Washington Mortgage Planner-straight up mortgage advice and commentary

Good morning all! Rebecca Haas of Re/Max Metro Properties and myself are very excited to offer real estate classes at Renton Technical College starting Tuesday April 7. In the 8 week series, we will cover such diverse topics as getting a loan in today's market, short sales and foreclosures, real estate as part of your portfolio and ask the experts-a panel discussion with a CPA, attorney, insurance agent, and investment advisor.

For more information, go to www.rtc.edu to sign up. All classes are $10. You can either take the series or sign up for them individually. Rebecca's and my goal has always been to educate and we're excited to bring these to you. If you, your friends, co-workers or family are interested, please sign up so we can get an accurate headcount. If you have further questions contact me here or Rebecca at reba@teamreba.com. I hope to see you there!

Good morning! I've been asked by quite a few people recently about jumbo loans. Obviously in most parts of the nation, the  conforming loan limit is $417,000. Then there is the jumbo conforming loan limit which varies by county. In my county (King) the limit has been raised to $567,500 as of April 6. The interest rate is higher though, roughly by 1/2%.

So what about loan limits above the jumbo conforming barrier? There are options. Number one, most super jumbos (above jumbo conforming limit) are best priced on an ARM (fixed for the first 1,3,5,7, or 10 years then adjust). If you have a loan for say 1 million this might be your best bet. The reason why is that 30 year fixed jumbo mortgages are still pretty expensive. Think rates of probably above 7%. Contrast that with super jumbo ARM rates as low as 4.5% and you can see that it might make more sense to secure this type of loan.

As with anything, loans are still being heavily scrutinized. Expect to only be able to borrow up to 70% loan-to-value in most cases. Also, credit scores need to be above 700 and there need to be assets and income to support the loan. It 's extremely important to work with a seasoned loan officer who knows how to get a loan like this done. Alot of times our customer is sharp and needs to know they're working with a trusted professional. Feel free to comment on this if you like. What are you seeing? I'm seeing a return to the jumbo market by lenders. This is an encouraging sign! Take care.

Good morning all: I attended a Contribution Networking Party event last night here in Seattle. It was amazing! Think "pay it forward" on steroids.

Contribution Networking Party was started locally by a real estate agent by the name of Thach Nguyen. Thach: If you're reading this thanks again. You're on the right track.

The amazing thing about Contribution Networking (www.contributionnetworkingparty.com) is the focus on helping other people with no intention of getting anything back. Again, this isn't a new concept. For all of you who have seen the movie "Pay it Forward" or bought someone's drink at Starbucks, you know the concept.

What amazed me about last nights event was how we broke up into one-to-one talks with people we had never met and for 10 minutes each found out all about the other person in order to connect them to our sphere of influence. I think alot of us know how to do this intuitively. I just thought the format was great. We were specifically told to pick someone we wouldn't normally choose to talk to and have a conversation.

All in all, this is a growing movement. It doesn't cost anything to join; you just pay for the food and drink served. On April 26, up to 1,000 people are expected at a Mercedes Benz dealership in Seattle. All the feedback I've heard is positive. It seems when you get a bunch of givers in one room incredible things happen. I'm planning on going into the office today and connecting a couple people I met with people in my sphere.

If you're in the Seattle area I encourage you to attend the next event. If you're in another city, contact Thach Nguyen at John L. Scott Real Estate and ask how they started the group. Again, it seems to be a wave. And I think it works. The wheels are turning! Have a great day!

Hello all: This just in from the Federal Reserve meeting just concluded. It's described as the Fed. swinging for the fences. The only problem is sometimes when you swing for the fences, you strike out!

The Federal Reserve just announced that they will buy back up to 1 trillion dollars worth of securites as well as keep their funds rate low (currently at .25%), probably for the rest of this year and possibly into next. This was a bold move that the stock market liked. Of course, time will tell if this action works in the long term.

