Seattle Mortgage Loan and Real Estate Blog

Wow, another crazy few weeks in the real estate and mortgage world!  I will start with a highly unusual situation that is occurring regarding mortgage rates, we have 30 and 15 year fixed mortgage rates that are nearly 1% BETTER than 3,5 or 7 year ARM rates.  Just two weeks ago we finally had ARM rates that were almost 1% less than fixed rates and now investors have decided that ARM loans are not what they want so the rates jumped and fixed rates are back down in the 5's.

Starting to hear about more people getting back into the purchase market as mortgage rates are very good, inventory is high and sellers are doing whatever it takes to sell a house right now. Hopefully the spring buying season is a good one as we need it.

2008 is expected to be a very tough year nonetheless and we are still seeing many companies not survive, loan programs going away daily and just general turmoil.  The best advice I have if you are looking to buy or refinance is to keep your credit scores HIGH ie above 680, save at least 5% to purchase a home and dont plan on getting a second mortgage or stated income loan unless you have a nearly perfect profile.  Call or email to discuss your specific situation, as I like to say I have NEVER done two mortgage loans that were exactly the same and probably never will.

A quick note to let everyone know that mortgage rates have jumped considerably this week.  More companies continue to go out of business, many loan programs are disappearing weekly and it is very hard to keep track of all the changes.

The best advice I can give you is keep your credit score HIGH!! Those with less than 680 FICO are getting hit hard right now and/or just not being able to even qualify.

GOOD NEWS! Conforming and FHA loan limit increases were announced today. In KING, PIERCE and SNOHOMISH counties the new limit is $567,500 up from $417,000.  Some areas of the country did not change while others went all the way to $730,000. FHA limits are expected to be in the 700k range but as of right now I do not have the exact new mortgage loan limits for FHA in the Seattle areas.

Put your seatbelt on if you are in the market for a mortgage right now, it will be a bumpy ride:)