The Mortgage Porter

The Mortgage Porter: Comment Policy

Every so often, I start writing a formal comment policy and it seems to wind up on the back burner.  A few years ago, I decided to have comments approved before being published on Mortgage Porter due to some very spammy,  self-promotional comments that mortgage lenders were leaving.  I welcome comments on my blog...but I will not tolerate spam, self-promotional comments or anything vulgar.

I reserve the right to edit comments if needed...typically this would be removing self-promotional.  You do not need to add your url or titles--please use the links provided in your signature line of the comment for that.  I may be adding advertising to this blog in the future and if you're interested in paying me to promote yourself, let me know. 

I reserve the right to delete comments that are pure spam and that add no value to the conversation or that are vulgar. 

In addition, as everything on this blog is my content, I will not tolerate plagiarism.  If you wish to refer to my content or use an excerpt from one of my post, I'm flattered, just do so with a link back and proper credit to me.  This blog and all content (text, photos, videos, etc.) is protected by US Copyright. 

I've been writing Mortgage Porter since late 2006 and it's become a wonderful way for me to connect with readers and to work with new clients who are seeking a mortgage for a home in Washington State.  

Bottom line, I would love for this blog to be a place for discussion and conversation.  If you have questions, please contact me. 

Be nice and we'll all get along.  

President Obama Declares April National Financial Literacy Month

Recently President Obama declared April as National Financial Literacy Month.  

In recent years, our Nation's financial system has grown increasingly complex.  This has left too many Americans behind, unable to build a secure financial future for themselves and their families.  During National Financial Literacy Month, we recommit to teaching ourselves and our children about the basics of financial education.

I've always felt that financial education should be taught in high school.  I'm not talking home-ec, at least not the the home-ec I attended at Hazen High School where I grew up in Renton, where we made up incomes and came up with a rough budget.  I'm talking about a detailed course where students would focus on the benefits and consequences of credit and debt.

I think it's great that the President is bringing attention to Financial Literacy.  During the subprime era of mortgage, I met with people who wanted to buy a home because their friend or co-worker just did.  They had no idea what financial responsibilities coincide with owning a home.  They often wanted to buy as much as they could be qualified for based on guidelines at that time even if the mortgage payment or program was not suitable. 

More from President Obama's proclamation:

The new Consumer Financial Protection Agency I have proposed will ensure ordinary Americans get clear and concise financial information.... While our Government has a critical role to play in protecting consumers and promoting financial literacy, we are each responsible for understanding basic concepts....

I wonder what is an "ordinary American" and what if you're not an "ordinary American"?  In his proclamation, he also talks about how our "recent economic crisis was the result of irresponsible actions on Wall Street and everyday choices on Main Street" and includes "large banks [that] speculated recklessly".  His list of who's at fault no where includes our Congress who mandated that Fannie Mae, Freddie Mac and FHA create programs or different guidelines to help more Americans buy homes. 

From the Wall Street Journal:

Fannie and Freddie retained the support of many in Congress, particularly Democrats, and they were allowed to continue unrestrained. Rep. Barney Frank (D., Mass), for example, now the chair of the House Financial Services Committee, openly described the "arrangement" with the GSEs at a committee hearing on GSE reform in 2003: "Fannie Mae and Freddie Mac have played a very useful role in helping to make housing more affordable . . . a mission that this Congress has given them in return for some of the arrangements which are of some benefit to them to focus on affordable housing." The hint to Fannie and Freddie was obvious: Concentrate on affordable housing and, despite your problems, your congressional support is secure.

But I digress...

President Obama is promoting a website they've created for financial literacy which appears to be an assortment of various government links organized on one site.   It' looks like it's well meaning advice but I'm not sure it's the best or most practical advice--very similar to HUD's book on buying and financing your home.  The site also has information that is very biased, in my opinion, about financial tools such as reverse mortgages, which are not right for everyone but when used in the right situation, can make a huge difference for the better in a seniors life.  I also found some information about credit repair that would potentially provide the result a consumer would be looking for.

I highly recommend that you subscribe to Get Rich Slowly.  This is a fantastic blog that is packed full of common sense financial information on getting out of debt and building your savings.  J.D. Roth's blog was recently named the most inspiring money blog by Money Magazine.

