Mortgage

Best Portland Neighborhoods to Buy a House: Richmond

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The Richmond neighborhood is situated in southeast Portland and incorporates both the Hawthorne and Clinton/Division areas giving residents easy access to two distinct, vibrant, walkable areas full of an eclectic collection of retail, coffee shops, art galleries, entertainment, restaurants, markets, and nightlife. Many area businesses maintain strong ties to their past, like the Bagdad Theater and Pub on 37th and Hawthorne.  Originally opened in 1927, the Bagdad was one of the first to bring movies to the Portland area and continues to show films today.

Best Portland Neighborhoods to Buy a House: Richmond

Richmond Neighborhood Lifestyle

The Richmond area is admittedly a difficult place for parking – much to the dismay of the folks who own homes close to the central shopping areas. It is, however, a walker’s paradise with a walk score of 90 and a 97/100 for bicyclists. According to one Richmond area resident, “The great thing about this part of town is that you can walk pretty much anywhere! There are interesting shops and restaurants on Division Street as well as on Hawthorne and between these two streets, you can find just about anything you need.”

Local real estate agent Natalie Strom with Living Room Realty agrees, stating: “Eclectic, walkable, centrally located, funky, charming and super fun, Richmond has it all. Bikes abound in this neighborhood, and you can find locals and visitors alike roaming between cafes, book stores, restaurants, shops, brewpubs, and a great network of parks. Find yourself picking up an ultimate frisbee game at Sewallcrest Park in the morning and wandering down to Ladd’s Addition to tour the centuries’ old rose garden and lovingly maintained estate homes. Perfectly situated between Mt Tabor, Laurelhurst and world-class eating in Division, the Richmond neighborhood in SE can’t be beat!”

The Richmond area boasts two beautiful parks: Sewallcrest Park and Ivon Street Park. Sewallcrest offers just under 5 acres of public green space and includes a playground, basketball court, an unfenced off-leash dog park, paved walking paths, a picnic area, soccer field, and a softball field. Teeny Ivon Park is only a third of an acre and provides a sweet little green space and traditional playground set with swings and a slide, as well as benches.

Neighborhood Favorites

With so many wonderful things to eat in the Richmond area, it’s nearly impossible to narrow down the neighborhood favorites but with a few Yelp searches we’ve come up with the shortlist:

Taqueria Lindo Michoacan: serves up authentic Mexican food touted among locals as exceptional for the value. This little food truck puts out delectable street tacos, fajitas, quesadillas, burritos, nachos, enchiladas, tortas, combo plates, breakfast versions each, and even salads.

Malka: with dishes like the Beautiful Blouse (mini roast chicken sandwich) the Muriel, I Can’t Find My Vest (fried chicken and bacon sandwich [or veg version with eggplant and mushrooms)), and Important Helmet for Outer Space (rice bowl with pork shoulder in curry) this new, cozy eatery serves up as much personality as it does awesome fare.

Matcha Café Maiko: first opened in Hawaii, this relative newcomer to PDX quickly became a local favorite. All of their matcha is imported from Uji, Japan and everything is made in-house: ice cream, sponge cakes, waffle cones, and even the adzuki bean toppings,

Bete-Lukas Ethiopian Restaurant: offering a full Ethiopian food menu and weekend specials, Bete-Lukas serves up authentic and traditional foods. Salads and sambusas complement their fish, chicken, lamb, and beef dishes. Their extensive menu also includes vegan options.

Tov: is a cozy red double-decker bus with indoor and outdoor seating serving up traditional Egyptian coffee and Turkish tea as well as edible delicacies. Quirky drink names like Nectar of the Gods, and Sounds Like Trouble with the Cops adorn the chalkboard menu.

Trinket: this ultra-popular Richmond brunch and lunch spot serves up the chef’s own favorite family recipes including duck eggs benedict, seasonal hash, and polenta with steamed eggs and greens. Hearty lunch offerings like the French dip and tuna melt keep this small local join packed each day.

PokPok: a Portland sensation, this authentic Thai street food restaurant boasts a James Beard award and a Michelin star.

