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Fannie Mae Changes Help Homebuyers With Student Debt
August 4, 2017 /It’s tough out there for students. Take it from me, a millennial who has collected a bachelor’s degree and a master's degree, as well as a bit of debt along the way. Recent surveys have shown that the average college graduate has more debt than ever before, and that this increased debt makes it harder for graduates to save money and therefore more hesitant to buy homes. What’s more, millennials aren’t the only ones who carry this burden--about 43 million Americans, including millennials, Gen Xers, and even some baby boomers, are currently drowning in student debt. However, luckily for us former students, the mortgage investor Fannie Mae has introduced three new changes that will make it much easier for individuals with student debt to purchase homes. Here are three situations in which these new rules will help. 1. If Someone Else Makes Your Student Loan Payments Many employers now offer their employees student loan repayment benefits. In the past, this system has made it more difficult for individuals looking to buy homes; when calculating a homebuyer’s debt-to-income required for mortgages, mortgage lenders did not take into account that the potential homebuyer did not have to make their student loan payments…Read more
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Common Architectural Styles for Seattle Homes
July 21, 2017 /When I was younger, my mother and I used to spend Sunday afternoons driving around looking at houses in pretty neighborhoods. At the time, we lived in a small home in the Des Moines/SeaTac area. Today, my mother has worked her way up to a beautiful rustic cabin-style home in Gig Harbor. However, when we get together, we still love to admire the gorgeous houses in Seattle and the way they look in the Northwest’s unique silvery light. If you’re interested in buying a home in the Seattle area, here’s a quick guide to some of the common architectural styles that you’ll see around the city. Be sure to contact Pickett Street at at (425) 502-5397 or info@pickettstreet.com to get started finding your home. 1. Victorian Often found around the Queen Anne neighborhood and mostly built during the 1880s and 1890s, these elegant homes are among the oldest in Seattle. Common features of this style include a gabled roof, scalloped shingle siding on the upper level, covered porches with round columns, and a round or octagonal turret. Check out this gorgeous, romantic, and renovated Victorian in Capitol Hill. 2. Tudor Built in Seattle through the 1930s, Tudor homes are known for…Read more
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Seattle Summers: Golden Gardens Park
June 30, 2017 /While on a recent visit to Seattle, my partner and I hit the Washington weather jackpot for June: 65-degree mornings and 85 degree afternoons, without a single cloud in the sky. We decided to grab Thai food and head to Golden Gardens, which is a beachfront park located in northern Ballard. “Hooray, beach day!” I said as we drove to the park. “Well,” my partner replied, with that tone he often takes when he is about to be clever. “Beach day.” He pantomimed air quotes around “beach,” implying that Seattle beaches are not real beaches. My partner is from Colorado (which, let me just point out, has zero beaches), and he grew up frequently visiting family in Hawaii, enjoying pristine white sand beaches and warm waters. I love him dearly, but he is a tiny bit of a beach snob. “What are you saying?” I asked. “I mean, is it even a real beach if it’s all rocky and doesn’t have any sand?” I told him that he’d better change his attitude or I would eat all of the spring rolls and his pad thai (which I am totally capable of doing). While driving to the park, we were able…Read more
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Neighborhood Profile: Queen Anne
May 22, 2017 /Way back in the Stone Age (or thereabouts) Queen Anne was among the least popular parts of Seattle when it came to purchasing property. Much of this unpopularity was a result of the neighborhood’s steep and hilly geography (which, to be fair, would have been much more annoying before the advent of the automobile). Whatever the reason for public distaste when it came to Queen Anne, local developers were desperate to get land off their hands, and even tried to entice potential buyers by offering two plots of land for the price of one. Now, of course, Queen Anne (named after the style of home many original builders constructed in the area) lives up to its regal name and is one of Seattle’s most popular places to live in. However, even characterizing the neighborhood itself can be something of a challenge. The lower end of the region is close to downtown attractions like the Key Arena and the Space Needle, while other parts of the neighborhood are comfortably residential. And let’s not forget that, with the presence of Seattle Pacific University in the north end, some of the area has a distinctly collegiate atmosphere. In short, there’s a little bit…Read more
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The Space Needle
