The November 26th edition of The Tina & Drew Show featured attorney Jennifer C. Rydberg.  Jennifer was in studio to discuss the importance of durable power of attorney.  In estate planning, a durable power of attorney is often chosen as a way to plan for those times when you are incapacitated.  It is a written document that remains valid even if you should later become unable to make your own decisions.  With a durable power of attorney, you are able to appoint an agent to manage your financial affairs, make health care decisions, or conduct other business for you during your incapacitation. 

A durable power of attorney is a must for everyone’s financial blue print.  Please take the time to do your own research and get yours completed.  If you would like to contact Jennifer directly you can reach her at 425-988-6574 or online at www.jcrlaw.com.

Thank you for taking the time to listen every Saturday afternoon at 3pm on AM 1090!

 

Tips for our listeners…
Your tip for today is – If your negotiation on your real estate transaction should you lower price or have the seller pay for a buy down on your interest rate?  Here is an example of how to take advantage of today’s low interest rate environment and have the seller pay for permanent rate buy down.   

Purchase Price $300,000
Negotiating for a 2% discount – most would lower asking price by $6000 to $294,000

Interest rate of 4.00% on a 30yr fixed assuming – 5% down payment

Purchase price of $294,000 ($6000 discount) loan amount would be $279,300

P&I payment would be $1333

Life time buy down
2% or 2 discount points – usually 1% = .25% interest rate buy down

Buy down would be .5% to 3.5% interest rate on a 30yr fixed – same 5% down payment
Purchase price of $300,000 (full price) loan amount would be $285,000
P&I payment would be $1280

Savings $53 a month or $636 = life of loan $19,080

Temporary buy down
2/1 buy down – 2% or 2 discount points = 2% lower 1st year and 1% lower 2nd year
1st year 2% interest rate

Purchase price of $300,000 (full price) loan amount would be $285,000

P&I payment 1st year at 2% rate would be $1053, 2nd year at 3% rate would be $1201
Saving 1st year $280 a month, 2nd year $132 = total savings over 2 years $4944

 How long do you plan on keeping the property – 7.8 years the life time buy down is better

If there are topics you would like to learn about, please email Drew and I at Info@TinaAndDrew.com again that’s Info@TinaAndDrew.com and we will bring them on-air in a future show during our Tips For Listens segment.

Join Drew and I for one of our up coming Buyer Power seminars.

Knowledge is power!

 

The November 19th edition of The Tina & Drew Show opened up with Tina giving some expensive stats for the cost of college in 2029 to 2033 tuition, room and board will run roughly $125K per year!  It’s time to start saving for college and researching what 529 programs are available.  In The News, Drew and Tina reviewed the latest KingCountyhousing-affordability index.  The data shows that now is the best time to buy in the last 17years.  The story was based on an article from Seattle Times report Eric Pryne. 

Matthew Cunanan of DC Law Group was in studio this week.  Matthew spoke about tenant’s rights and what to expect if the home you are renting is foreclosed on.  As a tenant you have rights.  The Tenants Protection Act lays the ground work for those of you who are in this situation.  Matthew gave many examples how to deal with your lease and post foreclosure process.  If you need help and want to get some advice, call Matthew at 206-494-0400.  You may reach him via email as well at matthew@dcgroupnw.com

During the final segment featured Portia Gray of Coldwell Banker Bain.  Portia discussed why it is so important to work with a real estate professional who can negotiate effectively and who is a great communicator.  There are so many moving parts to a real estate transaction and you cannot let the biggest financial obligation be negotiated by a rookie.  Portia gave us many examples of what not to do.  If you would like to contact Portia you can reach her at 206-818-7195 or via email at portiagray@cbbaine.com

 

The November 12th edition of the Tina and Drew Show featured guests Lauren Kutschka of Costco and John Alexander part of Costco’s new mortgage services for their membership.  Tina and Drew are always searching out to find value for all listeners.  Costco now offers mortgages via a network of screened lenders.  If you are a Costco member this may be something you will want to pursue.  John and Lauren gave us all the details. 

