Feds’ Emergency Action

If you’re thinking about locking rates on a mortgage refinance, then pay attention to the 30yr fixed mortgage rate this week and next week. It might drop all the way to 5.25%.

“The central bank, in an extraordinarily rare weekend move, took the bold action Sunday in an attempt to calm the markets. It also approved a cut in its emergency lending rate to financial institutions to 3.25 percent from 3.50 percent, effective immediately.” -Seattle Times & Cnn.

FHA loan limits for Seattle metro

NEW FHA LOAN LIMITS = HIGHER ALLOWABLE SALES PRICES!!

• Single Family/Condo max. Sales price $585,000 in Sea/Bell/Everett metro areas.
• Fourplex purchases allowed with FHA financing up $1.1m sales price.

FHA BENEFITS:

• Up to 6% Third party contributions allowed
• Non-Occupant Co-borrowers allowed
• All of down payment can be a gift or other approved source of funds
• Seller Funded down payment assistance (DPA) allowed
• Borrowers in Chapter 13 Bankruptcy allowed; 12 months satisfactory payment history & court approval required

FHA CHANGES:

• HUD uses the same appraisal form as Fannie Mae!!
• Upfront Mortgage Insurance required on condos.
• Admin & courier fees can now be paid by borrower

FHA TARGET AUDIENCE:

• Borrowers who want minimum cash investment in property
• Who have limited down payment funds of their own
• Who need a Non-Occupant Co-borrower to qualify
• Who have minimal or no traditional credit references

It’s Spring Again!

Homeowners shouldn’t dally if they want to sell their houses in spring, the peak season for real-estate transactions, real-estate agents say. “If they know they want to move by summer, now is not too early to bring somebody in,” said Barbara Nowak, an agent with Long & Foster in Burke, Va.

Now — not when the tulips are in bloom — is the time to start decluttering, cleaning, making repairs, getting paperwork together and interviewing real-estate agents. Homeowners with a lot of junk can take two to four weeks just to get through this step, Nowak said, meaning now is the time to get rid of any books, videos or toys you don’t use. “You can either donate them or put them away.” Many real-estate agents advise renting a storage space if need be. “You want to make it look sparse, but not empty,” said James Brumfield, a Long & Foster agent in Baltimore.

Did you buy a house in 2007?

Write−offs are the government’s way of rewarding taxpayers when they’ve done something the government likes. And to judge by the write−offs, the government likes it when people borrow money to buy a house. There are write−offs aplenty, many of which people often forget.

Here are a few:

Points:
According to the IRS, origination fees charged as points must be paid for the use of money, (for example, to obtain a lower interest rate) in order to be tax deductible. Origination fees that constitute a “service fee” are not tax deductible. The question must be asked, “Does the fee apply to the use of money, or is it a service charge?” Discount points are paid to secure a lower interest rate. IRS Publication 936 lists a general rule that states, “You generally cannot deduct the full amount of points in the year paid. Because they are prepaid interest, you generally must deduct them over the life (term) of the mortgage.” However, there are conditions which, if met, make discount points tax
http://www.irs.gov/publications/p936/ar02.html#d0e942

Pre−payment penalties:
Unforeseen circumstances often cause borrowers to pull out of their mortgages sooner than expected. Fortunately,
pre−payment penalties are tax deductible, which helps ease the pain.

New Home! $375,000

 

This beautiful home is conveniently located just blocks from Alderwood Mall shopping and restaurants. It’s also on a quiet residential block with close access to I-5/I-405. Contemporary design features an open floor plan with vaulted ceilings and quality finishes. Enjoy a spacious kitchen with a large island, pantry, tile backsplash, and stainless steel appliances. Additional features are a gas fireplace in the living room, solid wood mill work, a large walk-in closet in the master bedroom, an attached two-car garage, and a private, low-maintenance backyard.

19311 24th Ave W Lynnwood, WA. 98036

Bedrooms: 5

Year Built: 2005

Heat Source: Forced Air

Sq. Footage: 1983 sq. ft.*

MLS# 28008904

*This information is provided as a courtesy only; buyer to verify all information.

Why I love my neighborhood!

Nestled in Seattle’s Rainier Valley, you’ll find a neighborhood that is more alive than ever. For food, fun, friends or family — the Columbia City neighborhood almost has it all. But Patti Scott already knew that. Traveling from “across the pond,” this ex-Bellevue resident said she drove to Columbia City, lured in by fresh produce and the promises of fine dining. Columbia City’s location, rich history, racial diversity and local flavor made it the 67-year-old’s destination of choice. “For nine years I’ve been coming over here for the Columbia City Farmers Market,” Scott said, “and it never occurred to me that I would move here.” But she did. It was over a conversation with Tutta Bella Neapolitan Pizzeria co-owner, Joe Fugere, that Scott laid out a plan to make the move. ”

2008

Bill Dallas, Chairman of Dallas Capital, is an innovative thinker who’s been a leader in the mortgage industry for over 25 years. Bill has a well-earned reputation for developing creative products to expand home ownership opportunities. More importantly, Bill’s uncanny knack for foreseeing the future of the industry is astounding, and we are pleased to be able to share his amazing insights with you.

Interest Rates
Before we discuss 2008, let’s look at mortgage interest rates in 2007. Specifically, where we started, where we went, and where we are now.

2007 Mortgage Interest Rate Averages   January 4 High Point Low Point November 15 30 Year Fixed 6.18 6.74 (June 14th) 6.14 (March 8th) 6.24 15 Year Fixed 5.88 6.43 (June 14th) 5.86 (March 8th) 5.88 5/1 ARM 6.02 6.37 (June 14th) 5.87 (May 3rd) 5.96 1/1 ARM 5.42 5.84 (August 30th) 5.40 (May 22nd) 5.50

As you can see, interest rates aren’t much different now than they were in January of this year. The average mortgage rates in this chart remain generally unchanged.

Construction Defects

Here’s how to evaluate the likelihood that you’ll be able to get your home repaired at minimal cost, and your plan of action.

Check your warranty

Your builder or remodeler likely gave you what’s called an “express” warranty, which typically covers everything from cosmetic flaws to serious defects for a year (most common) to 10 years (pretty rare). If the warranty names the defect you’re complaining about, gather your documentation and ask your contractor to repair the damage at no additional charge. If your warranty has expired, you aren’t necessarily out of luck. Depending on the state you live in and the nature of the defect, your house may still be covered by a so-called implied warranty of habitability for another seven to 10 years. But it will be up to you to prove that the defects are so severe that they are a health or safety hazard.

Learn how to spot a real defect

Tax Time!!!

2nd half of your property taxes are due this Wed. Oct. 31. Make sure your mortgage (escrow account) paid the right amount and to the right account. They often make A LOT of mistakes.

In King County, call 206-296-3850. For an automated line, call 206-296-0923.

In Pierce County, call 253-798-6111. For an automated line, call 253-798-3333.

In Snohomish County, call 425-388-3366.

In Kitsap County, call 360-337-7135.

Prroperty-tax statements and information are available online.

King County Property Tax website

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