbo loans available up to 1 million.  The quotes below are based on a loan amount of $650,000 with 80% loan to value and 740+ credit scores. 

30 Year Fixed w/ 1 Pt:  6.125% (APR 6.369%)

7/1 ARM w/ 1 Pt:  5.750% (APR 6.862%)

5/1 ARM w/ 1 Pt:  5.125% (APR 6.849%)

FHA.  Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.

30 Year Fixed @ 1 Pt:  5.375% (APR 6.225%) 

FHA 203(k) Rehab - Streamline.  Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.

30 Year Fixed @ 1 Pt:  5.500% (APR 6.351%)

FHA-High Balance. Pricing based on 1 discount/origination point and loan amounts from $417,001 - $567,500 for King, Snohomish and Pierce Counties with credit scores of 660 or higher.

30 Year Fixed @ 1 Pt: 5.375% (APR 6.223%).

USDA Rural Housing.  100% financing subject to income and location of home (generally available in towns of 10,000 or less in a rural area). 

30 Year Fixed @ 1 Pt:  5.500% (APR 5.840%)

VA. Pricing based on credit scores of 620 or better based on loan amount of $417,000.   For VA loan amounts over $417,000, please contact me.

30 Year Fixed @ 1 Pt:  5.375% (APR 5.668%) 

Prime Rate(what HELOCs are based on):  3.250%. 

Rates are as of Thursday, July 24, 2009 at 1:00 p.m. and may change at any time.  Available programs may change at anytime as well.   This is not a guarantee nor is it a commitment of interest rate. 

We are currently averaging several rate sheets per day in this volatile market with new rate sheets being issued about every 3 hours.  For your personal rate quote with or without points, please contact me.

Most rates quotes above are priced with 1 point; 1 percent of the loan amount as an origination fee reflected a majority of the time on line 801 (line 808 in the rare event the mortgage is brokered and not closed in our credit line) of the Good Faith Estimate/HUD-1 Settlement Statement.  Zero points means no points are paid or reflected on lines 801, 802 (Discount Points) or 808 of the GFE/HUD.

Stay tuned with what's going on in the market by subscribing to Mortgage Porter (upper left corner) and Mortgage Porter Twitter for live rate updates (click Follow).

A Quick Question: Should I Refi?

This comment was left on a post I did a while back about how you don't really skip two payments when you're refinancing since mortgage interest is accruing.  I thought this comment was worthy of a post of it's own.

Hi Rhonda!
I found your website on a Google search and I have a quick question for you. I need some advice. Here are the specifics.

Current MTG Loan balance is $161,927.28 with 28.5 years left at 5.5%
My TOTAL payment a month including taxes, etc. is $1278.

Proposed FHA Streamline Refi is for $167,779 for 25 years @ 5.0%
My TOTAL payment a month including taxes, etc. would be around $1290.

Out of pocket Expense $0.

Positives?
Negatives?

We plan on being there another 7-10 years.

If we do this, there is talkof the double Mtg skip, and a refund of MIP.

I know they aren't really skipping, nor the refund an actual refund, because the total loan amount is more than my current balance, kind of a wash. But there is still about a $1700 difference.

I could really use the $ to payoff a few things, even though I'm really rolling it into the new loan.

Is this really that bad of a deal?
Any advice or counsel is much appreciated!

Thanks!

RC

First of all, it's great RC is weighing out the long term value before proceeding with the refinance.  Often, home owners may refinance blinded by what seems to be an attractive rate or payment without considering if they'll break even.  Other factors besides the cost or savings is the effort it takes to accommodate a refinance.  Even an "easy" transaction is going to require some work on the home owners part with providing documentation, completing forms and signing final loan documents (an FHA streamline does have reduced documentation).

I'm always a bit concerned when a loan originator sells "skip two payments"...this shouldn't be a sales point by anyone who considers themselves a "mortgage professional".   You can check out my original post to see why.

There is no monthly out of pocket savings with this scenario.  In fact the payment would increase by $12 per month.  I'm assuming the savings of $1700 has to do with the illusion of skipping mortgage payments.

RC states there is no out of pocket expense but I'm unsure if this means it's a "zero cost loan" or if the closing costs are rolled into the new loan.

There is no refund of the upfront MIP.  A portion is credited towards the new loan with an FHA Streamline refinance.

The principal mortgage balance will be increasing by about $5,852 however the term is being reduced by 3.5 years.  With regards to the 25 year term, I'm not finding any lenders that we work with (and we are an approved FHA/HUD lender) who offers a rate improvement with a 25 year amortized amortization over the 30 year.

It sounds like you're focusing on the potential $1700 savings and if this is what's important to you, I probably would not increase my mortgage payment by $12 a month even though it would be reducing the term. 

So there are my pros and cons to consider with this proposed transaction based on the information that you've provided, RC.   Without having all of your actual details, you need to take my advice with a grain of salt.

PS: I rarely ever really get a "quick question" that has a "quick answer". LOL ;)

 

 

Breaking Up is Hard to Do...Especially When You Own a Home Together

I've written articles before about issues to consider if you're going through a divorce and have a mortgage...what if you were never married?  Couples (or single people) often buy homes together...what if worse case scenario, it doesn't work out and one party wants to keep the home?

