The Ice has Thawed on Fixed Jumbos

Fixed Jumbos, just like the recent snow in Seattle have thawed. The Troll is happy to report that he now has a few excited lenders back in the Jumbo loan game. For the past few years, 30 year fixed rate Jumbos have been a proverbial pipe dream. Lenders have been reluctant to get back into this product arena due to their foreclosure losses.  That is changing quickly as the Troll has secured no less than 3 new avenues for fixed Jumbo products.  If you have an adjustable rate Jumbo loan you should give the Troll a call to discuss your options. You might be surprised at how low rates are for these types of loans. Even if your loan isn’t a Jumbo you should call the Troll anyway because rates are on Fire right now!

The Troll

Snow Thoughts and Mercer Street

Snow is typically not the Trolls bag, but the recent storm did provide the Trolls with some great memories at Gasworks park. The little Trolls wore themselves ragged sledding which made bedtime an easier task. A tip of the cap to the brave souls willing to risk everything and entertaining all of us by launching themselves off the top of the Gasworks hill. Special recognition should go to the literal couch surfers that were riding a couch from the top until it finally gave way to fatigue. According to the Seattle Times, the cost of “Snowmageddon” was $1.35 million. The DOT is still totalling expenses however. Crews worked around the clock for almost a full week according to street maintenance director Steve Pratt. The city has budgeted $2.2 million for snow removal for all of 2012.

The Mercer Street project has reached its half way point. The city is spending $164 million to untangle the “Mercer Mess” with additional contributions from the federal government of $30 million and local landowners (Vulcan) $32 million that stand to benefit from the project. Progress is currently behind schedule due to rain and unforeseen obstacles in the soil according to project manager Angela Brady. Ironically, one of the obstacles was an old Model T engine found 7 feet under ground. Talk about gridlock!

The Troll


Will you get a Stocking full of Troll?

Have you read about the record breaking spending occurring across the nation? Everyone’s flush with extra cash you see and holiday records are being broken every other day. It’s Crazy out there! What recession? Everything is fine! Things are so good that you might get pepper sprayed trying to buy.  Well, the Troll smells Horse Pucky!  Mark my words it will begin with something like this “Early Sales Estimates Overly Optimistic” or better yet “Returns Unexpected”. However it is framed the sales figures will be downgraded.  It’s what we Trolls in the know call “Hyping the Market”. If I think that everyone else is out there spending mountains of cash then by golly I’m going to spend some too. It’s human nature of course and it’s 1 reason that I’m glad to be a troll.

On the bright side, housing has bottomed and it’s a great time to Buy! Especially in Seattle where they’re breaking Records! See that? But seriously, great deals are out there for someone just like you. Give the old Troll a call and he will help. I mean who else is coming up with one liners like this beauty? “Rates are through the floor and that’s opportunity knocking at your door.”

A little Christmas Carrol for all of you from…..




Is the Euro Really a Burro?

Well, it appears the Eurozone is under seige again as Italy and Spain are now in the crosshairs of the debt crisis. Remember when it was all about Greece and their impending default? It now appears that the contagion is snowballing through Europe. The Troll had a beat on this story a couple of months ago (see Greek Mythology). If a stop gap isn’t instituted soon to soak up a lot of the debt exposure (a Central Bank perhaps) the Euro might become……wait for it……a “Burro”. That’s Spanish for Donkey of course and one of the few words that convey negativity while rhyming with Euro. See what the Troll did there? When you think about it the Burro is the perfect animal to symbolize the French. They smell and are quite disagreeable…….He’s here all week folks!

The Troll

Occupy Wall Street

The Occupy Wall Street movement appears to be gaining momentum. Thousands have taken to the streets today with hundreds being arrested. The Troll noted that he was concerned that the European riots would make their way to the U.S. (see Washington State. The Big Layoff). While the Troll agrees that Wall Street should be held accountable for their actions leading to current economic conditions, others should be held accountable as well (U.S. Congress). The 2012 elections will go a long way in shaping the path forward. Hopefully, voters will arm themselves with enough information to choose wisely.

The Troll

The Troll is on a Roll

If you haven’t heard from the Troll in a couple of weeks it’s because he has been feverishly working on a record month of closings. Rates are low you see and home prices are down as well. For people in the know it means opportunity is at hand. If you haven’t refinanced or thought about purchasing a new home or investment property you might want to consider it. Give the Troll a call to see how much money he can save you with a new lower interest mortgage, you might be surprised. You can also hire the Troll to find your dream home or the perfect rental property.

In recent news……The Troll was last seen in public at the Seahawks/Ravens game. And what a game it was. Nothing like an unexpected win for the home team to start the week off right.

The Troll

Are you Confident?