May 22, 2017 /Like most things in Seattle, the Space Needle began with a cup of coffee. To be fair, there was a napkin involved, too. It was the end of the 1950s, and Edward E. Carlson was relaxing in a coffee shop, idly doodling on a serviette. It’s impossible to say for sure whether or not the impending World’s Fair was on his mind when he originally sketched the city’s sci-fi pinnacle (for all we know, Carlson might have been dreaming about his dry cleaning whilst scribbling). What we can say is that Carlson’s design, etched onto scrap paper amidst a peppering of coffee stains, served as the inspiration for one of the Northwest’s most important monuments. It wasn’t completely Carlson’s brainchild, however. Left to his own devices, he would have designed a building resembling either a massive balloon tethered to the earth or an equally large balloon perched on top of a column (the man liked his balloons, it seems). It took architect John Graham and his dedicated team to translate Carlson’s initial inspiration into the flying saucer structure we have today. After successfully building the first suburban shopping mall in the country (which just so happens to be Seattle’s Northgate…Read more
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Neighborhood Profile: Capitol Hill
March 17, 2017 /For some, going home means retiring to a quiet corner to enjoy a predictable evening away from the city’s stressors. For others, going home means embarking on an eclectic adventure full of new surprises and opportunities. If you’re a member of the latter camp, then Seattle’s Capitol Hill might be the perfect place to call home. Capitol Hill is indisputably one of the Emerald City’s most important cultural hubs, and residents of the hip urban neighborhood can enjoy a vast and diverse assortment of restaurants, bars, and art galleries. In fact, there’s so much to do in Capitol Hill, even longtime natives of the area are still likely to enjoy new experiences and fresh surprises. If you’re looking for some of Seattle’s best restaurants, Capitol Hill is certainly the place to start. The neighborhood serves up many different kinds of cuisine, so even the pickiest eater can find something to munch on. Stateside uses seasonal ingredients to serve traditional Vietnamese cuisine with an innovative French twist. If you’re looking for something a little more traditional, Poquitos boasts some of the best Mexican food in the city, while Bateau offers delicious farm-to-table ingredients fresh from their farm on Whidbey Island. Or,…Read more
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How Paying Off A Mortgage Builds Wealth
March 10, 2017 /Few homeowners are likely to say that they enjoy making monthly mortgage payments. Fulfilling an essential financial duty might be satisfying in the same way that cleaning one’s room or emptying the dishwasher is satisfying, but few people are likely to relish the act of paying off a mortgage. Which is strange, because most people enjoy receiving checks in the mail. While paying for a mortgage and receiving a paycheck aren’t quite the same, the comparison highlights an important feature of owning a home and having a mortgage: both are far better at building wealth than renting. The classic argument for this idea is that, while rent checks pay for a physical space that the renter will never own, a mortgage payment finances a piece of property that will one day be owned completely by the occupant. However, while this reasoning is perfectly sound, it also misses a key factor in a mortgage’s wealth-building power: mortgage payments contribute to building home equity, while rent payments do not. Let’s say, for example, that you’ve just bought a $250,000 house using a 30-year FRM. The beauty of this loan is that, no matter what the market does in the three decades following…Read more
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How I Got The Gumption: The FHA 203K Loan
March 3, 2017 /Sometimes, renovations can cause even the mildest mannered homeowner to panic. After all, home improvements can be costly and stressful. However, when Pickett Street’s very own Margaret Smith, Director of Operations, decided to purchase a vacant, bank owned fixer-upper, the FHA 203K Loan presented her with an opportunity that turned the process into a dream come true. Margaret bought her duplex in south Everett near Paine Field in August 2014. It was a bank owned property, meaning nobody had been living there for over a year. The previous owners had gone into foreclosure, so the home sat there vacant, lacking love and attention. The upstairs unit was a 3 bed, 1 bath layout that Margaret planned to rent out. It needed a new bathroom, new washer and dryer, a fresh coat of paint on the laundry room walls, and an all-around thorough scrubbing. The bottom unit was a 2 bed, 1 bath layout that was perfect for Margaret and a roommate. That 2 bed unit also needed a new bathroom, new kitchen and new vinyl wood flooring (which also needed to be leveled). The bottom half of the duplex’s exterior required a new paint job, and some general TLC. The…Read more
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Five Tax Breaks for Homeowners
