Brian Leavitt, REALTOR®

Congressional action raises interest rates..

If you are thinking of a refinance or for that matter a home purchase, now is the time.

Conforming prices will increase based on recent Congressional action. Freddie Mac and Fannie Mae are increasing their guarantee fee effective with April settlements which will
worsen pricing. In order for a loan to meet the April settlement requirement it must fund prior to February 29th 2012.

The guarantee fee increase will worsen prices up to 80 basis points (8/10 of 1%) depending upon the note rate. Some lenders are staggering the increase based upon when the loan is locked in an effort to offer lower rates to consumers in the market for as long as possible.

If you are considering a refinance or purchase do it now if you can . Although interest rates remain at record lows there's no telling how long they will remain low and with this announcement we know that the cost of obtaining financing will increase.

Please note that the guarantee fee increase does not impact government loans.
For more details on this and any other financing options please call Brian Leavitt at Northstone Mortgage.

The Top 10 myths and misunderstandings about refinancing in today’s market..

1. It is just too hard to get a loan. The fact is for some time lending guidelines
   were just too easy. Today's guidelines have moved to a place that really does make sense. Qualified borrowers are finding the process to be reasonable and streamlined. The restrictions that have been put in to place are good for borrowers and for the banks making the loans.
2. I'm waiting for rates to go down. Right now rates are the lowest that they have
   ever been. Although it is possible rates could go down more it is unlikely. The Federal Reserve has indicated that they will be holding rates down for a period of time in order to help stimulate the economy but today's low rates are not going to last forever.
3. Since home values have dropped my loan would be above 80% so I would have mortgage insurance. Many borrowers qualify under the new HARP refinance program. Under HARP guidelines if you do not have mortgage insurance now you would not have it with the new loan. With rates now under 4% it is an amazing time to refi.
4. My credit score is just too low. Your credit score is not the only criteria
   the lender looks at. Often there are compensating factors that can mitigate a low score. For owner occupied homes refinances are available with scores as low as 620.
5. A refinance is just not worth the expense. Maybe true, maybe not. It is a simple calculation to determine the “recapture” time for the refinance. If your payment
   goes down $200 per month and the cost is $2,000 then $2,000 (cost) divided by
   $200 (monthly savings) equals ten months for recapture. If you plan on owning the home more than 10 months then it makes sense. Right now Northstone Mortgage is closing refinance loans with costs averaging in the range of $2,000 including all closing costs. *
6. My debt to income ratio is too high so I think it is likely I won’t qualify. Again
   this is a case by case decision taking into account multiple factors. I am seeing some high debt to income ratio loans get approved but when it makes sense. For example a borrower who is current on all of their obligations and having their monthly housing expense reduced is a “makes sense” loan with a high probability of getting approved.
7. I was on unemployment so my income was interrupted so I don’t think I can qualify. If you are back to work in the same line of work this is easily covered by a simple letter of explanation and a verification of employment from your present employer indicating that continued employment is likely.
8. I don’t want to start over with my loan. Good point. Rates are so low that we are moving many borrowers from 30 year loans to 10 or 15 year loans often without a significant increase in payment. We also offer 20 year loans. Paying your loan off quickly is one of the smartest money moves you can make. Call me anytime for more details on this one including a simple step by step plan to do it.
9. As soon as values come up I am selling so I don’t want to spend the money on a loan that I am paying off soon. Again, good point, however if you are waiting for values to rise it could be a long wait. Goldman Sachs released a report recently indicating that they do not believe we will see house values return to 2006 levels before 2023… that’s not a typo. It goes straight to the recapture question discussed in myth 5 above.
10. I have a second mortgage that I want to keep. I have been told that if I refinance I will have to pay it off and close the account. This one is sometimes true but usually not. Most of the time we can do what is called subordination. The way loans work is that when you close the loan you sign a promissory note which is your promise to pay the loan back and you also sign a deed of trust which is a document that is a lien on your home securing the promissory note. Each deed of trust is in lien priority based upon when it is recorded. When you pay off your existing first mortgage your second mortgage would then become the first lien UNLESS we ask the second lien holder to allow the new mortgage to be in first lien position or “subordinate” to the new first loan.

