FHA/USDA/VA and Conventional Mortgage Loan News

Archive for the ‘Eugene Oregon’ Category

BIG PRINCIPAL LIMIT REDUCTION NEEDED

WITHOUT $250 MILLION HECM SUBSIDY

David H. Stevens, Assistant Secretary of Housing for the Federal Housing Administration (FHA) recently testified to the House Financial Services Subcommittee on Housing and Community Opportunity. He voiced his strong support of the administration’s reverse mortgage program. What happens there can have some major consequences to those Seniors contemplating an Oregon Reverse Mortgage in the future.

The need for this type of program is greater now than it’s ever been, due to increasing medical costs, declining employment/incomes, and less ‘savings’ in various types of pension funds/retirements accounts.

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Offered to Employed Clients

On Home Purchase Loans

We (Alpine Mortgage Planning) are offering involuntary unemployment coverage that will make the house payment of up to $1,500 per month in the case of involuntary unemployment directly to the mortgage holder for our clients in Eugene/Springfield and Lane County Oregon.

Job Loss Assurance Benefits: Benefits of up to $1,500 per month Provides up to six months of payments Does not affect unemployment income eligibility 12 month job loss protection Minimizes financial stress

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Those that follow my blog know that I have written several times about the trials and tribulations of having a Taylor Bean & Whitaker loan at the time that HUD came in and closed them down. The last post had to do with Form 1098s and how to get them on your mortgage but I have recently found out that the information given by TBW on their website and from Bank of America are wrong. WRONG! WRONG! WRONG!

I refinance my VA loan with a streamline refinance last year and when I did so, I paid a funding fee to VA to do so. That funding fee is considered the same as mortgage insurance and should be reported on the Form 1098. In my case, this didn’t happen. I did calculate that the Form 1098 that I received from Bank of America did include the interest I paid in my one payment to TBW, but didn’t include the interest I paid as prepaid interest on my loan.

The following is from Publication 936 from the IRS:

You can treat amounts you paid during 2009 for qualified mortgage insurance as home mortgage interest. …….Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service and private mortgage insurance….

Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee…….Rural Housing Service….as a guarantee fee….can be either be included in the amount of the loan or paid in full at closing….reported in box 4 of the Form 1098.

So, if you got a new FHA, VA or USDA loan during 2009 and Taylor Bean and Whitaker was the lender, you may not have all of your deductible interest reported on your Form 1098 from Bank of America or other lender that took over servicing of your loan when HUD closed TBW. The amount of this funding or guarantee or up front mortgage insurance can be found on your closing statement (HUD1) from the title company. I hope this information helps with your tax return filing.

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If you have questions about your current loan or are looking to refinance, contact me (Fred Chamberlin, the Eugene Loan Guy). If you have a VA loan, let’s discuss the possibility of a streamline refinance, rates are doing well. I would be happy to help you mortgage needs. If you have questions about mortgage loans please contact me at 541-342-7576/541-221-3455 cell or by a-mail. I am a Senior Mortgage Advisor at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. I am here to help you with your mortgage needs.

Is all of your interest reported on your 1098? Maybe not if you had a Taylor Bean & Whitaker mortgage is a post from: Eugene Loan Guy

Many of the homes for sale today – as many as half in some markets – fall under the category of “distressed properties.”

These are homes that have either gone through foreclosure or are being marketed as “short sales.” In a short sale, the homeowner can’t afford to maintain the mortgage, but the lender – rather than foreclosing – agrees to the sale of the property for less than the balance of the loan. These types of sales have different dynamics than traditional sales – with more paperwork, often a longer transaction process and, in some cases, more frustration. For these reasons, many buyers shy away from foreclosures or short sales. However, if you understand the potential pitfalls of purchasing a distressed property – and work with an agent who has a thorough knowledge of this market – you can get a great home at a great price. Many agents have been specially trained in working with foreclosures or short sales through the Certified Distressed Property Expert class or a similar course. It is important to work with a CDPE that can guide you through the process and help you locate and purchase just the right home for you. This is an outstanding time to buy a home – distressed property or not. With historically low interest rates, and a glut of homes on the market in most areas, there are bargains to be found. And the U.S. tax credit of up to $8,000 for first-time buyers – good for a home purchased before Dec. 1, 2009 – makes purchasing a home even more attractive. Is a distressed property for you? Here are pros and cons of buying one:

These types of sales take much of the emotion out of the process. You won’t be insulting anybody, for instance, if you make an offer that’s lower than the asking price. (That’s not to say that the low offer will necessarily be accepted, of course.)

