Ultimate Open House

When the Fed cuts the short term fed funds rate, as it has done with great frequency lately, my phone begins to ring off of the hook. Some calls are from clients who locked in their interest rate days or weeks prior, and are worried that they’re going to miss out on lower rates. And the rest of the calls are mostly from those looking to refinance…because the Fed cut rates, so mortgage rates are going to plummet now, right?

The short answer is: Probably not.

Mortgage interest rates are primarily determined by long-term bond yields, which are driven by the broader capital market. So whether or not a Fed rate cut will have an affect on mortgage interest rates really depends on how the market reacts.

In addition, this action is a cut on short-term rates, which are very loosely tied to the long-term rates of mortgage loans.

Lastly, if a Fed rate cut is going to have any affect at all on mortgage rates, it is usually anticipated and already reflected in the pricing, before the cut occurs.

There are many articles out there that explain how a Fed rate cut does or does not affect mortgage rates, but there really isn’t a stead-fast rule or formula that allows us to measure this affect. One article that I recently read actually showed a correlation between a Fed rate cut and mortgage interest rates that illustrated an inverse relationship. When the Fed cuts short term rates, the long term mortgage rates have often increased.

Currently interest rates remain historically low, and right now is an excellent time to buy your next home.

Jeff Irving is a Mortgage Loan Officer with Bank of America. Visit him Online.
This article was written by Jeff Irving. These articles are the ideas, thoughts and opinions of Jeff and are in no way endorsed by Bank of America or meant to represent Bank of America’s policies, ideas, thoughts or opinions.

Jeff Irving of Bank of America has been very successful nationwide with Blogs. In fact he’s closing mortgage loans all over the US! Check the blog regularly under the category “Your Home Your Money” for special interest stories and insights from this mortgage expert.

ENERGY STAR qualified homes are at least 15% more efficient than homes simply built to Oregon code standards, making them some of the most energy efficient homes on the market today.

Better Future
Just one ENERGY STAR new home can keep 2,070 pounds of greenhouse gasses out of the air each year. That’s approximately equivalent to not driving 2,244 miles or planting 200 trees. By choosing a home that uses less energy, you’ll help contribute to a healthier environment and a better future for everyone

Enhanced Comfort
Enjoy a home with even temperatures throughout—warmer in winter, cooler in summer—and free from drafts. Tightly sealed ductwork, high performance windows and properly installed insulation all contribute to making your home more comfortable.

Healthier Indoor Air
Healthier Indoor Air Performance-tested ductwork helps keep the air inside your home clean by reducing the possibility of drawing unwanted air from your home’s attic, basement, crawl spaces, and garage. Improved ventilation delivers the right amount of fresh air to help minimize moisture problems and reduce common household odors.

If you or a family member has asthma or allergies, or other specific concerns about indoor air quality, you should consider asking your builder to use the specifications of the ENERGY STAR Indoor Air Package. Developed by the U.S. EPA to reduce air quality risks in new homes, this ENERGY STAR add-on can also earn extra points toward Earth Advantage or LEED program certification.

Savings
ENERGY STAR homes cost less to own and live in than code-built homes. These homes keep more money in your wallet month after month, making an ENERGY STAR home a good investment and a smart choice.

Peace of Mind
Relax knowing your home has been inspected and certified by an independent third party to meet ENERGY STAR standards. Simplify the numerous energy efficiency choices in the new home buying process by choosing one that has earned the trusted ENERGY STAR label.

                      
 Kelly Ritz, head of Stone Bridge Homes NW, is no newcomer to the building industry, having spent 8 years as vice-president of Don Morissette Homes, and 12 years in land development as president of Venture Properties Inc.  Stone Bridge Homes NW is currently building in Tigard,

Hillsboro and Forest Grove.  As one of the few women builders in town, Kelly brings a unique perspective to her job.  We asked her a few questions to get some insight. . . .

