Interest Rates on the Rise?

For the last couple of years, home buyers have benefitted from an affordable combination of lower home prices and lower interest rates. But if you’ve been on the fence about buying a home, or waiting for even better buying opportunities, now might be the time to give us a call to see if buying today makes sense for your individual goals and needs. Even though the government’s popular Home Buyer’s Tax Credit expired on April, 30, 2010, this is still a good time to act, as home affordability is likely to get worse before getting better. Ever since the Federal Reserve’s program to help lower home loan rates and stabilize the housing sector ended in March, 2010, after purchasing a reported $1.25 Trillion in Mortgage Backed Securities, the mortgage market has been very volatile. And despite fluctuations, rates remain goo d overall; but, as the Federal Reserve sells off some of its huge holdings, supply in the market will increase, and likely lead to higher rates. Don’t wait until higher rates force you out of the market.

Learn About The First-Time Homebuyer’s Credit – Video

In November, 2009, the federal government extended and expanded the popular First-Time Homebuyer’s Credit. It lets you trim your tax bill by up to $8,000. Sign a contract to buy a home before April 30, 2010 and then close on it by June 30, 2010 and you can claim the credit on your 2009 or your 2010 tax return.

Learn About The First-Time Homebuyer’s Credit

Tax breaks on short sales

Suzie Orman talks about tax relief you are entitled to when you sale through a short sale. In the video it is discusses that you do not owe income tax of the loan forgiven…

Special Offer – HomePath pays buyers closing costs

Closing Cost Assistance and Appliance Incentive for Fannie Mae Homes

Fannie Mae is offering a 3.5% incentive* for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties listed on this site that are closed within this period may receive up to 3.5% of the final sales price for:

• Closing costs;
• The purchase of new Whirlpool® appliances by Fannie Mae; or
• A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%.

To be eligible for this incentive:

• Offers must be accepted on or after January 28, 2010
• Property sales must close before May 1, 2010
• Buyers must be owner-occupants, investors are excluded

To see a list of Fannie Mae Foreclosed properties Click Here

*Lenders may impose their own limitations on the use of the 3.5% incentive, so buyers should consult their lenders for guidance.

Portland Foreclosure List

Join the Portland Foreclosure List and get updates each week about local homes that are in or going to be in foreclosure. It’s free to join!

Greg Messick is a Real Estate Broker with RealtyNET, who understands investment properties. Each week he will send you a list of foreclosures, as well as other good investment properties. You can contact him directly at 503-770-0580.

Join the Portland Foreclosure List!

Portland Oregon

Portland is big on livability, big on visit-ability, and is very accessible.

Maybe you’ve heard that the city of Portland, Oregon, has been proclaimed as North America’s “Best Big City,” according to Money magazine. One visit will explain why. Come take a first-hand look at the region’s natural beauty, its bustling local scene, our seasonally focused dining and our welcoming accommodations – much of which can be accessed via the region’s convenient and eco-friendly light-rail system. You’ll soon understand why so many visitors flock here year-round.

Lincoln High School

Lincoln High School, known as Lincoln, is a public high school located in the Goose Hollow neighborhood of Portland, Oregon, United States.

With an initial enrollment of 45 students, the school was established in 1869, making it one of the two oldest public high schools west of the Mississippi River (the other is San Francisco’s Lowell High).^[4] It was originally named Portland High School; the name was changed to Lincoln High School in 1908. The school once occupied the five-story building now housing Portland State University’s Lincoln Hall.^[5]

In 2006, the school was one of seven in Oregon ranked among America’s 1,200 best high schools (based on Advanced Placement, International Baccalaureate, or Cambridge test scores) by Newsweek.^[6] In 2008, Lincoln was voted 2nd out of all 261 of the public high schools in all of the state of Oregon, having the School of Science and Technology from the Beaverton School District in 1st place.^[7]

Lincoln is a part of the International Baccalaureate (IB) program, and has averaged roughly 38 successful IB diploma candidates over each of the past three years from 2009.^[8]

St. Mary’s High School

St. Mary’s Academy is Oregon’s oldest continuously-operating secondary school. A nationally recognized school of excellence, St. Mary’s is an established Catholic all-girls college preparatory high school that readies students for the future. We invite you to review our Profile of Distinction.

With a 150-year tradition of educating young women, St. Mary’s continues to serve a diverse school community and offer a challenging academic program which fosters the development of the whole person. St. Mary’s is large enough to provide a wide variety of experiences yet small enough to focus on the individual needs of each and every student.

In a nurturing and supportive environment, the faculty and staff challenge students to exceed their potential and provide them with skills, strength, and resources to meet those challenges.

