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Spring Into Your New Home

by Galand Haas

Good Monday Morning!

If you are considering the purchase of a home soon and you have been waiting for mortgage interest rates to drop, this could be your time to act.  Mortgage interest rates are down across the board and they may stay down for several months.  If you have been waiting for a window to buy, this is it. Lower rates mean lower payments and also can increase purchase power.  With Spring coming and more homes due to hit the market, the next couple of months could be the best time to purchase a home this year.  The following article is from "Realtor.com" and it talks about the current mortgage loan market.

Rates for home loans fell, with no bottom in sight as investors increasingly brace for slowing economic growth.

The 30-year fixed-rate mortgage averaged 4.28% in the March 21 week, mortgage guarantor Freddie Mac said Thursday. That was down 3 basis points during the week and a 13-month low for the popular product, which has managed a weekly gain only twice during 2019.

The 15-year adjustable-rate mortgage averaged 3.71%, down from 3.76%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.84%, unchanged during the week.

Fixed-rate mortgages follow the benchmark U.S. 10-year Treasury note, although they move with a bit of a lag. Investors have been piling into bonds over the past week, betting on a more dovish stance from the Federal Reserve.

That turned out to be the right call. After the release of the central bank’s statements, bond prices jumped, pushing yields down sharply. Freddie’s weekly mortgage survey captures activity through Tuesday, so the big bond market moves of this week will likely be reflected in mortgage rates next week.

This may be the sweet spot for borrowers. Lower rates are obviously a boon for the housing market, which has struggled in the face of a supply crunch, rising prices, and outsize demand. But the economy hasn’t slowed enough that people are losing their jobs. Americas are still showing signs that they want to try to become homeowners. Mortgage applications rose 1.6% over the past week as rates drifted down, the Mortgage Bankers Association said Wednesday.

But few of the other obstacles have been resolved. The average mortgage application size hit a fresh high for the third week in a row as the supply of entry-level homes dwindled, the MBA said. The upcoming spring selling season will be watched very closely for clues about how the market is doing.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2230 Comstock Ave  

Price: $575,000    Beds: 4    Baths: 4.5    Sq Ft: 2904 

Builder's home with only one owner. Quiet park-like backyard. Master with his/hers sinks, jetted tub, large dual head shower, private camode, walk-in closet, two sided/see-through fireplace. Upstairs hall closet laundry plus a full laundry room area...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Oregon Legislature Discussion

by Galand Haas

Good Monday Morning!

The Eugene, Springfield area and the entire State of Oregon is heading in direction that is very dangerous for homeowners.  The Oregon legislature has recently passed legislation that has put some strict rent control measures into effect.  Over time, this alone will create increases in rent rates.  But, the most dangerous legislation is now being talked about by the Oregon legislature.  Our representatives are discussing massive property tax increases and at the same time looking at removing some of the property tax safe guards that have aided in keeping property taxes under control in the past.  This is a dangerous road for Oregon to go down, because rental rates are already extremely high in many areas, including the Eugene/Springfield area.  Any property tax increases are going to be passed right on to the renters and this will lead to rents that spiral out of control over time.  It will also lead to fewer investors who are willing to build, purchase or retain rental properties.  Property tax increases put a squeeze on the rental inventory as well and again this leads to higher rental rates.  How does this effect the housing market?  We already have a housing crisis in the Eugene/Springfield area, where home prices have risen sharply over time and now there are few homes available that are in the price range suitable for first time homebuyers.  This has been caused by an enormous increase in land prices due to the County and City governements refusal to expand urban growth boundaries, higher labor costs, increased building material costs and already high property taxes.  Now you increase property taxes by and estimated 20% to 30% or more and you have just wiped out the potential for most first time buyers to ever purchase a homein our area.  At the same time as the home prices have increased, so have rents.  This creates a situation where would be first time home buyers are paying so much for rent that it is almost impossible for them to save enough money for a down payment and closing costs for a home.  The first time home buyer market also fuels the rest of the housing market.  This situation will have enourmous effects on our overall local housing market.

