This 5.625% jumbo mortgage interest rate may not be around for too long.

You should contact Dick Todhunter 206-898-3776 as soon as possible to discuss how you can save thousands of dollars on your jumbo purchase mortgage or jumbo refinance.

Adjustable jumbo mortgage increases are making it difficult for many people to afford to stay in their homes, or just refinance your jumbo mortgage to save money.

I have to say…. There is no gimmick to this 5.625% jumbo mortgage offer. It is being offered by a great lender, as are the Lender A, B, C jumbo mortgage products. Information is free.

Jumbo home buyers need to be able to get a mortgage they feel comfortable with and find affordable. Let’s look at an example of how you can truly benefit:

Home buyers need to be able to get a mortgage they feel comfortable with and find affordable. Let’s look at an example of how you can truly benefit:

I will present you with scenarios from OUR LENDER OF CHOICE and number of typical lenders, rates all pulled the same day. Let’s assume an $800,000 mortgage (although the lender of choice will offer their product to people with real estate financing needs up to $3,000,000). The pricing includes adjustments as indicated.

EXAMPLE mortgage of $800,000

Check out the Points required to obtain the interest rate by all lenders. Look at the Cost of those points for our $800,000 example. That’s amazing! Not really. Most lenders are simply not interested in making loans over $417,001 and $575,500. They are not “Out of the Market”, there is no market for Jumbo mortgages! That is probably the correct interpretation.

Here’s what is happening and an answer to the question “How can this be so different between lenders?’

This all seems too good to be true! But it is the mortgage market crisis in action.

The problem with the mortgage market is that investors don’t trust that the mortgage backed securities they will be buying will have value, are they really buying “sows ears” when thinking that they are buying “silk purses”?

Fannie Mae and Freddie Mac are the major buyers for Conventional mortgages of up to $417,000. In an effort to assist the mortgage market, free up some money, re-invigorate the real estate markets these two GSE’s increased their lending limits. For the King county markets that increased limit is $567,500, but lenders have additional charges for anything over $417,500.

Of course there is also the issue of being able to qualify for a mortgage. Many borrowers find that difficult today.

So, for anything above about $417,000 financing gets tough. Borrowers have limited accessibility to financing by increasing both interest rates and adjustment charges. The reason that lenders A, B and C are not being uncompetitiveis that they simply don’t want the loans, as they don’t have buyers for the mortgages being generated and they can’t take the risk of keeping these loans on their books.

Here’s a thought, maybe OUR LENDER is the leading edge of a solution to the home mortgage problem. They appear to be able to originate loans at reasonable rates, terms and conditions. Please Lord let it be true.

If I can put my professional services to work for you in buying or selling

your next property and providing a solution to your real estate financing needs,

please call Dick Todhunter at 206-898-3776 or Contact Us

I am a member of the UpFront Mortgage Brokers Association. The Upfront Mortgage Brokers Association (UMBA) was founded for consumer advocacy. Members of UMBA are mortgage brokers whose interests are fully aligned with those of the consumer. View the UMB comitment. Founded by Jack Guttentaug, The Mortgage Professor, a nationally syndicated columnist.

Homeowners with homes worth more than the current Conventional mortgage market limits are having a difficult time:

1. Selling their real estate
2. Finding that their home buyer no longer qualify for their mortgage loans
3. And that kills their real estate home sale
4. Or the property owner is looking for a mortgage refinance only to find that interest rates are prohibitive, credit scores have increased and loan to value ratios preclude the homeowner refinancing.

Benefits of OUR real estate mortgage Lender of Choice

Everything about this loan is PERFECT! It will solve your needs for a Jumbo mortgage refinance or jumbo mortgage purchase.

1. Your home mortgage interest rate will be as much, or more, than 3.13% BELOW other Jumbo mortgage lenders!
2. In our example, your monthly mortgage payment will be $2,000 below the competitor mortgage companies and $3,750 per month lower on our Interest Only jumbo mortgage.
3. Low mortgage closing costs, by as much as $23,840- $26,000 (other mortgage lenders cost of adjustments).
   
4. Priced for 60-day lock on your home purchase mortgage (this gives more time to sell your time and close!).
5. Priced for 30-day lock on a mortgage REFINANCE.
6. Continuous interest rate float down at no cost! Get the lowest mortgage refinance interest rate at the lowest mortgage price offered from lock in to 3 days prior to closing your mortgage.
7. Minimum FICO 650 score for employed borrowers and 700 for Self-employed mortgage borrowers! I hope that you are aware that these are low FICO scores compared to what other home mortgage refinancing lenders are requiring.
8. No Escrow impounds.
9. Maximum Debt to Income Ratio of 45%, even on 10 year Interest Only loans! And this at a time when other real estate lenders are making everything more difficult!
10. Has your second mortgage lender cancelled your mortgage line of credit on your primary residence? You should check, most lenders have done just that. Our Lender will go to $250,000.
11. Business or multi-family property owners can obtain secured COMMERCIAL loans up to $500,000 on their COMMERCIAL or Multi-family properties valued at up to $3,000,000. First or second lien positions.

Call Dick Todhunter at 206-898-3776 or Contact Us

As this blog points out, by example, other mortgage lenders simply don’t want your business.

Most mortgage lenders are in a pickle. They would love to make money providing Jumbo mortgage refinancings or purchase money jumbo mortgages. The problem is that there is no market for them to sell jumbo mortgages into. Once they make the jumbo mortgage to you, they have to keep the mortgage on their books and that means they run out of mortgage money real quick. So they price jumbo mortgages high enough to limit applicants and make good money on jumbo mortgages they do make.

Our jumbo mortgage lender does want to provide jumbo mortgage loans. Other mortgage refinancing lenders can’t sell your home mortgage, our mortgage lender has resolved that problem. And that is what you want, isn’t it?

Many of my mortgage clients have conducted their real estate search, found their dream home for sale and been turned down by Conventional lending sources because their mortgage went over the $417,000 Conventional loan limit. Others wanted a cash back mortgage refinance and the cash back mortgage put them over the Conventional loan limit. Mortgage lenders FICO credit scores zoomed up to 700 for anything over $417,001. These mortgage borrowers found that they couldn’t meet that requirement! Well, our lender loans down to 650 FICO credit score!

You know the situation, its in all of the newspapers and on TV.

It is really hard for higher end Seattle real estate and home sales (of course including Bellevue WA, Normandy Park WA, Issaquah WA, Mercer Island WA- wherever these properties live). Let’s describe a “Jumbo” property as one where the mortgage loans exceed $450,000. That is the real estate jumbo mortgage range our lender is best at.

