Everett Mortgage Home Loan Refinance

 Home Loan Refinance, Mortgage Everett  5 Responses »
Dec 312009
 

Thinking of a home loan refinance? Better do it quick. The baseline 30 year fixed mortgage averaged 5.05% up from 4.94% last week. And that is still slightly lower than a year ago when it was 5.14%. If you are thinking of a 15 year fixed home loan refinance that is still very attractive at 4.45% compared to 4.91% from last year.

The Federal Reserve Board market consensus called for no increases in the immediate future.

The best deals were still in the FHA mortgage 5/1 ARM’s. They averaged 4.4% up from 4.37% last week but still more than a full point below the last years rate of 5.49%.

All the above rates are predicated on conforming loan amounts with an LTV (loan to value) of 80% or less. Remember that pricing adjustments may increase or lower your rate or cost that you actually receive. Consult a reputable mortgage broker for an estimate. Also California jumbo rates are usually a full point higher.

Now my crystal ball predictions for the end of 2010. Mortgage rates hit an all time low just last month. By the end of 2010 they will be at or above 6% for a baseline 30 year fixed mortgage. A home loan refinance will get harder too. New disclosure rules that are bound to confuse borrowers even more than they are now go into effect January 1, 2010.

Why am I saying California mortgage rates will be at least 6% next year end? Because the Fed is slated to stop buying MBS (mortgage backed securities) by the end of March 2010. That will cause illiquidity in  the secondary market and make mortgage loans much harder to get.

So now is the time for that home loan refinance.

Twitt
 Posted by JAJohnson at 11:47 am

Everett Mortgage Homes for Sale Everett

 Homes for Sale Everett, Real Estate Everett  5 Responses »
Dec 302009
 

No Recovery with out Jobs

This news affects homes for sale Everett and real estate in Everett in general. The government revised the United States Gross Domestic Product downward for the second time from 3.5% to 2.8% and now down to 2.2%. Now you are probably thinking no big deal but it is. That’s because despite the 2.2% growth, the nation’s pronounced recession has taken a toll. Over the previous four quarters, the U.S. economy contracted 3.8% — the most severe downturn since the end of World War II — including a 0.7% decline in the second quarter and a 6.4% plunge in the first. In 2008, the world’s largest economy grew a scant 1.1% — well below capacity.

Now many are saying that this 2.2% growth is enough to keep the economy growing but I think there is something hidden in these numbers that you should be aware of. The U.S. economy is being fueled by increased business efficiency, exports and government spending. That last part government spending is the problem. You must remember that the government produces nothing. Government spending is inflationary and creates no wealth. It is result of taking money from producers and giving it to non producers.

Now how does this affect homes for sale Everett or real estate in Everett in general? Well if you don’t have a job or your job is not secure how are you going to buy or refinance a home in Everett?

Last month we lost another 11,000 jobs. That is the 23 consecutive month of job losses. We don’t have employment gains we simply have less of a decline. That is still a sign of weakness in the economy.

Cap this off with the Fed’s plan to stop buying Mortgage Backed Securities at the end of March 2010 and we have the making of a double dip recession. If you are looking at homes for sale Everett and you are thinking of buying do it now. Rates will be much higher by the end of 2010. If you have a home to refinance Everett do it now before rates go up.

Twitt
 Posted by JAJohnson at 4:22 pm

Everett mortgage- lets start another RE bubble

 Homes for Sale Everett, mortgage, Mortgage Everett  5 Responses »
Dec 202009
 

This will definitely affect homes for sale in Everett. This will definitely affect homes for sale in Snohomish County. It will have an affect on mortgages in Everett and everywhere else in America.

Here’s the bogus idea of the year- Lets start another real estate bubble. We didn’t learn from the last one so lets do it again.

Democratic Representatives Al Green, Maxine Waters, Robert Wexler and nine others in Congress are backing a bill now that would restore zero down loans to buy homes for sale in Everett. This practice was banned as of last October, called “seller assisted down payments”. And can you believe it these loans will be backed by FHA mortgages so, Ya you guessed it, the taxpayer will be on the hook for more foreclosures.

Deja vu all over again

HR600 is about “Seller Assisted Down Payments,” which is a euphemism for a scheme that enables people who cannot save enough money to make a down payment, to qualify for FHA insured mortgages. Take a person who can’t save 3.5% of the purchase price and now what makes you think they will honor a mortgage?

Here’s how it works: A seller can make a 3.5% donation to a charity that in turns makes a donation back to the buyer of the 3.5%. The charity charges a fee for this. Now the seller can up his price or can take it from his proceeds. That will depend on what the market is like. The home must appraise for the new price. But here is one thing for sure; the buyer will have no real equity in the home.