Is this what we want for Oregon and the Eugene/Springfield area?  It is dangerous road to be on and it is one that once you go down it, there is little chance of turning back.  It can lead to long term depression for our area and even worse it can lead to a situation to where young people and young familes can't afford to live in our community.  It also puts extreme pressure on retired people and those with fixed incomes.  If you are interested in stopping this potentially harmful legislation, then I suggest that you contact your state representative and voice your opinion right away.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

24542 Bolton Hill  

Price: $949,000    Beds: 4    Baths: 3/1    Sq Ft: 3700 

Stunning estate w/ amazing valley view! Enjoy beautiful sunsets & sunrises over Fern Ridge Lake & Three Sisters mountains from a serene & private hillside. Oak & hickory hardwoods, marble & porcelain tile. Master suite. Bonus rm w/ balcony, office & wet bar. Outdoor fireplace/pizza oven, patios, 5-car attached garage, covered RV parking, 6-car shop. Merchantable timber...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Mortgage Loan Options

by Galand Haas

Good Monday Morning!

There are many mortgage loan option available today and choosing the one that is best for you is important.  One of the key things that you must consider if you are in the market to purchase a home and in need of a mortgage loan, is how much money do I need to have for my down payment and how much money should I put down.  Here is an article form "Realty Times" that give you some great information on down payments.

You'd be a homeowner right now if it weren't for one thing: the down payment. Right? Even for those who have decent credit and make good money, the down payment is often the great homeownership killer.

For many others, who do have enough money set aside to make a substantial down payment, the question is: how much? Conventional wisdom—not to mention most of the banks and a good portion of homebuying and financial experts—will tell you that 20 percent is the standard bearer when it comes to down payments. But is it really necessary to put 20 percent down?

The short answer is: no.

Now for the long answer.

"Raising a 20 percent down payment isn't an easy thing to do. Fortunately, you don't have to. "It's a myth that all homebuyers must have a 20 percent down payment to buy a home," says Nancy Herrera-Siples, a Riverside, Calif., branch manager at Primary Residential Mortgage on U.S. News. "So why do you constantly hear that you need to put 20 percent down? Because if you don't, it usually means you'll have to shell out money for either private mortgage insurance or government insurance, which is usually financed by the Federal Housing Administration (FHA)."

And there's another rub for those who are already struggling to come up with the minimum down payment: that extra couple of hundred dollars per month feels like a penalty. It's not, of course—"Mortgage insurance protects the lender in case you can't make your payments and the house is foreclosed on," said U.S. News—but that money can make a significant difference for those who are stretching to buy a home.

Still, when your only option to buy is a low down payment, which can mean an FHA loan or one of the new low down payment loans from Freddie Mac and Fannie Mae—"At the end of 2014, the two government-backed companies announced plans to slash down payments from 5% to 3%," said CNN—PMI might literally be a small price to pay. Especially if swelling rents are making homeownership look more and more promising. Remember that PMI does go away eventually when your loan balance is 80 percent or less of the home's value. If you're in an area where homes are rising in value, this could happen sooner than you think.

Still confused about the ins and outs of down payments? Here are a few reasons to go high…or low.

When to make a substantial down payment

  • When you're looking to keep your monthly payment as low as possible and have cash to spare
  • When you just can't fathom paying PMI
  • When your goal is to buy a forever home and own it free and clear
  • When you are approaching retirement age and can envision a reverse mortgage sometime down the line
  • When you want to buy your house and pay it off as quickly as possible
  • When the rate is lower with a higher down payment. "The more you put down, the better position you are in for negotiating a lower interest rate with your lender," said Credit.com. Plus, a "low down payment might affect other loan features, such as…the points, which are upfront interest charges," said Banking My Way.
  • If you're worried about being under water. If the market should drop in your area, you run the risk of owing more than your home is worth


When to go low

  • When you don't have the funds for a higher down payment and can't earn or borrow them quickly enough
  • When the rate on your FHA or Fannie or Freddie loan is comparable to that you'd get with a higher down payment
  • When you need to escape a high-rent situation and the monthly payment on a house is lower than what you're currently paying, even with the PMI factored in
  • When you're confident your home will appreciate quickly, allowing you to refinance and get rid of PMI quickly
  • When your investments can't be touched without a penalty or are returning better than the interest rate you'll get on your home
  • If you have something better to do with the money. "If you bought a $400,000 home, 5% down would be $20,000, while 20% down would be $80,000—a whopping difference. An immediate need such as a college tuition payment would make the smaller down payment more appealing," said Banking My Way.
  • When you feel more secure setting money aside for emergencies instead of tying it all up in your house.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2230 Comstock Ave 

Price: $575,000    Beds:4     Baths: 3.5    Sq Ft: 2904

Quiet park-like backyard. Master with his/hers sinks, jetted tub, large dual head shower, private camode, walk-in closet, two sided/see-through fireplace. Upstairs hall closet laundry plus a full laundry room area. Guest bedroom with murphy bed set in beautiful cabinetry can double as bonus area... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Inspections 101

by Galand Haas

Good Monday Morning!