These are questions and concerns that I have been hearing from borrowers I have been recently serving. If you have questions about your specific situation please let me know. I am pleased to help any way I can. Usually the only way to learn if a refinance is a good idea is for us to “run the numbers.” There is no charge for this service.

*These fees are based on zero point loans with the lender paying the loan origination fee. Call for a free quote based upon your specific needs and situation.

Brian Leavitt

Northstone Mortgage

MLO#114864

One for the money.. two for the show..

Free Microsoft courses extended through October 2012

If your employees use Microsoft software to conduct business, here’s a deal
you can’t beat.

Employment Security extended its contract with Microsoft to make the company’s entire suite of
online courses available for free to Washington residents through October 2012.
The offer is open to anyone of working age – both the employed and unemployed.

Businesses can use the free training to improve the computer skills of one employee, or even
hundreds of employees.

Registration is handled through local WorkSource centers. Visit www.wa.gov/esd/e-learning to learn more or to request access codes. To contact your WorkSource center, visit www.go2worksource.com and click the “WorkSource Offices” tab to view locations.

30 Days

There is a certain element in managing a transaction that for whatever reason always seems to be a little surprising to me and that's the seeming insecurity of otherwise secure and confident home sellers. I don't know if it is an issue with women more than men but it is usually women that surface the concern. Perhaps it is simply that some men do not vocalize this concern as much or maybe it is that many men and women react differently to the security their home represents.

Basically selling a home is a managed process of rejection. If, as the listing agent I am doing my job well, many potential buyers are looking at the home but obviously only one buyer actually buys it so the question comes up "what's wrong with my home?" Read this as "why don't they love it as much as I do". The answer is simple and obvious. The buying process is a complex series of compromises between features, amenities, price, location and a million other rational and irrational choices. Finding the best match is a process of rejection and acceptance. Add to this longer market times and it is sometimes a stressful and agonizing process for home sellers.

As much as I would like to say there is an easy solution to the problem there isn't any short cut here. In managing the listing there is nothing, absolutely nothing that can take the place of good communication between the seller, listing agent and feedback from the buyers agents. The feedback is invaluable in terms of determining where adjustments are needed in price, condition, in discerning potential obstacles and addressing objections. The added benefit is providing the assurance necessary to the seller that the home is being fairly evaluated by potential buyers.

Even though a high level of communication is provided doubt can still slip into the sellers mind and in this case I sometimes find myself reminding them that selling is a process and like all processes it takes time. If we are properly monitoring sales activity, pricing the property well and aggressively marketing the home is going to sell. If discouragement sets in I ask the seller to take a big red pen and circle the date on their calendar 30 days from today. The real estate market by nature is constantly changing and 30 days from today is a whole new real estate world.

Even if you pay all your bills on time ...

You could be bringing your credit score down without realizing it. The main factors considered in creating your credit score is whether you pay your credit cards and bills on time.

But some factors that can shave points from your score are not as obvious and not as well known. They include:

* Ordering several new credit card accounts in a short period of time. Maybe you're just taking advantage of low-interest offers, but to credit scorers, it looks bad. Better yet, avoid credit cards altogether.

* Transferring a balance to a new card, and then closing the old card account. It's OK to transfer the balance, but keep the old account open. If you close it, you won't have as much total credit and your credit-utilization ratio will increase. The amount of debt you have is calculated for balances on individual accounts, as well as your overall credit limit.

* Charging a lot to a department store credit card. Say you have a $4,000 credit limit. You are buying new furniture, so you charge $3,500. Before that, you only owed $100 on your store card. Now, you owe $3,600 on a $4,000 card, which means available credit on that account will be way down. It's not good for your credit score. And the store charges high interest rates.

Here's a better solution. Save for the item and pay cash. Cash talks, you can almost always negotiate a discount for cash so you avoid the credit card debt and save money as well.

* Other situations you might think are not related to your credit score include library book fines, parking tickets, back rents, medical bills and any other fees or charges you put off paying.

In time, they will be turned over to a collection agency. Even after you pay them, the collection will stay on your credit report for seven years.