Kati: this Thai place is packed every single day with carnivores and herbivores alike, even though it is strictly vegan/vegetarian. Kati opens its waitlist each day at 11:30 am to help manage the throngs of patrons. Folks consistently rave about the food here.

PDX Sliders: voted best burger in PDX, this joint serves up burgers and sandwiches in two sizes (slider and full-size) and lets you order any burger or sandwich as a salad instead. Beef, braised pork, marinated or fried chicken, portabella mushrooms, corned beef, and black bean patties are all available options.

Richmond Neighborhood Schools

Richmond is served by the following schools: Richmond Elementary School (K-5, public); Woodward Montessori School (private preschool); St. Ignatius School (K-8, private Catholic); Cleveland High School (9-12, public).

Local Real Estate

Richmond neighborhood median home values are currently reported at around $500,000, however, in the last couple of months average home sale prices have topped $750,000 (up nearly 30% from the previous year) with an average of just 10 days on the market. The Richmond real estate market has been undeniably heating up.

Entry-level real estate opportunities in the area are apartments and condos starting at around $280,000. Single-family homes start in the mid-400s and come in just under 1 million dollars.

If you’re ready to start the home-buying process (in Richmondl or any other Portland, Oregon or Vancouver, Washington neighborhood) I’d love to help! Give me a call anytime, or start the prequalification process now with this easy online mortgage application form.

Is It Time to Refinance Your Mortgage?

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With interest rates currently at historic lows, many homeowners, even those who have only recently closed on their home purchases, are considering the pros and cons of refinancing. Freddie Mac reported in August (2019) that the average conventional 30-year loan is just 3.6 percent and 15-year loans are at 3.05 percent – that’s nearly one full percentage point lower than just 12 months ag, and coming in close to the 2012 historic low of just 3.31 percent. (To illustrate just how quickly rates are changing, by the time this article as ready to publish on September 6th, 2019, they’d dropped even lower…)

Black Knight, a leading provider of MLS, homeowner, and mortgage data, estimated recently that over 9 million mortgage holders could be classified as ‘good refinance candidates’. For clarity, their definition of good candidates are borrowers with a 30-year mortgage with a maximum loan-to-value ratio of 80 percent and 720 or higher credit scores. (If you’re not sure what your current score is, you can get it for free from one of the three reporting agencies.)

Even with their somewhat conservative math, that’s a lot of folks who could potentially save a lot of money over the life of mortgage loans with a simple refinance. But is it all that simple?

Generally, the rule of thumb has been that refinancing makes fiscal sense if you will reduce the interest rate on your mortgage by at least 2%. However, even a 1% savings is enough to justify refinancing in some cases but there are a number of factors to consider when doing the math on a potential refinance.

Why Would You Refinance Your Mortgage?

People choose to refinance their existing home loans for a number of reasons including reducing their monthly mortgage payments (and potentially paying off the loan faster), reducing the length of the loan, or generating cash for planned expenses (home remodeling, debt consolidation, education costs, retirement, etc.) or emergency expenses (unexpected medical costs, the loss of a partner, etc.).

When Can You Refinance Your Mortgage?

The truth is, you can refinance a loan the day after you officially close on it – but it only makes financial sense to do so IF you will stay in the property long enough to recoup the costs to refinance.

How Much Does It Cost to Refinance Your Mortgage?

In short, the cost to refinance a mortgage is based on the interest rate, your credit score, the lender and the amount you still owe on your current mortgage. As was true with the initial mortgage you obtained when you purchased your home, a higher credit score will land you a better interest rate, and relatively lower payments.

On average, homeowners can expect to pay 2% to 3% of the loan amount to refinance a mortgage. The out of pocket expenses to refinance include escrow and title fees, lending fees, appraisal fees (yes, your property will need to be appraised again for current value), points, credit fees, insurance, and maybe taxes (if you’re taking cash out and don’t use it for updates to the home). (Click here for a glossary of what each of these terms means.)

Obviously, unless you save more than you’ll wind up paying in the new loan scenario it doesn’t make sense to refinance. Here are some calculations to help give you more insight (to discuss more in-depth and run the numbers for your specific situation, pick up the phone and give me a call 971-404-9844)

For the purpose of this article, we’re going to focus on the long-term cost savings that can come from refinancing a mortgage loan to a lower interest rate.