You have our permission, please, to tell your home buying friends about this program, they will THANK YOU!

What do you want to do?

This real estate mortgage product is great for you if:

1. You want to sell your prestige home but the real estate market precludes buyers from acting. Jumbo purchase money mortgages are hard to come by and mortgage interest rates are close to prohibitive.
2. You want to sell your real estate and buy a bigger home, one that puts you into the Seattle jumbo home buying market.
3. You want to buy a second home in the jumbo category.
4. You have recently tried to sell your home and found that there were no takers; maybe interest rates scared them away! And now your home is off the market. And need to refinance your home! Refinance your home to lessen the burden.
5. You are looking to put your home on the market and want us to offer your prospects a low mortgage interest rate, which allows them to buy more home, your home! Increase your odds of a sale, call us.
6. You would just like a lower interest rate on your mortgage, on your primary residence or second home.
7. Want to get rid of your annual adjustable rate mortgage, constantly going up, putting your home in jeopardy?
8. Wish that you could make lower monthly payments with an interest only home mortgage?

Jumbo home mortgage quotes below are for those borrowers with a minimum FICO credit score of 650 for employed borrowers and 700 for self-employed borrowers.

Our lender has two jumbo real estate purchase or jumbo home mortgage refinance programs which are virtually unbeatable!

1. A 5/1 ARM, 80% LTV (our example below, contact us for a quote)
2. A 7/1 ARM, 80% LTV (contact us for a quote)

Need a small business mortgage? At NO COST?

This article is not about small business mortgage needs. But be aware that another lender is now providing a no cost commercial property mortgage and commercial property second mortgage up to $500,000. Contact me for details.

1. 4-5 unit and above multifamily mortgage on properties valued at $3,000,000 and below.
2. Commercial properties, all legal entities, owner occupied or investor.

Call Dick Todhunter 206-898-3776 Lic #510-MB-LO-37219 Call us today at 206-575-7495 and select extension 302 for Tyler Todhunter or 303 Fernando Rodriguez, Se Habla Espanol Columbia Funding Group Tyler Lic# 510-LO-39638, Fernando Lic# 510-LO-37536

FYI - I have searched high and low. Most lenders are stilll in the area of 7.75%. Had to search high and low to find this interest rate. I don’t know if it means the market is adjusting and this is one of the early adapters or what. That’s a $799 savings each and every month achieved by refinancing a $567,500 Jumbo mortgage! Or, you could purchase an extra $138,760 more home for the same payment!

Is it going to be a trend, or short lived?

I can be reached at 206-898-3776 if you have any questions. Dick Todhunter, (mortgage license 510-LO-37219). Licensed real estate broker. Call for your mortgage and real estate needs. Receive a 20-30% REBATE, of my real estate commission, on your next home purchase!

This is the lowest Jumbo refinance or Jumbo purchase mortgage we have seen in over nine months. How long will it last? Don’t know! You can’t wait any longer to refinance your Jumbo mortgage or purchase using a Jumbo mortgage.
Jumbo purchase mortgage and Jumbo refinance mortgage now available at an astonishingly low rate of 5.625% interest!
That’s right refinance your Jumbo mortgage at an interest rate of 5.625%. Here are a couple of details. You can refinance Jumbo mortgages up to $567,500 in King County WA and Pierce County WA. Jumbo mortgage loan limits vary by county, so you will want to give us a call to determine the maximum Jumbo refinance available in your county.

Thinking of purchasing a home in King county WA? Visit The Sound Team website and contact Dick Todhunter today. Now might be the time to act on that inclination! I have noticed a significant increase in traffic on my websites. In the last three weeks I have had 105 prospects in my database looking at properties. In the first three months of the year I had about 100 unique prospects looking for properties. Spring is about to be upon us! Maybe it will be easier to sell your home soon, and get your best offer in now- before people think they can get more for their home.

Anyhow, home buyers in King county WA and Pierce County WA can now make offers with a mortgage between $417,000 and the $567,500 maximum Jumbo mortgage and get an interest rate, for a thirty year fixed rate mortgage of 5.625%
In fact for either a Jumbo mortgage refinance or Jumbo mortgage purchase you can get an interest rate of as low as 5.753%.

By the way, our mortgage associates, Columbia Funging Group, are experienced with refinancing Jumbo mortgages and requirements for purchasing a home with a Jumbo mortgage. We are members of the Upfront Mortgage Brokers Association, which is dedicated to treating our clients, as they would expect. Take a moment to view our commitment to YOU, our client.

Give a call and get your Jumbo mortgage refinance or Jumbo mortgage purchase going.

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It had something to do with “Think Local”.  Our Seattle WA and surrounding communities markets never did take off with the same exuberance as did many other markets.  And our landing will not be anywhere near what is happening in many other cities. 

So why are so many would be buyers waiting for prices to drop?

It is really about buying a home, a place to live, the community and schools.  It is about getting on with life.  We have been focusing too much on a home as a piggy bank, rellying too much on price increases to fund our consumer needs.  When is the last time you heard of a mortgage burning party?  Probably the younger buyers are saying “a what?”.  Yes people did really pay off their mortgages and party.

Did you hear, home prices in Seattle WA are beginning to rise!

You may have heard recently that prices dropped a whopping 1.3-1.7%~ last year.  For those of you who held off buying that represents about $6,158 drop in the median Seattle WA home price.  That is a monthly savings of $37, about 10 Starbucks coffee drinks.  About 2.5 coffe drinks per week or almost one movie ticket per week (no popcorn though).  Or about 1.75 gallons of gas per week.  Stop me when this begins to sound like a silly reason to hold out on your home buying dreams. 

And a whole industry held it’s breath with you. 

I have heard that something like 25-30% of real estate agents have dropped out of the business.  That’s actually great for the rest of us and for you.  They say that about 72% of buyers and sellers choose the first agent they come across.  Imagine, you could have had a one in three or four chance of selecting an agent who probably shouldn’t have been in the business anyhow.  Hmmmm….. maybe you will give me a call now!

Here are the most recent numbers:

The median price for a single family home that sold in King County last month was $439,900. That’s down about 3.3 percent from a year ago, but up $10,000 (2.3 percent) from February!  Have we turned a corner?  Are we about to?  February 2007 to February 2008 is down in volume by 35%.  Must be the latee saving people stopped buying real estate.  Oh, come on.  Play with me!

And peak home buying season is hitting the Seattle WA market!

The current market offers great opportunity for homebuyers.  Prices are holding up and there is less competition, at this time.  As spring progresses the market typically picks up and with interest rates at today’s low rates there should be a real rush in the offing.

