High Quality, Low-Cost Paint from Metro

Over 1 million gallons of paint has been recycled by Metro since 1992 and going strong!

Did you know that for every gallon of recycled paint you use instead of new paint, you:

• Save an estimated 100 kilowatt hours of energy
• Help prevent pollution from the mining and extraction of raw materials
• Conserve water used in the manufacture of paint
• Reduce the need for landfill space

Okay, that all sounds well and good but who wants to paint their house a lovely shade of mud?  You might be amazed to see – Metro offers 15 different colors from Misty (a light gray) to Barn Red (a dark red) and everything in between.

HOW IT WORKS
Metro collects leftover latex paint, inspects every can for quality, then sorts by color.  Colors are blended in batches up to 1,000 gallons, filtered, lab tested for safety and performance, and poured into one-gallon cans and five-gallon pails for resale.

MetroPaint comes in three formulations: Standard, Green Seal Certified and Premium MetroPaint.  The Green Seal Certified paint has been lab tested to show extremely low levels of: lead, mercury, VOCs (volatile organic compounds) and in general, MetroPaint is NOT tested on animals.

So, the next time you have a painting project – whether it’s painting your child’s school project or the interior/exterior of your home, take a trip to Metro and see what they have to offer.  You’ll be saving the environment and your pocketbook simultaneously.

Where to pick up paint:
Swan Island MetroPaint Store
4825 N. Basin Avenue
Portland, OR  97217
503-234-3000
Hours: 8 am – 4 pm Monday through Friday and 7 am – 4 pm Saturday

Where to recycle paint:
Metro Central Station
6161 NW 61st Avenue
Portland, OR

OR

Metro South Station
2001 Washington Street
Oregon City, OR
Hours: 9 am – 4 pm Monday through Saturday

Have a safe and happy Halloween!

~Kori

State of the Mortgage Market

Estimated Rates for the week of October 27, 2008

30 yr conforming:                             6.250 – 6.375

30 yr jumbo:                                      6.375  – up to $600,000

7/1 ARM                                             5.625 – 5.75  for conforming and jumbo product

OR State Bond                                   6.000

OR VA                                                 5.75 (1.5 Origination)/5.875 (1.0 Origination)

Rates still remain a little elevated for the last week or so. The Fed did drop the funds rate by .50%. Prime rate should drop to 4.00% tomorrow. That will lower the cost on those Home Equity lines of credit. Mortgage rates, though, did go up. That has been the norm when the Feds announce a rate cut. Remember, the Fed controls the short term rates, the markets control the long term. Mortgage rates are considered long term and they have also been closely tracking the stock market….when the stock market goes up, rates go up with it. It occurs because large investors sell their bonds in favor of purchasing stocks. The selling of the bonds decreases the bond’s price but causes the rates to move up. Also, to fund the recent legislative bills, the federal government has a serious demand for funds. That demand is causing our long term rates to move up.

Some disconcerting news out of Freddie Mac recently. Although it’s not in their guidelines yet, they have announced that the maximum debt-to-income ratio on loans that they will approve will be 45%. This change will probably come about at the beginning of next year. The problem that I have with this rule is that it doesn’t appear to allow for exceptions. I understand that the rule makes sense on some transactions. In fact, many of the mortgage insurance companies that we use have already implemented the same guidelines. But where it might not make sense is when a borrower is putting down a rather sizable amount. In the case of someone putting 50% down with good credit and reserves, a higher debt ratio can make sense. This will also hurt those cases where there are two parties buying a home  but only one is going on the loan. That happens when the other party’s credit score isn’t that good. The lower score transactions have higher rates. Amending the policy on increasing rate/costs for lower scores would help in these cases. We haven’t heard anything from Fannie Mae though and that might be our way out. But we usually do see the agencies follow each other. Let’s hope that there is some constructive feedback to Freddie before they implement the rule.

I’ll leave you with some encouraging news. I receive many reports from various analysts. One analyst has an audience of over one million readers all over the globe. He offered some guidance on where investors should invest their money today. One of his suggestions was that real estate will offer a good return over the next few years. He suggested that in many areas the prices are at a point that the investment makes sense. It’s nice to see that a very well-informed investor is now talking about real estate. With his million-plus readers, word should spread. As we all know, it is impossible to time the market. Now might just be the right time for buyers to jump in.

Have a great week.

Bob Chiodo, CFP

Equity Home Mortgage, LLC

September 2008 Home Sales – a little good news?

