Blog | Fairway Independant Mortgage Corporation

New Legislation and Your Mortgage: What You Need to Know

Blog July 7th, 2025 David Haley

Keeping up with new legislation is key to making savvy financial decisions, especially when it comes to the biggest investment of your life: your home. Recent updates to federal law have introduced significant changes that directly affect the financial landscape for current and future homeowners. For anyone looking to purchase a new home or refinance a current mortgage, understanding this new stability in the tax code is essential.

Let’s explore these updates with a few examples to see how they might apply to you.

Benefit for First-Time Homebuyers: The Mortgage Insurance Deduction

One of the most important updates in the new law is the permanent extension of the mortgage insurance (MI) premium deduction. This is particularly beneficial for first-time homebuyers who often make a down payment of less than 20%.

Example: Consider a young couple, Alex and Jessica, who are excited to buy their first home. They have saved diligently but don’t have enough for a 20% down payment, so their loan requires mortgage insurance. In the past, the tax deduction for this MI premium was temporary and had to be renewed by Congress, creating uncertainty. Now, this deduction is permanent. Alex and Jessica can factor this tax benefit into their budget with confidence, knowing it will be there for them as long as they pay MI and meet the income requirements. It provides a small but stable financial cushion that makes their dream of homeownership more manageable.

Clarity for Future Planning: The Mortgage Interest Deduction

The new law also brings long-term clarity by making the current cap on the mortgage interest deduction (MID) permanent. This removes the “what if” factor for homeowners and buyers, allowing for more precise long-term financial planning.

Example: Imagine the Smith family, who are looking to sell their current house and buy a larger home to accommodate their growing family. A major part of their budget calculation is understanding the tax benefits of their new, larger mortgage. Because the rules around the MID are now permanent, their financial planning becomes much clearer. They can work with a mortgage advisor to understand exactly how a new home loan will impact their tax situation for years to come, allowing them to confidently determine their price range and make a competitive offer. The same certainty applies to homeowners considering a cash-out refinance for a major home renovation.

Why Legislative Stability Matters

Whether you are buying or refinancing, stability in the tax code is incredibly valuable. When rules are permanent rather than temporary, it removes uncertainty from your long-term financial strategy. You can set a budget, plan for future expenses, and build wealth through home equity with a much clearer understanding of the landscape.

These legislative updates are a positive step toward creating a more predictable environment for homeowners. However, navigating the specifics of how they apply to your unique situation is where expert guidance becomes essential.

The mortgage landscape is always changing. Let us help you navigate it with confidence. Contact us today to discuss your home loan options and create a personalized plan for your future.

This article is for informational purposes only and is not tax or legal advice. Fairway Independent Mortgage Corporation and its loan officers do not provide tax or legal advice. Please consult a qualified professional regarding your individual situation. All programs and guidelines are subject to change without notice.

The Power of Owning a Home

Blog, Featured Articles May 21st, 2025 David Haley

Owning a home isn’t about checking off a box on your life to-do list—it’s one of the most powerful financial decisions you can make. Yet, many people hesitate because they think it’s complicated. The truth? It’s simple math.

Let’s break it down in the way you might have learned in third grade. Imagine every $1,000 you borrow for a mortgage—your payment increases by roughly $0.08 for every one-eighth of a percent in interest. That’s about $8 for every $100,000 you borrow. When you understand this, and you’re shown how the numbers actually work, the mystery disappears. Suddenly, homeownership feels not just possible—but smart.

A common mental block we hear is: “I can’t go over $3,000 a month.” But ask yourself, where did that number really come from? Was it based on a real budget or just a feeling? What if the home you love—one that checks 80–90% of your wish list—costs just $60 more per month? Would you really let that stop you from living in a space where your family could thrive and your investment could grow?

That $60 isn’t just a number—it’s the barrier between renting and building equity, between uncertainty and stability. And most importantly, it’s not a fixed roadblock. There are ways to adjust your financing to work within your budget, and that’s where guidance from the right mortgage professional comes in.

Here at David Haley Mortgage, we don’t just run numbers—we help you see the possibilities. Nobody taught us this in school. Most people don’t grow up learning how mortgage interest really works, or how homeownership leads to long-term wealth. But we believe you should know.

