The Renton Wa Realtor Blog !: January 2009

Actually, the STAR started in December, but it has taken me this long to figure out how to say thanks.   So one day I was talking on the phone with my friend Elizabeth Nieves, about the cancer affecting our families.  Although, it is not a secret in my Keller Williams office in Renton, or community in Ashburn or at Renton Christian Center, I don’t throw it out into public too much.  My clients all know up front that we are in a battle and have been tremendous.  Well here goes to my AR Friends and Family....

My wife, Jessie-Joy, and I have been fighting cancer for over 6 years.   What started out with my obligatory husbandly checks resulted in me finding a large lump in her breast.  Off to the doctor we go and we get the news, breast cancer.  Holy Crap, this sucks, what do we do now.  So first we pray, then we cry, then we get educated, then Jessie decides it is time to kick cancer’s rear-end.  This was over 6 years ago.  Chemo, lumpectomy and radiation and a year and a half later we thought we were clear. Our family was great, church was amazing and the agents in my Keller Williams office were outstanding.  One issue was that the cancer had infiltrated her lymph nodes, so you know there is a chance it will float around and come up somewhere else.   

Year and a half later, Jessie is at a work retreat across the State and has major seizures. As my friend Ray said, “She was fine giving a presentation, then started talking in tongues, not making sense and then fell down and had the seizures.”  I am in the process of showing houses to one of the Seahawks and his fiancé and I get a call from one of Jessie’s coworkers.  So the clients are handed off (dumped actually) and I head for eastern Washington at a rather high rate of speed.  By the time I get there, the MRI has found TEN brain tumors.   Now we know where the remaining breast cancer has landed.  This is where it gets a little tougher……  

We get back to our great oncologists at Virginia Mason Hospital in Seattle and come up with a plan. Thank God we are at the center of the world’s best cancer research here in Seattle.  I make the doctor tell us the stats on brain cancer and after much prodding (actually I threatened him) he told us that the averages were 6 months to live and that it was considered terminal.   Jessie’s reaction was “heck with that, I’m not dying, I’ve got kids and grandkids to see and we haven’t been married long enough”.  Our Doctor also said that research was going so fast that the life expectancy was getting longer and longer and he had people that had made it 5 years.  Great to hear that, we're shooting for that plus. 

Well we called our kids and our folks and our friends at church and work (of course a bunch showed up at the hospital and took care of yours truly who was quite the basket case.) Great prayers, great support and God’s touch on my wife and we persevere.   We have had two sessions of whole brain radiation, several treatments of stereotactic laser radiation (they can pinpoint and shoot lasers into your brain and do surgery from the outside in, truly amazing),  multiple treatments of liquid infused chemo and now pill form chemotherapy.  Plus we had major surgery and a golf ball sized tumor was removed from her left frontal lobe.

At this point in brain tumors it has been over 3 years and we are down to 3 tumors total and still fighting.  Two of the tumors are inconsequential (amazing that we would come to think that way), but one tumor is in the very middle of her brain.  No way to shoot lasers or do surgery, mostly this tumor is untouchable.  We are counting on research to find a new type of chemo that will infiltrate that tumor and kill it off.  As the doctor said the other day, “we are racing the research and we need all the help we can get.”  God provides great science, great medicine and great doctors so we are hopeful.

Jessie has great days, good days and some ok days.  She never complains, but does get frustrated, because some of the damage is in her verbal skills.  At times, she can see the word she wants to say, but sometimes it doesn’t come out.  The other day she was trying to tell me something was on the kitchen table and couldn’t get that, finally described it as “where we eat down there by where the chairs are at”.  Her biggest fear is that she will lose more of her verbal skills and will not be able to share her faith and her testimony about God sending huge warrior angels to protect her right before surgery.  Yes, she saw them, can describe them and there is no doubt that as she prayed God sent them. 

So back to the AR STAR, one morning at about 7:00 am last December, I am checking facebook and make the comment that we are off to the doctor for chemo.  Next thing I know there is a wonderful post on Active Rain by our friend and blogger extraordinaire asking for prayers for an active rain brother and his wife who are fighting cancer.  You are NOT alone! (PLEASE take a moment to sign this ‘CARD’ for an ActiveRain brother)     Well I am that Brother and Jessie is the wife.  

Thank you all who wrote wonderful bits of encouragement for us and lifted us in prayer.  Please read her post again. It is a great reminder that we are always touched by our friends, all their prayers and that there is tremendous strength in God. And then I ask you to say a prayer for whoever God puts on your heart.  Yes the post and the song and your comments made us cry, more than once, I might add.  (Kind of teary eyed again now)  And Thank You for all That, tears of prayer and celebration and faith and blessing are wonderful. 

