Portland Oregon Real Estate Update!  Homeownership doesn’t always make sense and so you need evaluate if the time is right for making that new purchase, moving up or moving down or procuring an investment property.  However, as my Father used to say there’s never a “perfect time” to “buy a home”, “get married” or “have children”, but if you’ve decided it’s something you desire you just need to make it happen (with the proper due diligence, of course)!  Here are some factors that could and should impact your decision!!  Most everyone is probably aware by now of the first-time buyer tax credit .  And, you’ve probably heard about the repeat or existing homebuyer tax credit .  Both of these incentives end April 30th, 2010.  But, there are other factors in play behind the scenes right now.  The Federal Reserve Bank of New York has been the buying up “mortgage-Backed-Securities” (MBS) on the Bond Market since November 2008 (and have been the single largest buyer).  This is where interest rates are determined.  Investors buy MBS securities as investments.  The larger the demand, the lower interest rates need to be.  If demand falls, then interest rates will need to rise to make the MBS more attractive to investors.  Part of the stimulus bill included the Federal Reserve’s purchase of over $1trillion in MBS and this has kept rates very low.  This program was scheduled to end December 31st, 2009 but has been extended through March 31st, 2010!  Many experts predict that interest rates will begin to rise then.

So, are you following me so far?  We have the impending end of the tax credit, the possibility of interest rates rising, lots of existing inventory and low pricing.  Most of the tricky, sticky, weird and wild loans are gone but other mortgage issues could have a negative impact on buyers relying on FHA (Federal Housing Authority) insured loans.  The FHA upfront mortgage insurance (MI) premium is going from 1.75% to 2.25% of the base loan amount on April 1st, 2010.  For example, on a $275,000 purchase price with an FHA loan, the down payment would be $9,625 with a base loan amount of $265,375:

Before April: Upfront MI FHA =$4,644 (1.75%), Tax Credit=$8000

After April:  upfront MI FHA=$5,971 (2.25%), Tax Credit=0

Many people rely on FHA secured financing because they are more forgiving on credit scores and homeowners can have a higher loan-to-value ratio (less money required for a downpayment). 

Forbes.com recently has an article on the Top Ten cities where it was a good time to make the jump to homeownership because of increasing rents and Portland Oregon made the list ( Forbes article  or Rent vs Buy in Portland ) to read more.  And, if you’d like to explore a good rent-vs-buy calculator .  If you have decided that a new home is in your future, let’s make it happen!!!

About the Author | Janeese Jackson

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My job is service...service to you and your real estate transactions! How can you benefit from my 20 years of experience and expertise? What can I offer to make the process more productive? * Current information on available housing...comparative and competitive market pricing and analysis * Daily involvement in the local real estate marketplace * Thorough, comprehensive knowledge reflecting years of helping others complete their real estate business * Extensive network of professional resources to make the process as smooth as possible My commitment is to you! Being available to you...returning your calls...answering your questions...addressing your concerns...respecting your money...matching your timeline...meeting your expectations...helping accomplish your real estate goals!!