Lenders are extremely interested in getting these homes sold and off the liability side of their balance sheets. Many foreclosed properties can be purchased for only a percentage of what they would have commanded five years ago. (This situation is beginning to change, though; bidding wars are breaking out on some foreclosed properties these days, especially those that are moderately priced. It is important to work with an agent that knows what is going on in this area and will be able to help you arrive at a reasonable strategy for making an offer.)

If you’re looking at a short sale, you’re not likely to get quite as good a deal as on a foreclosure. But there are definite advantages to purchasing one of these homes. For one thing, since the homeowners want to get the home sold quickly, they are likely to keep it well-maintained and in good move-in condition.

 

 

 

I have offered restaurant reviews for my readers in the past, but this time, I have a guest reviewer, my son Steven that reported on a recent performance of the Eugene Symphony at the Hult Center as part of his school work. I thought the report was excellent and gave me a real feeling of being in the audience. I convinced him to let me share it on my blog. So here is Steve Chamberlin’s report on Beethoven’s Fourth Concerto for Piano. Enjoy!

The Arrival

I attended the performance of Beethoven’s Fourth Concerto for Piano at the Hult Center in Eugene. I chose this performance for my first classical concert experience because I really had no idea what to expect. By choosing a professional performance, I felt my odds of actually liking the performance would go up significantly. I was not disappointed.

Originally I had intended to take my wife so we could have a ‘date night’, but due to a work conflict, I ended up taking my seven year old daughter. My daughter enjoys the ‘Celtic Women’ performances so I was hoping she might enjoy a live concert. As it turned out, there was only one other child at the performance. I think having the two children in the audience brought the average age of attendees down to about 65 years old.

We arrived at the Hult Center a little early in order to have enough time to find our seats and to have a look around the center before the concert. I purchased box seats so I would reduce the chance of disturbing anyone while I took notes during the concert. What I did not take into consideration was how high these seats are above the audience. Once I found our seats, it took a few minutes to get over my fear of heights. My daughter, on the other hand, loved the seats and immediately went to the rail to look over at the rest of the audience. We settled in and waited for the performance to start.

The Performance

As we sat waiting for the concert to start, the orchestra was busy tuning and reviewing the music they would be playing that night. What a cacophony. The sound was everywhere. I tried to focus on a couple instruments but it was impossible. It was like a runner preparing for a marathon, all the players warming up their muscles and getting ready to play for the next couple hours.

I looked away for just a couple moments and everyone in the orchestra except the string section had disappeared. The lights dimmed and I thought, ‘Finally we are going to start.’. I was wrong. What came next was a commercial from the President of the Hult Center acknowledging the commercial sponsors of the nights performance. Did I really just pay $88 dollars for a commercial? I was not impressed. After the commercial, she introduced the Conductor who came out and presented yet another commercial for upcoming events. This is not going well and I started wondering what I just wasted my money on. Finally the commercials are over and both the President and Conductor leave the stage.

The next person to enter the stage was a violinist who was greeted with cheers and applause. She acknowledged the crowd and took her seat. Following her was the Conductor, again greeted by applause and cheers. He stopped to acknowledge three people, first and second chair violin and what I assume was first chair viola. This just seemed odd to me for some reason, why just those three people? He took his place on the podium and raised his hands. What happened next was a complete surprise.

The bows came up and took their first draw across the strings. They had me at hello! The sound produced was, to say the least, awe inspiring. Being able to compare the dissonance of the warm-up with the powerful consonance of the opening note was just awesome. I instantly forgot the height of the seats, the $88 dollars I paid for the commercials and just enjoyed the feeling of awe that rose through my body as the strings began to play ‘Fantasia on a Theme’.

This was a great opening piece. The sound was playful and vibrant, consisting of only the string section. All of the instruments seemed to be talking to each other, either as group or individually. Both my daughter and I enjoyed the energetic chatter between the first chair violin and viola. The piece wrapped up with a resounding crescendo that was met with much applause and well deserved hoots and hollers from the audience. Being able to see the complexity of playing the music combined with hearing the sounds produced really made this performance well worth the price of admission.

The second performance started with another surprise as the Conductor introduced the composer of ‘Second Concerto for Orchestra’, Steven Stucky. The introduction gave way to a short Q&A between the Conductor and Mr. Stucky about the music we were about to hear. Apparently the title of the piece was lost on me at first. I did not realize that concertos were typically written for specific instruments and not for the whole orchestra. Mr. Stucky explained that he wrote the piece to include all of his friends in the LA Philharmonic Orchestra with the theme being friendship, fun and love.