February 10, 2017 /Now that it’s February, most of us have probably emerged from our flabbergasted holiday stupors and (with the help of a strong cup of coffee), finally achieved normalcy just in time for tax season. However, before you panic and begin overturning couch cushions to find the receipts you foolishly lost back in September, it’s useful to remember that plenty of helpful tax breaks exist for homeowners. Tax breaks for homeowners vary widely according to each person’s unique situation. Even so, it helps to be aware of the general options available for homeowners looking to save money during the tax season. Read on to learn more about how your home can help you save money when it comes time to file. Deductions for Mortgage Interest The interest American homeowners pay on a mortgage is tax deductible. For those who are married and filing jointly, it’s possible to deduct your interest payments for mortgages totaling as much as $1 million. Additionally, private mortgage insurance payments are deductible for those homeowners who took on a mortgage after 2006. Overall, these tax breaks make a big difference when it comes to alleviating the financial burden of homeownership. In fact, in 2011 American homeowners benefited…Read more
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No Need to Fear the Downpayment
February 3, 2017 /New homeowners are liable to get nervous when it comes to applying for a mortgage. Many people have trouble sifting through the real estate terminology and the legal requirements of buying a home. However, if there was one aspect of buying a home that makes people the most nervous, it’s probably the downpayment. If making a downpayment is stressing you out, you should know there are many ways to obtain downpayment assistance, or even secure a mortgage without any downpayment at all. So, if you’re a buyer who wants to make a very low down payment or avoid one altogether and maintain maximum liquidity, check out some of the options outlined below. State Bond Loans In general, State Bond Loans help buyers secure a loan at below-market interest rates. The exact rates offered through State Bond Loans vary, but they generally increase long-term affordability and decrease monthly home payments. These bonds are available through local housing agencies, which sell tax-exempt mortgage revenue bonds and then use the income from these sales to offer below-market rate loans to buyers. This type of loan looks a little different depending on the state you’re living in. The Washington State Housing Finance Commission is the organization…Read more
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New Year’s Reflections (Or, How I Learned to Stop Worrying and Love the Broken Toilet)
January 6, 2017 /If you had been in my family’s living room at about 2:30 on Christmas morning, you might have heard urgent mutterings and a disturbing hissing sound coming out from under the bathroom door. Had you ventured to inspect the situation further, you would have observed my stepfather and I as we removed the cap of the toilet tank, endured a generous vertical explosion of water, and fumbled with the toilet’s innards for several feeble minutes before replacing the cap and catching our breath. You would have watched us repeat this cycle for quite some time. It’s hard to come up with fresh ideas when your face is repeatedly doused with cold toilet tank water, after all. You might wonder how I got myself into such a situation in the wee hours before dawn on Christmas. It all began when I woke up at about 2 o’clock in the morning to the sound of the toilet running upstairs. Now, the bathroom in my childhood home has been subject to all kinds of problems (sharing one toilet and shower between 7 people puts quite a lot of stress on the pipes, as it turns out), and though the house’s plumbing has limped…Read more
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Education = Power.
December 2, 2016 /Mortgage Rates on the Rise as Equities Recover As expected, mortgage rates climbed during Thanksgiving week as equities recovered based on speculation of economic expansion. In fact, these market conditions led the Dow Jones Industrial Average to record highs. In general, with election season fading into the rearview mirror and with Trump beginning to assemble the foundations for his political team, it’s expected that markets will return to a sense of normalcy after their initial uncertainty. That’s not to say that we won’t see any more volatility; in fact, market experts expect that, even if things are settling down now, we should expect a few more market surprises in the foreseeable future. Any political concerns aside, it’s important to note that mortgage rates are increasing, just as this blog has predicted on numerous occasions. More specifically, just before Halloween, the average 30-year APOR was about 3.52%. By the end of the first week in November, that rate had recorded a modest increase and risen to 3.58%, while it rose again the following week to 3.61%. By the end of Thanksgiving week, the average 30-year APOR had increased to about 3.98%. Likewise, MarketWatch estimates that the average 30-year FRM has…Read more
