By Mark Jewell
AP Personal Finance Writer

1. First time home buyers may be eligible for up to $8,000.
2. First time home buyers cannot have owned a residence within the past 36 months.
3. Current home owners may be eligible for up to $6,500.
4. Current home owners must have occupied a primary residence for 5 consecutive years during the last 8 years.
5. Any contract signed before April 30, 2010 is eligible, but it must close by June 30, 2010.
6. Single filers can earn up to $125,000 to be eligible for the entire amount. Single filers earning up to $145,000 can receive a partial credit.
7. Joint filers can earn up to $225,000 to be eligible for the entire amount. Joint filers earning up to $245,000 can receive a partial credit.
8. Maximum home sales price is $800,000.
9. The tax credit is available on primary residences only.
10. No repayment is required unless the home is no longer the primary residence at any time within the first 36 months.

Call us to discover how Columbia Funding Mortgage can support you with your mortgage needs. We would love the opportunity to meet you and discuss the options available to you.

Over the past year, many of our past clients have contacted us and one of their first comments is that they are glad to know we are still in business. It is no secret that the mortgage business has had a rough ride, but with your help 2009 has been our best year ever! Your trust and referrals have made that possible and words cannot express the gratitude we have for your support.

Twitter and Facebook
We are now on Twitter and Facebook and we would like to connect with you there too! On Twitter, find us under “steveknox” and on Facebook, our fan page is Columbia Funding Mortgage.

Referral Network
You have referred us to others, so we would like to refer you. We are excited to announce that we are building a Professional Referral Network for our website. We hope to have the Referral Network page up by January 1^. If you are an owner of a business and would like us to include you in the network, please contact our Marketing Manager, Arin Megenity at 425.341.2222 ext. 105 or via e-mail at arin@cfundingmortgage.com.

Run of the Mill Charity Event
As many of you know, CFM sponsors and organizes (with the help of many, many volunteers) the annual Mill Creek Run of the Mill 5K. We are happy to report that the 2009 run raised $43,000! 100% of the race entry fees ($38,058.75) were donated to the “Linda Baltzell Cancer Patient Assistance Fund” at Providence Regional Cancer Partnership in Everett, WA. The remainder of the money raised was donated to a number of local charities and organizations, including the Jackson High School Track and Cross Country Booster Club. For more information on the run, see the website at www.mcrunofthemill.com.

Did you know?
Many people are unaware that there are temporary loan programs available that allow a homeowner to refinance up to 125% loan to value. This means that if you currently owe more than your home is worth, you can refinance to a lower rate and save hundreds of dollars each month. Rates have remained near or below 5% for months now, and it is our opinion that these low rates will continue through 2009 and start moving upward in early 2010, so please act now to see if we can help you improve your mortgage.

With Columbia Funding Mortgage, you can feel confident that you are working with highly skilled mortgage professionals that will consult with you and give you the information you need to make an informed mortgage decision.

Here are some answers to common questions about the new rules.

Q: What has stayed the same in the new law?

Click here to read the answer to this question and others from the Wall Street Journal article, written by Laura Saunders.

I read this news piece over the weekend and felt compelled to give you my thoughts on this situation. Reverse Mortgages are a good program for some borrowers, but not all. In addition, I fear that Reverse Mortgages are the primary way that unethical lenders can take advantage of uneducated borrowers.

The question is, “how can borrowers know if they are making the right decision?”

Here are my answers:

1. Work with someone you know or someone with an excellent referral. Check your lender out.
2. Ask for references and find out if they are involved in any community programs that indicate a commitment to giving back to the people that keep them in business.
3. Get your attorney involved. I always ask my clients if they would like me to provide information to their attorney, CPA or estate planner to ensure that the Reverse Mortgage fits into a bigger plan. This also ensures multiple layers of accountability and thus security for the client.
4. Bring a trusted family member to your Reverse Mortgage consultation. If a lender does not like that, then you probably have the wrong lender.
5. Reverse Mortgages are slightly more expensive than normal refinance loans, but that does not mean that the loan officer doing the loan needs to double or triple their normal fees. Be careful of lenders who try to make their monthly income off of a single loan!

If you have questions or comments about financing your home, please give us a call at 425.341.2222 or send us an e-mail at stevek@cfundingmortgage.com.

1. A reverse mortgage sells the home to the lender
2. Heirs will not inherit the home
3. The homeowner could get forced out of the home
4. You could outlive the reverse mortgage
5. Social Security and Medicare will be affected
6. The homeowner pays taxes on a reverse mortgage
7. There are large out-of-pocket expenses
8. A reverse mortgage is similar to a home equity loan

Click here for the true statements relating to each of these myths.

