Winter is coming….

I know I’ve mentioned it before, but it’s worth sharing again. Let’s talk about how homebuying can be favorable in the wintertime.

Q4 Housing Outlook

Late Fall and Winter is a favorable time to look at houses! Learn more by watching this short video.

FHA Loan Refresher

I think there is a good chance that FHA loans are going to be utilized more in the coming years. Watch this video to learn more about what an FHA loan is and how it may benefit you.

2020’s Housing

It’s a new year and a new decade! In this video I review the Portland, Oregon housing statistics and what we should expect to see over the next 10 years. Hint, hint…. home-ownership rates and housing demand will likely increase!

Questions, comments? We would love to hear from you!

Should I buy or rent?

Tired of paying rent and wondering if homeownership is right for you?  There is no doubt that owning your home can significantly improve your financial standing in the long-term.

In fact, a recent survey showed that homeownership was a greater predictor of net worth than age or education (see HERE).

In this video I talk about some of the benefits and risks of owning a home:

If you’d like to learn about your options for buying a home in a no pressure environment please contact me today to schedule an initial conversation.


6 home loan details to prepare prior to making an offer

Have you found the home you love and now you’re ready to make an offer?  There are six details you should be prepared to communicate to your Realtor to insure the transaction goes smoothly.

Watch this short video to learn what they are:

If you are wanting to work with a lender that is dedicated to delivering home loans without surprises please contact us today!


How home affordability is impacted by higher mortgage rates


As you may be aware mortgage rates are on the rise which is negatively impacting home affordability.

Over the past five weeks average fixed rate home loan rates have increased by ~.50%.  Many analysts think that rates will continue to rise for the remainder of the year.

How much does higher interest rates impact home affordability?  Take a moment to watch the video below for an explanation.

A .50% increase to mortgage rates effectively translates to a +6.3% increase to home prices.

In other words, a +.50% increase to interest rates for a conventional 30-year fixed rate mortgage has the same impact on monthly payments as if interest rates were unchanged and homes were 6.3% more expensive.

If rates should increase by an additional .50% over the remainder of the year this would make homes ~12% more expensive even homes don’t appreciate as a result of the basic tenets of supply and demand.

Given that many analysts think both mortgage rates and home prices are expected to increase for the remainder of 2018 it may be significantly less affordable to buy a home in the future than it is today.

Are you curious to learn about the options you have to purchase a home today?  Contact us for a no obligation review.

Countdown to expiration of the first-time homebuyer credit

The Portland Business Journal kindly reminded me this morning that the $8,000 first-time homebuyer credit is set to expire November 30th.  November 30th is exactly 80 days away from today.  If you figure that most closings are taking about 45 days then that leaves homebuyers 35 days to find a home and reach an agreement with a seller.

There have been rumors regarding an extension of the first-time homebuyer credit but nothing yet has passed congress.  Last I heard there was a proposed bill but it had stalled out in a committee.

Cost of waiting to buy a home

As I’ve told many people the stars are currently aligned for first-time home-buyers.  Grant it, there is a lot of uncertainty and anxiety amongst US workers right now and if the potential for job loss is high it would NOT be a good plan to buy a home.

However, for those who feel secure in their jobs and have been waiting for prices to fall it is a good idea to start getting serious.  After all, mortgage rates for loans requiring only 3% down remain very attractive and I believe homes in Portland have become much more affordable over the past few months.

But if that isn’t enough to convince you consider the cost of waiting.  I actually got this example from a book I recently read entitled “Borrow Smart Retire Rich”.

The table below illustrates the savings an individual will make over a 4 year period assuming they can save $4,000 per year   We’ll assume that their savings earns 8% annually:

Year Value Change
0 $ 4,000.00 n/a
1 $ 8,320.00 $ 320.00
2 $ 12,985.60 $ 985.00
3 $ 18,024.45 $ 2,024.00
4 $ 23,466.40 $ 3,466.00

Conversely, here is a table that illustrates the cost of waiting. Here’s how much a $200,000 home will appreciate over the next 4 years assuming a 4% appreciation rate:

Year Value Change
0 $ 200,000.00 n/a
1 $ 208,000.00 $ 8,000.00
2 $ 216,320.00 $ 16,320.00
3 $ 224,972.80 $ 24,972.00
4 $ 233,971.71 $ 33,971.00

As you can see over a 4 year period even though the individual was able to save $23,466 towards a down payment the home that they could have purchased 4 years ago has now appreciated in value by $33,971.  Therefore, this individual has actually lost $10,000 in waiting this long to buy a home.