Vincent van Gogh, Dutch painter (March 30, 1853 – July 29, 1890)
http://www.vangoghgallery.com/

Artists take risks. They pursue their vision, often without financial security, facing long odds while stewing in their own self-doubt. When the world tells them “it’s not safe,” they listen to their own voice despite “prevailing wisdom.” They have a vision and they pursue it.

Occasionally, if they’re very lucky, they get to look back on their life and see the path that lead them to create a masterpiece. At the time, the path wasn’t easy, yet in retrospect, it looks very much like the only possible path they could take.

I think in twenty years or even ten years, we’re going to hear the collective sound of people kicking themselves because they did not buy a home this year. As their teenage sons and daughters graduate and enter the future job market and begin searching for their first home, they’ll turn to their parents and say, “Seriously? You’re telling me when I was in middle school, you could get a 30-year fixed for under 5%?”

Too many remain terrified by the last great storm in the housing market. They stand now on the shores of incredible opportunity, but can’t shake the vision of all those values sinking into oblivion.

Think about the future. Who might need a home? Is there an opportunity to “be the bank” when the time comes? The descendants of those savvy collectors who bough a Van Gogh painting for mere dollars in 1885 are surely grateful for their grandparents’ eyes today, aren’t they?

Yes, there is uncertainty, but this is the calmest water you’re ever going to see. Set sail now and buy a home. Those that do will certainly be rewarded. As for the masterpiece? It will be the satisfaction of looking back and realizing they bought at just the right time.

There’s certainly no risk to exploring the opportunity. I’d love the opportunity to sit down with you and plot a possible course to the best investment you could make. Contact me today.

So let me ask you: Why would you wait for the housing market to improve before buying a house?

I understand there’s a lot of uncertainty out there. Job security is questionable, unemployment is high, and you’re not sure what it takes to get pre-approved for a home loan. It’s scary. But here’s the thing: Letting fear dictate your financial strategy for the future is a guaranteed way to pay too much for a house in the years to come.

Put fear aside for just a moment. Here are some facts:

• Interest rates are at or close to historic lows
• Prices for homes have plunged to the lowest levels we’ve seen in a generation
• Bank and government-owned property inventory is at an all-time high
• Rents are rising and rental inventory is shrinking (limited rental options!)

Shouldn’t you, rather than your landlord, be the one who benefits from owning a home? Right now is the “buy low” in the “buy low / sell high” cycle. Every day I help renters explore their purchasing power. You might be surprised just how qualified you are for home ownership.

If you’re curious simply contact me, or drop me a line and I’d be glad to have a no-obligation conversation about how you could own your own home.

Important Note: Fannie Mae and Freddie Mac are scheduled to provide full details of the program, including information to lenders, by Nov. 15. The FHFA says some lenders may be able to start offering the program by Dec. 1, although most estimates are of a rollout in the first quarter of 2012 for most participating lenders. Chase Bank and mortgage lender Genworth have already indicated they look forward to participating.

Here’s what I know so far. Get a HARP refi quote now.

What Is HARP?

HARP was started in April 2009. It goes by several names. The government calls it HARP, as in Home Affordable Refinance Program.

The program is also known as the Making Home Affordable plan, the Obama Refi plan, and Relief Refinance.

In order to be eligible for the HARP refinance program :

1.Your loan must be backed by Fannie Mae or Freddie Mac.
2.Your current mortgage must have a securitization (originated and bought by either institution above) date prior to June 1, 2009
If you meet these two criteria, you may be HARP-eligible. If your mortgage is FHA, USDA/ VA or a jumbo mortgage, you are not HARP-eligible.

HARP : Questions and Answers

Do these question-and-answers account for the “new” HARP program?

Yes, everything you are reading is accurate as of today, October 25, 2011. This post includes the latest changes rolled out by the Federal Home Finance Agency on October 24, 2011.

How do I know if Fannie Mae or Freddie Mac has my mortgage?

Fannie Mae and Freddie Mac have “lookup” forms on their respective websites. Check Fannie Mae’s first because Fannie Mae’s market share is larger. If no match is found, then check Freddie Mac. Your loan must appear on one of these two sites to be eligible for HARP. Make note of how you type in your address at both these sites. Sometimes it must match exactly what is on your current mortgage statement.

If my mortgage is held by Fannie Mae or Freddie Mac, am I instantly-eligible for the Home Affordable Refinance Program?

No. There is a series of criteria. Having your mortgage held by Fannie or Freddie is just a pre-qualifier.