The Conductor’s next question filled my head with the sound of a record player needle being scratched across the record violently. He asked Mr. Stucky to explain how the audience should interpret the music we were about to hear. Why would he do that? I wanted to experience the music from an ‘Unlistening’ perspective. I did not want someone telling me how to hear the music. Thankfully Mr. Stucky quipped, “Music is like a joke. If you don’t get it, I can’t explain it to you.”. Great answer! Mr. Stucky did point out that in the second movement he wanted to play a game with his friends throughout the orchestra but left it up to the audience to discover and interpret the game.

The piece started with more or less of an introduction of the orchestra. The ‘Overture’ began by introducing each section of the orchestra, moving from left to right through the strings,

into the brass and woodwinds, percussion and finally the piano and harp. Once everyone was playing together, the movement built to an abrupt end signaling the start of the second movement.

Surprisingly, about one third of the audience responded with applause! Wait a minute. The audience is supposed to wait to the end of the entire concerto before applauding, right? That explains why the other two thirds of the audience responded with grumbles and gasps. This was noticeably awkward for the Conductor and orchestra. Yes, I laughed to myself and thought ‘Whew. I’m not the only newbie here.’.

The second movement started and I began searching for ‘The Game’. To me it was not as simple as someone might think. It took listening to the entire piece to form an idea of what Mr. Stucky was trying to accomplish. I found it odd that throughout the piece we were treated to some non-typical solo’s. I never expected to hear a bassoon or a french horn or even a xylophone solo in a classical music piece, but they were there. In between the solo’s, there was a lot of ‘dream sequence’ flute playing which seemed to be building in dynamics throughout the piece. Eventually, everyone played together in a what I can only describe as a crescendo to beat all crescendos, or so I thought.

To me the game was more than just bouncing a ball around the orchestra. The game incorporated not only instrumental sound but spacial arrangement. The sounds produced not only a unique arrangement but a spacial visualization to the music. Those odd solo’s are there for a reason. They allow your ear to see the music as it moves from one place to another, bridging the hard boundaries between the sections. The game was like being only able to only hear a tennis match as the ball moved from side to side, front to back and sometimes all places at once.

As promised during the Q&A, the finale was a “fasten your seat belts” kind of performance. The sound was everywhere, very fast and very loud. The ending crescendo of the second movement paled in comparison to that of the third. A very clear and distinct ending to a memorable concerto which received appropriately timed applause, standing ovations, hoots and hollers and I even heard some yelling ‘Bravo!’. Mr. Stucky returned to the stage to receive the praise and even some flowers while acknowledging the performance of the orchestra and Conductor.

Time for the intermission. My daughter and I ventured to the lobby to stretch our legs and get something to drink. It was amazing to me how many people stopped her to ask if she liked the performance. Being one of the only children in the audience, made her a bit of a novelty and people could not get over how well behaved and attentive she was to the music. Being a girl, she enjoyed the attention along with some apple juice and a cookie during the break.

We returned to our seats to find a completely different looking stage. The stage had been set for Beethoven’s Piano Concerto No. 4. Only the strings remained with the exception of the kettle drums and of course the piano which took center stage. First violin joined the rest of the strings and played a quick tuning note for the rest of the strings to follow before taking her chair. The Conductor was the next to come out followed closely by the featured pianist Angela Hewitt. Both were met again with much applause and excitement.

As the Conductor raised his hands, there was an almost deafening silence in the hall followed by the strings section playing as one voice. The first movement progressed and it took some time before the piano joined in. I was beginning to wonder if she would ever start playing but then she did.

Generally I am not a big fan of piano music but in this case it was very pleasant. I found myself distracted by what I think are over exaggerations of movement while she played the piano but she actually seemed to be lost in the music. Throughout the three movements she would finish a large section of music and then look at the orchestra as if to say, “Did you hear that?! I rocked it! Now keep up!”.

Even though I am not a fan of the piano, I can appreciate the amount of talent Ms. Hewitt displayed. Moving through the complex notes and steps and she worked her way from one end of the piano to the other was simply amazing and she truly seemed to be enjoying the music.

As expected, the second movement claimed my daughter as she fell asleep on my lap. I almost expected that to happen as the concerto followed the fast-slow-fast format. She woke up as the vivace pace of the third movement kicked in and rounded out the concerto.