The younger you start, the more powerful the impact. If you buy a home now—before your friends who wait another 10 years—your equity, your appreciation, and your financial footing will likely be far stronger by the time you all reach the same age.

This isn’t just about owning a property. It’s about owning your future. That’s the real power of owning a home.

Disclaimer:
The information provided in this article is for general educational and informational purposes only and should not be construed as financial, legal, or mortgage advice. Individual situations vary, and specific loan programs, down payment requirements, and eligibility will depend on your unique circumstances and the current market. For personalized guidance, please consult with a licensed mortgage professional or real estate advisor. David Haley and this website are not responsible for any actions taken based on the information provided herein.

Washington State’s Mortgage Loan Closing Process: An In-Depth Guide (2025 Edition)

Blog, Featured Articles May 19th, 2025 David Haley

Buying a home in Washington State involves a detailed closing process. Understanding each step can help ensure a smooth transaction. This guide outlines the current process as of 2025, incorporating recent legislative changes and industry practices.

Step-by-Step Closing Process

Loan Approval and Clear-to-Close

After submitting your mortgage application, the lender reviews your financial documents, credit history, and the property’s appraisal. Once approved, a “clear-to-close” status is issued, indicating that all conditions have been met.
Establishing Escrow

Washington is an “escrow state,” meaning a neutral third party (escrow agent) manages the transaction. The escrow agent holds funds and documents until all conditions are satisfied.
Title Search and Insurance

A title company conducts a search to ensure the property’s title is clear of any liens or disputes. Title insurance is then issued to protect against future claims.
Contingency Removals

Common contingencies include financing, appraisal, and inspection. These must be resolved or waived before proceeding to closing.
Delivery of Closing Disclosure

At least three business days before closing, the lender provides a Closing Disclosure detailing loan terms, monthly payments, and closing costs.
Final Walk-Through

Buyers typically conduct a final inspection 24 to 48 hours before closing to ensure the property’s condition hasn’t changed.
Signing of Documents

Both parties sign the necessary documents, including the deed and loan agreements. In Washington, buyers and sellers often sign separately.
Funding and Recording

After signing, the lender funds the loan, and the deed is recorded with the county, officially transferring ownership.

Closing Costs in Washington State

Closing costs encompass various fees associated with finalizing a mortgage. In Washington:

Buyers: Typically pay between 2% and 5% of the home’s purchase price. For a median-priced home of approximately $613,674, this equates to $12,273 to $30,683.
Sellers: Generally incur closing costs ranging from 6% to 10% of the home’s sale price, which includes agent commissions and other fees.

Common closing costs include:

Loan Origination Fees: Charges by the lender for processing the loan.
Appraisal Fees: Cost for a professional assessment of the property’s value.
Title Insurance: Protects against future claims on the property’s title.
Escrow Fees: Payment to the escrow agent for managing the transaction.
Recording Fees: Charges for recording the new deed with the county.
Prepaid Taxes and Insurance: Upfront payment for property taxes and homeowners insurance.

2025 Legislative Updates

Covenant Homeownership Program Expansion

Effective July 28, 2025, Washington State’s Covenant Homeownership Program has expanded its eligibility criteria:

Income Threshold: Now includes homebuyers earning up to 120% of the Area Median Income (AMI), up from the previous 100%.
Loan Forgiveness: Applies after five years for households earning 80% or less of AMI.

This program offers zero-interest loans to assist with down payments and closing costs, aiming to increase homeownership among historically marginalized populations.

Preparing for Closing

To ensure a smooth closing process:

Review the Closing Disclosure: Compare it with your Loan Estimate to identify any discrepancies.
Secure Funds: Arrange for a cashier’s check or wire transfer to cover closing costs and down payment.
Conduct Final Walk-Through: Ensure the property is in the agreed-upon condition.
Bring Identification: Have a valid photo ID for the signing appointment.
Ask Questions: Don’t hesitate to seek clarification on any aspect of the process.

Summary

Understanding the mortgage loan closing process in Washington State is crucial for a successful home purchase. By staying informed about each step, associated costs, and recent legislative changes, buyers can navigate the process with confidence. Always consult with real estate professionals to address specific concerns and ensure compliance with current regulations.

