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Low Rates and the Return of Private Mortgage Insurance (PMI)

Posted On: May 17th, 2011 by James Posted In: Financial Health • Mortgage Insurance • Mortgage Programs • Mortgage Rates • Mortgages • Portland Real Estate • Refinancing

Its happening again.  Rates are tumbling and tumbling more.  I read recently that avoiding closing costs in a declining rate environment is a wise approach and I completely agree.  By avoiding closing costs two things happen:

1. The net benefit of the improved cash flow is immediately realized, and

2. You are in a position to refinance AGAIN as rates continue to slide.  Because you haven’t paid any of your equity there is not much downside.

I’ve been making loans since 2003, and rates have pretty much always been really attractive with a few exceptions (sorry purchasers of the summer of 2006!  I hope you’ve refinanced out of your 6.625% fixed). Continue Reading – Low Rates and the Return of Private Mortgage Insurance (PMI)

Potential Jumbo Refinancing Candidates

Posted On: January 28th, 2011 by James Posted In: Financial Health • Mortgage Programs • Mortgage Rates • Mortgages • Portland Real Estate • Refinancing

So, if you pay attention to this blog, you know that interest rates have popped up from their mind-boggling lows in early November.  Mortgage Refinances still make a ton of sense for many, but some are waiting for a return to the glory of those heady days… and I believe they will continue to wait for a long long time.  However, there are two types of borrowers that I believe will still benefit GREATLY  from a refinance:

 

  1. Those who tried to refinance and couldn’t qualify due to an appraisal issue.
  2. Those who currently have a Jumbo mortgage and think that Jumbo rates haven’t improved enough to warrant starting the process. Continue Reading – Potential Jumbo Refinancing Candidates

First Time Home Buyer Programs in Portland, Oregon

Posted On: November 2nd, 2010 by James Posted In: FHA Mortgage • Financial Health • Government Actions • Local Interest • Mortgage Programs • Mortgages • Portland Real Estate

I was recently made aware of an OLD program called the “MCC” (Mortgage Credit Certificate).  The MCC Program is a special benefit for the first time home buyers in the Portland, OR market.  If you are a first time home buyer (defined by not having owned a home in the previous 3 tax years) AND you qualify for the income threshold* AND are purchasing a home in the city of Portland, OR the MCC program can provide a significant discount to the cost of your mortgage.

*INCOME REQUIREMENTS TO QUALIFY:

- Families of 1-2 must make less than $71,200/year
- Families of 3 or more must make less than $81,880/year

Here is how it works:

Continue Reading – First Time Home Buyer Programs in Portland, Oregon

A Special Message to My Friends and Clients

Posted On: August 30th, 2010 by James Posted In: FHA Mortgage • Financial Health • Mortgage Rates • Portland Real Estate • Refinancing

This is my plea to all of my clients past and present: Even if we closed a mortgage earlier this year, even if you think you are upside down on your homes equity, even if you think for some reason that this recent outbreak of mortgage refinance activity will not apply to you… you have to give me a ring, or send an email to james@pdxhomeloan.com.  Many of you are invested in 401(k) plans, and mutual funds, and have been taking a beating from the plunge of the stock market since 2008.  Well… think of the ridiculously low mortgage rates that are currently available as a way to BENEFIT from that same down market. (Because as stock markets shrink, money goes to bonds, and when bond yields get lower, so do long term mortgage rates!) Continue Reading – A Special Message to My Friends and Clients

The Return of PMI

Posted On: March 23rd, 2010 by James Posted In: FHA Mortgage • Mortgage Insurance • Mortgage Programs • Portland Real Estate

OK, so this is kind of exciting for all mortgage, real estate and general economic nerds. There are now not one but TWO private mortgage insurance (also known as PMI) companies who have taken Portland off their “declining markets” list!! The companies are PMI, and MGIC…. “James”, you ask… “why should I care about that?”. Well, I’m glad you asked. What it means is that buying real estate with less than 10% down just got a little more interesting.

Borrowers with top credit will now have options to buy with only a 5% down payment, and private mortgage insurance. This has not really been an option in the last 18 months, and these borrowers were all being pointed to FHA loans. And come April 5th, FHA loans are about to get more expensive as that FHA mortgage insurance is scheduled to INCREASE.

Continue Reading – The Return of PMI