First, we need to look at the difference between your cash flow savings (what you’ll save each month in mortgage payments) and your interest savings (savings in interest payments over the life of your new loan). It’s important to note that each mortgage is different and calculations will need to be adjusted accordingly for each individual scenario.)

Calculating Potential Interest Savings:

Multiply your current remaining loan amount by your current interest rate and divide by the number of months in a year (12) to calculate the amount of interest you pay each month:

(Current Remaining Loan Amount x Current Interest Rate) / Months in year = Interest paid per month

($400,000 x 4.75% or .0475) / 12 = $1,583

Now calculate with your (potential) new interest rate through refinancing (your specific interest rate will be based on a number of variables – this is just an example for the purpose of this article):

($400,000 x 3.75% or .0375) / 12 = $1,250

Calculate the difference between the two interest rates.

Current Interest Payment – Proposed Interest Payment = Interest Savings

$1,583.00 – $1,250 = $333

The result in refinancing your interest rate down by just 1% on a $400,000 loan balance will result in a lower monthly payment of $333 or nearly $4,000 per year.

Now you need to find out if and when these monthly savings will break even with the actual costs of refinancing your mortgage. You do that by dividing the Estimated Closing Costs (In this case $6k) by your Interest Savings to arrive at the Break-Even Point.

$6,000 / $333 = 18 Months

In this scenario, it will take 18 months for you to recoup the cost of your refinance. If you’re planning to sell your home in the next couple of years, refinancing isn’t going to make fiscal sense for you at this time. However, if you’re planning to stay in your home for at least five to ten years, you’d save plenty over the life of your new, refinanced loan.

If you’ve been intrigued by the dropping interest rates but you aren’t sure if it makes money sense to refinance right now, give me a call or shoot me an email and let’s take a look – I’d love to save you some money. Yes, even if you’ve only closed on your house in the last year, it can still be worth taking a look to see how you’d pan out with a refi.

Let’s see if we can save you some money – give me a call now at 971-404-9844.

Best Portland Neighborhoods to Buy a House: The Pearl District

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Hot Portland Neighborhoods: The Pearl District

Had you not lived in Portland in the 90s you might never guess that The Pearl District, a vibrant neighborhood full of high-end art galleries, expensive high rises, and upscale dining and shopping was previously the Northwest Industrial Triangle: a low-rent industrial area occupied by railroad yards and warehouses on unfinished lots.

Prior to that, the area’s long and storied history includes the expansion of Henry Weinhard’s brewery business to the point where he wanted to pipe his beer to the Skidmore Fountain in the 1860s, a turf war between two railway magnates in the early 1900s, and the notable story of one of the area’s first resident artists renting a 3,000 square foot space for a mere $100 a month in the 1970s as well as the opening  of the first Powell’s Books location.

There are numerous historical points of interest in the making of the Pearl District, but one fact that is often overlooked and rarely known is that the neighborhood is named after a real woman, Pearl Marie Amhara. Pearl was born in Ethiopia in 1936 and was described as a tall, striking woman who spoke 21 languages and was an avid women’s rights activist and humanitarian. The full story behind how the Northwest Industrial Triangle was coined ‘The Pearl District’ in 1985 is worth a read, and it’s truly fitting that one of Portland’s most unique neighborhoods is named after such an interesting person.

In the early 90s, developers began converting available warehouses in The Pearl District into open living spaces and used the term ‘loft’ to market these urban dwellings to buyers. The loft concept became so sought after that even new buildings in the area were designed in the same way. The Pearl District quickly became one of urban Portland’s most popular, and relatively expensive, neighborhoods. Because most developments in this area come from new construction, apartments and condos are relatively pricey.

This trendy neighborhood runs from West Burnside Street on the south to the Willamette River on the north, NW Broadway on the east and I-405 on the west. The area is stocked mainly with lofts (technically ‘condos’) and apartment buildings, with a few townhomes scattered in. There are no single-family homes in this Portland neighborhood.