If you are purchasing a home, the home inspection is an integral part of this process. To protect your best interests, having the home you are purchasing inspected first can give you a look at the condition of the home and may save you from purchasing a home with unknown issues.  My advice to my clients is to never make a home purchase blindly and without having an expert look at all of the homes components.  Here is an article form Realty Times that gives you go information on home inspections.

If you're hiring someone to inspect the home you want to buy, or you're a seller trying to find out if there are any hidden problems that need fixing before you put your home on the market, here are five things you need to know:

1. You can choose your home inspector.

Your real estate professional can recommend an inspector, or you can find one on your own. Members of the National Association of Home Inspectors, Inc. (NAHI), must complete an approved home inspector training program, demonstrate experience and competence as a home inspector, complete a written exam, and adhere to the NAHI Standards of Practice and Code of Ethics.

2. Home inspections are intended to point out adverse conditions, not cosmetic flaws.

You should attend the inspection and follow the inspector throughout the inspection so you can learn what's important and what's not. No house is perfect and an inspection on any home is bound to uncover faults. A home inspector will point out conditions that need repair and/or potential safety-related concerns relating to the home. They won't comment on cosmetic items if they don't impair the integrity of the home. They also do not do destructive testing.

3. Home inspection reports include only the basics.

A home inspector considers hundreds of items during an average inspection. The home inspection should include the home's exterior, steps, porches, decks, chimneys, roof, windows, and doors. Inside, they will look at attics, electrical components, plumbing, central heating and air conditioning, basement/crawlspaces, and garages.

They report on the working order of items such as faucets to see if they leak, or garage doors to see if they close properly. Inspectors may point out termite damage and suggest that you get a separate pest inspection. The final written report should be concise and easy to understand.

4. Home inspectors work for the party who is paying the fee.

The NAHI Standards of Practice and Code of Ethics clearly state that members act as an unbiased third party to the real estate transaction and "will discharge the Inspector's duties with integrity and fidelity to the client." A reputable home inspector will not conduct a home inspection or prepare a home inspection report if his or her fee is contingent on untruthful conclusions.

The inspector should maintain client confidentiality and keep all report findings private, unless required by court order. That means it is your choice whether or not to share the report with others. If you're a seller, you don't have to disclose the report to buyers, but you must disclose any failure in the systems or integrity of your home.

5. Inspectors are not responsible for the condition of the home.

Inspectors don't go behind walls or under flooring, so it's possible that a serious problem can be overlooked. Keep in mind that inspectors are not party to the sales transaction, so if you buy a home where an expensive problem surfaces after the sale, you won't be able to make the inspector liable or get the inspector to pay for the damage. In fact, you may not be entitled to any compensation beyond the cost of the inspection.

As a buyer, you need the home inspection to decide if the home is in condition that you can tolerate. You can use the report to show the seller the need for a certain repair or negotiate a better price. You can also take the report to a contractor and use it to make repairs or to remodel a section of the home.

One thing you should not do when buying a home is skip having the home inspected because of cost or undue pressure by the seller. A home inspection is reasonable, it can save you money in the long run, and it's required by many lenders, particularly for FHA loans. There's a reason why buyers should beware, and a home inspection gives you the information you need to make a sound buying decision.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

39285 Upper Camp Creek Rd  

Price: $950,000    Beds: 5    Baths: 3    Sq Ft: 3520

New Construction. this home is sure to impress. Open Living, Dining, & Kitchen. Great for entertaining. Master suite with walk-in closet and master bath. Two additional bedrooms are on opposite side of house. This home includes a Laundry room and a ...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Photo of Galand Haas Team  Real Estate
Galand Haas Team
Keller Williams Realty Eugene and Springfield
2644 Suzanne Way
Eugene OR 97408
Direct: (541) 349-2620
Fax: 541-687-6411

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