Washington State's Department of Financial Institutions also has a blog that you may find interesting:  Money Talks.  I'm a new subscriber to this blog and so far, the information seems very good.   In fact, it was from DFI's blog that I learned about the Twitter hashtag for April's Financial Literacy Month: #FinLit10. 

Of course I hope you're a subscriber to my blog, The Mortgage Porter.  I don't only write about mortgages or post interest rates on my blog, you'll also find quite a bit of information about credit scoringwhich impacts your life every day.  I cover other topics too.  You can subscribe in the upper right corner by entering your email address and you can un-subscribe anytime.

During April, I'll share information in recognition of National Financial Literacy Month...actually I hope that's what I've been doing at Mortgage Porter for the last couple of years!

100 Days Remaining for the Home Buyer Tax Credit (and my 1000th Post)

My apologies for the home buyer tax credit clock I've added to the left side bar of my blog ticking away the time remaining for home buyers tax credit.  It's not my style, I don't like to pressure folks and I really don't like telling someone that they missed an opportunity. 

Whether you are for or against our home buyer tax credit it is something that many home buyers, first time and "move-up" home buyers, will take advantage of.   Unlike the first tax credit that was passed where the home buyer had to pay it back over 15 years, this is a "tax credit".  This credit repaid if you sell your home within three years. 

The available tax credit for first time home buyers (those who have not owned a home in the last 36 months) is up to $8,000.   For the "move-up" or "long-time resident" (you don't have to be buying a bigger home to qualify), the available tax credit is up $6,500.  The long-time resident is defined as someone who has owned their home as their primary residence for the last three out of five consecutive years.  The tax credit for both first time and long time residents is for the purchase of a primary residence (owner occupied).

Income limits were raised for transactions closing after November 6, 2009 to up to $125,000 modified adjusted gross income (MAGI) for taxpayers and $225,000 for joint filers.  The credit is reduced up to those with MAGI above $145,000 for single and $245,000 for joint.

Homes with a sales price of over $800,000 are not eligible (too bad--the Jumbo market needs all the help it can get). 

In order to qualify for the tax credit, home buyers must be in contract to purchase a home by April 30, 2010 (100 days away as of today)* with a closing date no later than June 30, 2010 (no summer vacations for escrow officers in June).   Home buyers will need to file IRS Form 5405 and be sure to include a copy of their HUD-1 Settlement Statement.

Members of our Armed Forces serving outside of the United States have been granted an extra year for the tax credit.  They must be in contract by April 30, 2011 and close prior to June 30, 2011.

Check with your tax advisor for more information.

Special note: this is my 1000th article posted at Mortgage Porter!  Thanks again for your continued support and readership. 

A Few Minor Adjustments

I think I've somehow managed to lose my Feedburner feed, where my readers receive what ever articles I write on Mortgage Porter directly to their email.  So I'm looking at using this as an opportunity to revamp what I use for my feed and I could use your help.

Please comment below if you are a Mortgage Porter subscriber and let me know if you have received this post via:

• Feedburner
• Feedblitz
• Mailchimp
• other

Thanks so much for your help! 

Happy Third Birthday, Mortgage Porter

It's hard to believe that I've began writing on blogs three years ago today.   I honestly didn't expect anyone to read what I had to say about mortgages.  It almost began more as free therapy since I had to get what was bothering me about the industry off my chest.  And thanks to the current mortgage landscape, I still have plenty to write about and there are so many forums with social media.

Three years ago, I  had plugged away on Mortgage Porter until I was invited to be a contributing author at Rain City Guide, where I still post today.  I write for a few other blogs now and then too.  Social media has evolved during this time.  I also enjoy "micro-blogging" in 140 characters or less on Twitter, where I post the rate quotes I'm providing Washington State consumers, various mortgage factoids and personal odds and ends.  Facebook has become a place where I stay connected with family, friends and clients.   My blogging and participation in social media has brought me so many great opportunities including being recognized by peers with the Washington Association of Mortgage Professionals 2009 Jim Fitzgerald Distinguished Service Award and being a panelist at RE Blog World in Las Vegas.

And it all started with this blog post...go figure! 

Thank you for reading, commenting and for those of you who have selected me to be your mortgage professional.  I'm honored.

Over at Rain City Guide...