Again, the audience was on its feet as the last note played and Ms. Hewitt stood to receive the applause and acknowledge the Conductor and orchestra for an excellent performance. But when do you stop applauding? This was the question I began to ask myself after Ms. Hewitt left and returned to the stage three times. Apparently the answer to the question is; when the performer starts the encore. Ms. Hewitt treated the crowd to an encore performance. I have no idea what the name of the piece was, but as expected she rocked it. After which she returned to the stage two more times for applause and flowers. I had no idea the symphony could be filled with so much energy.

The Breakdown

Overall it was a fun night. I was very surprised at how much I actually enjoyed listening to the music and experiencing the live performance. Being able to see the amount of talent it takes to play the instruments and the percussionist running their butts off back and forth between various items to bang on, helps me to appreciate what it takes to not only perform something like this, but to even compose it in the first place. Taking all of the individual pieces into account and coming up with a single coherent sound is amazing.

So where does this experience leave me? I will definitely attend the symphony again. We are planning to attend next months performance of Beethoven’s 5^th to include Handel’s “Royal Fireworks” and Mozart’s Mass “Coronation”. Although I enjoyed the symphony with my daughter, I think this time I’ll take my wife for what should prove to be a very memorable date night.

This actually could be a very interesting question when you consider the different variety of ARM loans out there. If you have a sub-prime or alternative documentation loan, it may definitely be time to refinance that loan because of the terms that you have. However, if you have a conventional (conforming) ARM, it may not be the time to refinance. But who do you ask this question of in the Eugene/Springfield Oregon area? Hopefully someone you trust to give you a straight answer and knows what he is talking about.

Adjustable rate mortgages (ARMs) all have the same basic terms. They are fixed for a specific time, 1 month for the “Option ARMs” and up to 10 years on the intermediate ARMs. At the end of that period, the interest rate changes based on some pre-set parameters. The rate can change based on the Index plus the Margin. For instance if looking at a change today, if your index is the 1 Year LIBOR and your margin is 2.25% (fairly common on conforming ARMs), then today your rate could not go higher than 0.854 + 2.25 or 3.104. Now if your current rate is 5.5% and you have a 2-2-6 loan, the rate would drop to 3.5% which is the maximum movement up or down with this type of loan.

The interesting thing here is that the rate would drop. Are you in that situation? However, some loans have a floor which means they will not drop below a certain interest rate. Others have a very high margin and even with a low index will still be higher than market rate. Please note, without looking at the original loan documentation, it is impossible to tell you what your loan will do.

But, if you are looking for someone in the Eugene/Springfield Oregon area that can look at your documentation and then recommend a reasonable way to proceed, give me (Fred Chamberlin) a call today and let’s discuss your options. You can reach me at 541-342-7576/541-221-3455 cell or by e-mail. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. It is important that you get good information before jumping into a refinance. Some ARMs are not as bad as they have been portrayed in the media. Some are! Give me a call today and let’s find out about yours.

Is it the right time to refinance your ARM? is a post from: Eugene Loan Guy

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Interestingly, the Good Faith Estimate, a backbone of the mortgage industry, will be changing on January 1, 2010 with some very major changes, designed to help consumers compare loans from one lender to another. Very major changes but unfortunately, we still don’t know what all of them are or how they are being interpreted because HUD hasn’t released the final information yet. This is something that will have a direct bearing on your Real Estate transactions in the Eugene/Springfield area and is supposed to make shopping for a mortgage easier, but will it?

The new Good Faith Estimate (GFE) is nearly written in stone. There are many parts of it that cannot be changed once given to a consumer unless there are “Changed Circumstance.” These include, Act of God, war, disaster or other emergency, inaccurate information provided by the borrower, changed information such as loan amount or property value and interest rate change due to rate lock.

What this means is that you won’t be able to get GFEs from several different lenders to compare when first shopping for a loan, because they won’t give them out without a full application and property. So, where is the shopping here. Also, you have 10 days to “shop” after getting a GFE and if you are doing that, the lender will not be proceeding with the loan during that period since they won’t have a commitment from the borrower, thereby delaying the process. Where does that help anyone?

Also, if a GFE does change during the process, it triggers another 10 day shopping period. Also, when I give out a GFE, I have to tell you how long the interest rate is good for. Some days, that may be only 10 minutes as rates are fluid and volatile. So, overall, this could be an interesting time with the changes that have taken place and the ones that will take place. Not everyone feels the same way about the new form. Here is a video from Title Guarantee in Hawaii that has some very valid points:

Whatever is happening in the market, you can be certain that I will be on top of it. I am constantly reading, researching and checking out the new things I need to know. If you have any questions about the mortgage changes or to start your application process, give me a call at 541-342-7576/541-221-3455 cell or e-mail me. You can also come to the office, Alpine Mortgage Planning, 1200 Executive Pkwy., Ste 100, Eugene OR. The coffee is always on. In today’s changing environment, you need a professional to help you navigate those changes. Call me.