If You’re Renting, You’re Paying Someone Else’s Mortgage

Blog, Featured Articles, Mortgage, Zero Down Loan April 15th, 2025 David Haley

One of the most common things I hear from people is that they’re waiting until they’ve saved enough for a big down payment. Some spend years saving—$30,000, $40,000, even $60,000—because they think that’s the only way to buy a home.

Here’s what I want you to know: while you’re saving, you’re also spending. Rent doesn’t build anything for you. Month after month, that check you write? It’s helping someone else pay off their mortgage.

I’ve had conversations with clients who finally reached their savings goal after three years—but by then, home prices had gone up significantly. If they had bought back when they started saving, they’d already be sitting on equity and still have money in the bank.

You don’t need a massive down payment to get started. There are great loan programs available that require much less—some even offer zero down options depending on your situation. What you really need is the right guidance and a plan tailored to where you are now.

The biggest mistake I see is people waiting for the “perfect time” while the market keeps moving without them. Renting feels safe, but long term, it’s costing you more than you think.

If you’re ready to stop paying someone else’s mortgage and start building your own future, let’s talk. I’m here to help you take that first step—with real answers and real options.

Holiday Fire Safety

Blog December 16th, 2019 David Haley

During the holiday season, homes are often beautifully decorated with candles, fresh garlands and trees adorned in lights. While the wonder of the season is exciting, it is important to be aware of potential fire hazards. Follow the tips below to make sure your home is festive and free of potential danger.

If you choose to decorate a live tree, try to find one that is fresh. Fresh trees are safer for your home because they are less likely to catch fire. Some indicators of a fresh tree are:

Vibrant green color with needles that are not easily plucked
A trunk that is sticky with resin

Watch out for trees that have a greenish cast to their trunks and branches, as some growers spray trees with green paint to make them more appealing to buyers.

When decorating your Christmas tree (live or artificial), ensure your tree won’t start an electrical fire. Some good tips include:

Use only lights that have been tested for safety (a label from an independent testing laboratory should appear on the box)
Check each set of lights for broken sockets, frayed wires or loose connections
Use a maximum of three standard-sized strings of lights per single extension cord
Keep cords and lights away from the tree’s water supply

To dispose of your tree, take it to a tree recycling center or have it hauled away by a community pick-up service. Never burn trees, branches or needles in a fireplace or woodstove. Fir trees and pine trees have a copious amount of sap, which can explode.

For more on holiday fire safety, click here. If buying a new home is on your list of resolutions for the new year, I would welcome the opportunity to speak with you about your homebuying needs! Let’s plan to meet soon.

Are There Different Types of Credit Scores? Here’s What You Should Know

Blog November 30th, 2021 David Haley

Stacey Sprain
Home.com Contributor
11/26/2021

If you’re used to checking your credit score through a free app or credit card account, you might be surprised to know that the number you see there doesn’t tell the whole story. There are several types of credit scores.

In fact, the credit scores you see online through free credit report and scoring sites are probably not the same credit scores a lender will use when you apply for a loan or credit.

“It is important to make a distinction between consumer credit scores and the FICO scores that lenders use,” said Dylan Hoffman, a senior mortgage consultant with Fairway Independent Mortgage Corporation (Fairway owns Home.com). “Consumer scores will generally be higher because they are on a larger scale. This can get confusing because there are also different FICO scoring models, depending on the type of lender.”

Below, we explain the three most common credit scoring models you’re likely to run across in the market.

Read Original Article

Feldman: What’s one of the newest things you feel that advisors should be thinking about today?

Blog November 11th, 2022 David Haley

Jordan: I’ve recently become an advocate for reverse mortgages. I used to hold up a garlic and the crucifix whenever I heard about reverse mortgages. But for people over age 62, there’s $10.2 trillion tied up in their houses. And reverse mortgages are not just for the wealthy people.

You’ve got some poor guy who bought a house for $25,000 some 30 years ago. It could be worth $250,000 now. For the first time in his life, he has access to funds.