WASHINGTON, October 24, 2008

The following is the latest report on existing home sales produced by the National Association of Realtors^® realeased today.  The numbers are for September 2008 and therefore do not reflect full market reaction since the major “Bailout” reports.  Please click on link at bottom to see full report.

Existing-home sales increased last month as buyers responded to improved housing affordability conditions, according to the National Association of Realtors^®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 5.5 percent to a seasonally adjusted annual rate¹ of 5.18 million units in September from a level of 4.91 million in August, and are 1.4 percent higher than the 5.11 million-unit pace in September 2007.

SEPTEMBER 2008 NAR Home Sales Report

Find a Recycler Near You – Easy Map & Directory

While most people in the Metro area have curbside pickup, not EVERYTHING can be put out. 

As Kori discussed in her post on October 22nd, in order to safely recycle some materials like hazardous waste, used building materials, rubble, paint, fluorescent lighting etc., you may need to find a specialtist recycle company.

Click this link below to go to a very handy-dandy little map and directory by area to do that.  It can be a little slow to load, so have patience. 

Metro_Find_a_Recycler_Map

Foreclosure Rates September 2008

The latest numbers on foreclosure activity were released this morning.  The following report is from RealtyTrac®. Oregon has risen slightly on the list to #17 out of the 50 states.  The six states with the highest foreclosure activity (California, Florida, Nevada, Arizona, Ohio & Michigan) account for more than 60% of total foreclosure activity with California alone accounting for over 27%. 

FORECLOSURE ACTIVITY DECREASES 12% IN SEPTEMBER - RealtyTrac®

– Oct. 23, 2008 –

Third Quarter Activity Up 3 Percent From Q2 2008

Up 71 Percent From Q3 2007

New State Laws In California, Other States Impact Numbers IRVINE, Calif.

RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for September 2008 and Q3 2008.

Foreclosure filings (default notices, auction sale notices and bank repossessions) were reported on 265,968 properties in September, a 12 percent decrease from the previous month but still a 21 percent increase from September 2007. One in every 475 U.S. housing units received a foreclosure filing in September.

For full report Click Here

CLICK ON MAP FOR LARGER IMAGE

Recycling – What You Can & Cannot Leave at Curbside

Last week, the Oregonian featured an article about Portland’s new recycling program entitled Portland’s new roll carts generate more recycling – and more contaminants.  So, even though we are recycling more, which is great – we are not all getting it right.

Overall, Oregon’s curbside system is capturing 95% of its commingled recyclables by weight and losing to the landfill just 5%, likely among the best rates in the nation, according to Steve Apotheker, a senior analyst at Metro, the Portland area’s regional government.

…higher proportions of the remaining curbside recyclables – an estimated 5.000+ tons a year of plastic bottles, cardboard and metal set at curbside in the Portland area alone – are heading to the landfill.

Apotheker’s study of 2004 sorting plant operations and collection data, before roll carts went statewide, estimated that 24% of plastic bottles in curbside recycling end up in landfills, 21% of cardboard and 14% of metal.  Those items are among the most valuable to recycle.

Although it sounds great that we have improved our recycling efforts and more of us ARE recycling, using roll carts has roughly doubled the amount of wrong stuff put out for recycling.

So, here’s a link to a great one page guide to what can and cannot be recycled at curbside.  It does make a difference – over 95% of all properly prepared recyclables are used to make new products – now that’s what it’s all about!

If you need to find a recycler for other materials; such as batteries, tires, pallets, electronics and more – contact Metro or use their on-line recycler directory.

Not convinced that proper recycling makes a difference - take a look at this five minute video produced by CNN – Garbage Island - I think your perspective will change.

~ Kori

Get Paid For Recycling Your Old Refrigerator or Freezer!

Did you know that older refrigerators can cost up to $200 per year to operate?  Refrigerators built prior to 1990 use two to three times more energy than today’s high-efficiency models. 

The Energy Trust of Oregon has teamed with JACO Environmental to provide Oregon customers of Pacific Power and Portland General Electric (PGE) a $30 cash incentive to remove your older fridge and/or freezers. 

Simply call 1-866-444-8907 to schedule your FREE pick up or visit the Energy Trust website to learn more about the program.  Fridges and Freezers must be between 10 and 30 cubic feet in size and in working condition.  95% of each unit’s components are recycled – keeping them out of landfills and the environment.