It's amazing to me the big numbers that are being bandied about to try and get us out of the financial doldrums we're in. I applaud the Fed. for trying. I also realize that it may take a while for these stimulus plans to have an effect.  I still am troubled by how much money our government is printing. I have to admit I'm a free market guy so will be cautiously optimistic to see if these measures work.

What are your thoughts? I guess if it works, everyone will think the Fed. is the hero. If it doesn't the blame game will start all over again and Ben Bernanke will be making public appearances! It will be interesting to see if this latest measure is any better than any of the other ones they've tried to date. Have a great day!

Hello all: I've always liked the concept of Zillow Mortgage Marketplace and Zillow (www.zillow.com) in general. I find it very consumer friendly and have had the pleasure of meeting some great people who work there.

Lately I've noticed how many lenders have been quoting on Zillow Mortgage Marketplace. Oftentimes, there are more than 30 quotes for one loan and alot of them are done by "roboquoters" (credit unions, etc. without a profile). I don't know how a borrower can decide. Plus, it seems to me alot of the mortgage people quoting on Zillow Mortgage  Marketplace are "lowball" experts who couldn't possibly honor what they quote (too low rates, turn times, fees). I believe it cheapens the experience for the customer.

I understand that Zillow Mortgage Marketplace in theory was supposed to be a place where a customer could shop for a loan. That premise still holds true. I just don't think it's for me. The barrier to entry was low ($25) and the opportunity to add new clients seemed high. But, to date, I haven't written one loan by quoting and find myself spending less and less time there.

One part of Zillow I do like is the Advice area. This is new. Here, customers pose real questions that need to be answered. I look at it as building my expertise. If you're not into hammering out quotes in Zillow Mortgage Marketplace, check out the Advice area. I will continue to quote occasionally on Zillow Mortgage Marketplace but have found the results compared to the time to not be equal. What do you think of Zillow? I'm curious. Enjoy your day!

Good morning: I just read a great online post on one of my favorite e-newsletters, www.earlytorise.com. it was by a prolific copywriter named Clayton Makepeace. It inspired me to write the following.

Clayton Makepeace starts by saying that we're worried about what our customers are thinking right now. It's manifested in the blame game we're playing. That is, blaming everyone else rather than ourselves. Clayton goes on to say that we really should be blaming ourselves for spending frivolously and saving nothing. That's a hard pill to swallow but true. With that in mind, here are 5 things we can be thankful for amidst the economic turmoil.

One, it has forced us to not spend foolishly. My Dad worries about me as most parents do. And we've had our share of hard times. My Dad is comfortably retired and came from an age where you saved your money and spent below your means. With expenditures down, it stands to reason that, two, we are saving more.

We are saving more for a rainy day. This is good. We all know that America's savings rate is not where it should be. This economic downturn has forced us to sock away money.

Three, we are paying our debt down. Again, a good thing. Being in debt is something probably none of us are proud of. I'm not talking about a house payment here. Rather, credit card, car, and other revolving debt.

Four, it's forcing us to work harder. Sure, it's great to make easy money and good times will allow us to prosper again down the road. But those of us who have always worked hard don't mind it. We love our professions and, if it requires us to work a little harder, that's o.k.

Five, it's allowing to think about our relationships. Whether it be personal or professional, Clayton Makepeace suggests we reach out to people like never before. Take a friend to lunch, have a cup of coffee with a business relationship, call people in your database just to say hello. Relationships are key.

There you go! Sometimes I have to admit it's tough slogging through all the crud that's out there. Life can get messy sometimes. But I'm encouraged. I'm seeing a great roll-up-the-sleeves attitude, expecially in our business, and that will sustain us. What are you seeing? What's working for you? Have a fantastic day!

Good morning all! I thought I'd take a couple minutes and blog on my new work town, Bellevue, WA. Suffice it to say, I've seen a lot of changes over the years.

Originally, Bellevue was a bedroom community to Seattle with a sleepy downtown. I remember when I was going to college and Bellevue Square Mall was a sleepy outdoor shopping center. Now it is world class with every important store a person could think of.