I posted much improved mortgage rates this morning at Rain City Guide since I'll be at the Seattle Real Estate Bar Camp on Friday and unable to post rates.  You can check them by clicking here.  Of course you all ready know that rates are lower if you're following my live rate quotes on Twitter.

While you're at Rain City Guide, I encourage you to check out some other articles that I think are top notch.   Including a couple from ARDELL about how buyers should write their own "Seller Disclosure From" and check out her much publicized post where she discusses her local market and the possibility of this being "the bottom".

I've done a few updates on underwriting guidelines for investors and vacation homes from Fannie Mae that you may what to read.

Last but not least, be sure to join Rain City Guide's Facebook Community.

...and that's just scratching the surface!

The Magnificent 7 for 2008 are...drum roll please....

I'm still in awe over Larry Cragun's dedication of reading thousands of articles to share his monthly selection of the seven best articles each month...and then to take those posts for the year and fine tune it down to his top seven favorite consumer focused articles is simply amazing.  Larry has said on his blog that 2008 is his last year for his Magnificent 7.   This makes being recognized as one of the last final seven extra special if not a bittersweet.

Not only am I honored that two of my articles made it to 2008's Magnificent 7, I'm humbled to be included with the others who made it on Larry's list. 

Drum roll...the Magnificent 7 for 2008 are...(click here).

Meet Me and My Fellow Rain City Guide Contributers

Ardell, Jillayne and yours truly will at Crossroads in Bellevue at 6:30 pm on February 4, 2009.   I'm bummed that Dustin can't make it (maybe he'll suprise us).  And so far, fellow authors, Craig and Robbie, say they'll be there too!

 

It's a causal meet-up that Ardell is organizing.  We'd love to meet our readers, commenters and fellow contributors.  For more information or to give us a heads up that you're stopping by, please click here. 

By the way, if you visit Rain City Guide's About RCG page, you'll see what the four of us are twittering--just like the photo above which was taken at Inman Connect in San Francinsco last summer.  Sadly, RCG contributors rarely have the opportunity to pile on a bean bag chair together.

Magnificent Larry Cragun

Larry Cragun has announced that this month marks the end of his Magnificent 7 Nominees.  For three years, Larry has read thousands (tens of thousands?) of articles and has hand picked those he felt were most consumer focused each month; spotlighting them on his blog, Real Estate Undressed.  In January of the following year, he posts "the Super bowl" of consumer posts and whittles down his top selections from the top 7 of each month for the Magnificent 7 for that year.  It's quite a task and I thank him for it.  Not only have I been lucky enough to have a few of my articles nominated by Larry, I've been introduced to many other real estate bloggers who care just as much about shedding light to consumers as I do.

The final set of nominees for the Magnificent 7 are:

1. Dan Melson with "Getting Rich Quick in Real Estate"
2. ARDELL with "A buyer's right to do "an additional inspection"
3. Noah Rosenblatt with "Deflation Buyer Strategy: Buy to Renovate"
4. Mark Clawson with "Should I Refinance"
5. James Lapori with "Re-adjusting Priorities: What's a House For"
6. Luke Mullins with "Sheila Bair: We Need Foreclosure Mitigation Now" 
7. Rhonda Porter (my article) with "Can I Buy a $620,000 Home with a 620 Credit Score"

Thanks, Larry--YOU ARE MAGNIFICENT!

Happy 2nd Birthday Mortgage Porter!

I'm often asked what caused me to start blogging...well two years ago today I was watching the late night news about a local case of mortgage fraud and the reporter closed the story with wrong information about loan originator licensing.  I just had to get the truth out.  I wasn't sure if anyone would ever read Mortgage Porter.  Two years later, I have over 750 articles written with my clients in mind and I hope to continue writing for you.

To celebrate my 2nd blog birthday of Mortgage Porter, I have a special treat for my readers and commenter's.  Now when you leave a comment, you have the option of creating a free typepad profile which will appear when you leave a comment.  Your profile may also include a photo.  Of course, you can still comment anonymously, if you prefer.  Comments will also be in a thread format instead of a "line" format, which may promote conversation with each other.  You can also be notified of future comments.   This is a new feature that I'm literally installing as I type...so hopefully it won't throw a fit like a typical 2 year old!

Again, many many thanks for reading Mortgage Porter.