The high cost to live in The Pearl (landing at a ‘D-’ for housing and an ‘F’ grade for cost of living) offers a balance with easy access to a plethora of local amenities. It also boasts nearly perfect walk and bike scores, and close proximity to educational institutions.

Schools In The Pearl District Neighborhood

While the Pearl District may be mostly inhabited by singles and professionals, the neighborhood does still cater to families with children, as well as university students, and offers many school options including: Chapman Elementary School (K-5, public), East-West Sylvan Middle School (6-8, public), Lincoln High School (9-12, public), The Emerson School (K-5, non-profit, charter), The Portland Chinese School (preschool-12, non-profit, alternative, private) is located on Portland State University’s campus on the south side of the Pearl.

The Pearl District Lifestyle

People who choose to buy homes in the Pearl are choosing a vibrant, urban environment and the lifestyle that embodies. Residents of The Pearl laud the accessible green space, with multiple parks throughout. Many will give up their motorized transportation and supplement walking with the exceptional public transportation options including TriMet bus and MAX train service and the Portland Streetcar. The Pearl offers engaging nightlife, an active arts, culture, and entertainment scene, diverse dining experiences, walkable shopping, and with all of this, even in this downtown environment, the Pearl can offer a close neighborhood feel.

One neighborhood resident, Jana, who moved from Vancouver, Washington to Portland’s The Pearl District a few years ago shares her reasoning behind the big change from suburban life:

“I wanted to be at the center of it all, yet still away from the crowds. I walk everywhere, I love living by the dog park, and I feel safe living in a condo building – the views from my condo are amazing! I’m also grateful for my incredible neighbors – I think we all were meant to live together and secretly I think we all know each other by our dogs’ names instead of our actual names!”

Home Prices in The Pearl District Neighborhood

Trulia puts median home prices in The Pearl at $480,000, while Zillow offers a more realistic number of $532,900. Zillow elaborates that Pearl neighborhood homes are, on average, listing nearly $50K higher than they’re selling for in the area, implying that the market leans towards buyers, or is at the very least somewhat neutral.

Those looking to purchase a home in Portland’s Pearl District will find a wide range of entry prices, with a few older, smaller options coming in at around $200,000 for a 1 bedroom, 1 bathroom and 322 square feet – scaling all the way up to top-of-the-skyline luxury at $4.7 million for 3 bedrooms, 4 bathrooms, and about 3,500 square feet.

There’s something for just about everyone in the Pearl. If you’re ready to start the home-buying process (in the Pearl District or any other Portland, Oregon or Vancouver, Washington neighborhood) I’d love to help. Give me a call to discuss your goals! Or, you can start your prequalification process right away by securely submitting your info to me using this online form.

You’re also welcome to stop by my office, which happens to be in the heart of the Pearl. I’m at 1238 NW Glisan, in the Chown Pella Lofts. Give me a ring to let me know you’ll be stopping by. I look forward to working with you!

 

Reasons To Refinance a Home Loan

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When you refinance a home loan you’re paying off the original mortgage balance and taking on a new one. It’s likely that the terms and interest rate on your new home loan will be different from the original mortgage terms – and often, this is the very reason some people refinance: to get a better mortgage rate. It’s usually easier to refinance than it may have been to secure the original loan, and you do bring any equity you’ve gained in the property into the equation.

While refinancing is usually financially beneficial (over the longer term) it does come at some initial cost. Just like the original loan, you’ll be responsible for closing costs, title insurance, and potentially legal fees. Depending on your situation and the property you’re refinancing, you might also be responsible for the cost of an appraisal, and any taxes and transfer fees. Also, it’s important to account for any prepayment penalty your original loan may carry. Not all mortgage loans carry this penalty and those that do often decrease the amount of the penalty for prepayment over an extended period of time, but it’s another cost to be aware of when considering refinancing your home loan.

Reasons To Refinance a Home Loan

With all of this in mind, it’s important to look at potential savings with a refinanced mortgage vs initial cost before assuming it’s a good fit for you at this time.

If you’re not sure and you want to discuss what it might look like for your specific situation, give me a call so we can crunch some numbers!