And so there could be the possibility of using a buffer asset. If you’re in a situation like recently, when the Dow went down 1,000 points in a day, that’s volatile. Well, guess what? You shouldn’t be taking money out of your account. Perhaps you could shift to another pocket. And it could come from your reverse mortgage. And the money comes out on a tax-free basis. And so it allows the portfolio to heal, the classic buffer-asset type of approach. That’s one thing to do.

Another benefit a reverse mortgage could provide for someone who reaches age 62 is to provide a Social Security bridge. This would allow you to obtain the funds you might need and then wait until age 67 or 70, when the monthly payout would be significantly more. If you wait till 70, it’s 77% more.

With IRMAA [income-related monthly adjustment amount], how much money you make in retirement dictates the premiums you pay for Medicare. Well, if you use some of your income from your reverse mortgage, it’s tax-free, and so using it could help lower Medicare premiums.

So there’s a lot of flexibility there.

People have to begin to use the wealth they have in their home. For the most part, it’s three-quarters of a person’s net assets in terms of the average person. And they’re able to use that wealth instead of just saying, “The house is paid off.” This could be helpful, especially because people are living a lot longer.

^Source

Fairway Financial Professional Testimonial Joe Jordan from Get Louder Productions on Vimeo.

Moving to the City of Mountlake Terrace

Blog, Home Buyer December 30th, 2022 David Haley

The small, scenic city of Mountlake Terrace is one of the most sought-after spots in south Snohomish County.

Known for its desirable real estate and overall prosperity, this town of generally spacious homes is less than 20 minutes north of Seattle. The coming light rail connection has sparked a development boom in this previously sleepy suburb, as new residences and restaurants pop up regularly.

Homes in Mountlake Terrace

The roomy homes in Mountlake Terrace fetch a fairly high price per square foot. Recent sale prices generally fall in the upper tier of the market for south Snohomish County, but remain a good value compared to Seattle proper.

The core of the city comprises single-family homes. There are also several apartment communities—generally high-end and often newly built—primarily toward the western and southern edges of town.

As you’ll find throughout greater Seattle, prices are changing quickly as more people seek to call this area home.

Education

The well-regarded Edmonds School District serves Mountlake Terrace and most neighboring areas. Local families generally send their kids to Mountlake Terrace High School, Brier Terrace Middle School, and one of three public elementaries.

Some parents also opt for one of three private schools within city limits, or several others just a few miles outside.
Transportation
Mountlake Terrace is roughly halfway between Seattle and Everett.

The city has good highway access, being adjacent to I-5 and WA-104 (Ballinger Way/NE 205th/Edmonds Way), and a stone’s throw from WA-99. In the southwest corner of the city, the existing transit center will soon host a light rail station, giving locals a great option to leave town—and leave their cars behind.

Recreation

Close to home, residents can enjoy the well-kept Mountlake Terrace Recreation Pavilion, the popular Veterans Memorial Park (and several neighborhood ones), the wooded Lyon Creek path, and even a public golf course. Dozens of other family-friendly recreation opportunities are located within a few minutes’ drive.

Seattle’s big-city amenities and Everett’s burgeoning cultural scene are both readily accessible, and outdoorsy types enjoy easy access to the Cascades via Highway 2.

Tips for Moving to Mountlake Terrace

It’s easy to see why so many out-of-towners opt for Mountlake Terrace, and why plenty of locals hope to own their first house here.

If you’d like to call it home, too, then here are three tips for an easy transaction and transition.

1. Don’t be scared!
If the homebuying process seems a bit overwhelming or mystifying, you’ve got nothing to worry about. Even if it’s not your first house, it’s still normal for the whole thing to feel like…a bit much.

Remember that a big part of your agent’s job is to help you stay on top of all those moving pieces!

2. Find a local expert to guide you
Speaking of agents, it’s essential to find someone who knows Mountlake Terrace and its vicinity like the back of their hand.

Agents who can fill out paperwork are a dime a dozen, but there’s no substitute for the street-by-street knowledge of someone who actually lives and works in south Snohomish County.

3. Talk to lenders & get pre-approved
Before doing anything else, it’s important to consult a lender and have a mortgage pre-approval in hand.

This will let you move quickly and make a successful offer—fingers crossed!—once you’ve found the ideal Mountlake Terrace home.