The American consumer is not confident. The numbers released today show our consumer confidence at a 2 1/2 year low. The last time the numbers were this low was in the spring of 2009 when we were in a recession. What does that mean you may ask? Well, it means people are worried about their jobs and job prospects. It means people are underwater in their houses and must chose between buying things and paying their mortgage.  These choices do not exude confidence.

The flip side of course is that those with solid jobs and confidence are finding incredible deals in housing. They have found desperate sellers whether they are selling short or competing with those that are. It is becoming more frequent to purchase a property that will cash flow with rental income especially in the Seattle area. The Troll is not so sure that this is a good thing with desperate people selling so they can rent, but it is the unfortunate reality.

If you are confident give the Troll a call so that he can help you find a great opportunity in todays’ real estate market. You can also call him if you are interested in refinancing to a historic low interest rate. Or even better, call him to get pre-qualified for the loan that purchases the property that he finds for you. Whether it’s your first purchase or a rental property it’s a great time to invest in Seattle real estate.

The Troll

Little Trolls Play Soccer and Ride Bikes

The Troll has been watching a new season of youth soccer. His son Trevor Troll is on the SeaGOALS you see and his skills have the Troll thinking scholarship. I can hear some of you saying “yeah sure Troll, he’s only 7 how can you project his athletic success.” Whatever, the kid can play. Like 6 goals in one half play. Like multiple goal scoring streaks play. He’s on a tear. What makes it great is the style with which he does it. He’s a big kid so other kids his age tend to bounce off him. His coach calls him “Big Papi” and his game is pure Troll. If you see a big kid out on the soccer pitch with other kids on the ground around him you might have caught yourself a glimpse of the next Troll prodigy.

On another note Trisha Troll took her first solo bike ride at age 4 yesterday. Since it’s nice this evening we will be taping the first episode of “Trolls on Wheels”. It’s a comedy of course.

The Troll

Mortgage Market Update for 9-14

The Troll wanted to post earlier this week but his loan processor is on vacation and he had to close some loans. Remember he is still a mortgage broker and real estate broker first. It must be this way because he has little trolls to feed. Did you know that little trolls have voracious appetites? Food for thought anyway and now onto the mortgage news.

The releases today were helpful to bonds and mortgage interest rates. The Producer Price Index (PPI)which measures the average change over time in selling prices received by domestic producers for their output came out at zero today. These prices are typically the first commercial transaction for many products and some services. It means that prices are not increasing for manufacturers and inflation is not problematic. Retail sales were also completely flat. These numbers are not indicative of an economic recovery. The Troll doesn’t see a recovery for quite some time. The immediate issues of the day are in Europe, U.S. housing and unemployment. Until these problems are solved, we can expect pretty low interest rates, with some occasional scares along the way.

Sec Treasury Geithner on CNBC this morning saying Europe has the financial strength to avoid defaults in the countries that are on the edge with debt. He said the obvious, that Europe’s problems are causing a lack of confidence in the US. He encouraged Congress to pass the jobs bill offered up by the Administration. He also admitted US growth isn’t what the Administration had expected.

Pessimism about the economy has deepened and confidence in both U.S. political parties has fallen, with only 20% saying the country is on the right course. As little as 9% of Americans say they are confident the economy won’t slide into a recession, according to a Bloomberg National Poll.

As long as the 10 yr note doesn’t climb above 2.10% the positive outlook will continue, a break above it would set up a run up to 2.30% and take mortgage rates up with it. Next week the FOMC will hold a two day meeting, some traders are looking for more Fed help, while others including some FOMC members don’t believe more quantitative easing (QE) is necessary.

The Troll

Obama Jobs Speech and the 10 Year Bond

This evening the President will discuss his proposal to encourage job growth in the United States. The Troll is interested to hear what he has to say about the subject. He is also surprised to hear that the President will not be speaking to the housing crisis in tonight’s speech. It seems to the Troll that the two go hand in hand. You see after every recession/depression in the United States, the job market has historically built its’ way out of malaise. Construction jobs are paramount to the recovery and they have been nearly nonexistent for the past 4 years. The Troll believes that without a housing recovery there will be no economic recovery in any substantial means. We shall see.

The Troll also wanted to address the 10 year bond market. As you may or may not know, the 10 year bond yield affects long term interest rates. Specifically, it affects 30 and 15 year fixed mortgage rates. It has been 60 years since the 10 year bond yield has traded as low as it is today. The yield has broken a significant resistance level of 2.00%. The result of this dramatic development is historic low interest rates.

For those of you that have a 30 year fixed mortgage and have solid income, credit and equity position you may want to consider moving to a 15 year fixed mortgage. Depending on your qualifications, you can obtain a rate on that program in the low 3% range. Truly Unbelievable!

The Troll

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