Five Reasons To Refinance a Home Loan

Lower Mortgage Payments

Mortgage rates naturally fluctuate and while they are currently low rates are expected to rise in the near future. Now may be the perfect time for you to lock in a lower mortgage rate for more affordable monthly payments than what you’re currently paying on your original mortgage.

Stop Paying for Mortgage Insurance

If you weren’t able to put 20% down when you secured your current mortgage you’re likely making private mortgage insurance payments as a result. The equity you’ve built since your purchase may be enough to cancel your PMI payments when you refinance a home loan.

Leverage Equity in Your Property

Home equity is one of your greatest assets as a property owner. Equity is the total of your outstanding loan balance(s) subtracted from the property’s current market value. Equity in a property can increase when the value of the home increases (for instance with additions, remodels, or cosmetic improvements, or when a neighborhood’s average home value increases) or the loan balance is paid down. You may be able to tap into your home’s equity to access the funds for home improvements or debt consolidation.

Decrease Interest Costs

Refinancing gives you the opportunity to change the loan terms on your 30-year fixed mortgage to lower amortization schedules and lessen the interest paid over the life of the loan. Generally, the rule of thumb has been that refinancing makes fiscal sense if you will reduce the interest rate on your mortgage by at least 2%. However, even a 1% savings is enough to justify refinancing in some cases.

To figure out if refinancing your home loan makes sense for your circumstances, get in touch so we can run the numbers.

 

 

Mortgage Do’s and Don’t’s

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When you plan a trip, you most likely spend time researching your destination, your method of transportation, where you’ll stay, any local events you might be interested in, the best places for a dinner out or a glass of wine. If you’re traveling with family or with kids, you’ll spend time finding special interests and activities for them. You might price shop hotels or plane tickets. You might map out different roads. However you get there, the point is, you put a lot of time, energy, and money into planning your trip so that it goes off without a hitch; so that you can truly enjoy the experience of traveling.

The home loan process is no different really and deserves an equal amount of time and attention invested to ensure you can fully enjoy the process of shopping for and finally moving into your new home. Securing a mortgage loan so that you can buy a home doesn’t have to be stressful. To help you through the mortgage process, use this quick-reference list of Do’s and Don’t’s to follow when applying for a mortgage:

Mortgage Do's and Don't's | Mathew Mattila Mortgage Professional, Portland Oregon

DO

  • Provide all documentation for the sale, including sales contract, closing statement, employer relocation/buy-out program (if applicable) to your mortgage professional.
  • Keep all original documents organized, and have access to all of your pay-stubs, bank statements, and other important financial documents.
  • Keep an eye on your credit report. Learn more about how your credit report can impact mortgage rate.
  • Provide your earnest money deposit from your own personal bank account or acceptable gift funds. Ideally, these funds have been in your personal bank account for a minimum of three months prior to seeking the home loan.
  • Continue to save money to the bank account you provided for verification of assets.
  • Notify your mortgage professional if you plan to receive a monetary gift toward closing.
  • Notify your mortgage professional of any employment changes such as recent raises, promotions, transfers or pay status changes such as salary to commission.
  • Alternately, be sure to notify your mortgage professional of any loss of income.
  • Stay employed if employment income is being used for loan approval.
  • Notify your mortgage professional regarding any changes to your employment status.
  • Make regular, timely payments on all current debt obligations, including any current mortgages, car loans, student loans, or credit cards.
  • Notify your mortgage professional of an unexpected depletion of the funds needed to close.
  • Notify your mortgage professional of changes in your contact information.
  • Notify your mortgage professional if you expect to make a financial deposit that is not related to your regular payroll, pension, SSI, or income tax refund.
  • Notify your mortgage professional if you expect to receive a financial gift from a relative, employer, union hall or non-profit organization.

DON’T

  • Close or open any asset accounts or transfer funds between accounts without receiving the correct documentation required for your loan.
  • Change jobs or employers without inquiring about the impact this change might have on your loan.
  • Deposit any monies outside of your payroll deposits, particularly cash or sale of personal property. Many guidelines require substantial documentation as to the source of these deposits.
  • Open or increase any new or existing liabilities, including credit cards, student loans or other lines of credit during the loan process.
  • Make major purchases prior to or during your contract, such as new car, furniture, appliances, etc. as this may impact your loan qualification.
  • Advance any cash from credit cards or borrow funds for closing.
  • Change your legal name.
  • Take any unpaid time off from work, such as unpaid vacation time, as the change in income for that period can negatively impact the loan process.
  • Alter any of your legal or financial documents in any way.