A divorce decree allows you to refinance to cash out the other spouse and still have the mortgage treated as a "rate term" refinance.  There are significant differences between a cash-out and rate-term refinance.  A cash out refinance is limited to an 85% loan-to-value and the rate is higher (approx. 0.5% in fee at an 80% loan to value with credit scores of 740 and higher).  If there is a court order, it's possible that FHA might allow a cash-out refi with a non-married co-owner.

There's also the issue of excise tax.  An excise tax affidavit is filed whenever a deed is recorded (in the State of Washington).  Excise tax may not be due when the person being removed from vesting is pursuant to a divorce decree.  However, when there is no decree or court order involved and the person is being removed, excise tax may be due as they consider the transfer of that person's interest to the other person "a sale".  I'm told the county may charge excise tax on half of the underlying mortgage.  As of the date this post was published, King County charges 1.78% for excise tax.   Possible exceptions to this would be if the co-owners were registered as domestic partners, or the transfer of the property to one co-owner is by court order. 

Just like a divorce, simply deeding the property over to the party who's remaining in the home does not remove the other person from responsibility or liability of the mortgage.  And it probably makes good sense to contact an attorney who specializes in divorce to assist with the separation of the real estate property.

West Seattle Hi-Yu Parade...featuring JP Patches!

I love a parade...especially if it's in my home-town AND it features my favorite Seattle clown, JP Patches.

The Seafair Clowns are a Seattle treasure, too.

Not to mention great marching bands, drill teams and princesses.  The West Seattle Hi-Yu Parade is something not to be missed.   For more pictures, click here.

 

Mortgage Rates for Washington State

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties).  The conforming rate quote below is based on owner occupied, "full doc" purchase with a sales price of $500,000 and a loan amount of $400,000.  Rates are priced based on a low-mid credit score 740 or higher unless otherwise noted.    This scenario includes reserves (taxes & insurance)not being waived.   Rates quoted are priced based on a 45 day lock with no prepayment penalties.  

Refi's are requiring a 60 day lock and therefore, a rate-term refi is approx. 0.125% higher in rate or higher in fee (points)...cash out refi's are a whole other story with Fannie/Freddie price hits.

30 Year Fixed Priced w/1 Pt:  5.125% (APR 5.283%).

15 Year Fixed Priced w/1 Pt:  4.500% (APR 4.764%).

10/1 ARM 5/2/5 CAPS w/1 Pt:  4.875% (APR 6.041%).

7/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 4.500% (APR 6.257%).

5/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 3.875% (APR 6.389%) ~ priced with 0 points:  4.125% (APR 6.393%).

Conforming High Balance. Pricing is based on the same criteria above (including zero points) except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $625,000 and a $506,000 loan amount.  

30 Year Fixed w/ 1 Pt: 5.250% (APR 5.508%). 

Jumbo/Non-Conforming. I now have jumbo loans available up to 1 million.  The quotes below are based on a loan amount of $650,000 with 80% loan to value and 740+ credit scores. 

30 Year Fixed w/ 1 Pt:  6.125% (APR 6.369%)

7/1 ARM w/ 1 Pt:  5.750% (APR 6.862%)

5/1 ARM w/ 1 Pt:  5.125% (APR 6.849%)

FHA.  Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.

30 Year Fixed @ 1 Pt:  5.375% (APR 6.225%) 

FHA 203(k) Rehab - Streamline.  Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.

30 Year Fixed @ 1 Pt:  5.500% (APR 6.351%)

FHA-High Balance. Pricing based on 1 discount/origination point and loan amounts from $417,001 - $567,500 for King, Snohomish and Pierce Counties with credit scores of 660 or higher.

30 Year Fixed @ 1 Pt: 5.375% (APR 6.223%).

USDA Rural Housing.  100% financing subject to income and location of home (generally available in towns of 10,000 or less in a rural area). 

30 Year Fixed @ 1 Pt:  5.500% (APR 5.840%)

VA. Pricing based on credit scores of 620 or better based on loan amount of $417,000.   For VA loan amounts over $417,000, please contact me.

30 Year Fixed @ 1 Pt:  5.375% (APR 5.660%) 

Prime Rate(what HELOCs are based on):  3.250%. 

Rates are as of Thursday, July 17, 2009 at 1:00 p.m. and may change at any time.  Available programs may change at anytime as well.   This is not a guarantee nor is it a commitment of interest rate. 

We are currently averaging several rate sheets per day in this volatile market with new rate sheets being issued about every 3 hours.  For your personal rate quote with or without points, please contact me.

Most rates quotes above are priced with 1 point; 1 percent of the loan amount as an origination fee reflected a majority of the time on line 801 (line 808 in the rare event the mortgage is brokered and not closed in our credit line) of the Good Faith Estimate/HUD-1 Settlement Statement.  Zero points means no points are paid or reflected on lines 801, 802 (Discount Points) or 808 of the GFE/HUD.

Stay tuned with what's going on in the market by subscribing to Mortgage Porter (upper left corner) and Mortgage Porter Twitter for live rate updates (click Follow).