Washington Mortgage Planner-straight up mortgage advice and commentary

Hello all: There seems to be a fair amount of confusion about how the new $8000 tax credit passed by Congress recently will work. So here it is in a nutshell.

The $8000 tax credit is available to all first-time homebuyers or buyers who haven't owned a home in the last 3 years. It is a credit on your return and the maximum is $8000 or 10% of the purchase price. For example, a home bought for $50,000 would get a $5000 tax credit. Anything over $80000 would get the full $8000. The maximum allowed is $8000.

If you plan on purchasing this year, realize that you'll still need to come up with the down payment (in all likelihood). You will get a tax refund but only after you have bought your place. If you owe money, deduct what you owe from your credit. This will give you the amount of your refund. If you have a refund coming, you can add $8000 to that number.

The $8000 tax refund replaces the $7500 tax refund in place earlier. The good news is the $8000 doesn't need to be paid back. The $7500 was an interest free loan that needed to be paid back over 15 years. The new $8000 tax credit is good from January 1, 2009 through December 1, 2009. This stimulus has sparked quite a bit of demand among first-time homebuyers. This is a good thing. All in all, I like this measure and expect it to help all of us as the real estate market continues to recover. Have a great day!

Hello all: I'm not sure if this is happening in your neck of the woods but up here it's getting tougher to do loans if you're a mortgage broker. Frankly I'm glad I made the switch to a bank. It seems to me as if the days of the mortgage broker are gone for now. It's too bad. I used to be a mortgage broker and enjoyed looking for that perfect loan for my clients. I heard up until a year ago that mortgage brokers captured 70% of the market. Recently I heard that number was 50% and I wouldn't be surprised if it goes in half again.

It appears the lenders aren't really interested in being in the wholesale business any more. I know I had a file that I couldn't get done on the brokerage side and managed to get done on the banking side. It wasn't easy but we found an investor who would take it. My advice to all you mortgage brokers out there. Affiliate with a bank now. The guidelines are getting tougher every day and, if you wait, you won't be able to get any loans through. The playing field is diminishing and I don't see it correcting anytime soon. Perhaps when the economy picks up steam again we may see mortgage brokers enter into the fold again. But not before then.

As always, I'm curious what you're seeing in your area. Have an awesome day!

Hello all you Western Washingtonians! I'm excited to announce that I, in conjunction with Rebecca Haas (fellow Active Rainer), will be offering an 8 week series of real estate classes at Renton Technical College starting on April 7 and running through June 20. Rebecca and I believe in education and plan on presenting the most up-to-date information available. Our pedigrees are good. Rebecca has taught for years and I'm the son of a retired university professor.

The offerings can be taken individually or as a series. Most classes will cost $10 and we expect to cover the following topics.

1) How to get a loan today and the different loan programs available

2) Short sales and foreclosures-demystify the process

3) Investing in real estate-is it for you

4) Women and real estate-a fun filled night out in Renton for all you women out there!

5) Real estate financial analysis-an in-depth look at investing in real estate

6) Ask the experts-a round table with an attorney, CPA, financial advisor and insurance agent

7) Should I buy or sell now

8) How to sell your home in this market

Again, Rebecca and I are excited about being able to offer these classes. For more information and sign up, go to www.rtc.edu and look under classes. You can also contact either one of us here. Enjoy your weekend!

Good afternoon all: I hope you're enjoying your weekend! I was thinking this morning about how we've all been humbled by what's going on in our world. Personally, I think it's a good thing. We all know better days are ahead and we'll once again return to the proeperity we once knew. In the meantime, I think it's o.k. to have a wake up call once in awhile.

In fact, I truly appreciate the humble, modest, thankful people I know. Those are my favorites because they have put things in perspecitive. I had the opportunity to ride with a friend of mine in his Porsche last week. It was really fun to say the least. And it's obviously an expensive car. What struck me though was his comment about it was just a car. This is his approach to life. He has such a giving presence that drives him; I think it's awesome! I know another realtor who is one of my favorites. Why? Because she is so thankful for every opportunity and makes sure everyone knows it.

So I say that we should all be grateful and humbled by what is happening. An attorney friend of mine would often say "no one died" when discussing events and things that happen to us. Would I have liked to have a better year last year? Absolutely! Did it turn out to be a stellar one production-wise? No. It really wasn't that good. But I still love what I do and this year is starting out great. So hang in there, remember what you're really thankful for, and give! That's the key. Thanks for reading. Enjoy your weekend!