Our second guest was Brett Stenmoe of The Stenmoe Agency.  Brett was in studio to discuss the advantages of life insurance vs. other mortgage insurance products that pay off your mortgage in case of death.  If YOU own a home and do not have life insurance for your loved ones…..call Brett’s office and get a quote.  Term life insurance is very affordable and is a must to protect your family future.  For less than a dinner and a movie you can ensure your family’s well being.   You can reach Brett at 425-486-8135 .

As always, thank you for taking the time to listen to The Tina & Drew Show every Saturday at 3pm on AM 1090!

 

This post content is from a Seattle Times article originally written by Eric Pryne.  Great content and shows that it may be the best time to purchase a home for in the nearly 2 decades!  Take a look:

King County Housing Affordability Index (HAI) is the best in 17 years!
HAI calculation is based on:  housing prices, interest rates, and income.  HAI is a way to track over time whether housing is becoming more or less affordable for the typical household.  The HAI has been tracked since 1994.  The HAI index has a value of 100 when the median-income family has sufficient income to purchase a median-priced existing home.  A ratio of 100 indicates that median family income is just sufficient to purchase the median priced home.  The higher index indicates that more households can afford to purchase a home.  When the ratio falls below 100, as it did during the late-1970s through the mid-1980s, the typical household has less income than necessary to purchase the typical house.

HAI = Median Family Income / Qualifying Income * 100
            $54,115 / $39,456 * 100 = 137.2

Median family income excludes one-person households.

Qualifying income is determined based on the monthly payment on the median-priced existing home (does not include new construction or condos), at the average interest rate.  The HAI assumes borrowers make a 20% down payment and the mortgage payment is 25% of gross income for the household. 

King County HAI was 127, this means a typical family’s income was 27% higher than what’s needed to make payments on a median-priced home.

 The third-quarter score topped the previous high of 124.6, recorded in the second quarter of 1998. 

The all time low was 65 in the third quarter of 2007 when home prices reached their peak.  The median price of existing houses in King County in July, August and September that year was $472,000.  The median price for third quarter this year was $350,000 according to Northwest Multiple Listing Service.

Current statistics:

  • A mortgage payment on a median-priced house is $400 per month less than the rent on a typical house.
  • A mortgage payment on a median-priced condo is 35 percent lower than the monthly rent for the average 2 bed, 2 bath apartments in KingCounty.

Snohomish County 171.5
Pierce County 185.4
Statewide 160.7

 


Tips for our listeners….

Your tip for today is the Independent Foreclosure Review.

Homeowners whose primary residence was part of a foreclosure action between January 1, 2009 and December 31, 2010 may be eligible for an Independent Foreclosure Review.

The Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (federal bank regulators) have required an Independent Foreclosure Review by an independent consultant to identify eligible customers who may have been financially injured due to errors, misrepresentations or other deficiencies in their foreclosure process. If the review finds that financial injury occurred, the customer may receive compensation or other remedy.

To qualify:

  • Your mortgage loan was serviced by one of the participating mortgage servicers.
  • Your mortgage loan was active in the foreclosure process between January 1, 2009 and   
     December 31, 2010.
  • The property was your primary residence.
    Some examples of situations that may have led to financial injury…
  • The mortgage balance amount at the time of the foreclosure action was more than you actually owed.
  • You were doing everything the modification agreement required, but the foreclosure sale still happened.
  • The foreclosure action occurred while you were protected by bankruptcy.
  • You requested assistance/modification, submitted complete documents on time, and were waiting for a decision when the foreclosure sale occurred.
  • Fees charged or mortgage payments were inaccurately calculated, processed, or applied.
  • The foreclosure action occurred on a mortgage that was obtained before active duty military service began and while on active duty, or within 9 months after the active duty ended and the service member did not waive his/her rights under the Service members Civil Relief Act.
    Homeowners that meet the initial eligibility criteria will be mailed notification letters with an enclosed Request for Review Form by December 31, 2011 that explains the Independent Foreclosure Review process and a Request for Review Form that identifies some examples of situations that may have led to financial injury. The form must be completed and postmarked not later than April 30, 2012.