Remember to review your credit report on at least an annual basis. You can do this for free at https://www.annualcreditreport.com. There are lots of so called "free" credit report sites out there but this one is the real deal sponsored by the credit bureaus and is completely free with no membership or service fees required. Also, if you are turned down for credit because of anything revealed in your credit report you have the right to a free copy of your report. For more information on your rights under the Fair Credit Reporting Act go to http://www.ftc.gov/os/statutes/fcrajump.shtm

HARP Here we come

The latest news on the new Home Affordable Refinance Program, HARP, is that Federal regulators have recently made key changes that will help borrowers who owe more on their loans than their homes are worth. Every week I receive inquiries from home owners who are current on their mortgages but can't refinance because their loan balances are higher than the value of their homes. The new HARP guidelines will help many homeowners reduce their interest rate. Based on today's rates this would be at or below the 4% range for a 30 year fixed loan.

There are two options with the new HARP changes. Timing is critical on both options and require clear understanding of your home's value. I am uniquely positioned as both a real estate broker and mortgage broker to assist you with this.

OPTION 1: Applications taken from December 1^st 2011 to February 29^th 2012 (yes, an extra day for us for leap year) are eligible for a loan to value (LTV) up to 125%. Appraisals will be necessary during this time period to determine the LTV. Unlimited combined loan to value ratios (CLTV) are acceptable. The combined loan to value ratio is the combination of your first mortgage and second mortgage or home equity lines (HELOC).

OPTION 2: Applications taken on or after March 1^st 2012 are eligible for unlimited LTV and CLTV and this is where those most highly impacted by declining values will get relief. There has been no specific announcement if appraisals will be required but I think not since the plan is to allow unlimited LTV.

The following conditions will apply to both options:

1. Current 1^st mortgages must have closed prior to May of 2009.
2. The loan cannot have mortgage insurance.
3. Loans must be owned by Fannie Mae or Freddie Mac. Call or email and I can research this for you.
4. Primary, Second Home, investment, and condos all qualify.
5. Second mortgages can be subordinated with no maximum CLTV.
6. You must have a qualifying credit score of 640 or more with no credit lates in the past 12 months.
7. You will still have to qualify based upon income but the good news (better news?) is that with a significant decrease in interest rate your payments should go down.

Mortgage lenders are going to be swamped with applications on this program so right now is the time to get ready. Since applications must be dated no sooner than December 1, 2011 we can have everything ready to go so that we can submit the application as early as possible. For some of you it will be necessary to wait until March 1^st 2012 but the anticipated rush will be even greater.

This is by far the best opportunity "underwater" home owners have had during the course of the recession.

If you are a home owner finding yourself in this position my advice is that we review your situation to determine if you are eligible and if it is best to proceed on December 1^st or wait until March 1^st.

Call or email me today! I will answer your questions and run the numbers to determine just how much money you can save each month!

Brian Leavitt

Designated Broker

Northstone Mortgage

MB 114722

MLO 114864

 

Home Sales Report for the Eastside and King County - October 2011

October 2011 Homes Sales Report for King County & Cities of Bellevue, Redmond, Kirkland, Issaquah and Sammamish. In October of 2011 King County closed sales were up 16.61% from October 2010 (1,853 vs 1,589) . The Eastside showed some very strong numbers as well with closed sales. Closed sales were up 13.29% (588 vs 519) The median home price in King County in October was $287,500 down 17.86%. The Eastside Median Sales price was down just 10.75% to $415,000. For the sixth straight month, pending sales across King County moved up 16.61%, while pending sales on the Eastside were up 13.29%. In addition I am noticing quite a bit of potential in the market. We are still seeing inventory numbers decline. In October total active listings were down 26.54% in King County and down 25.01% on the Eastside from October of 2010. See the raw numbers from the Northwest Multiple Listing Service. Also take a look at the housing numbers for Sammamish and Redmond. In Kirkland the Market Action Index(a gauge of market activity) remains strong. While it's still a buyers market, it is much more balanced. With interest rates in the LOW 4's buyers affordability is at an all time high. Check out the National Picture from Realtor.com

Here is a breakdown of real estate homes sales in Seattle Eastside Communities of Bellevue, Kirkland, Redmond, Issaquah and Sammamish, Washington for the week broken down by neighborhood. Just click on the link to your neighborhood for the complete breakdown of the homes that are on The chart below breaks down Seattle Washington's Greater Eastside Real Estate homes sales by City, for the week of 11/15/2011.

