Home Mortgages and Refinancing

In this video Andrew L. Parker with RE/MAX Metro Realty and Craig Walker with Cascade Mortgage discuss home mortgage interest rates, refinancing a home, Fannie Mae, Freddie Mac, and refinancing a with second mortgage.

Home mortgage interest rates are currently hovering around 4% to 4.25% for most borrowers. Current and future rates are based on the value of mortgage backed securities. When economic data is weaker than expected bond prices typically move up and interest rates go down. When economic data is stronger than expected bond prices typically move down and interest rates go up. Rates will very week by week and day by day.

Refinancing a Fannie Mae or Freddie Mac loan tends to be straight forward, even if the loan to value (LTV) is at or is slightly above 100%. New mortgages with a LTV of over 80% will not need mortgage insurance with these programs.

On March 12th and 19th, 2012, the loan to value limit of Fannie Mae and Freddie Mac loans will be expanded to unlimited. Which means a home owner with a loan to value of over 100% will be able to refinance.

If a home has a second mortgage when a borrower wants to refinance the first, the second would need to become subordinate to the new first. Meaning it would need to remain in second position. If the lender holding the second will subordinate, it will need to be paid off.

Currently there are no programs to help home owners who want to refinance a home loan that is not backed by Fannie Mae or Freddie Mac. President Obama proposed giving relief to these homeowners in his State of the Union Address, but there is no help until it is put into law. To refinance there would need to be a LTV of 80% based on an appraisal of the home. There are programs available to refinance with a LTV of up to 95% but mortgage insurance is required.

State of the Market in Queen Anne and Magnolia - January 2012

The real estate market in Seattle, Washington neighborhoods of Queen Anne and Magnolia appears to be shifting from a Buyer's Market to a Balanced Market. The supply of homes is low and the demand is rising. When comparing January of 2007 to January of 2012 the median home price is up 1%. With home prices lower and mortgage interest rates around 4%, in King County the monthly mortgage payment is less expensive than the monthly rent for the average home.

State of the Market in Northwest Seattle - January 2012

The real estate market in Northwest Seattle appears to be shifting from a Buyer's Market to a Seller's Market. The supply of homes is low and the demand is high. However, when comparing January of 2007 to January of 2012 the median home price is down 19%. With home prices lower and mortgage interest rates around 4%, in King County the monthly mortgage payment is less expensive than the monthly rent for the average home

It's cheaper to own versus rent in King County

The decision to rent a home versus own a home is one that receives a lot of attention. The correct answer depends on a person’s situation.

Renting is a better option for those who need flexibility. If you expect to move within a couple years or you are uncertain of your employment, renting is likely the better option.

For those who expect to live in the same area for 5 or more years and have job security, owning a home is something to seriously consider because over the long term it is financially better.

Currently in Seattle, Washington, the cost of renting is increasing because vacancy rates are dropping, as the cost of owning a home is decreasing. On a monthly basis it is cheaper to own than rent.

In King County, home values are down 8% and condominium values are down 22% in the last 12 months. In addition mortgage interest rates are at historic lows, averaging just above 4%. The median home in King County sold for $349,950 and the median condominium sold for $195,000 last fall.

With a 10% down payment, the monthly mortgage for the median priced single-family home is $1,522 per month, while the cost of renting a typical house is $1,930 per month. The median condo would have a mortgage payment of $849 per month, while the cost of renting a typical apartment is $1300 per month.

Now may be a good time to contact a Realtor to explore options.

King County Residentual Home Values

The median home value has remained relatively flat from May to July at $350,000, while the average was $444,827. When comparing July of 2010 to 2011, the median is down 12%.

The number of homes sold in July was 1678, while the number of homes that are pending was 2,297.

King County Home Sales

Since the beginning of 2009 more homes sold in June of 2011 than any other month in King County! The number rose to 1,884, while the number of homes that are pending fell to 2,389.

The median home value plateaued from May to June at $345,000. The average jumped up to $449,715. When comparing June of 2010 to 2011, the median is down 10.0%.

Statistics provided by the NWMLS. Information deemed reliable but cannot be guaranteed.

King County Home Values

King County's median home value slid down by approximately $5,000 in May to $345,000. The average moved down as well by approximately $17,000 to $420,145. When comparing may of 2010 to 2011 the median is down 9.0% and the average is down 8.4%.

The number of homes that sold rose to 1,654, and the number of homes that went pending rose to 2,485 in May. These numbers should continue to rise in June.

King County Home Values

King County home values continue to rise from the low in February of this year. In April the median home value was $349,950 and the average was $437,178, which is an increase of 4.7% and 5.6% from February. However, it is a decrease of 6.7% and 1.5% from April of 2010.

The number of homes that sold plateaued at 1,533, and the number of homes that went pending decreased slightly to 2,318 in April.

Typically May and June are the months that the largest amounts of homes sell. So it is likely that the volume of home sales will continue to rise.

February of 2011 was a new low for home values. Experts say one factor that may have caused this is consumer confidence, which was pushed down by rising oil prices, unrest in the Middle East, the major earth quake in Japan, and the growing inventory of Bank Owned and Short Sale homes.

If you’d like to know more about our local home values and what they means to you, contact me and let’s talk 206-930-8238.

King County Home Values

The median and average home values for King County Washington rose slightly in March with a median of $345,000 and an average of $420,118. February may be the low point for 2011. The number of pending sales is skyrocketing and closed home sales are moving up with 2,435 homes pending and 1,525 homes closed. Buyers appear to moving into the market to take advantage of low prices and spring weather.

King County Home Values

Home prices in King County Washington continued to drop in February. The median and average home price was $334,000 and $413,869. This is likely the low point for 2011.

1,003 homes sold in King County which was slightly below January, while 1,962 homes were pending in February. The number of pending homes is climbing quickly, which is a sign that the market is heating up for the spring.