Is “HARP” the same thing as the government’s “Making Home Affordable” program?

Yes, the names HARP and Making Home Affordable are one in the same.

My mortgage is held by Fannie/Freddie. Now what do I do?

Find a recent mortgage statement and write “Fannie Mae” or “Freddie Mac” on it — whichever group backs your home loan — so you don’t forget. Give that information to your lender when you apply for your HARP refinance.

What if neither Fannie Mae nor Freddie Mac has a record of my mortgage?

If neither Fannie nor Freddie has record of your mortgage, your loan HARP-ineligible. However, you may still be eligible for a “regular” refinance to lower rates. Got to my site and request a quote to see your options. Or, if your mortgage is insured by the FHA, you can use an FHA Streamline Refinance.

Am I eligible for the Home Affordable Refinance Program if I’m behind on my mortgage?

No. You must be current on your mortgage to refinance via HARP.

Will the Home Affordable Refinance Program help me avoid foreclosure?

No. The Home Affordable Refinance Program is not designed to delay, or stop, foreclosures. It’s meant to give homeowners who are current on their mortgages, and who have lost home equity, a chance to refinance at today’s low mortgage rates.

What are the minimum requirements to be HARP-eligible?

First, your home loan must be paid on-time for the prior 6 months, and at least 11 of the most recent 12 months. Second, your mortgage must have been sold to Fannie or Freddie prior to June 1, 2009. And, third, you may not have used the HARP program before — only one HARP refinance per mortgage is allowed.

Is there a 125% loan-to-value restriction for HARP?

No, there is no 125% loan-to-value restriction. All homes — regardless of equity — are eligible for the HARP program.

I am really far underwater on my mortgage. Can I use HARP?

Yes, you can. There is no loan-to-value restriction under the HARP program.

Maybe I wasn’t clear. I am really, really far underwater on my mortgage. Are you sure I can use HARP?

Yes, I am sure. The new HARP program specifically has no loan-to-value restriction so that homeowners in Florida, California, Arizona and Nevada can take advantage of it. You can 300% loan-to-value, and still be HARP-eligible. HARP is now unlimited LTV.

Will my home require an appraisal with the HARP program?

Sort of. Although your home’s value doesn’t matter for the HARP program, lenders will run what’s called an “automated valuation model” (AVM) on your home. If the value meets reliability standards, no physical appraisal will be required. However, your lender may choose to commission a physical appraisal anyway — just to make sure your home is “standing”.

Is HARP the same thing as an FHA Streamline Refinance?

No, the HARP program is administered through Fannie Mae and Freddie Mac. FHA Streamline Refinances are performed through the FHA. The programs have similarities, however.

Do I have to HARP refinance with my current mortgage lender?

No, you can do a HARP refinance with any participating mortgage lender.

So, I can use any mortgage lender for my HARP Refinance?

Yes. With the Home Affordable Refinance Program, you can refinance with any participating HARP lender. Click here for a HARP rate quote from me.

I put down 20% when I bought my home. My home is now underwater. If I refinance with HARP, will I have to pay mortgage insurance now?

No, you won’t need to pay mortgage insurance. If your current loan doesn’t require PMI, your new loan won’t require it, either.

I pay PMI now. Will my PMI payments go up with a new HARP refinance?

No, your private mortgage insurance payments will not increase. However, the “transfer” of your mortgage insurance policy may require an extra step. Remind your lender that you’re paying PMI to help the refinance process move more smoothly.

What’s the biggest mortgage I can get with a HARP refinance?

HARP refinances are limited to your area’s conforming loan limits. In most cities, the conforming loan limit is $417,000. However, there are some cities in which conforming loan limits are as high at $625,500.

Can I do a cash-out refinances with HARP?

No, the HARP program doesn’t allow cash out refinance. Only rate-and-term refinances are allowable.

Can I refinance an investment/rental property with HARP?

Yes, you can refinance an investment/rental property with HARP, even if the home was once your primary residence. You can refinance a home on which you’re an “accidental landlord” via HARP. The loan must meet typical program eligibility standards.

Can I refinance a second/vacation home with HARP?

Yes, you can refinance an second/vacation property with HARP, even if the home was once your primary residence. The loan must meet typical program eligibility standards.

Are condominiums eligible for HARP refinancing?

Yes, condominiums can be financed on the HARP refinance program. Warrantability standards still apply.

Can I consolidate mortgages with a HARP refinance?

