February 2017 Home and Real Estate Guide

A PUBLICATION OF CAPITAL CITY WEEKLY | JUNEAU EMPIRE

SOUTHEAST ALASKA

FEBRUARY 2017

ON THE COVER

GASTINEAU CHANNEL, LOCATED IN THE CITY AND BOROUGH OF JUNEAU

TABLE OF CONTENTS On the cover: Photo by 123rf.com 2 Powell Realty 3 Southeast Alaska Real Estate 4 Ricker Real Estate AlaskaUSA Mortgage: Minerva Carandang RE/MAX: JoAnn Birt 6 Residential Mortgage 8 AlaskaUSA Mortgage 9 Southeast Alaska Real Estate: Karen Wright 10 Coldwell Banker: Gwendolyn Place Valley Auto Parts 13 First Bank Mortgage 15 Exit Realty 16 Southeast Alaska Real Estate

The Southeast Alaska Home & Real Estate Guide is a publication of Capital City Weekly and Juneau Empire, divisions of Morris Communications www.capitalcityweekly.com www.juneauempire.com 3100 Channel Drive Juneau, AK 99801 Capital City Weekly: 907-523-2250 Fax 907-789-9097 Juneau Empire: 907-586-3740

For Sale

BY OWNER! Advertise Here!

Call Kathryn at 523-2274

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YOUR KIT WILL INCLUDE:

✔ Classified Ad in Juneau Empire (3 lines, runs on Thursday and Friday) ✔ Online Ad Thursday, Friday, and Saturday ✔ (3) 2-sided signs with Metal Stakes ✔ (3) balloons ✔ 2-pocket Change Apron ✔ Permanent Marker ✔ 140 Pre-Priced Labels DEADLINE FOR AD RESERVATION IS 10AM ON THE WEDNESDAY PRIOR TO YOUR SALE

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February 2017

•YAKUTAT

N CHILKOOT•

HAINES•

•SKAGWAY

•GUSTAVUS ELFIN COVE• PELICAN• HOONAH• •JUNEAU

LET YOUR DREAMS COME TRUE

TENAKEE SPRINGS•

•SITKA

•ANGOON •KAKE •PETERSBURG •WRANGELL

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TRY THIS ON THE GRILL MAPLE SMOKED RIBS

INGREDIENTS 2 lbs. pork side ribs 1 cup pure maple syrup 3 tablespoons frozen orange juice concentrate 3 tablespoons ketchup 2 tablespoons soy sauce 1 tablespoon Dijon mustard 1 tablespoon Worcestershire sauce 1 teaspoon curry powder 1 clove garlic, minced 2 green onions, minced

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February 2017

MORTGAGES

Payday Lenders

QUESTION:

A few years ago we ran into financial problems between jobs and got financing from a payday lender. After several loan extensions we were able to repay the debt. How will this impact our ability to buy a home?

ANSWER:

Payday loans are a form of financing long associated with enormously high interest rates and very bad credit outcomes.

The payday loan market exists in large measure because consumers have shown a widespread inability to save. A large-scale study by GoBankingRates.com found that most people – 69 percent – have less than $1,000 in savings. In fact, the same study found 34 percent of those surveyed had no savings.

Such savings habits expose individuals to the mercies of the payday loan system in the event a child needs to visit to an emergency room, an engine light goes on or overtime hours do not come through. The need for cash is immediate while the availability of funds is not.

A 2013 study by the Consumer Financial Protection Bureau (CFPB) found the typical payday loan was for $392. In other words, individuals with just $400 in the bank can avoid payday lenders altogether.

The Pew Charitable Trusts found in 2014 payday loan interest rates reached as high as 547 percent in South Dakota. In response,

Directions

Soak maple planks in sink or clean bucket filled with water for at least 1 hour. This can be done during the first stage of cooking the ribs.

Light one side of your grill, and preheat until temperature gauge shows 350*F. Place ribs meat side up in a roasting pan. Cover pan tightly with foil and place on the unlit side of your grill. Bake for 11/4 hours.

In a saucepan over medium heat on the stove or on the side burner of the grill, combine maple syrup, orange juice concentrate, ketchup, soy sauce, mustard and Worcestershire sauce. Stir in curry powder, garlic and green onions.

Simmer for 15 minutes, stirring occasionally.

Remove ribs from roasting pan, and baste completely meat side and bone side with still warm sauce. Retain half of the sauce for www.capitalcityweekly.com

voters in that state just overwhelmingly approved a 36-percent interest rate cap on payday and auto title loans. Given the success of the South Dakota effort such referendums may well spread to other states.

In terms of home buying and mortgages, payday loans raise several red flags for lenders.

First, the need for payday loans suggests limited or nonexistent savings and a lack of reserves.

Second, payday lenders typically do not report payments to credit reporting bureaus according to the CFPB, so if you make full and timely payments you don’t get good marks on your credit report.

Alternatively, if you miss payments the loan may be turned over to a debt collector and then show up as a huge negative on your credit report.

Third, a payday borrower may have so few traditional credit entries that it’s difficult to provide a credit score. The Federal Deposit Insurance Corporation estimates that almost 35 million households are unbanked or under-banked.

What to do if you have had a payday loan? Mortgage lenders would very much like to see that the payday loan was paid off, that you now have savings and that you have evidence of good credit.