 How does being a woman affect your perspective on home-building?  This may be more personal than having to do with my being a woman, but I’m drawn to the workability of a plan—how to make a house the best that it can be, but at a better price point.  I know when people are shopping for a home, they can’t always afford everything they want right away.  I like to think that our homes have “good bones” and that they not only have potential for the development of equity, but the ability to easily upgrade and change as your life and family evolve. How has your experience in land development helped?  It gives me the ability to create the community from the ground up.  In our neighborhoods, we build homes with an eye toward amenities that I think our homebuyers will value, such as neighborhood parks, walking trails and proximity to natural areas 

What part of the job have you found most challenging?  Because of the escalation of land prices and material costs, the challenge has been to deliver the quality that our customers expect, at prices they can afford. Most frustrating?  Men in the industry. . . just kidding. . . .Actually, my male peers have been helpful and encouraging.  Most frustrating have been rising costs. . .land, permits, materials. . . and the tough market we find ourselves in. 

Speaking of the market, any good reasons why someone should buy a home now?  Interest rates are low, builders are reducing their prices, and over the long run homes will continue to appreciate.  And let’s not lose sight of the fact that a home is more than an investment. . . For most people, it’s where they’ll raise a family, socialize, play, and even work from. And we’re optimistic that the market will pick up. . . Stone Bridge Homes NW anticipates building 150 homes in 2009.  What do you think motivates most home buyers?  Value, location and price.  And what we add to the mix that makes us unique is flexibility. . .our willingness to take a plan you like and change it to work for you.   How can buyers find your communities?   www.SBHNW.com   

A house is something you buy logically. A home is an emotional purchase. I am headed to the Ultimate Open House to find something that is both.  A house that is a wise investment that I can pour my heart into and make my home.

There are so many new homes to see I am really looking forward to meeting these builders and signing the papers on a new house, my home.

When you rent a place to live, you can certainly expect your rent to increase each year – or even more often. If you get a fixed rate mortgage when you buy a home, you have the same monthly payment amount for thirty years. Even if you get an adjustable rate mortgage, your payment will stay within a certain range for the entire life of the mortgage – and interest rates aren’t as volatile now as they were in the late seventies and early eighties.

Imagine how much rent might be ten, fifteen, or even thirty years from now? Which makes more sense?

What is a high performance house?  Incorporating the latest building science, a High Performance Home will be more structurally sound, have healthier indoor air and reduce operating costs by lowering the homeowner’s utility and maintenance bills.  And, in about one week, Lifestyle Homes will present it’s High Performance House in Beaverton, at 8230 SW Sorrento Rd.  As president of Lifestyle Homes, I’ve left this home about 70% finished, so that people can look behind the walls to learn that what you can’t see really is important.  Several Plexiglass windows throughout the home will show you why this home will be between 30% and 40% more efficient than a standard code-built home.  And the lucky buyer will get to finish the home to their tastes, picking cabinets, counter tops, carpets and fixtures.  I look forward to seeing you there 4/18-20 and 4/25-27.

 Mike Arnett, Lifestyle Homes

Getting married means a lot of things. It means picking out invitations, trying on dresses, selecting tuxes and cake tasting, sure. But it also means combining households, lives and finances and ALL of our stuff. In short, a new beginning often equals the need for a new house.

A house that we can turn into a home. A house with a kitchen big enough totry out those new recipie’s and to fill with smoke when they fail and a yard that can hold the BBQ grill that saves the day. A home where we can dream of our future and enjoy our present. A house… a home…a newly built house that can become our home, just our home.  A new beginning for our lives and what better place to get started than a new home!

The Ultimate Open House starts in one week and our search for our first home together will begin. Wish us luck!

Shannon Quimby is a featured Design Expert on Homes and Gardens Television Country Style and was chosen amongst 250 designers for the new show on HGTV called My First Place. Her book, Shannon Quimby Color Create Decorate is a huge hit in the decorating world.

Currently, Shannon is breaking ground, literally! The R.E.X. Project Reuse Everything eXperiment is Shannon’s attempt to change wasteful building construction. Witness a national first, Shannon is building a house without a dumpster. “I deconstructed a house that was falling down and am infusing all the original materials into the new construction on the same site!”

Follow the R.E.X. Project on Shannon’s blog.

Some people are just lousy at saving money, and a house is an automatic savings account. You accumulate savings in two ways. Every month, a portion of your payment goes toward the principal. Admittedly, in the early years of the mortgage, this is not much. Over time, however, it accelerates.

Second, your home appreciates. Average appreciation on a home is approximately five percent, though it will vary from year to year, and in some years may even depreciate.. Over time, history has shown that owning a home is one of the very best financial investments.