No, you cannot consolidate multiple mortgages with the HARP refinance program. It’s for first liens only. All subordinate/junior liens must be re-subordinated to the new first mortgage.

Can I “roll up” my closing costs with a HARP refinance?

Yes, mortgage balances can be increased to cover closing costs in addition to other monies due at closing such as escrow reserves, accrued daily interest, and a small amount of cash. In no cases may loan sizes exceed the local conforming loan limits, however.

I am unemployed and without income. Am I HARP-eligible?

No. Income verification is required for the HARP refinance program.

My original mortgage was a stated income loan. Will my income be verified with a HARP refinance?

Yes, with HARP, applicant income is verified in the same manner as with a traditional refinance — via a combination of W-2s, paystubs, tax returns and other, underwriter-requested documentation.

Do HARP refinances use Loan-Level Pricing Adjustments?

Technically, loan-level pricing adjustments (adjustments made to fees for a certain rate. The more risk, the more fees you’ll have to pay.) do not apply to HARP refinances, but borrowers may be subject to LLPAs based on their respective credit scores or home-types (e.g.; 2-unit, 3-unit, 4-unit). Loan-to-Value LLPAs are reduced and/or waived.

Is there a minimum credit score to use the HARP program?

No, there is no minimum credit score requirement with the HARP refi program, per se. However, you must qualify for the mortgage based on traditional underwriting standards.

Do I have to refinance my mortgage with my current lender?

In most cases, no. You can do a HARP refinance with any lender you want. Click here for a HARP rate quote from me.

What does the term “DU Refi Plus” mean?

“DU Refi Plus” is the brand name Fannie Mae assigned to its particular flavor of the HARP program. “DU” stands for Desktop Underwriter. It’s a software program that simulates mortgage underwriting. “Refi Plus” is a gimmicky-sounding term that could have been anything. The name has been trademarked, however. As an aside, Freddie Mac is using the branded name “Relief Refinance”.

Can I remove my spouse or a co-signer with a HARP refinance?

Maybe. HARP guidelines specifically prohibit removing a co-signer from the note, but there are circumstances in which you can remove a co-signer from the mortgage and from the deed so that the former co-signer has no ownership interest in the home.

For how long should I lock my mortgage rate via the HARP Program?

Lock for 45 days, at minimum. This is because the HARP program, while streamlined for simplicity, still has some grey areas that can lead to delay. It’s better to have a rate lock that lasts too long than not long enough.

When does the HARP program end?

If you are HARP-eligible, you must close on your mortgage prior to January 1, 2014 — 798 days from now.

How do I apply for the HARP program?

Go to my site to get a rate quote. If the rate looks good, you can accept it. There is no fee for applying.

Apply For Home Affordable Refinance Program

Lastly, don’t forget! The Home Affordable Refinance Program is not meant to save a home from foreclosure. It’s meant to give underwater homeowners a chance to refinance without paying PMI. If you need foreclosure help, call your current loan servicer immediately.

Good Luck!

Important Note: Fannie Mae and Freddie Mac are scheduled to provide full details of the program, including information to lenders, by Nov. 15. The FHFA says some lenders may be able to start offering the program by Dec. 1, although most estimates are of a rollout in the first quarter of 2012 for most participating lenders. Chase Bank and mortgage lender Genworth have already indicated they look forward to participating.

I often hear from clients who are worried about their parents (or themselves) when it comes to living in their home through their retirement years. There are lots of reasons why a dream home can become a retirement nightmare as we age. From safety issues to neighborhood concerns, there are numerous factors which impact whether or not a home is ideal as we get older. Consider:

1. Falling / slipping hazards. Are bathrooms designed with mobility challenges in mind? Are the surfaces we once loved (hardwood, tile, concrete) now slipping hazards?
2. Accessibility. Is a second story practical? Will stairs become a painful hassle in years ahead?
3. Entrapment. Could locks in the house be inadvertently engaged, trapping a resident in a back bedroom or bathroom without access to medicine or lines of communication?
4. Right-sizing. Is the home still appropriate for the number of residents? Will it be a maintenance or upkeep hassle now that kids or spouses may no longer be in the house?
5. Neighborhood safety. How as a neighborhood improved or declined in recent years? Whatʼs projected to happen in the next 10? 20?
6. Walkability. Are you planning to keep and drive a car as you age? How close are grocery stores, drug stores, hospitals, entertainment venues, and restaurants? Are you in a relatively isolated area? How close do you want your neighbors to be?