St. Mary’s twelve pioneer Holy Names Sisters’ vision for the future, determination, and spirit of sacrifice made it possible for St. Mary’s to shape the lives of more than 10,000 young women since 1859.

Harvard Graduate School of Education research found young women attending an all-female high school exhibit greater educational and personal gains than in co-educational schools.

St. Mary’s provides a solid spiritual foundation through its four-year religion curriculum, campus ministry program, retreats, and service opportunities. The curriculum provides students with an understanding of human development, Catholic Christian theology, world religions, ethics, and social justice.

The Campus Ministry Department sponsors activities that nurture spiritual growth and development. Students are encouraged to actively participate in all-school masses and weekly liturgies. Staffed by St. Mary’s faculty and alumnae, the Junior Encounter and Senior Metanoia focus on improving relationships between self, others, and God. These spiritual retreats provide a time for reflection and valuable insight for making life decisions.

The St. Mary’s family of students, parents, faculty, and staff work together to give time, talent, and service to the greater Portland community. Programs such as Hands Full of Heart, Holiday Food Baskets, tutoring at St. Andrews Nativity School, serving the homeless at St. Francis Dining Hall, and elderly outreach with Friends Across Generations exemplify St. Mary’s call to service.

St. Mary’s – unlike other private schools – does not require its students to take part in community service projects. By making service voluntary, St. Mary’s encourages students to see service as part of their lives not as an obligation to receive their diplomas.

Designed to meet the needs of young women in today’s challenging and diverse world, St. Mary’s offers a variety of opportunities to explore and give back to the community.

St. Mary’s is an environment rich in values and grounded in the Catholic tradition where each young woman can develop her individual potential. The liberal arts curriculum is designed to provide a comprehensive and world-centered academic program focused on preparing students for higher education.

St. Mary’s urban setting in downtown Portland enhances the school’s curriculum with unique access to enriching educational and cultural opportunities. Situated within a few blocks of Portland State University, Portland Art Museum, Oregon History Center, Multnomah County Central Branch Library, and the Portland Center for the Performing Arts, St. Mary’s draws upon a wealth of resources which complement the classroom experience.

Students at St. Mary’s discover that education is the result of study, hands-on experience, and a personal desire to seek out knowledge and new challenges.

With a faculty dedicated to each individual student, teacher advisors follow academic progress and social development throughout each student’s education at St. Mary’s.

Honored three times with the U.S. Department of Education Blue Ribbon Schools Program award, St. Mary’s represents the highest standards of teaching, curriculum, student activities, and service in the nation.

St. Mary’s Academy views athletics as an extension of the classroom where students learn the values of hard work, determination, and cooperation, while developing their talents as athletes. As a member of the Oregon School Activities Association (OSAA), St. Mary’s competes in nine 6A level sports – cross country, soccer, volleyball, basketball, swimming, golf, tennis, and track & field – in the Mt. Hood Conference. St. Mary’s Blues teams also compete in four club sports – alpine and nordic skiing, lacrosse, and dragon boat racing.

Many of the state’s finest female athletes developed their skills while at St. Mary’s. The all-female environment allows girls to thrive in the spirit of competition. Many former St. Mary’s student-athletes are now coaches and share the pride, inspiration, and commitment to the winning history of the school.

St. Mary’s Academy has won 15 OSAA state championships in five different sports. In addition, the Blues have won four academic state titles, twice winning the OSAA POWERADE Scholar Athlete Award for having the highest percentage of graduating seniors earning a 3.50 cumulative G.P.A. and a varsity letter in a 6A OSAA sanctioned sport. At the conference level, St. Mary’s teams have earned 53 titles, 41 as members of the Metro League and twelve in the Mt. Hood Conference.

At St. Mary’s teamwork, leadership, personal growth, and social opportunities are encouraged both on and off the playing fields.

 

Understanding Private Mortgage Insurance

If you have bought a home in the past, or are considering buying a home, condo or townhouse, then you have probably heard the term Private Mortgage Insurance or PMI.

PMI is an insurance product sold by some private insurance companies. PMI protects a lender in case a homebuyer does not or cannot maintain payments on their home loan or mortgage. In other words, PMI protects lenders from loss if a buyer defaults on their loan.

If you are getting a loan to purchase a home or other real estate, most lenders prefer that you put 20% of the purchase price as a down payment. However, not all homebuyers have that amount of money available for a down payment. It is not uncommon for buyers to only put 15% down, or 10% down, or 5% down, or in some cases, no down payment is applied, and the lender provides 100% financing.