If you’ve been thinking about replacing your older fridge or freezer, purhaps a quick calulation exercise will help you make that decision – calculate your estimated annual cost to operate your current fridge or freezer. 

So, if you have an older fridge you’re thinking about replacing or that old “beverage fridge” out in the garage simply because you didn’t know how to dispose of it… call the Energy Trust to have your old unit removed for FREE and make an extra $30 in cash!  You’ll be saving energy and making cold, hard cash immediately.

Note: even if you’re purchasing a new appliance and the retailer offers to remove the old unit, ask if they participate in a recycling program – many companies will remove for free but the units will end up in a landfill.

Mortgage Availability – Can I still get a loan?

I thought you might like to hear from a lender that I have worked with many times and consider to be one of the most reliable, experienced and knowledgeable in the Portland area, Bob Chiodo – Equity Home Mortgage. 

The following email was sent to real estate agents from him and is intended to be passed along to our clients.  Getting a loan may be harder for a buyer this week, but it is still entirely possible.

In response to concerns about the availability for your clients to obtain financing on their real estate needs, I want to assure you that, regardless of what the media might be reporting, loans are being made.

There is no question that things are more difficult than they used to be and guidelines do change daily.  Since we are in a very fluid market, it is highly recommended that your clients seek the advice of a mortgage professional before planning a change in financing arrangements.

That said, Fannie Mae and Freddie Mac are still our major source of financing for conventional loans. The current loan limit is $417,000. Anything over that amount is considered jumbo.

Conventional financing typically requires at least 5% down and good credit. With less than 20% down, mortgage insurance is required. This requires us to follow the mortgage insurers’ guidelines in addition to the lenders’ and Fannie Mae’s.

One big change that has come about is that we need to verify income for ALL applicants.  No longer can we just state their income.  Documentation requirements are dependent upon how the client’s income is generated. 

The debt-to-income ratio being used has become more conservative also.  As a rule of thumb we will allow the client’s total monthly debt (mortgage payment, property taxes, property insurance, credit card debt, auto loans, etc. – anything that would show up on a credit report plus spousal and/or child support) to be 45% of their stable, verifiable, gross monthly income.

Current mortgage rates are around six percent. If your client has a lower credit scores they will be charged higher loan costs. The same applies for lower down payment transactions.

FHA has become a major participant in the lending place today.  FHA programs are more aggressive in credit quality – lower scores don’t necessarily require higher loan costs.  Loan amounts can go to the same limit as Fannie Mae ($417,000).  Down payment is only 3% right now but on January 1, 2009, it increases to 3.5%.  Full income documentation has always been required on these loans.

VA loans are still a great source of financing for our veterans and are still available with no down payment to loan amounts of $417,000.  VA loans can actually go above that limit, however, they do require down payment.

There are many other state and local government sponsored programs available to first time homebuyers requiring little or nothing down.  For instance, the USDA program for cities with populations less than 25,000.  These loans have very favorable terms with no down payment required.

As for jumbo programs (over $417,000) that market is still very fragmented.  Many lenders would prefer not to lend over the conforming limit and, if they do, their rates are substantially higher.

We do know of a few ‘portfolio’ lenders.  These lenders do not sell their loans or have them insured with any government entity.  These lenders will usually keep the loans for their own investment portfolio.  Most of these lenders prefer to lend on an ARM product with a fixed period of 5 -10 years. The rate on these loans are typically below the standard conforming rates.  (I know of only one portfolio lender who still does jumbo loans on a 30 year fixed basis.)  These lenders typically want 10% or more down (many will only lend if there is 20% down).  Full documentation and good credit is required.  Although we primarily use these lenders for jumbo products, they can lend on loan amounts as small as $100,000.

Obviously, this is just an overview of our lending parameters.  You can see that there are still many sources of funds available.  

Some of the more closely scrutinized transactions today surround homeowners who will keep their existing residence, rent it, and then buy a new home to occupy.  These loans are being reviewed very closely.  Refinancing with cash being taken out is also on the target list.  Employment in certain fields (like the mortgage business and construction) are also on the list.

The bottom-line is that good borrowers are still getting the money and the riskier transactions are getting a lot more difficult to make.

The lending process is taking a little longer due to more documentation and a greater credit/risk analysis. But, we are still closing loans.

Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68th Parkway

Portland, OR 97223

Phone (503)670-7393

Fax: (503)670-7062

bobchiodo@equityhome.com

www.ResCommLending.com

Cash Incentives for Home Energy Improvements

Before you start that next home improvement project, make sure you check out the Energy Trust of Oregon website.  The Energy Trust offers cash incentives to help you make energy-saving home improvements in addition to the Oregon Residential Energy Tax Credits that may also be available.  For example:

Converting to a Gas Furnace or Replacement of a Less Efficient Unit
Energy Trust Incentive for a Gas Furnace – $150
Requirement: 90% AFUE, or greater.  Furnace must be used as primary heat source.

Oregon Residential Energy Tax Credit – $350
Requirement: 90% AFUE, or greater; must have an electronic commutated motor.

BONUS: Energy Trust offers a number of “Multiple Measure Bonus Packages” including the Gas Furnace Installation Package providing homeowners with an additional $100 incentive when combining the high-efficiency gas furnace with complete duct sealing to meet program requirements.  The duct sealing incentive alone – up to $400 from Energy Trust and 25% of cost (up to $250) from the Oregon Residential Energy Tax Credit.  We’re talking about a total possible incentive of $1250!  

Incentives are available for weatherization, heating and cooling, water heating, ENERGY STAR appliances and lighting and renewable energy.  The gas furnace example above was just one of many heating solution incentives available through this program and the Oregon Residential Energy Tax Credit.

To be eligible for the Energy Trust incentives, homeowners must be Oregon customers of Portland General Electric (PGE), Pacific Power, NW Natural Gas or Cascade Natural Gas.  Incentives are effective until February 28, 2009 and may be subject to change.  All improvements must be installed by an Oregon contractor with a current CCB license.  Special rules and restrictions may apply so make sure you check out the Energy Trust of Oregon website before you start your next home improvement project.

Stats vs. Reality – The Latest RMLS Market Action Stats

Well, the RMLS Market Action came out last night for September 2008.  New listings dropped 4.5% from August to September – what does that mean, less inventory for buyers to choose from and less competition for sellers; however, closed sales fell 7.3% and pending sales also declined by 10.6% so we are still sitting at an inventory level of 10+ months – so, what does that mean… based on the current time on market and the number of listings it would take just over 10 months to sell everything if we did not have any new listings come on the market today.

HOWEVER… in the past month, I have personally been in three multiple offer situations with two different buyers.  One, we ended up in first back up position – that home was on the market for 7 days and sold for $19,900 over list price.  The second situation, we just happened to be the first to deliver our offer in person to start the relationship off on the right foot with the seller and listing agent securing our position to buy – we opened escrow yesterday.  The third situation – this afternoon.  The home went on the market October 13 – I previewed Tuesday and showed to my clients later that afternoon.  Today, I made a call to the listing agent to ask a few questions and found out a “good offer” (we are not allowed to say what the offer actually looks like – that would be unethical) came in and would be presented this evening… we’ll see what happens.

Moral to the story… DAYS ON MARKET (not weeks), OVER LIST PRICE SALES & MULTIPLE OFFER SITUATIONS ARE STILL HAPPENING! 

We have all been watching (some of us riding) the economic roller coaster over the past few weeks – I understand things are little scary but here’s the reality:

1. If you are a first time home buyer – now is the time to purchase your first home (period).
2. There are tax incentives for homeowners but even more importantly there are additional tax credits available to “qualified” first time home buyers – up to $7500 between now and July 1, 2009
3. FHA is the way!  Money is still available and FHA is a great way to get into your first home – the current FHA down payment is a minimum of 3%, as of January 2009 it will be going up to 3.5% (still not bad)
4. Money is still very cheap.  We are still seeing rates in the 6% range (of course rates fluctuate daily and are based on credit scores and a variety of other variables – best to contact a qualified mortgage lender/broker)
5. You need to live somewhere so the question comes down to – do you want to start investing in your financial portfolio or someone else?  Home values have softened giving first time home buyers much more bang for their buck! 

If you are waiting for the values to “hit bottom” you’ll miss it!  When you realize it’s hit… it’s because the market is on the way back up.  This is not a time to purchase a house and think you’re going to sit in it for a year, do nothing to it, and sell it for a profit – that was crazy and still is crazy – that’s the type of thinking that got us into the mess with the sub-prime mortgage market.  A home is a long-term investment.  If you are planning on being in the area for the next 3-5 years, buy.  If you’re not, rent.  It really is just that simple.

~ Kori

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