Tag Archives: mortgage

Proposed Changes to the Home Affordable Refinance Program

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Erik Hand, president of Windermere Mortgage Services, penned a blog post about the proposed Home Affordable Refinance Program (HARP) changes announced by Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac on October 24th.

Mr. Hand notes that the final document will not be released until Nov. 15th, 2011, but the following enhancements to HARP were discussed in the announcement on the 24th :

■ No Loan-to-Value Limit: Under the current program borrowers are limited to a maximum mortgage of 125% of the home’s current value. By eliminating the loan-to-value limit the program will apply to more homeowners who are currently underwater on their mortgage.

■ Lower Loan Level Price Adjustments (”LLPA’s”) and no LLPA’s on loans with terms of 20 years or less; the end result will be a reduction in the costs of refinancing for most borrowers.

■ Increase in the number of loans eligible for Property Inspection Waivers. Much like the LLPA issue, the end result will be a reduction in the cost of refinancing for more borrowers.

Be watching in November for the unveiling of the final HARP document, with details regarding all of the enhancements to the program. Do you think the proposed changes will have as positive outcome for current homeowners as it appears? Potentially, HARP will be more readily available to a larger group of homeowners seeking to refinance.

Are You Aware of the WA State Foreclosure Fairness Act Mediation Program?

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Over at the Neighborly News Blog, there is a guest post written by Leanne Finlay regarding the new Washington State Foreclosure Fairness Act Mediation Program. This legislation went into effect July 22, 2011; it sets forth that lenders must come to the table with homeowners, face to face, to try to work out a mutually acceptable resolution before moving forward with foreclosure proceedings.

Finlay also shares several important links within the blog posts, ranging from information on foreclosure “rescue” scams to informational youtube videos to mortgage modification help resources. If you have any questions about this new Washington State legislation, or what help is potentially available to homeowners in financial distress, I encourage you to read her post in its entirety and check out all the links she includes. As it is noted at the top of her blog post, the information contained within the post pertains to Washington State residents: As a homeowner it is important to know your rights. This article is specific to Washington State; please be aware of the foreclosure laws in your area.

Summer Bodes Well for Residential Real Estate

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Mercer Island, Seattle, the Eastside and King County all posted strong gains in number of units sold over those of the prior year. In fact, residential sales met, or in most cases, far exceeded the volume of any July over the last four years.

While unit sales have risen dramatically, sales prices continue to be badgered by local short sales, foreclosures and bank-owned properties, many of which are coming to market in reasonably good condition. We continue to see signs that our market is in the early stages of recovery and are reminded that we are faring much better than most markets across the country. We expect to enjoy a robust Fall market across the Northwest this year.

April Shapes Up to be a Solid Month

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April turned out to be a remarkable real estate month for Mercer Island. The Island performed much better than the Eastside, Seattle or King County as a whole. For the month of April, active inventory was at its lowest and pending sales at their highest in any of the last 4 years. Average $ per sq.ft., a stable market indicator, was $392/sq ft–up from a low of $289/sq ft in 2010. The months of inventory for sale (4.6) and the absorption rate (30.2) were are their best levels in the past four years. Only time will tell if this is a lasting trend, but certainly it was a fabulous month for Island sales–even considering that we no longer have a home buyer tax stimulus credit as has existed for the last few years.

March Sales Activity is Strong!

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The attached report should brighten your day just a little!  I did a four year history this time to show just how much our market has changed. Nice to see that all market areas are on par with or better than 1 year ago on almost every level. That is quite a feat considering the percentage of sales spurred by the housing stimulus tax credit a year ago.

The Absorption Rate based on pending sales, one of the leading indicators of the overall health of our market, is up across all markets. This is real, non-stimulus created growth!!!

November 2011 Stats Released

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How do interest rates impact your buying power?

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Many of us are on the fence about whether we should buy and/or sell in our current market, and for good reason…we’ve heard that values are down and foreclosures are up. It’s a scary world out there.

Fortunately, that’s only part of the story. The bigger, more exciting news is that our historically low interest rates coupled with affordable home prices have created an incredible opportunity to buy. How incredible? Let’s just say we may never see this kind of buying power again in our lifetimes. Why is this?

Interest rates directly affect the amount of house you can afford. For example, someone who qualifies for a $700,000 house at a 5% interest rate would only be able to afford a $564,000 house if rates went up to 7%. Over the past 30 years, the average conforming interest rate was 8.998%. As of June 1st, 2011 it was 4.5%.

With interest rates predicted to rise in mid-summer, now just may be the best time to jump off the fence and invest in your future…

See every listing from every company at WindermereMercerIsland.com

This article is not intended as an offer to extend credit nor a commitment to lend. The loan interest rates, fees and terms presented here are for illustrating purposes only and may not be currently available. Payment estimates courtesy of Windermere Mortgage Services.

6 Real Estate Tax Deductions That Can Save You Money

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Owning real estate can really pay off at tax time!  Here are some deductions that may be available to you.  Consult your tax adviser or visit the IRS website to see which apply to your situation…

1. Mortgage interest: Interest you pay on your home loans, whether for your primary residence or second home, is tax-deductible.

2. Capital gains: If you sold your home last year, you can exempt the first $250,000 of profit ($500,000 for married taxpayers filing a joint return).  The home must have been the seller’s primary residence for two of the last five years.

3. Points on a home purchase: If you bought a home last year, the points you paid to get a lower interest rate are tax-deductible for that year.

4. Points on refinancing: The points you pay to get a lower interest rate on a home purchase loan are tax-deductible for that year.  If you’ve refinanced before, and you have points from the previous refinance that haven’t yet been deducted, you may take a full deduction on the remaining points for the earlier loan.

5. Real estate and property taxes: State and local property taxes are deductible in the year they are paid.

6. Repairs to rental property: The costs of repairs to rental properties are fully deductible in the year in which they are incurred.  Examples include fixing leaks, patching plaster and replacing broken windows.

In addition to these deductions, buyers entering into a purchase contract by April 30th, 2010 may be eligible for a tax credit.

US Treasury Announces Home Affordable Refinance and Modification Programs

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Here are the details on yesterday’s announcement by the US Treasury Department on two new programs to make refinances and loan modifications easier to obtain. The Home Affordable Refinance program is available to owner-occupied homeowners who are current on their loans and have documentable income to support their payment. It allows them to refinance into a lower rate without needing 20% equity. The Home Affordable Modification program is for owner-occupied homeowners who are at-risk of foreclosure. It allows reduces the homeowner’s monthly payment to no more than 31% of their gross monthly income through interest rate, loan term extensions of principal forbearance. You can find more information in the attached summary or at the US Treasury’s new website: www.financialstability.gov/