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NEWS FLASH!!!  Jumbo mortgage refinance to conforming rates time is upon us!   Refinance your jumbo mortgage today!

Call me today at 206-898-3776 for a FREE Financial Impact Overview of how refinancing your jumbo mortgage will benefit you.  Member of UpFront Mortgage Brokers Association, UMB commitment,  Reference The Mortgage Professor.

What a snoozer this has been, the anticipation has been enormous.  On March 6th The Office of Federal Housing Enterprise Oversight (OFHEO) released the maximum conforming loan limits that will be in effect through year-end as a result of The Economic Stimulus Act of 2008.

For King, Pierce and Snohomish Counties the maximum mortgage amount will now be $567,500!  That’s wonderful for you borrowers who have been paying Jumbo mortgage prices in King County WA!  Your rates can now drop down to the new conforming loan limits. 

Refinance your King County WA Jumbo Mortgage, Pierce or Snohomish County Jumbo Mortgage today,

As of Friday March 7th your interest rate could be 6.0 % to 6.125%, using the Conforming maximum increase, above that would be a payment of $3,402!  Compare that to current Jumbo Mortgage rates of near 8% (at the Conforming maximum increase) your payment would be $4,164 for a total savings (of refinancing your Jumbo mortgage to it’s new conforming maximum) of $762 each and every month!  Now that’s a great savings, simply for refinancing.  Give me a call and obtain the lowest possible rates on refinancing your Jumbo Mortgage TODAY!

Why refinance your Jumbo mortgage with me?

Because you want someone with experience, scruples and knowledge of the industry.  Someone who will do right by you.  Just read my blogs for my integrity and recognize that you will feel comfortable and be protected from unscrupulous Loan Officers and mortgage companies who will now come out of the woodwork’s to get to your money!  Look at the mess we are in with our mortgage crisis!  Which of those loan officers do you want to do your mortgage?  Why should you look further than this blog for a decent person to TRUST?  Call me today at 206-898-3776 for a FREE Financial Impact Overview of how refinancing your jumbo mortgage will benefit you.  Don’t settle for less at this crucial time.

By the way, I am a member in Good Standing of the Upfront Mortgage Brokers Association and fully subscribe to their philosophy of complete and Upfront disclosure of all closing costs and will provide you with a current rate sheet upon locking in your mortgage interest rate in financing you out of your Jumbo mortgage refinance.

________________________________________________________________________________

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NEWS FLASH! Effective March 17, 2008 you can take advantage of new Conventional limits!

I am a member of the Upfront Mortgage Brokers Association and have practiced honest, ethical loan origination for over 20 years. When purchasing a home, through me and getting a mortgage with me or one of my mortgage partners, I will contribute 1% toward your mortgage costs (purchase price over $300,000). Call me today at 206-898-3776 for a FREE Financial Impact Overview of how buying a home makes sound financial sense and will benefit you. UMB commitment, Reference The Mortgage Professor.

Whew! It certainly took a long time for the FNMA / Freddie Mac ceiling increase to get to reality. Thank God I wasn’t holding my breath. In all of Washington State, and specifically King, Pierce and Snohomish Counties, WA. We are cranked up to help homebuyers under the new FNMA and Freddie Mac conforming mortgage new ceiling of $567,500.

Home Buyers rev up your engines, or be late off the line. Spring will take pressure off Sellers!

This may sound a lot like an advertisement, but the reality is that now is the best time for you to take action. It is a Call to Action. Homebuyers can now afford to buy approximately $143,250 more home today than they could only last week because of the new ceiling on conventional financing! Or have $859 in savings on their home purchase (based on the new conforming maximum of $567,500 for King County Washington). Acting today takes advantage of our depressed housing market, where sellers are looking for your offer. The ceiling on conforming loan limits is set to expire by the end of 2008, but the market will heat up once this awareness hits the homebuyer conscience. It’s a lot like first come first serve, be a buyer today.

Refinance your Jumbo Mortgage today, before rates begin to rise!

Looking to refinance, save hundreds of dollars each month by refinancing your jumbo mortgage today at about 1.25% lower interest rate! That’s an $859 per month savings on refinancing your jumbo mortgage or on your purchase money mortgage (on $567,500) under the new guidelines.

Call 296-898-3776 today to see if you qualify for the new program.

Note: There is no real or implied relationship between Skyline Properties, Inc. or any mortgage lender I work with. You will be required to sign an acknowledgement of this fact if I do your purchase and mortgage simultaneously.

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Waiting for the next shoe to drop has been interesting.  First it was announced that changes were in the wind, but of course the had to be approved by both houses and signed into law by Presidential approval.  That was done.  Various announcements were made public and Conventional loan amounts were increased.  U.S. regulators removed limits on the combined $1.5 trillion mortgage portfolios of Fannie Mae and Freddie Mac, enabling the companies to increase financing for the slumping housing market.

Who knew that all of this was going on in the background, who cared?  We just want to get on with life as soon as possible.  Tired of holding our breath on the upcoming refinance.  When?  When?

Well, we are actually getting closer.  It appears that the issue may be that lenders are interpreting the mortgage guidelines and I have heard that there is some sort of meeting, within Wells Fargo, set for March 17th and it sounds like this is to discuss these new program requirements. 

Keeping in mind that the legislation is set to be only a short term increase, expiring at the end of 2008 and was put together to resolve liquidity issues in the mortgage and real estate markets.  Yes the clock is ticking and we need to get our refinance and purchase activities set into high gear.  It sounds like there is still a cap of $417,000, and a charge for anything up to the new limit.

For King, Pierce and Snohomish Counties the maximum mortgage amount will now be $567,500!  That’s wonderful for you borrowers who have been paying Jumbo mortgage prices in King County WA!  Your rates can now drop down to the new conforming loan limits. 

I will post the results of the March 17th meeting as soon as I understand what comes next.

Contact me at 206-898-3776 in order to get set for participating in a stampede of Jumbo mortgage refinances.  I also work with homebuyers who can buy a home through me and get a reduction on their mortgage costs. 

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Are you aware  approximately 43% of all new mortgages are refinances?  The average refinanced mortgage is only 3.5 years old!  Arms represent about 18% of new mortgages.  Everyone else is going for long term lower interest rates and coming out of their arm mortgages.  Borrowers are taking out more money on their homes with 95% of new mortgages being higher than their previous balance, with $125 billion projected to come out of their homes in 2008.  But, that being said, is not what we are talking about here, just informational. 

The above is very geek like.  Below explains how to look at the logic of refinancing your home mortgage, a much better read.  OK?