The charities are big backer of this, and I’ll bet you just wonder why. Ya again there is big money in it. There are 11 democrats and one republican backing this. Oh lets not forget National Associations of Realtors, Homebuilders, and Mortgage Brokers lest you be surprised.

Last October the seller assisted down payment plans were eliminated because it was found that these mortgages defaulted at a MUCH higher rate than ones with a buyer who had real money in the deal. Ya I’ll bet that’s a big surprise too.

The supporters of this bill think it is a great time to buy real estate. And just who you think they want to buy? Ya you guessed it, those who can’t save up a lousy 3.5%. Don’t we already have enough of a problem with mortgages being underwater? Why would we want to create more of them?

Why would you the taxpayer want to reinstate a failed program just so the taxpayers can bail it out again? I guess somebody didn’t get the memo, zero down is not a good idea. It wasn’t between 2006 at 2008 and it will not be now.

Rep. Maxine Waters and her peers say the legislation is important because it helps African Americans and other minorities who cannot come up with a down payment to “realize the dream of home ownership”. Well I say that is as bogus a statement as I have ever heard. These loans have a 28% failure rate. That is an astronomical foreclosure rate. We would have to raise mortgage insurance rates on every existing FHA loan just to cover the expected loses.

Ya this will effect homes for sale in Everett but not in a good way.

Jim Johnson and comments are always welcome.

Twitt
 Posted by JAJohnson at 9:46 pm

Everett mortgage-Building code changes may affect mortgages

 Homes for Sale Everett, Mortgage Everett  No Responses »
Dec 152009
 

Are you thinking of remodeling? Do you want to build a home? Do you think you will have a home for sale in Everett soon? The cities honchos are mulling over changes to the building codes. Specifically changes in what the definition of an MIL is. What is an MIL well that’s a Mother in Law unit.

Allan Giffen, Everett’s director of planning and community development said this about Mother in Law units. MIL’s offer the home owner the benefits of affordable housing and extra money from a small rental.

Currently an owner can make an MIL within their home but it can’t be a separate unit. You are allowed only one utility service for the whole property. The home owner must live in one of the units. That by the way is a totally unenforceable rule. These rules were designed to prevent too many duplexes within the city limits, again an unenforceable idea.

The proposed changes will do away with those rules but only for properties north of 41st St. Why, you say only north of 41st St? I haven’t a clue. If you know please tell me because it doesn’t make sense. The idea is to keep mother- in-law apartments small, partly so large families aren’t moving in and overloading neighborhood streets with too many cars, Giffen said. This is total baloney.

The new rules allow for up to 600 sq ft additions separated from the main house by at least 18 feet. In other words you can now convert a garage if it’s 18 feet off the main house.

Under state law, cities with a population of more than 20,000 are required to allow homeowners to add some kind of extra unit, but the law doesn’t tell cities what standards to set. Everett’s population is more than five times that number.
The city’s Planning Commission put its stamp of approval on the plan, and it’s set to go to the City Council in the next month or two. A date hasn’t been set yet. So there you have it if you have a home for sale in Everett and it fits the above rules maybe you can remodel. And turn a garage into an MIL and thereby get a higher price for you home.

As always comments are most welcome. Jim Johnson

Twitt
 Posted by JAJohnson at 9:33 am

Everett mortgage Home Loan Modifications outrageous results

 Mortgage Everett  1 Response »
Dec 152009
 


Well the Obama administration has taken the cake and eaten it and left the dishes dirty. Home loan mods or mortgage mods call them what you will but the taxpayer is getting screwed BIG time.

1) Lets consider SAXON mortgage services. This was the number 1 bad boy on the list that Obama was going to shame into complying with the contract they signed with the government. As of December 10th these criminals has issued 42 permanent loan mods out of 35,608 trial home loan mods. Do you know how much money Obama offered these crooks to do 42 loan mods? $886,400,000.00. That’s right $886.4 million dollars of your cash.

2) Now lets consider the number 2 offender. That would be Indymac Bank / One West Bank. This is a lender that was once close to the number one subprime lender in America. Right behind Countrywide. OK they did 19,623 trial mods. And lets see just how many permanent home loan modifications did they do? ZERO that’s right ZERO, none nada zip. Now I’ll just bet you are dying to know just how much money Obama paid these guys to do loan mods, right? Well it was $814,200,000.00. Are you thinking like me that maybe I am in the wrong business?

So what do we have here. We have $1,690,600,000 in YOUR TAX DOLLARS. And what did you get (that’s right not even kissed) well the number is kind of hard to calculate- Oh that’s right 42 loan mods. I will let you do the math. PS how is that Hope and Change working out for you now?

So that’s the way Everett’s mortgage market is going.

Jim Johnson and comments are always welcome.

Twitt
 Posted by JAJohnson at 9:26 am
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