Archive for the Interest Rates Category

January 2014 Portland Metro Real Estate Update!

The Beatles - "It's Getting Better All the Time" Welcome to 2014!!!  And, the local real estate market is off with a bit of a bang, I must say!!  Although, it slowed a bit during the holidays, we really never took a break.  At certain price points, we are already seeing multiple offers and properties that languished before and during the holidays suddenly getting offers.  So, it seems to be a good omen for 2014.  In December, closed sales were 1.3% ahead of December 2012.  Portland had the best December for pending sales since 2006!!  So, that means inventory is way down to 3.2 mon… Read More

APR vs Interest Rate When Closing a Home Mortgage!

Van Morrison - Days Like This What makes all buyers gasp or smile at the closing table on the purchase of a home?  Well, it's usually the A.P.R or annual percentage rate.  You gasp to know how much you actually pay (with interest) for a home.  But, you smile as you understand that interest (and taxes) are a income tax write-off.  This APR is definitely not the interest rate that you negotiated or received from your mortgage broker.  But, unfortunately, it can be manipulated in advertising and under-disclosed.  Usually, the lower the APR, the better the over-all deal for the consumer… Read More

What’s Going on with Mortgage Rates??? (And, Why You Should Care)

Death Cab for Cutie - "Stable Song" Last week saw rates stabilize a bit, ending the week slightly lower than the beginning of the week.  Due to the volatility in the MBS (mortgage backed securities) market, it's difficult to know what rates will do!!  I… Read More

Annual Percentage Rate (APR) vs Interest rate in Home Loans!!

Faron Young - Play Now Pay Later APR versus interest rate: The advertised rate is the one used to calculate your mortgage payment. Borrow $100,000 at 5% with a 30-year term, and the payment is $537. But an advertised rate tells you nothing about the cost of the loan or if it’s a good deal. Suppose you’re offered two loans. Both have a 5% rate, but one costs $1,000 and the other costs $4,000. They’re obviously not the same! What is APR? The annual percentage rate (APR) on a loan includes some of the costs involved in procuring the loan and is meant to provide the consumer w… Read More