To protect the lender’s interests in situations where the down payment is less the 20%, the lender will usually require a borrower to pay for PMI so that the lender is covered in case the borrower later defaults on the loan. The premium charged by insurance companies for PMI is usually a percentage of the loan amount. The premium is normally rolled into the borrower’s mortgage payment. While PMI increases a borrower’s monthly payment, it does help them get a home loan that they may not otherwise be able to obtain.

As an alternative to PMI, many lenders offer two loans to reach the amount of money needed by a borrower. For example, a borrower may obtain a first mortgage for 80% of the loan amount, and a second mortgage for 20% of the loan amount, which totals 100% financing. Borrowers must meet credit, income and debt requirements to be eligible for these types of loans.

Homebuyers should remember that PMI protects only the lender and not the homebuyer. If a borrower does not maintain payments on a mortgage, the lender will mostly likely initiate foreclosure proceedings.

Be sure to shop various lenders to identify the best loan program for your particular situation.

Tips For Home Buyers

This page is designed to give homebuyers a general idea of the steps involved in buying a home in Portland Oregon. While the statements below usually apply, there are circumstances in which these statements are not relevant or parties have reach an agreement that does not include one or more of the steps below.

What is a Buyer’s Agent?

If you are considering buying a home, townhome, condo or any other type of real estate, then you will most likely interact with a real estate agent. So who are these agents and whom do they represent? In most home sales, there is an agent who represents the seller, and in many cases there is an agent who represents the buyers. The goal of the seller’s agent is to get the seller the best price and terms possible on the sale. The goal of a buyer’s agent is to get the buyer the best price and terms possible. Buyers should know that when they call a phone number listed on a For Sale sign or visit in an Open, they are most likely dealing with the seller’s agent. Again, the goal of the seller’s agent is to get the highest price and best terms possible for the seller. The seller’s agent does NOT represent your interest. In contrast, a buyer’s agent usually has no affiliation with the seller or their agent, and is motivated to represent your interests only!

What’s This Going to Cost Me?

Nothing! While most buyer’s agent represent your interest, the seller actually pays them when the property sells. The good news for buyers is that while you get the benefits of professional representation, the seller usually pays for the buyer’s agent. Be sure to check with your buyer’s agent that there will be no fees charged to you for their services.

How Exactly Does a Buyer’s Agent Paid?

When a seller decides to put the home on the market for sale, they often hire a real estate agent to represent them. Sellers negotiate a total amount of commission to be paid for both their agent and the agent who brings in the buyer. When a home closes escrow, the seller pays both the seller’s agent and the buyer’s agent.

What Are The Steps to Buying a Home?

There are many steps involved in buying a home, condo, or any other type of real estate:

1. What Do You Want?

   Having a clear idea of exactly the type of property you want can save you a lot of time. If you are considering buying a home or condo, try to anticipate the number of bedrooms and bathrooms you need, the square footage, the size of the yard, price range, etc. The more focused your home search, the faster the process will likely be.

2. Find a Real Estate Agent.

   A good agent can help you throughout the home buying process. From finding the prefect home, to helping you obtain a loan, to guiding you throughout the many steps involved in buying real estate, a good agent can save you time and money.

3. Get a Pre-Approved For A Loan.

   Getting a loan can be a complicated process. Borrowers have to determine which loan is best for their unique situation. Buyers need understand factors such as the pros and cons of adjustable vs. fixed rate loans, how credit scores can impact interest rates, how a down payment can influence monthly payments, etc. Borrowers have many options when it comes to getting a home loan, and rates vary between banks so it’s best to get multiple quotes. Your bank and real estate agent can provide you with information about reputable loan organizations. Once you decide on a bank, ask them to review your financial information and provide you with a Pre-Approval or Pre-Qualification letter. You will need this document prior to submitting an offer on a property. Get Pre-Approved.

4. Earnest Money Deposit.

   Before a buyer can make an offer, they should ensure that they have some funds available to put toward a deposit. This deposit is known as an earnest-money deposit or a good-faith deposit. The deposit shows to a seller that a buyer is serious about purchasing the property. When a buyer makes an offer, they usually need to specify in the offer the amount of deposit the buyer will give to the seller if the offer is accepted. While there are no rules regarding the amount of a deposit, not surprisingly, larger deposits carry more weight with sellers than smaller deposits. Deposits in the range of 1% to 3% of the purchase price are not uncommon in Portland Oregon. If the offer concludes in a purchase, then the deposit amount is applied to either the buyer’s down payment or toward buyer’s closing costs (see below for a discussion about closing costs). The actual deposit amount is usually held in trust by either the seller’s agent, buyer’s agent, or by the Escrow Company. The deposit amount can be forfeited to the seller if the buyer does complete the purchase or cancels the contract without legitimate and legal reason for doing so. The buyer’s real estate agent should advise them about situations that allow a buyer to withdraw or cancel a sales contract and still get their deposit back.