It was Jessie that got me to the right church at a tough time in my life.  It was through her leading me to the Lord that I received the greatest gift of forgiveness and Praise God I got saved.  She is my best blessing. When I first started my real estate business, I put my favorite scripture on my website:   Proverbs 3:5-6   Trust in the Lord with all your heart and lean not upon your own understanding.  In every way acknowledge him and he will direct your path.  

I didn't know how fortunate I was to have gone into business with a company whose values are "God, Family, then Business."  I have a sign in my office that I found about a week after we first found the cancer six years ago that says, “Do not worry about tomorrow, God is already there.” 

We continue to trust in the Lord’s blessing and healing.  Neither Jessie nor I can adequately express how much we appreciate our family, friends and clients who pray for us and support us so well. We are truly loved.  We firmly believe that together we all are going to kick cancer’s butt.  Our strength lies in the fact that if she doesn’t live as long as she or I would like, we know exactly where she is headed. Remember lift others in prayer, have a servant’s heart and Trust. God hears and answers every prayer.  And thanks Elizabeth for the love and tears.

I am thrilled that in our country with "the most advanced security technology in the world", such as spy satellites or drone planes that can read our license plates and record the youtube video that is playing on your laptop while you are listening to your MP3 Player in the background, ability to track and monitor multiple streams on everyone's cell phone, that WE CAN figure out a safe way for the President to text his wife to tell her and the girls that he is going to be home late from work.

Seriously, I understand and highly believe in executive security from my many years in the State Patrol. I worked security for several Governors and worked on a few presidential visits (the security you don't see is even more amazing than the security you do see) and I truly believe that protecting the most influential person in the world is a huge job. That said, I am glad that our President can phone home, cause it keeps the wife happy and as we say at Keller Williams the values are "God, Family, then Business." Wonder if he'll follow me on twitter??? Wonder if he will blog about his day on the ride home? Well probably not.

Here is the article from RISMEDIA:

Info from your Renton Realtor Gary McNinch using technology (a Palm Treo ... not a Blackberry) to serve you better. Call, text, twit or email me when you need any help or info with your housing needs.

New information for Renton home and condo sellers and buyers.

Several of the satisfied customers of the Gary McNinch Team have been able to sell a home or even an Ashburn townhome and buy a bigger home. Well times are changing (as always) in this business. When a homeowner sells his home and decides to buy a new one, there are 3 basic options for the residence -- sell it, keep it, or rent it.

Unfortunately, no matter which path they choose, move-up homebuyers in need of a new conforming mortgage will find qualifying for a home loan to be more difficult this season than in the past.

Mortgage guidelines are dramatically tighter for people "carrying two mortgages".

Among the changes this spring's buyers face:

Selling the primary residence
If you plan to close on your new home prior to the closing of your existing home -- even if it's only by a day -- both payments must be listed as monthly debts on your mortgage application. This will disqualify the majority of homebuyers.

Converting your residence to a second home
If your current home has less than 30 percent equity in it, your mortgage application for the new home will not be approved unless you can show 6 months worth of mortgage payments + taxes + insurance in reserves for the current home and new home combined.

Converting your residence to an investment property
If your current home has less than 30 percent equity in it, any rental income derived from a tenant is disallowed on your mortgage application for the new home. You must still count the mortgage payment + taxes + insurance as a monthly debt.

In other words, being a move-up buyer isn't as simple as it used to be. In fact when my kids and grandkids were moving to Orting last fall, this became an issue until their great lender, Evergreen Home Loans came up with a solution. New lending rules make buying a new home an exercise in timing and financial planning. And the rules are expected to get tougher, too.

Therefore, if you expect to be a move-up buyer in the next 12 months, consider moving up your timeframe or -- at least -- planning ahead for it.   Understanding the new mortgage landscape and how they can influence your upcoming purchase may be the difference between getting approved for a home loan, and getting turned down. And the very first part of the process of buying a Fairwood or Renton Highlands home is getting the financing solidly in place.  Gary McNinch Renton Realtor we manage the process and make sure you are ahead of the changes.

A great report from Jeff Belonger, veteran FHA VA lender.  Jeff has years of experience and has testified (if it did any good) in front of Congress.   Here are tips to use when buying a Renton townhome or buying a Kennydale home or a piece of land east of Fairwood.   As always and as Jeff points out check with your tax person, BUT, to take advantage of this you must close on your new home prior to July 1, 2009.  Call the Gary McNinch Team Renton Realtor and we will help you find and buy the right home.