Bellevue used to shut down after dark. People worked on the eastside (think Microsoft) but went home. Restaurants used to open and 6-12 months later they would shutter for lack of business. Contrast that with now. Bellevue is home to 3 40+ story skyscrapers and a myriad of other new buildings. At one time last year, there were over a dozen construction cranes in the sky in downtown Bellevue.

The office workers have moved in and Bellevue today has grown to over 100,000 residents. From morning to night, the streets are full and the restaurants are thriving. The number of people living and working downtown has increased dramatically and the long-term trend is positive.

Like any city around the nation, Bellevue is experiencing a slowdown for the moment. With money being tight the construction projects have stopped and condo. sales have cooled. Still, the long-tem outlook is good and I expect Bellevue to one day be a big player in Washington State. If you find yourself out this way, be sure to visit Bellevue too. Alot of people head to Seattle and they miss a great little gem on the Eastside. Have a great day!

Good morning! My wife and I watched Ben Bernanke on 60 minutes with interest last night. I kept wondering why he was on. Sure, he presented himself as a small-town boy who wasn't in bed with Wall Street. He seemed to be a down-to-earth gent who wanted to appear human. All that is well and good.

My question is this? Why now? Excuse me for being cynical but it appears Mr. Bernanke and the Fed. want to uphold whatever reputation they think they have. Thus, the public relations blitz. It will be interesting to see if it takes hold. Personally, I don't think so. It's interesting how so many smart people ( Bernanke, Greenspan, Paulson, Weill, Greenberg to name a few) got it so wrong. I think it just goes to show you that greed gets in the way of doing the right thing.

Meanwhile, here we are. Small-time players trying to make an honest living yet susceptible to whatever decisions the big shots make. It makes me wonder if we wouldn't have been better off letting the free market dictate the economy. I realize there's danger here as well and expect to hear from you about why that wouldn't work either. As it is, our new administration is already caving about earmarks, deficits and the like. So what do you think? I know this. If I was incompetent at my job, I would either quit or get fired. Wouldn't it be nice if the fat cats had to play by the same rules? Have a great day!

Hi all: I hope your weekend is off to a good start. There's an interesting phenomenon going on. The buyer is returning to the market! I don't know about you but I've received several referrals lately from my favorite realtors to buyers (mostly first-timers) who are out looking at homes. Last year, I did 3 (count them) transactions for purchases. Currently, I have one purchase scheduled to close in a week and have pre-qualified two other buyers so they can start looking.

I'm not sure we'll see the boom times again for a couple more years but am encouraged by the uptick in activity and the more positive outlook by the realtors I know. I expect this to be a much better year for purchases. I think the fact that home prices have dropped, interest rates are still very low and the new $8000 tax credit for first-time homebuyers definitely helps.

I wish you all success this year. I have heard bits and pieces of positive news from your neck of the woods. Let me know how you're doing so far. After all, we're all in this together! Take care.

Good morning: After digesting the latest proposed changes to help homeowners who are upside down but current on their mortgages, I came away feeling this will help very few people at all. And it makes me wonder why the lenders aren't willing to reset mortgages to accomodate their borrowers. All of these ideas to help people really haven't helped many at all. You would think that the lenders would want to help homeowners; especially if they're in danger of losing their home. After all, I guarantee you the lender doesn't want to own your property. At last estimate, Countrywide had over 21,000 properties they own!

Here's the thing. Although a good idea in theory, the newest act only allows people to refinance who have approved mortgages through Fannie Mae (for the most part; my company can only refinance people where the mortgages are held by Fannie Mae and we're a banker). Also, it's only first mortgages. If a second mortgage is on the property that has to be subordinated. And alot of lenders are unwilling to do that.  So what we're left with are a bunch of knock-out factors that probably mean this program won't help most homeowners either. My question is this. When will something be proposed that helps the people who need help right now? Or do we just need to wait and let the cycle run its course? Your thoughts are always welcome. Have a great day!