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.

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.

To qualify under Home Affordable Foreclosure Alternatives (HAFA), you must meet the eligibility criteria for the Home Affordable Modification Program (HAMP).

Typically on a shortsale, you have your home listed, and then once you get an offer, you start on a long process to negotiate with your lender. This process has many unknowns and usually is a process that takes 3-6 months.

With the HAFA program, you’re REALTOR can help you turn everything in to your lender before you list. Then the lender will agree to a list price before it goes on the market. You then have 120 days to get an offer on you’re home once you list. Then when you receive the offer, the lender will respond with in 10 days, and then it’s done and approved! In addition, there is the $3,000 in moving help that is available as well.
Why should I consider a HAFA short sale?

• Help you avoid foreclosure
• Allow you to be “fully released” from any further liability on your mortgage
• Provide financial assistance of $3,000 to help with relocation expenses
• Once you recieve an offer, much shorter waiting period to get response and approval from you’re lender
• Easier to plan for move and find a buyer for your home (since the approval happens before you list)

How Do I Qualify?

The eligibility criteria is based on the terms set forth under the government initiative. If you do not meet the eligibility criteria under HAFA, you may still be able to work with your lender on a short sale. 

If you are in the Bellingham, Whatcom County, or North Skagit County area, and you are interested in discussing any of this, I can help you assess your situation to see if a shortsale or HAFA program is right for you. Whether this program is right for you or not, it is important to work with a REALTOR who understands the shortsale process and is knowledgeable about this new program. If you are in a different area, I can help you locate a specialist. Contact me here.

This is a like-new 4 bed, 2.5 bath home with 2,086 sq feet.

It’s in the desirable Trickle Creek Neighborhood and it has possibly the best backyard setup in the neighborhood! They built an awesome back deck and gazebo and the backyard is fully fenced. The best part for me is the greenbelt back drop.

Give me a call at 360.920.5901 or contact me here if you’d like to see it. This is really a 1 week deal only!

With inventory rising, the supply of homes is increasing to it’s highest level in Bellingham since January. The current inventory level is 9.8 months–which means that for every 1 home that sold in June, there was about 10 for sale. Once the supply of housing rises into the 9 + month range, that indicates downward pressure on home prices.

The surprising statistic is the List Price to Sales Price Ratio, which is UP to 94% (see below).  At the same time, the average dollar per square foot that homes have been selling for in Bellingham is down ($155 per square foot average). What that means, is that sellers had to be more aggressive in there price reductions to sell there home last month. Once a home was priced “right” buyers are showing a willingness to pay closer to asking price. But  it’s easy to recognize that the bar has been rising on what buyers see as a “value” in today’s market.

With lower rates (under 5%!) and lower prices, I expect sales in Bellingham to improve slightly in July, but home prices will continue to stay soft in the short term. 

It is still an incredible time to buy though, because what a buyer may hope to gain in lower prices, may be more than offset as interest rates rise.  Remember that for every 1% interest rates go up, the buyers purchasing power reduces by 9%.

This is subject to shortsale. On my website, you can learn more about shortsales here. You can also email me direct with any questions about it paulbalzotti@johnlscott.com. Here is a video I made showing the creek and much of the homes features..

Today’s current home prices are down 9.6% in Bellingham from the peak, which is really not that bad compared to many areas of the country. Prices are showing some signs of stabilizing, and many are predicting we will hit bottom in the 3rd or 4th quarter of this year, followed by modest appreciation or flat prices for the next couple of years. This is really just a symptom of the 10 year cycle in Real Estate. Being at or near the bottom of home prices, and with historically low interest rates, it is really a great time to be investing in Real Estate.

Home Price chart of Bellingam over the last 30 years.

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.

What has happened  though, is buyers expectations have gone up at the same time.  Buyers want the $300,000 house for $275,000, or the house that was selling for $600,000 (last year) for $500,000. They want value, which makes sense, and that is what it’s all about!

But even when a buyer finds a good value, he/she still need to consider trade-offs. From the upper end to the lower end, it’s hard to get it ALL. Unless you pick a lot in your perfect location, and custom build it, buyers need to accept that there will be some trade-offs in your search, always.

The sooner the buyer separates needs from wants, the better experience they will have in there home search…And the better decision they will ultimately make.  When looking at homes, it can be very emotional, and so it is important to use rational to consider your priorities.

Example being many buyers prefer, new or newer construction. If you want a newer home, you may have to accept less square footage for your money, or a smaller yard, or moving into a development that is not totally established.

If you want a big yard, and more square footage, you may have to seriously consider how much work you are willing to put in. Many times I find solid homes that fit a buyers criteria perfectly, but they can’t get passed the cosmetics, if the finishes/colors are outdated. Many times this may be the perfect match with some updating and personal touches.  Also, deciding how important location is to you. Many buyers look at on-line classifieds and look at the houses first, and consider the location later. Often times a  better way to search is to use the map search feature, and draw out the areas you’d prefer to be in, and start your search that way.

So in summary, it is best to analyze what trade-offs your willing to accept when considering a move.

2565 Finkbonner road Bellingham, WA, is a home located in the Gooseberry Point community, which is about 20 minutes to Bellingham, and about 10 minutes to Ferndale. It has a Bellingham address, but is in the Ferndale School district.

The home was originally built in 1954, and then in 1993, completely gutted and remodeled, and a 2nd floor was added at this time as well. The 2nd floor was designed to take in the bay and Island views, and has a beautiful master suite, and an office space, with a neat built-in for a bed (perfect for guests).

So it now effectively offers 3 beds, plus a loft (office and guest bed) and 2 full baths (one up, one down). The foundation, wiring, siding, roof, and most components of the home were re-done to make this effectively a 1993 year built home. Then in more recent years, the current owners updated the home with fresh interior paint, a remodeled kitchen, new fixtures, and also added a gas fireplace.

So what you have now, is an updated home, with all of the modern features (stainless appliances, solid surface counters, master bath, new fixtures, double pane windows) but lots of charm and character through out.

The house also has great outdoor space to entertain, garden, and barbeque. There is a front deck that looks out to the bay, and then a back deck that is more private and goes out to the fenced backyard. There is handi-cap access from the rear deck as well.

The best part of the home, has to be the bay views and the beach. Gooseberry Point has a beautiful sandy beach, and in the summer, it is hard to beat. You will find many  clam digging or kayaking, or just walking the  beach, and soaking in the view. All of the homes in Gooseberry Point have private waterfront rights to this beach.

Here is a short video clip I made, showing the beach, and the short distance from the beach to the house..The video quality is not great, since this was shot on my cell phone.

You are also just steps to the Lummi Island Ferry, which you can walk on for the 10 minute ride across. Lummi Island offers restaraunts, biking, and much more. It’s just a very neat island to be able to take advantage of.

In this price range, there is always trade-offs. In this case, the trade-off would livingoutside of town and having a 10-25 minute commute.

But if your someone who avoids the “cookie-cutter”, and is looking for value in this price range, or just wants to live by the bay, it is absolutely worth your consideration.

To ask questions, or setup a personal tour, please contact me at 360.920.5901 or paulbalzotti@johnlscott.com.