Lynnwood’s Alderwood Manor South Neighborhood

Blog, Home Buyer, Lynnwood March 15th, 2023 David Haley

Alderwood Manor South is a popular and rapidly growing neighborhood in Lynnwood, Washington. As of the 2020 Census, it’s home to just over 5,000 people.

Known for quiet streets and a secluded feel, this enclave of generally spacious homes is only half an hour’s drive north of Seattle, and immediately southeast of the lively commercial areas around Alderwood Mall.

Homes

The roomy homes around Alderwood Manor South fetch a moderate to high price per square foot, in keeping with other desirable spots in Snohomish County.

Owner-occupied single-family homes are the norm. Houses aren’t often for rent. However, there’s a selection of apartment communities, primarily toward the northwestern edge of the area, near I-5.

As you’ll find throughout Lynnwood, prices are changing quickly as more people seek to settle here.

Education

The well-regarded Edmonds School District serves Alderwood Manor South and several adjoining areas. Most local families attend Cedar Way or Hazelwood Elementary School, Alderwood or Brier Terrace Middle School, and Mountlake Terrace High School.

Some parents also opt for one of several private schools within about 5–10 miles of the neighborhood.

Transportation

Like most of Lynnwood, Alderwood Manor South is roughly halfway between Seattle and Everett.

The neighborhood has good freeway access, being just minutes south of the I-5/I-405 interchange. Immediately west of Alderwood Manor South, an upcoming light rail station will give locals a great option to leave town—and leave their cars behind.

Recreation

Close to home, residents can enjoy the fresh air and greenery of several city and county parks near the neighborhood. Dozens of other parks, trails, and green spaces are also accessible within a few miles’ drive.

Seattle’s big-city amenities and Everett’s burgeoning cultural scene are both readily accessible, while outdoorsy types enjoy easy access to the Cascades via Highway 2.

Moving to Alderwood Manor South in Lynnwood

It’s easy to see why so many out-of-towners opt for Alderwood Manor South, and why plenty of Lynnwood locals hope to own their first house here.

If you’d like to call it home, too, then here are three tips for an easy transaction and transition.

1. Don’t be scared!

If the homebuying process seems a bit overwhelming or mystifying, you’ve got nothing to worry about. Even if it’s not your first house, it’s still normal for the whole thing to feel like…a bit much.

Remember that a big part of your agent’s job is to help you stay on top of all those moving pieces!

2. Find a local expert to guide you

Speaking of agents, it’s essential to find someone who knows Alderwood Manor South and its vicinity like the back of their hand.

Agents who can fill out paperwork are a dime a dozen, but there’s no substitute for the street-by-street knowledge of someone who actually lives and works in the Lynnwood area.

3. Talk to lenders & get pre-approved

Before doing anything else, it’s important to consult a lender and have a mortgage pre-approval in hand.

This will let you move quickly and make a successful offer—fingers crossed!—once you’ve found the ideal Alderwood Manor South home.

Lynnwood’s Alderwood Manor Neighborhood

Blog, Home Buyer, Lynnwood April 3rd, 2023 David Haley

Alderwood Manor is a popular and rapidly growing neighborhood in Lynnwood, Washington. As of the 2020 Census, it’s home to just over 5,100 people.

Known for quiet streets and a secluded feel, this enclave of generally spacious homes is only half an hour’s drive north of Seattle, and adjacent to the lively commercial areas around Alderwood Mall.

Homes

The roomy homes around Alderwood Manor fetch a moderate to high price per square foot, in keeping with other desirable spots in Snohomish County.

Owner-occupied single-family homes are the norm. Houses aren’t often for rent, although there is only one large apartment complex in the neighborhood.

As you’ll find throughout Lynnwood, prices are changing quickly as more people seek to settle here.

Education

The well-regarded Edmonds School District serves Alderwood Manor and several adjoining areas. Most local families attend Lynnwood or Spruce Elementary School, Alderwood or Meadowdale Middle School, and Lynnwood or Meadowdale High School.

Some parents also opt for one of several private schools within about 5–10 miles of the neighborhood.