Remember, companies that exclusively offer this product (and no others) make it sound like one size fits all. Reverse Mortgages are a small part of our business and thus we are not compelled to sell clients on a product that does not suit their needs. If you have questions or comments, send us an e-mail or give us a call.

See what Suze Orman has to say about Reverse Mortgages

Click here to see the pros and cons of Reverse Mortgages. If you have questions, comments, or if you would like to consult with us on mortgage loan options, send us an e-mail or give us a call.

In this article, we’ll review the the basics. A Reverse Mortgage is a low-interest loan for a senior homeowner that uses a home’s equity as collateral. The loan amount is a percentage of the home’s value determined by the age of the youngest homeowner.

The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 12 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is inherited by the estate. The estate is not liable if the home sells for less than the balance of the reverse mortgage.

Click here for more answers about Reverse Mortgages.

In the next few days, we’ll touch on the pros and cons of Reverse Mortages, so stay tuned!

Here’s an article from the Everett Herald worth the read that objectively describes the roles. At Columbia Funding Mortgage, our brokers ensure that – through pre-planning and assessment – you are placed in a loan that best meets your needs. We know that one size does not fit all. And, we ensure that your loan will close as planned, rather than finding out at the end of the process that you may not qualify for the loan.

Another plus is that we have the flexibility to assist you after hours and on weekends. This is a tremendous benefit for working families because it allows you to prioritize your days and focus on the loan process when it best suits your time frame.

Take a few minutes to read the article and let me know your questions or thoughts.

Lender, broker roles are explained

So, here is a small does of “Real vs. Not Real” – Let me know if you have any other points I can add to the list.

What is real?

• Interest rates in the 4.750 – 4.875% range with normal closing costs (imagine someone missing these rates because they are waiting for 4.00%!)
• Higher fees for borrowers with high loan to values and credit scores below 700 (due to Fannie and Freddie pricing adds)
• The new Home Affordable program looks like it will be the first “special program” that will actually help distressed homeowners with high LTV’s and reduced income. (call me for more info)
• Banks offering below market financing for new construction homes that are in their REO programs – this is a great opportunity for people who do not have a home to sell. (Banner Bank – Horizon Bank etc)
• The economy is showing signs of improvement and I believe it is real but like a patient with a serious illness there will be setbacks and it will be at least 18 months before things seem normal again
• Banks being totally ill prepared to deal with their REO’s – this is causing real estate agents to work twice as hard and not allowing them to do their jobs in helping clear excess inventory from the markets
• Scam artists who ask distressed homeowners for upfront fees to help them “renegotiate their debt” – this is the fastest growing industry we have today

What is not real?

• Rumors of the 4% or 4.5% rates that have now become a full on urban legend
• Banks renegotiating mortgage balances with distressed homeowners (yes you will hear a story or two on the news but it will not be broad based and our friends and neighbors will tell you of a much different scenario as they have tried to get relief)
• No closing cost loans – they do not exist and it is the ultimate in dishonesty for lenders to advertise them. Someone is paying for the title, escrow, appraisal and profit on a loan. Guess what! It is not the lender. The borrower is duped into paying these fees with higher than market interest rates. http://www.credit.com/news/experts/2009-02-02/mortgages-the-free-refinancing-myth.html
• “900” Fico scores – these new consumer scores are different from the scores that lenders use to evaluate a borrowers credit worthiness – http://articles.moneycentral.msn.com/Banking/YourCreditRating/WhatTheNewCreditScoreMeansToYou.aspx

Market Status:

After several weeks of tremendous gains in the stock market, stocks are under some selling pressure as a result of bank analyst, Mike Mayo, spewing out a negative forecast which includes his thoughts that loan losses by financial institutions will exceed levels from the Great Depression. The pressure in Stocks has given Mortgage Bonds a modest boost and prices remain just above support at the 25-day Moving Average.

However, with the recent changes to mark-to-market, I feel that there will be a positive impact on economics and the overall operations of the financial institutions because it will free up their capital ratios and allow them to do more lending, ultimately leading to profit potential.

There are few economic reports set for release this week, as the market will close early Thursday and all day on Friday for the Holiday. There will however be additional Bond supply hitting the markets later this week, which could have an impact on the markets at that time. Since Mortgage Bonds are trying to cling to the 25-day Moving Average, I recommend carefully floating for now.