We are in the midst of a mortgage refinance boom!  And it may make sense for to refinance your mortgage now. 

And why not, IF it makes sense?  The real question is….Does it make sense for you to refinance your home mortgage today?  And how do you find a decent person to refinance your home mortgage.   I feel that information provided in my blog demonstrates that you may have found a loan officer who demonstrates integrity, honesty, industry knowledge and on and on.  Why search any further?  Call me today at 206-898-3776 for your FREE Financial Impact Overview report.  There is no cost or obligation to you.

How do you know if refinancing your home mortgage makes financial sense for you?

Typically you would look at monthly savings provided by a refinance and, of course, how much it costs to refinance.  That turns out a cost benefit analysis.  Most borrowers do their own analysis to determine the benefits of refinancing their mortgage. 

Alternatively you may want to refinance your mortgage in order to get out of a mortgage which no longer fits your financial objectives.

What are mortgage closing costs and who pays them?

Let’s not get wrapped up in closing costs, rather recognize that they are real and there is nothing either you or I can do to decrease them.  Period.  The mortgage loan officer can ask what you want to do with those costs and your choices are quite simple:

1. Pay your closing costs out of pocket at closing, a choice which most borrowers don’t make when refinancing their home.
2. Wrap closing costs into the loan, thus paying your closing costs over the term of the mortgage.  This is what most borrowers choose to do and most frequently this is what my clients choose to do.
3. Have the lender pay for your closing costs, thus creating a zero closing cost mortgage.  This is the “FREE Mortgage”.  This is what many people want to do.  Why not have someone else pay for something you want, lower your home mortgage monthly payments for free!  Free refinances are not real, as someone has to pay them and the most logical person is you, the beneficiary of refinancing your home mortgage.  You will end up with a higher mortgage interest rate than you could otherwise get by wrapping mortgage closing costs into your mortgage.  It is that higher interest rate difference which pays for your closing costs.  There are additional benefits to this mortgage, which I won’t go through at this time. 

My FREE Financial Impact Overview report will outline your benefits.   

 If you are interested in more details about “No closing cost” home mortgages, Jumbo refinance mortgages or a home purchase mortgage- give me a call.

The Jumbo mortgage refinance program will be immediately available for people in all of King County Washington, Seattle, WA, Bellevue, WA, Kent, WA, Renton, WA, Normandy Park, WA, West Seattle, WA and other communities in the Puget Sound area.  Call today for information and let’s get your monthly payments reduced.

The reality is that there is a crisis of confidence in our monetary system and in worldwide systems. This is disastrous to our ability to not only fund mortgages, but virtually anything that requires bonds (municipal, equipment, anything that requires selling bond pools to investors). You really should read the below information and you may find it interesting and appalling.

Here’s what has happened:

The risk of home ownership has been effectively transferred from the home owner to the ultimate investor. That is unconscionable given who should have retained the risk. Imagine, you invest in a product and know the risk reward ratio. You price your money based on expected return and loose 70% in an instant. Would you do it again? Would you, as a home buyer expect to continue being able to get a mortgage? You imagine business as usual.

1. Borrower gets a mortgage with interest rates correlating to their credit worthiness, down payment, reserves (cash in the bank after closing) and other factors. In theory shouldn’t rates reflect these risks? Shouldn’t the buyer pay according to their credit risk? Seems right to me.

2. Lenders make the loan and bundle for sale on the secondary mortgage market, with the aid of Wall Street brokerage firms. These Mortgage Backed Securities (MBS) are rated and sold to investors all over the world. Possibly including your 401k or mutual fund.

3. Investors in MBS have expected rates of return, and gobble up these products keeping the money churning through our economies. These investors are risk averse and simply want the agreed upon returns.

4. You pay your mortgage without knowing or caring who your mortgage paper was sold to, you have a contract telling you the terms of your mortgage and that can’t be changed.

That’s the really simplistic version – Now here’s what has happened with the development of a world market for MBS (and other “Safe Investments”).

As the mortgage industry developed increasing complicated products, aimed at decreasing the expense to the borrower, things went haywire.

1. Borrowers with sketchy credit, non-homebuyer types (and don’t misunderstand me, many of these people are now homeowners and meeting their obligations) who have had credit, employment, and health issues managed to become homeowners. And that was the plan.

2. Borrowers payments were kept low by removing Private Mortgage Insurance requirements, getting interest only, low interest teaser rate adjustable mortgages and more house than they could afford given that the environment changed. Great for the buyers, until it came time to pay the piper.

3. Property values declined, and are continuing to decline in man markets, although the Seattle, WA, Bellevue, WA, Renton, WA and surrounding communities have not experienced the extremes in decline. Declining values mean no chance to refinance out of bad mortgages, as hoped. Foreclosure.

Investment buyers lost control of their investments by trusting the integrity of bond rating agencies, Wall Street, Insurers of MBS products. Investors are not innocent in this matter, since they are always chasing the highest rate of return possible and sometimes act as if they have blinders on. They appear to have come up short in due diligence.

1. It used to be the Investors, to rate products for their purchase, hired bond-rating agencies like Moody’s, Merrill Lynch and others. The bulldogs at the door so to speak

2. With the development of a secondary mortgage market a complete monetary system was developed, outside the purview or control of any government things changed greatly. And somehow the rating agencies became lapdogs of entities like mortgage companies, aggregators of MBS products. Rating agencies were paid to rate sows ears as silk purses. AAA ratings created more profit fore everyone as compared to CCC ratings (or whatever MBS risks should have been rated). Basically mortgage companies bribed rating agencies by paying more for a higher rating, ultimate investor welfare be damned.

3. There are insurers of MBS products, thank God, otherwise they would have to have a higher risk premium and investors wouldn’t be as interested in buying them.

4. The insures have a problem though; they never insured risky MBS products. How did they get into this business anyhow? These insurers were in the business of insuring things they knew- heavy machinery, municipal bonds, etc. They knew their business and inherent risks well. They were comfortable and profitable and had AAA ratings, which lowered their borrowing costs.

5. Along comes the nefarious duplicitous bond rating agencies. They tell the insurers that their AAA ratings are at risk; they need to have additional sources of revenue. And, lo, the rating agencies have just the product MBS and other (risky) products. How fortuitous this must have been. Insurers saved their AAA rating by creating what the bond rating agencies needed in order to peddle sows ears as silk purses and have these products insured for a higher yield.

6. Investors really liked the insurance companies stepping in with their insurance backing. Feels soft warm and fuzzy. And they get their rate of return. Whoopee!

So, now we have a sub-prime mortgage crisis! Or, is that the tip of an iceberg I see?

