Washington Mortgage Planner-straight up mortgage advice and commentary

Good morning! I was thinking yesterday (always a dangerous thought because it usually leads to a blog!) about how we in the real estate business should approach our job. Of course it brought up the question "Are you working your job or it it working you"?

I'm aware that the last couple years have been tough and I know that I'm also looking forward to better times ahead. Personally, I don't have much historical perspective. I started in April 2006, am not a quick starter, and by the time I figured it out things were almost at a standstill. The one thing I probably did right is I continued to work my job as if it was a career.

I think this is important. My office has shrunk from probably 18 people originating loans down to 5 over the past couple of years. Most of the people who left were younger and got used to a big paycheck without building their business. When I was counselled by two friends to go into the mortgage business, I took the plunge and tried to make it a career.

That's the difference and what I mean by working your job. I am always impressed when I meet a realtor, for example, and they're wearing their badge and talking about their Open Houses. To me that means commitment. Let's face it. We all have a choice and if we don't decide to work our job it will work us. Rich Sweum here on Active Rain recently came up with 30 things we can all do to keep our head in the game. Thanks, Rich. That list helped me get focused again. I'm curious what you're doing to stay sharp. I believe that for those of us who stick with it, and maintain our focus, good times will come again. And probably sooner than we might imagine. Have a great Thanksgiving and keep working your job. Or it will work you! Take care.

Hello everyone: I arrived in the office about 8:30 this morning to hear that mortgage interest rates were in free-fall and 5.125% O.A.C. on a 30 year fixed was available. I crafted an email which I then sent out  to my email list about the good news. By this afternoon, I had several responses asking me further about loan programs. All in all, an amazing day and one that will probably garner a few more loans.

So will this trend of low rates last? For the time being, I believe so. Remember we are entering into a slower time of year so I expect the days of several price changes/day to diminish somewhat. Plus, in spite of the stock market gaining back some of what it lost, I think the market is still prone to weakness. Remember this is the number one reason that mortgage interest rates have stayed low as people seek security in safer havens such as bonds.

The other reason I heard is that with the banks being able to borrow money at often less than 2%, their margin is high at 6% on a mortgage. Supposedly the Federal Reserve lent banks money to stay afloat and originate new loans. But the banks didn't do this and so the Fed. lent more money to try and free up the credit markets. I've been told lately that mortgage interest rates were artificially 1% higher than they should have been due to the banks building in risk. With the Fed. now guaranteeing more money for banks, interest rates may be closer to what they should be.

Will this help unfreeze the market? I don't know. Today I heard about how many new loan submissions there were in my company because of the lower interest rates. That's great news but I'm going to remain sober about it. Many of my brethren still don't seem to understand how to get a loan done. I know alot of you do and bless you for that. I just know alot of loan officers are stuck in the past and don't necessarily realize you can't just lock a loan these days. The loan has to be researched because, if it's submitted and doesn't go through, the lender keeps score.

In closing, I still expect we're going to experience our share of ups and downs before it gets smoother in the Spring of 2009. Is it an excellent time to buy or refinance? Absolutely. Will alot of people take advantage of this. Probably not. Obviously, I'm hoping people will. That's my job and that's how I get paid! Enjoy your evening!

Good morning: With the governments announcement that they will be bailing out Citigroup, I have to wonder where's my bailout. Obviously, I'm just kidding. I don't expect one; I expect to make it on my own. Besides, I'm a small fry. Only the big entities get government subsidies.

I have to wonder about all this government bailout stuff. I read today on www.ml-implode.com that the big builders are going to look for help next. My question is when will it all end? And where is all this money going to come from? Somehow I wonder if we, the taxpayer, won't be paying for it during our lifetime. I know they're selling it as having a great rate of return. The problem I'm having is the numbers just seem to be getting larger.

I was talking with my wife yesterday and she was talking about how her mother, who doesn't drive, has started setting appointments for every Monday because she knows it's my wife's day off. I told my wife, because she is increasingly frustrated having to give up Monday, that she needed to talk to her mother about setting limits. That is, she can take her mother on her errands once or twice/month on a Monday. But not every Monday. The reason I'm telling you this is because I believe the government is going to have to start to say the word no. Everyone and everything needs limits. Otherwise, I'm not sure we'll ever make it to the other side.

I'm curious as to your thoughts on this whole bailout idea. It seems to have created a life of its own. Have a great day!

Good morning! I was thinking yesterday about the announcement last Friday of the new conforming loan limits for 2009. I think it's great news! In the tri-county area of Seattle, it means that the new limit is $506,000 next year, up from $417,000.

In our area, even though the average home sale was $399,000 lately, that doesn't buy much. A nice family home with room is probably more in the neighborhood of $500-600,000. That's why I think the new conforming loan limits are good. Granted, it's unclear what will happen to jumbo loan limits above this. But I think banks will start to offer reasonable loans above $506,000 as well.

I believe this is all pointing toward a housing recovery sometime next year. I've seen some builders building again, lenders offering more choices on purchases lately, and, with the new conforming loan limits, I'm hopeful the consumer will recognize a great time to buy or refinance. As with anything time will tell. I'm just encouraged by the new loan limit. It's the first piece of good news we've had in a while. Have an awesome day!

Hi all: Good morning! I've been approached by the folks from Nouveau Riche University lately and was wondering what you know. To date, I've said no because I think it's important to stay focused on my business. There's a guy in my BNI networking group and he belongs to Nouveau Riche. I understand there are some great classes a person can take and they claim they're making money by buying distressed properties, etc.

The thing that makes me wonder if they're actually a multi-level opportunity is the fact that if they recruit anyone into the program they get a big cut of that. That's what happened in my BNI group; the Nouveau Riche guy recruited one of our other members. Now, we're down in membership because the other person will probably have to leave. I asked another Nouveau Riche person I met with recently if they were a multi-level company and he said no. But I've seen the literature and it looks alot like what Amway (Quixtar) would produce.

So what do you know? It seems to me that every time our industry hits a rough spot the other opportunities come calling. I prefer to stay the course but understand the need to try something else to make money. Please chime in with your thoughts on Nouveau Riche. Thanks and make it a great day!