With home prices staying flat at the moment, and no sure signs of when prices will rebound, the best bet to create more equity in your home is to pay down your mortgage faster! This sounds a little old fashion, and when I remind people of this, they get a strange look on there face. This has simply NOT part of the conversation in Real Estate for a few years.. But it is clear that you must be aggressive in trying to pay down your mortgage in this market. If you do so, you can take control of your financial situation and not be at the mercy of the Real Estate Market.
What I do is Bi-Weekly Mortgage payments. This is paying half of my mortgage every 2 weeks. This automates the process for me, of paying one extra mortgage payment a year, which over time, shaves about 6 years off paying off a 30 year mortgage!
Even if you only plan to stay in your home 5 years, you could accelerate how much you pay down by a lot more than you think by doing this. Equity Plus has a great calculator on there website that shows you how much you would save over time with your mortgage payment and interest rate.
Another way to acheive the same goal, without paying fees for a bi-weekly program, is by simply paying an extra $50 or $100 to your principal on every mortgage payment. This effectively, lowers your interest rate, and makes a dramatic difference over time.
For me paying an extra $50 a month, lowered my interest rate effectively .5%! As the market rebounds and your home value rebounds, you will be gaining ground in both directions. Paying down your debt and watching your home value slowly increase over time (at least with the pace of inflation).
You can also incorporate this into your process on what price range you choose to buy, and your plan to invest. Contact me, for a no-obligation consultation, and I can answer your questions about this program–whether you already own, or are looking to invest, and want to incorporate this program in to your purchase.
It was just announced that the USDA Zero Down loan program is coming back! This program is funded through the Rural Housing Administration, and allows buyer under a certain income limit to buy Zero Down, outside of city limits. In Whatcom County, all areas are included outside of the city limits of Bellingham. A couple of homes that I have listed that would qualify for the USDA program include 2565 Finkbonner Rd in Bellingham for $209,900, and 5144 Marshall Hill Rd in Deming, for $204,000.
This loan program also has no monthly mortgage insurance, so monthly payments can be extremely affordable (especially with today’s rates)!
Since the tax credit expired, there has definitely been a shortage of First Time Home Buyers entering the Real Estate market this summer. This should certainly help bring more first timers back into the market, which can have a trickle up effect on home sales and home prices. For more information, contact me here.
On a sunny day in Bellingham, the most popular park by the bay has to be Boulevard Park, by a long shot. That is where my wife and I find ourselves the most often. But just below downtown Fairhaven and the ferry terminal, and huddled between the shipyards of Fairhaven, there is another much less popular public park on the water. I have to admit that although I’ve been aware of it, I had never spent anytime there until this last weekend! It is called Marine Park, and it is equally as beautiful as Boulevard, but really has some perks you don’t get at Boulevard, or many of the other more popular Bellingham parks.
For one, it has a nice long beach (Boulevard has a very small beach area). Also, since it is less popular, it is much more quiet as well.
Marine Park has a huge covered cabana area for barbecuing and large gatherings, and really stunning views. There is beautiful views of the San Juan Islands, and then back North across the sound towards Bellingham.
The park does lack other amenities. No sports courts or anything like that. But it is a peaceful setting and an ideal place to come down and read a book, or just watch the sunset. 
