Changing Interest Rates of Jumbo & Conventional Home Loans

Changing Interest Rates of Jumbo & Conventional Home Loans

Changing Interest Rates of Jumbo & Conventional Home Loans

Interest rates for home loans which exceed $417,000 (jumbo loans) have been averaging a lower interest rate than a traditional 20% down conventional loan. Currently, a $250,000 loan is paying a higher interest rate than in jumbo loan.

Shouldn’t jumbo loans have a higher interest rate for putting the bank at a higher risk?

There are some changes changes that are happening in the current lending industry. Conventional loan fees have increased due to lenders sustaining losses. Also, lenders are using jumbo loans to entice wealthy individuals to serve their other financial needs such as brokerage services and financial management.

Is it going to stay this way?

No, it’s temporary. Now the high-end homes are selling, bankers are using the conventional loans to make up for some of the losses. Once the lenders start taking losses on the jumbo loans, it’ll change again.

Tune in to KXL’s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

Follow Us!
Twitter @Rick_Sadle
Pinterest http://www.pinterest.com/ricksadle/
Facebook Page https://www.facebook.com/TheSadleRealEstateTeam

Neighborhood Expert

Neighborhood Expert

Do you need a neighborhood expert to sell your home?

No. Anyone can go to Google and get all the facts they need about a neighborhood.

Will a real estate agent marketed as the “neighborhood expert” be able to provide information to a purchaser that’s not available online?

There’s so much information on the internet, I don’t feel that hiring a neighborhood specialist is necessary. In my experience, neighborhood specialists are Realtors that market to specific sellers in a specific area. I believe a Realtor’s true value lies in their negotiation skills and ability to use the internet obtain market information.

Has the Internet been a positive influence on the real estate market?

Absolutely. We have better informed consumers and skilled agents that have the ability to serve a larger population.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

Follow Us!
Twitter @Rick_Sadle
Pinterest
Facebook Page

WHAT IS RADON?

WHAT IS RADON?

Should we be concerned about radon?

Radon is a gas that can be in the soil. It’s the number one leading cause of lung cancer after smoking in the US. Also, reports have shown that one in four homes in the Portland area has an elevated level of radon.

What tests are available for Radon?

Since Radon is located in the soil, it can come up through a crack in your foundation. Do-it-yourself tests are available for purchase at most hardware stores. You would collect the samples and send it to a lab. Also, professionals can perform a test for less than $200.

Would a do-it-yourself & professional test yield the same results?

I would recommend starting with a do-it-yourself test. Carefully follow the directions and if your lab results show Radon, I would recommend hiring a professional to complete a test. The professional will collect more data than the standard do-it-yourself test. Also, if their test reveals levels of Radon that requires mitigation, they can give you a bid to remove the gas from your home.

Do homebuyers perform Radon tests?

Although, it’s not common knowledge to the average homebuyer, we recommend our clients to test for Radon as it’s prevalent in our area.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

Follow Us!
Twitter @Rick_Sadle
Pinterest
Facebook Page

The USDA Farm Bill

The USDA Farm Bill

What do homebuyers need to know?

The USDA has a loan program that allows homebuyers to purchase properties in designated rural areas with zero down payment. The population must be less than 20,000 to qualify per the 1990 census.

Which of our local areas may qualify for USDA loans?

Some of the local towns that currently qualify for USDA home loans are Cornelius, Damascus, Forest Grove, Newberg, Sherwood and Wilsonville.

Is there a downside?

I think it’s a fantastic program. It’s been around for quite a while. It’s one of the very few lending programs that allow for zero down loans. If you are interested in living in one of the areas that qualifies for USDA financing, I think it’s a great program.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

Follow Us!
Twitter @Rick_Sadle
Pinterest
Facebook Page

Copyright © 2013 Portland's Real Estate Advisory.