You have all heard about this, falling prices, foreclosures, criminal loan officers and mortgage companies. All the way up to the top. Mortgage companies, banks, brokerages loosing billions. Recession! Job losses!

And that’s when the other shoe dropped!

Ambac is an insurer who fell prey to the rating agencies requirements and ignorantly fell in line, insuring MBS (and other instruments). They were the first insurer to tell everyone that they didn’t have enough money to fulfill their obligations to Investors.

What does that mean? Well, investors simply stopped buying MBS products and lenders had no outlet for mortgages they had generated and took the huge losses you hear about every day. Why would an Investor in these type of products even think about buying only to loose up to 75% or more instantaneously. Would you.

So, the mortgage market binds up. Buyers no longer qualify, home prices drop (read my Think Locally blogs), jobs are lost, recession looms. Think about it…. Where is Seattle, WA, Bellevue, WA, Des Moines, WA and any other municipality get its money for infrastructure improvements, how is machinery finances, where do the jobs go if these bonds can’t be sold? And they can’t be sold. Nobody knows what the risk is and the market has frozen up.

All because of greedy bastards. The entire global economy is being affected by the incremental profits made by people who benefited at the detriment of all of us. This would appear to be one of the most spectacular Ponzi schemes ever perpetrated. And guess what, it is a “blue collar” crime. Someone is going to get a few years in jail and will have to pay back a portion of their ill-gotten gains. Probably get out early and retire.

These things come and go, witness the S&L Crisis, the Resolution Trust debacle. I imagine the net effect will be to monetize the whole situation, thus leading to a devaluation of the dollar, via inflation. It’s wonderful, life goes on.

All we can do is to recognize what has happened and say “So what?”

Well, I guarantee you that the outcome will be to place the burden of home ownership where it belongs, on the individual home owner. That’s not meant to sound mean spirited, just the way it is or will be.

1. They will be required to purchase Private Mortgage Insurance (PMI), which will, and has, increased their premiums, by a maximum of .8% to help defray costs of foreclosure (effective immediately).

2. FNMA, Freddie Mac are in the process of increasing their loan limits and adding as much as 2% to closing costs (about 1/2% increase in interest rates if financed).

3. Believe me this will affect affordability for homes and free up the housing markets to function.

4. A Jumbo mortgage refinance boom will begin immediately as people can save hundreds of dollars with a Jumbo mortgage refinance to Agency paper guidelines. Seattle, WA Jumbo mortgage rates will decline by 1-1.5% simply because they are now in the Conforming mortgage market which has raised the ceiling on mortgages. NEWS FLASH- Congress has recently passed the Economic Stimulus Package and sent to President Bush for his signature. Great news for Jumbo mortgage refinancing people. Just a question as to when the Economic Recovery Program will be implemented.

5. The net effect on the economy of increasing Agency loan limits will be to free up hundreds of dollars per month, immediately for each homeowner. That is a significant shot in the arm for an ailing economy and should help shorten what looks like a recession, along with saving peoples homes, dreams and neighborhoods. Home values should begin to recover.

Enough!!!! I could go on and on. I heap accolades upon each of you who have had the fortitude to make it to the end of this blog. You should do business with people who appear to understand what is happening in an area that you don’t have the time or inclination to study. Call me today to discuss your Jumbo Mortgage refinance needs, home purchase or home sale needs.

The Jumbo mortgage refinance program will be immediately available for people in all of King County Washington, Seattle, WA, Bellevue, WA, Kent, WA, Renton, WA, Normandy Park, WA, West Seattle, WA and other communities in the Puget Sound area. Call today for information and let’s get your monthly payments reduced.

Imagine the payment relief people with Jumbo Mortgages in Seattle, Wa, Bellevue, Wa and surrounding communities will receive by being included within the Agency (FNMA, Freddie Mac) loan limits.  Interest rates for Jumbo mortgage refinancing to conventional mortgage interest rates could save you hundreds of dollars per month.  Once this bill gets signed and we know the implementation date you can take advantage of lower mortgage interest rates. 

For those of you who are trying to sell your home into a Jumbo mortgage market, with all of the current limitations on Jumbo mortgages, well, your home just may be more marketable with the stroke of a pen!  That means that real estate might be more exciting over the next few months.  More buyers will qualify for your home and you may qualify for a home which previously required Jumbo mortgage pricing.  Let’s see what happens.

Congress Sends Economic Aid Plan to Bush

The Associated Press
Thursday, February 7, 2008; 8:31 PM

“We believe the stimulus, the way it is targeted, will put money into the hands of those who will spend it immediately, injecting demand into the economy and therefore creating jobs,” House Speaker Nancy Pelosi, D-Calif., told colleagues.  

The measure also includes steps to boost the ailing housing market.  

Bush said the final plan was “robust, broad-based, timely, and it will be effective.” The compromise, he said in a statement after the Senate acted, was “an example of bipartisan cooperation at a time when the American people most expect it.”  President Bush indicated he would sign the measure.

Below is from:

Increase in Government Sponsored Enterprises (GSE)/Federal Housing Administration (FHA) Conforming Loan Limit: The conforming loan limits for both FHA and GSE (such as Fannie Mae and Freddie Mac) loans would be increased from $362,000 to $725,000 and from $417,000 to $625,000 respectively. Interestingly information garnered from other sources limits the upper end to 125% of the median home value on a per county basis.  I suppose that the devil is in the details.Stay tuned for an update, which will hopefully include a time frame for implementation and actual numbers which apply to us.Jumbo mortgage refinances for Seattle, WA, Bellevue, WA, Kent, WA, Renton, WA, Des Moines, WA,

Jumbo mortgage refnances for West Seattle, WA, Normandy Park, WA, Rainier Beach, WA, Auburn, WA, Tacoma, WA

1. On average, the value of a home nearly doubles every 10 years. 1 (NAR existing home sales series). That’s a return most investments can’t match. During the past three decades, home values have increased an average of 6.6% per year 2 (ibid). And because more buyers invest only a small part of their homes total value in a down payment, their return on that initial investment is much greater, thanks to the power of leverage.
2. The average homeowner today has 36 times the wealth of the average renter. (3. Federal Reserve Survey of consumer Finances) Home-ownership is key to climbing up the economic ladder. When you own a home, you’re essentially paying yourself and building up equity. Not to mention the tax deductions only owners claim, such as property taxes and mortgage interest.
3. Here are the facts on Seattle’s real estate market. You might wonder if buying a home is a smart financial decision these days, given some of the misinformation presented in the national media. Your local Realtor Assn. wants you to know that local residential real estate is a tremendous long-term value. Regionally, we’re seeing an influx of 1.6 million people and 1.1 million new jobs (4. Puget Sound Regional Council) while King County is adding fewer than 15,000 homes per year (5. Building Industry Association of Washington) This increased demand and limited supply will support home values over the long term. For value-conscious buyers, this is an opportunity not to be missed.

