Washington Mortgage Planner-straight up mortgage advice and commentary

Hi all:  I had the misfortune of sitting through my weekly meeting today and hearing all the negative comments about how nothing can get done, etc. etc. I mentioned I thought purchases would be stronger this year than refinances and it was met with negativity. I'm glad I got out of the office and went to see some positive folk.

My office usually isn't this way; I just think the frustration is wearing people out.  Yes, it's getting tougher to do a deal and it can take a lot longer.  It seems like things are taking longer in underwriting and review. Plus, rates are increasing once again. I don't know about you but I refuse to be deterred.

One thing I love about ActiveRain is the generally sunny disposition of all its members. Keep it up! Remember that today is today and tomorrow is a new day full of hope and potential prosperity. I plan on keeping on and am determined to make this a great year. My best year yet!  Have a fantastic day!

Paul

Hello all:  I was thinking today about how appreciative I am of being on ActiveRain. Initially, I was told about ActiveRain from Betsy Talbot of Delegate Now! Thank you Betsy!  I had never heard of ActiveRain and didn't really know what it entailed. It's funny how things all come together in your life sometimes.

I was telling Betsy about how I was looking for a place to communicate with my peers based on an article I had read.  Betsy suggested ActiveRain.  So I signed up and then Betsy suggested I start blogging. I like to write so I set about blogging and reading my cohort's blogs.

Again, my intention was to learn from my peers, many who have been in the business longer than I have. What I didn't realize about ActiveRain is the exposure it has to outsiders. Since I began last June, I have fielded inquiries from borrowers as far away as Connecticutt. I was even interviewed by a reporter for Inman News about my prediction last summer that Bank of America and Countrywide would eventually merge. Even today, I fielded a phone call from a credit repair specialist in Dallas who found me on Active Rain. In other words, it's all been good.  And I came in with low expectations.

So thank you again ActiveRain. It's a great forum and it's been fun to feed back and get feedback from my fellow Rainers! I plan on being a part of this forum for the foreseeable future.  Have a great day!

Paul 

Hi all:  I must be in a blogging mood! I keep reading that our audience wants to know about us personally.  All of my blogs to date have been real estate related and I believe on subject. I'm going to detour briefly here so you can learn a little about me.

First of all, I love what I do. A friend of mine told me about the importance of passion in everything you do.  I'm not sure I've ever had a career like this one that I love as much. My passion comes from being able to tell people the truth and to separate myself by being the source for an honest and straightforward answer.

I think a lot of the way I am can be found in my upbringing. I'm a small town boy (Pullman, Washington-population 27,000 of which 17,000 are college students) who was raised to believe what people say.  To this day, I think a handshake and a look in the eye should mean something.  Granted, I would be the first person to admit I'm a little naiive but I'd rather be this way than distrusting.

In my spare time, I like to be active and believe health and wellness is key. I'm very fortunate to not only have brothers I'm close to but also a great family of in-laws. As I get older, I look forward to aging gracefully. I've had my share of setbacks (more than I care to admit), but believe I am stronger because of it.

The mortgage business the last year has been challenging and I'm relatively new to it (started 4/2006).  But I find I'm still energized and excited about coming to work every day. I keep reading that a good attitude is key and I wholeheartedly agree. In sum, life is good for me right now. It wasn't always, though.  There were times where I wasn't always positive and really struggled. Good luck to all of you out there.  Remember each day is a new day. This definitely helps me when I remind myself just how lucky and fortunate I am.  Have a great day!

Paul

Good afternoon: The Seattle market continues to be better than other markets around the rest of the nation.  However, things are still slow on the front lines. I've had a lot of requests from friends and acquaintances about refinancing their mortgage because of the Federal Reserve's actions lately.  Unfortunately, in most cases it hasn't made sense to refinance. There's either no net benefit (savings) or it's just not possible  given the strict underwriting guidelines.

I find I'm really having to do my homework to see if it's possible to do a loan these days. I need to check what the value of a given property is along with a borrower's credit score, assets, loan-to-value,etc. etc. just to see if a loan is possible. In the Seattle area, we're seeing some price appreciation depending on the neighborhood. But the days of 10-15% appreciation in one year are gone for now. Think more along the lines of 1-5% and there have been declines in some areas.

For 2008, expect Seattle to be one of the strongest real estate markets nationwide but not as robust as in years past.  We've been blessed with strong job growth which has helped. If you're considering a move to Seattle it's a wonderful place to live, especially if you love the outdoors.  Have a great day and I'll talk to you soon!

Paul

Hi all:  I've been studying the idea of refinancing into a 15 year fixed mortgage from a 30 year mortgage and it can make a lot of sense depending on your goals. Realize that 32% of Americans own their homes outright and it's most people's goal to eventually own their home. With more uncertain times predicted this year, many homeowners are seeking safety with 30 year or even 15 year loans.

If you're wanting security and can afford it, 15 year loans can be had for under 5% O.A.C. I think this can be a great alternative. Not only will you pay your home off in 15 years but the amount of interest you'll pay on your loan will be far less than on a 30 year mortgage. Expect to pay roughly 20% more on your payment  than on a 30 year mortgage.

Another way to pay off your mortgage quicker is to automatically pay more toward your principal every month.  If you make the equivalent of 2 extra payments/year, you will pay off your mortgage in 15 years. Obviously, this requires quite a bit of discipline. There are programs out there commonly referred to as Mortgage Accelerator Programs that can accomplish the same idea. I understand these are very popular in Europe. If you pursue an idea like this, just make sure you do your homework.  Remember in theory every idea sounds good.  It just might not be the best thing for you.

In closing, consider accelerating the payments on your home if you can. I know this runs contrary to some of the advice out there but you need to ask yourself what camp you're in.  I hope this helps.  Have a great day!

Paul