An oft-touted benefit of homeownership is its tax benefits. However, like most IRS-related items, understanding how the benefits work is not always clear.

In general, homeowners are entitled to two home-related tax deductions -- one for annual mortgage interest paid, and one for real estate tax bills paid.

Not everyone is eligible, though. Some of the exclusionary traits include total amount borrowed, and whether or not the home is a primary or secondary residence.

The official IRS publication is filled with notes and explanations but, in general, you can calculate your approximate mortgage interest tax deduction using the following math:

1. Sum your annual mortgage interest and real estate taxes paid
2. Find your tax rate on the IRS tax bracket schedule
3. Multiple your tax rate by the sum from Step 1

This is grossly simplified, but fairly accurate.

As an example, a homeowner paying a combined $20,000 in 2008 mortgage interest and real estate taxes, and who is in the 28% tax bracket, may be due $5,600 in tax credits. This is hugely important for people who are renting a Renton home. Rather than pay an additional $5,600 to the IRS, buy a Renton home and use the $466.67 per month toward your savings or your payment. If this is confusing (which it may be the first time or two you hear it) call me and I will be glad to sit down with you and clarify this. Educating our clients is one of the great services of the Gary McNinch Team and the lenders we work with. Plus we really enjoy helping you use your money rather than give it up in taxes.

The availability of mortgage interest tax deductions is one reason why loan officers make reference to "after-tax mortgage rates". An after-tax mortgage rate is effective interest rate, post-tax code, and can be calculated using the formula below:

(After-Tax Mortgage Rate) = (Mortgage Rate) * (1 - Marginal Tax Rate)

The same homeowner with a 5.000% mortgage rate, therefore, has an after-tax mortgage rate of 3.600%.

Caution: Because not every homeowner is eligible for home-related deductions, and because not every homeowner should claim them, talk with your personal accountant before making any tax-related decisions. The Gary McNinch Team has an excel spreadsheet where we can calculate the after tax savings for you. And we will give you the contact information for Cheryl Clark, CPA extraordinaire in Kent, who helps us save on our taxes every year. Gary McNinch Renton Realtor helping you make great home investments, find wonderful homes to live in, and hoping to save you some taxes too.

New Fannie Mae Loan Fees Target Condo Buyers, Among Others (And they missed the boat this time)

When conforming mortgages started defaulting en masse in late-2007, mortgage guarantor Fannie Mae created a loss-offsetting, fee-generating scheme dubbed "loan-level pricing adjustments".

The concept was basic: For mortgage applicants with high-risk profiles, collect up-front payments to offset potential long-term losses.

Similar to the auto insurance model (I'm not sure what bureaucrat came up with this, by the way) in which younger drivers pay higher premiums, riskier applicants pay higher fees.

At the inception of the program, Fannie Mae defined "risk" as a combination of borrower credit score and home equity percentage. In general, lower FICOs and higher LTVs paid more costs.

Effective April 1, however, Fannie Mae's definition of risk is expanded. By a lot. Fannie Mae's new loan-level fees now impact any conforming mortgage that meets any of the following criteria, with the exception of fixed rate loans of 15 years or less. And in my opinion, this is where they missed the point.

• Up to 0.75% fee: Secured by a condo/co-op with less than 25% equity
• Up to 0.50% fee: Features a junior mortgage (i.e. HELOC, HELOAN)
• Up to 1.00% fee: Features interest only payment options
• Up to 1.00% fee: Secured to a 2-unit property
• Up to 3.00% fee: Is designated as "cash out"

Each 1 percent in fees equals 1 percent of the borrowed amount. Therefore, a condo buyer with a $200,000 first mortgage and a $25,000 line of credit is subject to a mandatory 1.25% charge of $2,500, due at closing.

However, (this is where it gets more money in the bank's pocket) it doesn't stop there. Fannie Mae has also adjusted its original FICO-LTV matrix so that nearly every applicant -- irrespective of credit score -- will face higher closing costs on their home loan.

Mortgage rates may be falling, but the cost of financing a home is rising.

Fannie Mae's latest announcement is its fifth risk-based pricing update in the last 15 months. It's likely it won't be the last, either. Therefore, if you're torn between to buy a Renton home now or buy a Fairwood home later, consider that the cost of waiting may outweigh the benefits of falling prices or falling rates. Call the Gary McNinch Team your Renton real estate business professional. We can discuss your home investment situation and provide you with good advice.

We all know that everyone is using the internet to buy and sell Renton homes and townhomes.  Being in the Puget Sound, home of Microsoft, and many others the web has been at the forefront for a long time.

This post written by Dave Segrove shows just what a huge influence the net has on our lives and businesses.