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OK, I am not a Realtor®, and I don’t play one on TV either. I am a mortgage lender specializing in FHA, VA and USDA loans. However, I do work with several very exceptional Realtors® and do know some of the things going on in the Eugene and Springfield area. I also subscribe to several blogs and other services that keep me up on what is happening in our local market and just received one from Trulia which I found most interesting. Home values can vary widely for a number of reasons, including condition, location and urgency.

That is why I found the report I was reading so interesting. One of the properties was a foreclosure so that gives it a lot of urgency and probably only fair condition and the location was OK, but not one of the premiere spots in Eugene and this property was listed at $228 per square foot.  In the same grouping, another home in a similar neighborhood that was also a foreclosure but it was in at $88 per square foot. Interesting difference. Could the condition be that much difference? Or does one bank have less urgency than another?

Other homes that aren’t foreclosures are selling between $99 to $296 a square foot with most of them in the $170 to $180 range in Eugene and a number in the $125 to $135 range in Springfield. Of course, there is a manufactured home for only $33 a square foot or a “fixer-upper” for $72 a square foot. All of this means that there are very affordable homes for sale in Eugene and Springfield. When you couple good prices with exceptional loan rates (from an exceptional loan officer, me) and home buyer tax credits, today really is a good time to buy a home.

If you are interested in finding out if you qualify for one of these outstanding deals, give me a call today at 541-342-7576/541-221-3455 cell or e-mail me. I can also put you in touch with an excellent Realtor® to make the search more enjoyable. Helping you buy a home in the Eugene and Springfield and Lane County area is what I do. At Alpine Mortgage Planning we strive to make the purchase process as painless as possible in the current lending environment. Mortgage loans and real estate lending is our business.

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Often times when you see OU vs OSU when talking football, people think of Ohio or Oklahoma but this year we are talking OREGON in what could be the greatest Civil War game ever fought in Oregon. This year it is for all the marbles, the winner gets an automatic invite to the Rose Bowl. Football fever and furor has hit, especially here in Eugene.

If OSU wins, it will be OSU vs. OSU (Ohio State). If Oregon wins, it will be another OSU vs. OU.  Game day is upon us.

VS

Tomorrow we expect to see Black and Orange confronting Green and Yellow all over town. With the two teams only an hour apart, it could be a very exciting day, even though it is being played on a Thursday at 6 pm. Tickets are, of course, sold out. Scalpers may make a bunch on this one. Check out this blog for a pretty good history lesson.

Who am I for? Well, I went to Oregon State so I am definitely a Beaver fan, but I live and work in Eugene/Springfield so I won’t be devastated if the Ducks win. Either way, an Oregon team will be in the Rose Bowl and will make us proud. Checking the blogs and the pundits, it ranges from Oregon winning by a few, to Oregon State winning by a few. Whatever happens, guaranteed it will be a game to watch. This rivalry has been going on for 113 games. What will be the result of this one?

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I don’t normally quote mortgage rates because it takes a lot of disclosure to do so and there are so many people out there that are quoting rates that they won’t deliver, but with the recent drop in the bond market, I am going to make an exception today. Today’s 30 year fixed rate for a conventional loan is at 4.500%/4.730% APR.

Now, for the fine print, the rate above assumes the following: Owner occupied conventional loan with a $250,000 purchase price (non manufactured home, non rural acreage, single family home) with 20% down. Loan amount is $200,000 Credit score of 740 or higher. 25 day lock period. Credit score, loan size, down payment, and purpose of loan will affect APR. This is not a guarantee of rate availability for a specific property and can change without notice. My lending is restricted to Oregon, Washington and California.

The Federal Reserve is still buying mortgage backed securities and that is helping the bond market. The recovery is going much slower than expected and that is helping the bond market. Now is probably the best of all worlds with rates down and housing prices down and sellers willing to negotiate, but for who knows how long? Add to that the First Time Home Buyer Tax Credit and the “Move-up” Homebuyer Tax Credit and we have an unbelievable time to buy.

If you would like more information about what you can qualify for and actually be comfortable paying on a mortgage, give me a call today, 541-342-7576/541-221-3455 cell or e-mail me. I am here to help you and to answer your questions.

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