This is but a fraction of the full list, but a good place to begin thinking about the years ahead.

I love helping home owners evaluate properties with an eye on getting the most out of retirement.

If youʼre interested in a free consultation with these issues (and more!) in mind, please donʼt hesitate to me today. 503-451-0344 or you are welcome to email me!

The rate is 4.40% and 3% (of the Note amount) cash assistance is available for down-payment, closing costs, or prepaids.

Funds are limited so get your reservations in SOON!

Stop by my page www-Michael-Eiden.com and get prequalfied!

If you need to get prequalifed for a home loan would like to see if the Oregon Bond is for you, stop by my mortgage page to get prequalied. For more information on the Oregon Bond program, you can visit their site at www.oregonbond.us.

Borrower-paid MI premiums are tax-deductible through the year 2011. Below are answers to commonly asked questions regarding the law.

Borrowers should consult their tax advisors regarding MI tax deductibility. See disclaimer note below.

FAQs

Does the bill apply to MGIC mortgage insurance?

Yes, borrower-paid MI provided by MGIC qualifies for the deduction. This includes our Monthly, One-Time MI and Split Premium plans. There are varied opinions on the deductibility of lender-paid MI as the IRS has not yet clarified the deductibility. It is recommended that borrowers consult their tax advisors regarding the amount that is deductible.

What types of mortgage loans qualify for the MI tax deduction?

Loans used for “acquisition indebtedness” — that is, money borrowed to buy, build or substantially improve a residence — are eligible, as long as the debt is secured by the same residence. This includes purchase loans and refinance loans, up to the original acquisition indebtedness. (Money borrowed against the equity in a home or when refinancing a home for any reason other than to buy, build or substantially improve a residence is called “equity indebtedness.”)

When refinancing a piggyback loan originally used to acquire a property, is the original loan amount considered the sum of the two mortgages or only the primary mortgage amount without the second lien included?

The original acquisition indebtedness is considered to be the sum of the two mortgages.

Is deductibility applicable for all loan types?

There is no differentiation among loan types.

What types of properties are eligible for tax deductibility?

The deduction applies to “qualified residences,” as defined in the Internal Revenue Code. Generally, that includes the borrower’s primary residence and a nonrental second home. As with mortgage interest, borrowers can deduct mortgage insurance premiums paid on both their primary residence and one other qualified residence each year. Investor loans are not eligible.

Who qualifies for this itemized deduction?

Households with adjusted gross incomes of $100,000 or less will be able to deduct 100% of their MI premiums. The deduction is reduced by 10% for each additional $1,000 of adjusted gross household income, phasing out after $109,000. (Details below.)

Married individuals filing separate returns who have adjusted gross incomes of $50,000 or less will be able to deduct 50% of their MI premiums. The deduction is reduced by 5% for each additional $500 of adjusted gross income, phasing out after $54,500. (Details below.)

The deduction is not restricted to first-time homebuyers.

Is adjusted gross income calculated before or after deductions?

Adjusted gross income is calculated before itemized deductions, including the MI deduction.

How does the MI tax deduction work?

Borrowers who itemize deductions are able to reduce their overall taxable income in the same manner as mortgage interest.

Are borrower-paid, single premiums, which are paid up front in a lump sum, eligible for the deduction?

Yes, borrower-paid, single-premiums are eligible for the deduction under the new law. Borrowers should consult with a professional tax advisor to determine the amount of the MI premium eligible for the tax deduction.

If the single premium is financed, are both the mortgage insurance premium and the interest tax deductible?

We believe that if the loan is for acquisition indebtedness, both the interest attributable to the entire loan balance as well as the allocated portion of the mortgage insurance premium are tax deductible.

How would a premium refund issued during the tax year affect eligibility and the amount of the MI deduction?

Borrowers are only permitted to deduct that portion of their MI premium attributable to a tax year. If the MI is dropped, and a refund is paid, the amount refunded would reduce the amount of MI premium that could be attributable to that tax year and be deducted.

Note: MGIC cannot provide tax advice. Taxpayers should consult their tax advisor to ascertain if they are eligible to take this deduction. The answers to these questions are based on an interpretation of the language of the statute, the Joint Committee on Taxation’s Technical Explanation of the statutory language, and present law. The Internal Revenue Service (“IRS”) will issue guidance interpreting the new provision, and could reach different conclusions for some of the issues raised.