After submitting your form you’ll be sent an acknowledgement letter within one week. Your request will be reviewed and if it meets the eligibility requirements, it will be reviewed by an independent consultant.

Your servicer will provide relevant documents along with any findings and recommendations related to your request for review to the independent consultant for review.  Your servicer may be asked to clarify or confirm facts and disclose reasons for events that occurred related to the foreclosure process.  You could be asked to provide additional information or documentation. Because the review process will be a thorough and complete examination of many details and documents, the review could take several months.  The Independent Foreclosure Review will determine whether financial injury has occurred as a result of errors and you will receive a letter with the findings of the review and information about possible compensation.

If you have questions, need a form, or need help completing the form you can call 1-888-952-9105.
The list of participating servicers includes:

America’s Servicing Co.
Aurora Loan Services
Bank ofAmerica
Beneficial
Chase
Citibank
CitiFinancial
CitiMortgage
Countrywide
EMC
EverBank/EverHome Mortgage Company
GMAC Mortgage
HFC
HSBC
IndyMac Mortgage Services
MetLife Bank
National CityMortgage
PNC Mortgage
Sovereign Bank
SunTrust Mortgage
U.S. Bank
Wachovia Mortgage
Washington Mutual
Wells Fargo Bank

If there are topics you would like to learn about, please email Drew and I at  Info@TinaAndDrew.com again that’s Info@TinaAndDrew.com and we will bring them on-air in a future show during our Tips For Listens segment.
Join Drew and I for one of our up coming Buyer Power seminars.
Knowledge is power!

The November 5th edition of The Tina & Drew Show kicked off the show with the update on Bank of America and the decision of dropping the proposed $5 monthly debit fees.  The American public voiced their outrage and Bank of America took action to on November 1st announced they will not charge the $5 monthly debit card fee.  A helpful site to track banks fees go to www.mybanktracker.com

This week in Tips for Listeners, Tina received a question regarding liquidating funds to in order to avoid mortgage insurance.  It’s not always necessary to make a 20% down payment to avoid mortgage insurance.  There are mortgage insurance products to avoid the monthly cost.  Ask your lender to review monthly, split, lender pay and borrower single premium.  Make sure you are educated on ALL your options.  If you are purchasing a new property you can off set the cost of the single premium buy out by asking the seller to pay for your closing cost. 

Tina & Drew welcomed John Barlow of Cobalt Mortgage in studio.  John was in studio to lend his expertise on the subject Reverse Mortgages.  A Reverse Mortgage may be a viable option for those home owners who are 62 years old or older.  Reverse Mortgages are insured by FHA and have 3 different programs currently.  The HECM has a fixed rate option, a line of credit and fixed monthly income product.  There are a few reasons why a reverse make sense.  The first being monthly cash flow.  Families limited to a fixed income may need access to cash up front or choose to draw on a line of credit from time to time.  The reverse mortgage product does not have monthly payments.  There is a lot of negative information about the reverse product.  The number one misconception is that the bank can come and take the home.  This is not the case.  Part of the mortgage agreement you will be responsible for the up keep of the property and making the property taxes payments.  Step one in the decision process is to create a plan.  Why are you considering it and what is your long term plan for the house?  Can you stay in the house long term and does it fit your needs?  The net benefit of each program is different for everyone.  To reach out to find more about the programs available in your area you can reach John Barlow at 425-974-6964.  Also, go to http://tinyurl.com/3mf73qa for HUDs HECM web site.

 

The October 29th edition of The Tina & Drew Show opened with the Beastie Boys song “No Sleep to Brooklyn”.  Congrats to Drew & his wife Jessica!  They are now parents of a lovely daughter, Brooklyn Ebner. 

In The News featured some mixed news.  New home sales were positive but national home prices dropped to $204,000.  There are always two views on this kind of news.  If you are a seller, this is discouraging news.  If you are a buyer and searching for your next home, this is very good news.  Home prices on a national average are at historic lows.  Locally, we have not had a price affordability index this low since 1994. 