Transportation

Like most of Lynnwood, Alderwood Manor is roughly halfway between Seattle and Everett.

The neighborhood has good freeway access, being just minutes west of the I-5/I-405 interchange. Immediately southwest of Alderwood Manor, an upcoming light rail station will give locals a great option to leave town—and leave their cars behind.

Recreation

Close to home, residents can enjoy the fresh air and greenery at Pioneer Park. Dozens of other parks, trails, and green spaces are also accessible within a few miles’ drive.

Seattle’s big-city amenities and Everett’s burgeoning cultural scene are both readily accessible, while outdoorsy types enjoy easy access to the Cascades via Highway 2.

Moving to Alderwood Manor in Lynnwood

It’s easy to see why so many out-of-towners opt for Alderwood Manor, and why plenty of Lynnwood locals hope to own their first house here.

If you’d like to call it home, too, then here are three tips for an easy transaction and transition.

1. Don’t be scared!

Remember that a big part of your agent’s job is to help you stay on top of all those moving pieces!

2. Find a local expert to guide you

Speaking of agents, it’s essential to find someone who knows Alderwood Manor and its vicinity like the back of their hand.

Agents who can fill out paperwork are a dime a dozen, but there’s no substitute for the street-by-street knowledge of someone who actually lives and works in the Lynnwood area.

3. Talk to lenders & get pre-approved

Before doing anything else, it’s important to consult a lender and have a mortgage pre-approval in hand.

This will let you move quickly and make a successful offer—fingers crossed!—once you’ve found the ideal Alderwood Manor home.

						From our first conversation it was clear that David is experienced and passionate in his work. Throughout the process, he provided responsive and transparent communication, along with patient, thorough explanations to questions big and small.  I enthusiastically recommend David and his team to anyone, especially first-time homebuyers looking to demystify the process!			
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H. B.		7/01/2025
						David constantly and consistently goes out of his way to make sure you're up to speed on  everything that is happening in this tedious process. No matter the time of day/night, he will sit down with you and make sure you know what's happening. He is very knowledgeable and communicates very effectively with both his team and customers. I felt like he and his team made our home buying process as easy as it could possibly be.			
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K. P.		6/30/2025
						David Haley is amazing! We were working with a mortgage broker before David that unfortunately had no idea what they were doing. They tried twice to close and couldn't figure out how to communicate with the HOA to get the appropriate docs to close on time. David came in and gave us a better mortgage option, provided better communication, and we are set to close next week. Thank you David for getting this done, educating us and providing a great experience.			
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A. E.		6/13/2025

						David was so great and knowledgeable in every step when buying our house! He explained so much with a lot of detail to really help us as homebuyers understand everything during the process! He made it so easy, definitely will be using him again in our next home buying experience :)			
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s. g.		5/11/2025
						Great team that explain things very well so you are never confused on what’s going on.  10/10 experience!			
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J. G.		5/08/2025
						Incredible team! Jan and David were amazing in helping my wife and I with the purchase of our second home. They walked us through every step and made the entire process as smooth and stress-free as possible. We couldn’t be more grateful — highly recommend working with them!			
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H. J.		4/15/2025

Benefit for First-Time Homebuyers: The Mortgage Insurance Deduction

Clarity for Future Planning: The Mortgage Interest Deduction

Why Legislative Stability Matters

Step-by-Step Closing Process

Loan Approval and Clear-to-Close

Establishing Escrow

Title Search and Insurance

Contingency Removals

Delivery of Closing Disclosure

Final Walk-Through

Signing of Documents

Funding and Recording

Closing Costs in Washington State

2025 Legislative Updates

Covenant Homeownership Program Expansion

Preparing for Closing

Summary

Homes in Mountlake Terrace

Education

Recreation

Tips for Moving to Mountlake Terrace

Homes

Education

Transportation

Recreation

Moving to Alderwood Manor South in Lynnwood

1. Don’t be scared!

2. Find a local expert to guide you

3. Talk to lenders & get pre-approved

Homes

Education

Transportation

Recreation

Moving to Alderwood Manor in Lynnwood

1. Don’t be scared!

2. Find a local expert to guide you

3. Talk to lenders & get pre-approved

Schedule a Consultation