HomePath financing is only available on Fannie Mae owned homes. Checkout the listings at HomePath.com!

Here are some quick highlights:

• Low down payment and flexible mortgage terms. Available to both owner-occupants
and investors:
- Owner occupied – 3% down
- Second homes – 10% down
- Investment – 10% 1 -2 units; 25% 3-4 units

• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer. You may qualify even if your credit is less than perfect.

• Seller contributions 6% for Owner occupied
• No mortgage insurance
• No appraisal

Incentive Offer Available!

Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through June 30, 2011. Buyers or their selling agents must request the incentive option upon submission of initial offer in order to be eligible. Initial offer must be submitted on or after April 11, 2011 and sale must close by June 30, 2011. Other restrictions apply. See Special Offers tab for full terms & conditions.

Click here to download a color flyer: Buyer Closing Cost Incentive

Whatever the reason the remodeling itch has settled into your brain, before you bring in a contractor – or pick up a hammer – you should consider two important questions: How will you fund your project? And will it be worth it in the end?

A little research and credit self-assessment can answer both questions. In addition to pulling your credit report to see how likely you are to qualify for good loan terms, you should consider the potential resale value of the improvement, how it will improve your life and if it will enhance your enjoyment of your home.

Fortunately, it’s not difficult to evaluate the potential resale value. Kitchen and bathroom remodels, adding a deck, or finishing a basement or attic are all popular renovations because they upgrade the most-used rooms in the house or add living space.

In terms of resale value, here are some popular projects with high paybacks, according to Remodeling Magazine’s 2009-2010 Cost versus Value Report:

• Adding an attic bedroom – 83.1 percent
• Adding a wooden deck – 80.6 percent
• Minor kitchen remodel – 78.3 percent
• Major kitchen remodel – 72.1 percent
• Basement remodel – 75.4 percent
• Bathroom remodel – 71 percent

Keep in mind that smaller remodels, while costing less than major jobs, can still have a major impact on how your home looks and feels. For example, simply replacing that old front door with a steel version can cost around $1,000 but offers a return on investment of nearly 129 percent, according to the report.

Another factor to consider when weighing the value of any remodeling project is how it will affect your quality of life in terms of financial security. It’s important to be sure the cost of the project won’t be a financial burden that detracts from your enjoyment of the results.

To help understand your current credit status and how it might affect your remodeling loan terms, obtain a copy of your credit report. Websites like CreditReport.com can provide you with a credit report with your paid monitoring membership. Obtaining your credit report and monitoring your credit can help you identify any inaccuracies or errors that might lead to higher interest rates, and also catch and resolve potential fraud quickly. You’ll also find tips on the website for understanding your credit, and tools such as a credit score tracker to help you anticipate how certain financial decisions – like financing a remodel – might affect your credit.

Remodeling projects will likely remain popular as homeowners continue to stay put in a still-sluggish real estate market, experts agree. With some careful planning, budgeting, research and credit insight, you can ensure you reap the most financial and personal value for whatever renovation you decide to undertake.

Courtesy of ARAcontent

Our firm does not endorse any vendor and disclaims responsibility for any product, promotion or content mentioned in this article.

NEWS RELEASE 

For Press Inquiries:

Justine Saudan, Media Relations
4949 Meadows Road Suite 150
Lake Oswego, OR 97035

PACIFIC RESIDENTIAL MORTGAGE

FOR IMMEDIATE RELEASE 

PACIFIC RESIDENTIAL MORTGAGE, is pleased to announce that Michael Eiden Sr. Mortgage Banker MLO-165229, has joined our Lake Oswego Branch. Michael’s passion lies in serving the needs of others and contributing to his community. A former United States Marine, Michael’s exceptional service skills have helped businesses and individuals with their financial goals for over 14 years. As a Mortgage Banker he has made it his mission to use his planning skills to help folks obtain a mortgage properly—whether it is through a refinance or purchase of a primary or investment real estate property.  Michael takes great pride in his work and is available to serve you. We are excited to have him as a part of our team! 

About Pacific Residential Mortgage (PRM)

In May of 2004, Pacific Residential Mortgage (PRM) opened a new kind of Mortgage Company. Made up of seasoned professionals, PRM’s rapid success is based on its decision to hire only top quality loan originators with a reputation for character, integrity and quality.

 As a broker and a banker, PRM offers the highest degree of flexibility to best meet the changing needs of all clients by providing a combination of the best products, the best service and the most competitive rates available. Dreams Approved Daily®