The latest Case & Shiller report made the news as well.  For Seattle we are down 6% year over year, but flat for the last 3 months.  To read the update report directly go to http://tinyurl.com/caseandshiller

In Tips For Listeners, Tina highlighted the credit scoring factors and what not to do!  Bottom line, if you are in the home buying process do NOT pay off old collections without consulting with your mortgage professional.  Should you decide to pay off an old collection you risk the chance of your credit scores going down.  Credit scores have never been more important to the home buying process.  If you need advice on your credit reach out to Tina & Drew at 1-888-776-1090.

Tina & Drew had Dan Kellogg in Studio.  Dan is an Attorney that specializes in estate planning, wills and trust.  Dan gave the listeners the factors in planning and why it is so important.  During the discussion, Durable Power of Attorney came up.  No one is too old to benefit from this type of document.  The planning process should take place sooner than later.  You should really think about your estate and the value of your estate.  We have an estate tax her in Washington and you may be subject to federal taxes as well.  This type of proactive planning is critical to your family.  Dan has provided listeners of The Tina & Drew Show a checklist.  We encourage you to reach out to Dan directly at dankellogg@seanet.com or at his office at 425-227-8700. 

During the final segment Tina & Drew discussed the revisions of the HARP program.  The existing program allows home owners who have a mortgage that is owned by Freddie Mac or Fannie Mae to refinance their home up to 125% loan-to-value.  The loan also cannot have mortgage insurance currently.  The updated version of the HARP program allows for unlimited loan-to-value.  If you have had challenges in the past trying to refinance your current mortgage it may be time to revisit it now.  The changes will allow for stream line underwriting and lower closing cost.  Participation by the secondary market is vital for this program.  It will take some time for the changes to be implemented.  Tina & Drew will keep you posted to the changes and the upcoming opportunities in our current market place.

 

The October 15th edition of the Tina & Drew Show featured a story on identity theft.  Identity Theft is the most register complaint with the FTC.  The FTC registered over 11 million complaints.  There are so many opportunities to have your identity compromised.  Be aware how to keep your identity safe by going to http://www.ftc.gov/bcp/edu/microsites/idtheft/reference-desk/index.html

In Tips For Listeners, Tina gave a break down of the current credit scoring system and some myths.  Go to our blog to get all the details on these weeks’ tips.  Your credit is so important in our current financial environment. 

Our first guest was Ruth Plummer of Cobalt Mortgage.  Ruth heads up the Government Underwriting Team at Cobalt Mortgage.  Ruth gave many reasons why VA financing is so attractive for our Veterans.  The rates for VA home loans are just as attractive as conforming loan products and sometimes easier to qualify.  For starters VA loans will allow for a higher debt-to-income ratio.  It’s also a ZERO down option.  The seller can also pay up to 4% of your closing cost and pre-paid items.  This is a powerful tool for our Veterans to take advantage of this current housing market.  If you are a Veteran and want to find more information on how to qualify go to:  http://www.benefits.va.gov/homeloans/eligibility.asp

Our second guess was Dave Lee of Auction.com.  Dave is the Senior Vice President-Client Management for the past 7 years.  Dave has handled billions of dollars of inventory over the years across multiple verticals.  During our discussion we learned that Auction.com is the largest real estate auction house.  The interesting thing about Auction.com is you can preview the homes prior to the auction date.  There are 3 open houses prior to each auction.  These open houses are your only opportunity to inspect the home.  What makes this buying opportunity so attractive is that you may have the opportunity to purchase a home at a discount but also to obtain a loan and close within 30 days.  Typically all auctions are all cash transactions.  Auction.com sold 570 residential properties last year.  This may be the opportunity you have been looking for. 

To wrap up the Tina and Drew Show we chatted with our friend Heidi Ward at 360Modern.com.  Heidi gave us two properties available in Magnolia.  Both houses are available to view at www.360modern.com.  These houses are fantastic opportunities to view updated modern homes in the Seattle market place. 

As always, Tina & Drew thank you for tuning in and are excited to be on AM 1090 every Saturday at 3pm.

 

The following video is an excellent resource for those who are looking for information on The Foreclosure Fairness Act.  Take 5 minutes and watch this video published by the Washington State Chapter of Realtors.Foreclosure Fairness Act