If you have questions or concerns about any of the points listed here, please don’t hesitate to get in touch with me.

If you’re just getting started shopping for a home in the Portland, Oregon or Vancouver, Washington areas, check out this online Mortgage Calculator and learn more about how much you can afford to spend on a new home purchase.

Should You Continue to Rent or Is It Time Buy a Home in Portland?

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Renting a home or apartment can certainly have advantages over homeownership. If you have a good property with a great landlord and a rent you can afford it might seem pointless to purchase a new home in the Portland area, especially with home prices spiking in certain neighborhoods. Renting (usually) means someone else must plan for, execute, and pay for repairs, upgrades, and upkeep. When you rent, you’re off the hook for the big-ticket issues that can crop up with home ownership. On the flip side, you’re subject to regular rent increases, little control over your environment, and no real guarantee the apartment or house you’ve been calling home will continue to be the place you make your coffee each morning once your lease comes to an end.

According to Zillow at the time of this post, the median price of homes currently listed in Portland, Oregon is $429,900 while the median rent price in Portland is $1,935.

For renters who are considering buying their first home, a $430K mortgage might feel daunting and even impossible at first glance, especially when compared with the average $1900 a month for rent. But it’s not that simple, and the only way to sort out whether or not purchasing a new home makes financial sense for you is to do the math.

Should you rent or buy a home in Portland Oregon

Rent or Buy?

Here are two calculators to help you crunch the numbers: Zillow’s Rent vs Buy Calculator; Discover has another calculator with a unique format that’s kind of fun to play with.

Play the Numbers Game

Of course, the amount of cash you bring to the transaction for a down payment will impact the overall cost of your loan, so use the most accurate numbers possible with these calculators, but do play around with them to see what would change in this equation if you managed to put down just $5k or $10k more.

Also important to remember, your credit score, and the credit score(s) of anyone on the loan with you, will impact what size loan you qualify for as well as how much interest you pay over the life of your mortgage – and that’s something these calculators can’t take into account in real time.

Check Your Credit Score

Check your credit score now so you have an idea of where you stand and what you’re working with. If you have an ‘excellent’ score, coming in at 800 or above, you’ll qualify for the best mortgage rates. A score of 700 or higher is considered ‘pretty good’ and will still qualify for decent rates. Scores below 700 can present more of a challenge to the transaction and you’ll pay for it in higher interest rates on your mortgage loan. This handy calculator at MyFico will help you understand exactly how your FICO® score can impact the interest you’ll pay on your loan.

While you’re doing the homework and preparation toward the purchase of your new home, why not start working toward a better credit score as well? Even a small jump in your credit score may help with saving a bit on the principal of your mortgage.

According to The Motley Fool: “On a $250,000 mortgage, the difference between a 620 credit score and an “excellent” 760 adds up to more than $86,000 in interest savings over the life of a 30-year loan.”

If you knew that a little bit of work on your credit score over the next few months could save you $86,000 over the life of your mortgage loan, would you do it? Well, now you know.

Ultimately, the only way to determine if purchasing a home is a better financial option for you than renting is to sit down and go over the numbers with a local mortgage professional.

Talk to a Mortgage Professional

If you feel you’re ready to move forward with the process of buying a new home, get in touch. Together, we’ll take a closer look at how each of the different factors like credit score, down payment, and current expenditures and debt will come into play when it comes to the size and cost of your new mortgage. I may even be able to give you the insight you need on raising your credit score before you take out the loan, in order to help you get a better overall value on your new mortgage.

Not the right time for you purchase a new home? If you played with the Rent or Buy calculators linked above and it’s just not coming out in your favor, if your credit score is low, or you feel you don’t have the overall budget to make the jump from renting to buying right now, I’d encourage you to get in touch with me anyway. I’ll give you the information and tools you need so that you can start working your way toward achieving your goal of home ownership.