5. Closing Costs.

   In addition to the earnest money deposit mentioned above, buyers should also have sufficient funds to cover fees known as closing costs. Closings costs are fees charged by third parties involved in the sale or purchase of a property. Some of these fees are customarily charged to homebuyers and others fees to home sellers. These fees are in addition to the sales price of the home. Some of these third-party fees include lender charges, escrow, survey, appraisal, title search, title insurance, survey, property taxes, attorney, credit report, mortgage insurance, deed recording, etc. It’s not uncommon for the buyer’s portion of closing costs to be 3% or more of the sales price of the home. Your lender can give a good estimate of likely closing costs for your home’s sale price. Closing costs are usually paid on the day of closing, which is the end of the escrow period. In some cases, buyers are able to negotiate with the seller to pay all closing costs.

6. Search For Homes.

   The Internet has become the primary method by which people search for homes. Do a query on any of the search engines for homes, condos, or other real estate in the communities that interest you. You should be able to easily find web sites that provide you access to all the MLS listings (i.e. real estate for sale) that meet any criteria that you specify. You can also ask your real estate agent to program the MLS so that you automatically receive email descriptions of properties that meet your criteria as they come on the market. Search the MLS.

7. Visit Homes.

   Seeing homes on the Internet gives you a general idea about a property, but there is nothing more useful than actually seeing homes in person. Send a list of properties that you want to see to your real estate agent. Your agent can then call the sellers agents’ and make an appointment for you and your agent to see the home. Request Appointment To See a Home.

8. Make an Offer.

   So you found a home that you like and you’re read to make an offer. What’s next? Your real estate agent is key at this point. They should review recent sales in the community to help you determine a fair offer price. They will also prepare the contract documents that are required to communicate your offer to the seller’s agent. The seller’s agent will deliver and review the terms of your offer with the seller. In most cases, sellers usually do not accept the first offer, but typically come back with a counter-offer in which they propose an alternate sales price or terms. It’s not uncommon for buyers and sellers to go back and forth proposing alternate prices until both parties agree of price and other terms.

9. Escrow.

   A process known as escrow begins once a written offer is accepted by both parties, Escrow is an independent and impartial third party company that processes documents and funds so that the property being sold successful transfers from the seller to the buyer. In Oregon, there are Escrow Companies who provide this service for buyers and sellers. Depending on the terms negotiated with the seller, a typical escrow takes between 30 to 60 days. The property transfers from the seller to the buyer at the end of the escrow period, which is also known as ‘closing’ escrow or just ‘closing’. There are many things that need to occur during the escrow period, which include:

   • Lender Documents.

     Once an offer is accepted, there are many documents that the lender will require to process and approve the loan. The pre-approval or pre-qualification letter mentioned above is just the initial step to getting a final loan approval. Most lenders usually require additional documentation such as pay stubs, W-2s, tax returns, etc. Buyers are well served to send these documents to the lender within the first few days after the offer is accepted. This is especially true when is escrow period is only 30 days, when the time to process, approve and fund the loan is so compressed.

   • Inspections.

     Once an offer is accepted, a buyer usually has a specific agreed-upon time in which to conduct any inspections. Buyers usually hire a home inspector to evaluate the condition of a home and a termite inspector. There are many other types of inspections that your real estate agent can tell you more about. Most of these inspections are conducted at the buyer’s expense. If the inspections reveal information that is concerning to the buyer, the buyer can usually cancel the contract, ask the seller to make repairs, or ask for a price reduction consistent with the repairs required. The buyer’s real estate agent can advise them about their options.

   • Appraisal.

     Most lenders will require an independent evaluation of a property’s value before approving a loan. Appraisers perform this function. While appraisers consider many factors when determining the market value of a home, two important factors are recent sales price of similar homes in the same neighborhood, as well as a home’s condition. A lender will usually only approve a loan if the appraisal value is at or above the negotiated sales price. If the appraisal value of a home is less than the negotiated sales price, most lenders will require the buyer to pay difference out of pocket or request that the seller reduce the sales price (if the seller is willing). If either of these actions are not possible, then the lender will most likely disapprove the loan and the transaction will likely cancel. A good real estate agent will advise their buyer about the market value of a home so that problems with an appraisal value are unlikely.

10. Closing Day.

    This is the day during which the buyer and seller sign all the documents to initiate transfer of the property from the seller to the buyer. The lender also transfer funds to the seller’s account on this day, and the escrow company records the transfer of ownership with the appropriate governmental authority. All these steps result in the buyer becoming the new owner of the property with the lender having a lien interest.