Of course, a home is much more than a way to accumulate wealth. It’s a place to enjoy your lifestyle and your loved ones. What other investment can claim that?

The best way to evaluate your situation and options is to contact me. I can provide you with solid advice on local market conditions and can help you find the home you’ve always wanted.

Search for homes at www.thesoundteam.com See My Informative Blog for additional content.

The below blog is almost true. It appears that I pulled the trigger a bit too soon, hopefully congress will get this resolved soon. The italicized paragraphs are current status as of 1/31/8. I will update upon further action/ notice of inaction. The thoughts of this blog still apply, when congress acts appropriately.

The Senate bill did not include a provision of the House bill to temporarily increase the $417,000 conforming loan limit for loans eligible for purchase by Fannie Mae and Freddie Mac to 125 percent of the median home price in high-cost areas.

The House bill would also expand Federal Housing Administration loan guarantee programs, which are currently restricted to loans of $362,790 or less, to include mortgages of up to 125 percent of the median home price. Under HR 5140, the new limits for Fannie, Freddie and FHA programs would be capped at $729,750 and expire at the end of the year.

Your home should be a sound financial decision also. There is simply too much happening to get more than a smattering of understanding here, call me today at 206-898-3776 and let’s discuss your Jumbo mortgage refinance!

Congress has just approved Jumbo loan limits for our area have been increased. See Congress Unveils Deal for Tax Rebate . If you owe $625,000 or less on your Jumbo mortgage, you have magically been transported to the Land of OZ, where the man behind the scenes has given you an opportunity (sounds like one year) to refinance to a lower interest rate. What you can’t do is wait to begin the process. Yes, a year is a long time to have in order to refinance your Jumbo mortgage. But, and this is a major point, how long will rates stay at these historically low levels?

Contact me as soon as possible so that we can determine the benefits of refinancing your Jumbo mortgage into the Conventional mortgage world. What a great opportunity!

What does it mean to YOU!

Increased conventional loan limits mean that now is the time to refinance your JUMBO mortgage and get about 1% lower interest rate. Here’s the stats: right now the rate for a 30-year $600,000 mortgage is 6.625 percent. That is $3,841 a month. But if the law is changed, that cost will come down, because the rate for a loan at the current conforming limit (now $417,000) is 5.625 percent a month, a full percentage point below that of the nonconforming loan.

That is significant. Significant enough to make the difference between affording and not affording a home to some, particularly those in high cost areas

It has finally happened. Relief is in the works for Jumbo mortgage holders and sellers of Jumbo mortgage properties. You have been snuggled into the arms of agency paper, Fannie Mae (FNMA) and Freddie Mac. It’s warm, safe and cozy here.

Buying a home?

Call me today and get pre-approved to buy that home you have been waiting for! Ask me to provide you with a FREE Financial Impact Report! You will find that it really makes sense to be in the market today. You may not be a Jumbo mortgage candidate any longer and be able to afford more home than you thought, or pay $300-400 less per month because you are now in the conventional mortgage market!

Selling your home?

These changes have been brought on by the current turmoil in the mortgage market, particularly the non- conforming Jumbo mortgage market. This turmoil has basically killed the selling possibilities for anyone where the buyer would have to obtain a Jumbo mortgage. By bringing more homes into the conforming market a flood of homes now have the ability to be sold, as their mortgages will fall under the umbrella of what many think is the government umbrella of agency paper. Thus, the significantly lower interest rates which are now available to YOU!

Related content:
Stimulus Plan May Be a Boon to Higher-Priced Housing
Stimulus Plan: What’s In and What’s Out

Don’t wait to call, refinance your Jumbo Mortgage into a conventional mortgage today!

Visit my real estate website at: www.thesoundteam.com where you can search for a home now!

If you notice the tone of many of my articles you will note that I am a firm believer in viewing your home purchase or investment in rental real estate as one of the most significant financial decisions you will ever make. Yes, your home is your castle. Yes, it can turn into the family home of childhood memories. And yes, it can end up as one of the biggest assets in your retirement portfolio. It can also cost you tens of thousands, possibly hundreds of thousands, if you postpone the decision of home ownership and wealth creation because of fear that prices might drop and fear mongering news peddlers who hype every up and down turn in the market. The truth is more like….

Buying a home, or investment property, is a great way to build long-term wealth.

But there are some other important dividends, too.

Procrastinating Buyers may loose …. Procrastinated Sellers may have lost something.

If you’ve been waiting for the right time to buy a home you stand a chance of missing the bottom, as much as those homeowners who have their properties on the market today missed the top of the market. Now is actually a great time to take advantage of the angst amongst home sellers predicaments. Why now, because everything changes and so does the real estate market. Buy while blood is running in the streets. You only have a couple more months before the Holidays are over and everyone begins getting antsy about moving on. How long can buyers and sellers wait.

By the way interest rates are down, check out www.freddiemac.com for weekly average rates. It is a great time for getting a mortgage, maybe before inflation picks up and rates go up along with your monthly payment. Your rate will be lower than this with my services.

On to the meat of the matter! You should know the facts about home-ownership.

Right now, interest rates are still at historic lows, conventional financing IS available, the current mortgage crisis is creating a boom in FHA-insured mortgage applications. Yes, marginal buyers have been pushed out of the market and they were an enormous influence in recent housing price increases.

The more you know, the more you’ll realize it’s a decision you shouldn’t postpone any longer.

1. Homes are, in fact a great investment today. On average, the value of a home, your home or investment property, nearly doubles every 10 years. That’s a return most other investments can’t match. During the past thirty years, home values have increased an average of 6.6% per year, year in and year out. And because more home buyers invest only a fractional part of their homes total value in a down payment, their return on that initial investment is much greater, thanks to the power of leverage.

Think about it. Let’s say that you put down 3% on a $ 350,000 property, that’s $ 10,500. (And, by the way, if you are my client, in the Seattle WA, Renton WA, Kent WA- basically the Seattle metropolitan market area, I can save you about $ 6,000 in closing costs. See www.realtyandamortgage.com for details). Here’s what happens:

1. No! You don’t buy a home. You spend the money on depreciable assets or just blow it and continue living in somebody else’s property.
2. No! You do, however save the money for 10 years (as in housing appreciation above) and your hard earned money grows to $ 19,895 over that period.
3. YES! You do take the step into home ownership or investment property ownership! Then what does your financial model look like? Using the same information as housing appreciation above your $ 10,500 INVESTMENT into real estate is now worth $ 663,193 LESS your remaining mortgage balance of $ 285,987 gives you a NET WORTH of $ 377,206! That is 36.92% annual return, not including other benefits of home ownership (tax and interest deductions!). And, your rent didn’t go up for those 10 years! How could you be better off?
4. Waiting for the bottom may put you in the same position as sellers who can’t get their price, you may miss the bottom and over time how much would that cost you?