City	# of Active Listings
Homes For Sale in Bellevue, Washington	447
Homes For Sale in Issaquah, Washington	243
Homes For Sale in Kirkland, Washington	336
Homes For Sale in Redmond, Washington	357
Homes For Sale in Sammamish, Washington	324

To find out what your home is worth or If you are interested in selling your home for top dollar in the quickest amount of time, please contact me anytime at 206-818-8816 or Click here to send me an e-mail requesting further information.

Color influences thought

The Pantone Color Institute researches how color influences thought, emotions and physical reactions. Some of their recent recommendations for interior decoration are:

Yellow: When the eye takes in yellow, it releases serotonin, a neurotransmitter linked to feeling good. The institute recommends a soft chamois, butterscotch or honey yellow for a living
room, entry or foyer. It will boost moods.

Blue: They say when the blue sky is above you, it's hard to be anxious. Studies show that blue makes the heart rate slow, perspiration drop, and breathing deepen. Pantone recommends it for
bathrooms and for any room where you want to relax.

Brown: It has emerged as a rich mocha linked to the flavors of coffee and chocolate. People love their wood floors and furniture. Brown is associated with stability of the earth. In
bedrooms, it increases sleep-inducing sensations of safety and comfort, whether
it's on a wall, in furniture or bedspreads.

Red: It has an aggressive nature, commanding attention and demanding action. It may introduce a fight-or-flight reaction including elevated breath and pulse rate and an increase in adrenaline
and perspiration.

Black: To
banish sadness, limit the black and dark grays in your life. Leave pure white
on the ceilings.

In preparing a home for sale, color is among many of the considerations. Take a look at stagedhomes.com for an in depth look at the benefits and many of the techniques of home staging. Barb Schwarz is the leading authority on staging and she is a local talent.

Realty Times - Real Estate Outlook: Pending Sales Decline

One of the most frustrating things I am seeing in the market right now is the difficulty in obtaining jumbo financing. With loan limits decreased to $506,000 in King County many home buyers as well as people wanting to refinance to today's low rates are struggling.

Why the declines at all? "America’s monetary policy is contradictory and confusing, where some consumers with the best financial capacity and top-notch credit scores pay higher mortgage interest rates,” Yun said. “The Federal Reserve evidently has been attempting to lower mortgage rates, yet more consumers are faced with taking out jumbo loans that carry higher interest rates.”

Yun noted the need for higher loan limits.

via realtytimes.com

How to Avoid Scams This Holiday Season

 Anyone can be the victim of a scam. However, there are several common sense ways to prevent being swindled:

• Beware of pop-up ads online. While these ads may promise big savings, you’ll only receive steep monthly charges.
• Your bank will never send you an email to verify your account or social security number. These email schemes are common and can look quite convincing. However, if you receive such an email, report it to your bank immediately.
• Shred your paper statement. If you choose to receive paper statements in the mail, make sure you shred them when you’re finished.
• Don’t do any financial transactions on a public computer. This includes everything from checking your statements to shopping online.
• If you plan to shop online, purchase the latest antivirus and antispyware software and make sure you update it regularly.

Beware of these debit card scams
Many of the latest scams involve stealing information from debit cards. Common ways to steal or copy information from your debit card include:

•  Card theft: The thief uses a special device that makes it appear as if your bank card is stuck in the machine. After you leave, they steal your card.
• Double swipe: The thief, a staff member of the store or restaurant, swipes your card through a hidden device that duplicates the magnetic information.
•  Copycat technology: The thief inserts a tiny device into the card reader of a cash machine or gas station to record your card and PIN data.
•  Faux Machines: Thieves set up a phony ATM machine that records your card and PIN information and makes a duplicate card.

Unlike credit cards, where you’re only responsible for $50 if it’s lost or stolen, you may be held responsible for the unauthorized charges if you do not notify your bank within two business days. Sign up for online ranking and review your account balances daily for unauthorized charges.