So, this is the first of about five articles. Stay tuned….Next on the agenda is:

1. The average home owner has 36 times the wealth of the average renter!
   
2. The facts of the Seattle real estate market.
   1. Increased inventory benefits YOU, TODAY!
   2. Mortgage interest rates
   3. Increased mortgage restrictions and what does it mean to you?
      
   4. What’s happening with vacancy rates and how can you benefit?
   5. The impact of increased foreclosures can benefit you! Find out how!

Please, feel free to comment. It starts a dialog and we get to know each other!

So, here’s the crass commercial plug:

1. Visit www.realtyandamortgage.com today to learn how we can work together to help YOU create you future wealth, while receiving thousands of dollars in savings on your purchase AND potentially an interest rate 3/4% below current market rates!
2. Visit www.dicktodhunter.com to view current listings. This is a great site which will email you listing updates based on your search criteria.
3. Call me today at 206-898-3776 or email at dick@thesoundteam.com

Serving South King county WA, South Seattle Washington, Renton WA, Kent WA, West Seattle WA, Rainier Valley WA, Burien WA, Federal Way WA, Bellevue WA

1. What is happening in the Seattle real estate market. A September 20, 2007 article in Reuters titled “No housing woes in booming Washington State” states “The outlook for Washington’s economy is bright because so many people are moving there in response to help-wanted advertisements. Seattle, the state’s biggest city, is an especially hot job market, boosting confidence of sustained growth.” Furthermore “Lori Mason Curran, market research manager at Vulcan Real Estate, expects 135,000 people will move into the Seattle market over the next five years”. That should keep us chugging along.

2. Seattle makes news Excerpted from a Seattle PI article. “The Seattle area has the second-hottest commercial real estate market in the United States, according to a new report from the Urban Land Institute. The 2008 Emerging Trends in Real Estate report, by the Urban Land Institute and PricewaterhouseCoopers, is based on interviews with and surveys of more than 600 real estate experts nationwide.”

Experts expect the commercial real estate market to slow and underwriting standards to become more stringent in the next year, but say the correction in the commercial market will not be as severe as what is happening in the residential market, according to the report.

Below is an excerpt from the report:

“Seattle is also a standout market for investors, receiving top or near top “buy” ratings for all property sectors. Growth controls and geographic barriers have led to concentrated high-density, mixed-use development, which has drawn residents to new downtown neighborhoods, making Seattle a 24-hour city on Asian commerce routes. With so many “corporate heavyweights” headquartered in or near Seattle, it has a highly diversified economy. Seattle is also the highest-rated metro area for home building.”

My EXPERIENCE benefits my clients!

You can only make your BEST investment decision once, and that is on the purchase of a property. Sure, other things may come up which make you look like an investment guru, but your original decision to buy has to be the best decision possible at the outset. At this point I am referring to financial analysis, not other factors which affect a buying decision. Those factors sound like another blog topic to me.

I provide my clients with an excellent financial report and analysis of their future investments. With these analysis you can:

1. clearly understand the financial impact of your investment decisions
2. and help structure a logical offer which can be used to demonstrate the validity of your purchase offer or
3. if selling, demonstrate clearly the value of your property

I particularly enjoy working with multi-family properties (to any size).

That being said, it may be time for you to upgrade your real estate investments, get involved with a 1031 real estate exchange program and talk with someone who has experience in these areas. In 1983 I authored a real estate analysis program, which received positive reviews in PC Magazine, Lotus Magazine and Real Estate Investor Magazine. The Professional Real Estate Analyst sold from Seattle to Perth and helped investors everywhere make better investment decisions.

I have owned single family residences, duplex - fourplex properties as well as apartment properties to twelve units, and small commercial properties. I owned as many as 55 rental units at my zenith. My investment analysis skills and mortgage knowledge will help determine what makes sound financial sense. I also understand risk.
This means to you that you have a great resource who can help you make sense of the market you are thinking of participating in. My analysis program had 13 different rates of investment measurement. It basically was a presentation program based on the first book of the CCIM investment course designation dealing with Financial Analysis.

From 2000- 2005 I started and ran United Pacific Mortgage, which employed about 150 loan officers, processors and administrative staff, we made over 4,500 mortgages for about $850,000,000 in closed mortgages. I understand financing.

All of my experience in management, rehabilitating properties, investing in real estate, real estate investment analysis and understanding the results and financing are available to you, my client. Let’s make better investment decisions!

I look forward to discussing your investment needs.

Regards,

Dick Todhunter

206-898-3776

1. Are you a real estate investor who wants more rentals, in better neighborhoods with a better quality tenant?
2. Have you been waiting on the sidelines while property values have gone up 18% per year more recently in the neighborhood of 8-9%.
3. Why real estate? Those of you who own a home know the answer- appreciation on a much larger asset value than your limited down payment.
4. Tenants actually pay you $24,000 to $30,000 for your property, while you make $30,000 per year appreciation! Don’t own a home? Make your first investment NOW! I will find another tenant. And you are in the game!

I believe making money in real estate takes either risk, luck, or work. It also may take experience, working close with someone with experience, or a lot of study. I have 30 years experience in real estate, real estate investment and mortgage financing. This means that you have a significant resource available to you, at no extra cost to you - it’s what I do.

Investors may look at the real estate market with a bit of fear and trepidation. They didn’t want to risk overpaying for the property. They didn’t know if prices would continue to rise, and so they stayed put. It’s really not whether you have been wrong or right, it’s just that it turns out that you would have made money through their real estate investments. It could have been different, but it wasn’t.

Every day investors are faced with the same decisions- is this the right decision, will my investment be worth more in the future? Winners and losers both take chances and you will hear stories on both sides of that issue. I have a lot of experiences both personal and professional to share. I have seen so many people who have made good, and bad choices in real estate. (I have made some of those same choices over time.)

Oh by the way, not that I follow her, but Suze Orman was on Oprah talking about the Seattle real estate market as being the one good place in the country.

If you are new to the real estate investment arena I hope we can show you how to participate, while avoiding making the same mistakes I have made or seen made. A really big mistake may be not buying in some cases. And, yes I have made mistakes too.

So, what’s happening now in the Seattle Washington real estate market?

The current scare in the real estate and mortgage market is real. Well, almost.

1. It is true that in the Seattle Washington real estate market there is an inventory problem, six to seven month supply of homes. This is way over what it has been recently. Largely caused by fear or uncertainty.
2. There are 50% more homes on the market in September, 2007 than there were in September of last year and 25% fewer sales. Sellers are in a mood to make concessions, as they are simply asking too much for their homes.
3. There is a real problem in the mortgage market, but not for you, if your credit score and debt to income ratio fall in line with what lenders are looking for in a borrower. That credit is there, for instance the 30 year fixed rate mortgage is sitting at 6.125% (available through my programs as described in realtyandamortgage.com) and the national average per Freddiemac.com is 6.4% (at .5% cost). Investors an expect to pay 1.5% - 2.0% as a risk premium, depending on the ultimate lender guidelines and your down payment.
4. What is happening with our housing market? Well, read Bubble Watch for an enlightenment. Other than slowing appreciation, there really is no long term issue with Seattle Washington real estate.

And, then there is the market for Short Sales. But that is a subject for another blog.

Please visit Realtyandamortgage.com for information on how you can confidently save thousands! With excellent service! Investment program offers differ from homeowner offers. Contact me for details.

Search for homes NOW! And have new listings sent to you automatically!

You may not be able to purchase the same interest rate tomorrow at the same price as today. This lack of predictability means that you need to understand mortgage hunting rules and protect yourself as much as possible.

But, before going on the the rules of mortgage shopping let’s look at an unwritten reality. You are most frequently talking to someone who is a salesperson, first and foremost. These people fall into a couple of catagories:

1. Your ideal, a decent, well informed, experienced individual who has your interest in mind.
2. Not your ideal, everyone else. Snake oil salesmen, ill informed- but good salesmen, newbies with no awareness of honesty and ethics, bait and switch artists, highest paid in the industry (off of a single transaction- YOURS!).
3. Trust me, they LO’s of all sorts exist, just as in any industry where income is in part, or totally dependent upon what they can get you to pay them.

The following rules will help you get information which is directly comparable, from lender to lender, thus making your financial decision more comfortable to make.

Rule ONE: Stop the presses! You absolutely need to do your shopping in one day.

This task is not something that you can do over time. Rates are provided to LO’s first thing in the morning, based upon what lenders see the mortgage backed securities and stock market doing. These markets respond to a wide variety of economic reports. Sometimes reports come out after rates are distributed and rates will change in the early morning.

You should be able to obtain a Good Faith Estimate from anyone within an hour of your inquiry.

Rule TWO: What’s a Good Faith Estimate worth anyhow?

Well, to LO number 2 above, not much. It is a wonderful tool of deception. If I can convince you that there are no costs, or less costs associated with your mortgage- and rates are really low- RUN as fast as you can.

Why? All mortgages have the same closing costs, although dollar costs may vary depending on lenders (mostly in the form of Underwriting Fees and some fees may be lumped together). Look at the total of fees being charged. DON’T look at:

1. Interim Interest charges - These depend on the date of closing and are fiddled with by LO’s to make their costs look lower, when in reality they have no control over this line item. It will be determined at escrow.
2. Pre-Paids and Reserves - another area which is irrelevent in your search, as they will be determined at escrow (but a good LO can use accurate numbers, a bad LO may not).
3. Basically any line item may be low balled in order to get your business. If it were me, I would only look at the sum of the 800 series.

Every 800 item is required to be paid by some service provider or the LO. Legally there is only one place on the GFE where LO compensation should be disclosed, either on line 800 Loan Origination Fee, LOF, (you should find a fee here if the lender is a Bank or has a Bank Line of Credit) or Line 808 is where you will find Broker fees (lenders who do not have their own line of credit and broker loans to others). There should be no LOF difference based upon either of these two mutually exclusive lines.

That being said, require a GFE from the LO. A GFE is only worth the paper it is written on. So get one. Now that you have your GFE’s you can compare costs AND mortgage programs being quotes.

1. If they don’t want to provide one, hang up, call another.
2. If they want to see copies of your other GFE’s, they could be asking you “How low do I have to go to get the business?” Let them tell YOU what they can do.
3. Keep in mind that higher interest rates and lower costs mean that you pay for your mortgage over time, which is OK if you know it. Otherwise the low closing costs may cause you to make a potentially expensive decision.
4. Lower interest rates typically have higher closing costs. Always believe that you are going to pay the closing costs, one way or another. Your loan officer will typically make adjustments between rates and fees, if you know to ask.

Rule THREE: You won’t get meaningful GFE’s, unless you ask for the same mortgage product of each LO.
Don’t get confused when talking with the LO’s, go in looking for a mortgage product which fits your needs. An ARM product cannot be compared to a 30 year fixed rate mortgage. Sometimes a LO may be pushing a particular product because the get paid more (maybe 2-3% of the loan amount more!). Here’s a thought…. if presented with a number of logical choices, get the exact details and ask other LO’s what they think and have them provide GFE’s on each product. You have to compare identical products in order to make a fair comparison.

Rule FIVE: You should allow your credit to be pulled in order to get an accurate GFE.

The benefit of allowing your credit report to be pulled, by each LO, is get a GFE which won’t change once you have selected a LO and THEN allow a credit report to be pulled. That’s when costs can change based upon your credit score. Yes, a number of LO’s will be pulling your credit report and some will tell you that each pull lowers your score, so do business with them. They either don’t know or are applying scare tactics. Either way, do you really want to do business with them with this beginning? Maybe it’s time to run!

You can have your credit run any number of times in a 14 day period, by similar entities (car, mortgage, etc) and the whole series of pulls will count as one pull. Some lenders will use the initial credit report date for their underwriting decisions, others will pull their own at some point.

Here is something to remember. If you are looking for a mortgage, have your credit report pulled and get an agreeable GFE then DON’T take on any more debt (like a car payment) until after you have completed your mortgage transaction. You could blow your scores or debt to income ratios. Don’t file for a divorce either. People do strange things in the mortgage process.

Rule FIVE: To Lock your Mortgage in, or not - that is the question.

I think that if you have a GFE that looks too good to be true, it just might be. One way to test the LO is to request they take a complete mortgage application and lock in the interest rate today! There’s a challenge to the low cost guy!

What exactly is a Lock and how does it benefit you? A lock guarantees that if you complete your loan in a specified lock period you will get that interest rate at that price. That’s it. The lender has a cost of funds and they take your money at a known pri