These things will take time to acquire. Lenders are increasingly open to alternative evidence of credit such as rental checks and utility bills. Check your credit report without cost at AnnualCreditReport. com to see if there are errors or out-of-date items and open a checking account with a local bank – an account that includes a personal line of credit. © CTW Features

additional basting. Place ribs on soaked maple planks, bone side down. Put the planks with the ribs on them on one side of the grill with low heat setting directly underneath them.

Turn the other side of the barbecue to high and close lid. Keep temperature around 350*F. Planks should begin to smoke within a few minutes and produce a sweet fragrant smoke in your grill. Adjust the amount of smoke you would like to add by increasing or decreasing direct heat underneath the planks, and opening or closing the lid. Do not allow planks to catch fire. Allow ribs to cook on the planks for 25 minutes. Use remaining sauce to baste ribs several times throughout cooking. Remove planks with ribs on them from the grill and place the planks directly on a plate or tray for serving.

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_______________________________________

- call for details -

523-2274 50% for-sale-by-owner discount _______________________________________

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February 2017

Fewer Underwater

2.2 Number of homeowners (in millions) that have negative home equity – a decrease of one million since the start of 2016.

Source: Black Knight Financial Services, Inc. Š CTW Features

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WHAT DO YOU LOVE ABOUT SOUTHEAST ALASKA? Send us your photos of Alaska for a chance to be published in the Southeast Alaska Real Estate Guide.

Asking $550,000 Call Robyn Long, Platinum Real Estate Group for more details. 907.523.2774

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Send images to matthew.wilkinson@morris.com and include “Real Estate Guide” in the subject line.

February 2017

MORTGAGES

Refinancing? Watch for Hidden Fees ‘No hidden fees’ doesn’t always mean what it says

By Jesse Darland

When homeowners refinance their homes, their lender provides them with a HUD-1 Settlement Statement. By law, this standardized form itemizes the services provided by the lender and any associated fees. Many lenders point to this form as proof that the rates they offer contain “no hidden fees.” But there is one fee that’s not required to be reported: the “yield spread premium,” which can inflate borrowers’ interest rates unnecessarily.

“While mortgage brokers are legally obligated to disclose the yield spread premiumkickback for inflating a homeowner’s interest

rate on a home loan or refinance mortgage bankers or banks have no such obligation,” explains a statement from the Mortgage Inspection Service, a firm that specializes in comparing bank rates to ensure that borrowers are getting a fair deal.

But how does the yield premium spread

YOUR bright idea.

YOUR big announcement.

YOUR open house.

YOUR sale.

YOUR real estate.

YOUR birthday wishes.

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YOUR AD HERE. www.capitalcityweekly.com

© CTW Features

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affect a homeowner’s borrowing rate? If a hypothetical customer qualifies for a 4 percent interest rate on a 30-year fixed loan in the amount of $200,000, an underhanded lender might try to get the borrower to instead accept a 4.25 percent rate. Just a quarter of a percentage point increase could lead to a profit of about $2,000 for the lender.

Because lenders have no legal obligation to disclose these fees, they sometimes sneak their way into refinancing transactions, particularly when large mortgages are being refinanced.

One way to catch such interest rate inflation is to pay careful attention to the Good Faith Estimate, prepared in advance by a lender, and the HUD-1 form that’s presented one day prior to a loan’s settlement. By seeing if any changes have been made to the interest rate, consumers can be made aware of any yield spread premiums – “no hidden fees” or not.

ALES

S EDIA

TI-M MUL

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How President Trump and his policies may impact homeowners, buyers and sellers

The Future Is Now

By Erik J. Martin It’s a new year and a turn of the clock toward a new administration. Which begs the question: What can home buyers, sellers and owners expect from President Trump when it comes to housing matters in 2017 and beyond? That query is currently top of mind for folks inside and outside the industry, especially considering that Mr. Trump made his bones in real estate.

Ask Republicans and they’ll tell you that the housing future looks bright under Trump: based on results of a brand new Trulia poll, this group of voters went from, before the election, having a -9 point margin in favor of purchasing a home in 2017 to, following Trump’s win, a +17 margin (margin meaning percent of respondents saying 2017 will be better than 2016 minus the percent saying worse) – that’s a 26-point swing toward optimism; they’re also bullish on selling a home this year (a 25-point positive swing).

Democrats surveyed were more pessimistic: pre-election vs. post-election, Dems went from having a +13-point margin in favor of buying a home in 2017 to a -10 point margin and a +9-point margin to a -11 point margin in favor of getting a mortgage loan in 2017.

Mark Lee Levine, professor of real estate at the University of Denver, believes the Trump administration will have a positive impact on housing because his policies are favorable to businesses and he aims to reduce regulations and decrease tax rates.

“I expect less red tape when it comes to buying and selling homes once Trump’s position on decreased regulations moves forward,” Levine says. “With the Republicans controlling the House and Senate, I think the bottom line outlook for the real estate market is very good for 2017.”

If Trump softens regulations on lenders, it may also lower the costs of compliance, bringing back more small community banks to compete with bigger banks and boosting bank profits – all of which can increase credit availability, says Jeff Taylor, managing partner at Maitland, Fla.-headquartered Digital Risk LLC. “More credit for builders means they can increase production and housing inventory,” Taylor notes. “And deregulation could reduce costs for builders, making it easier for them to 12

construct affordable housing.”

Pierre Debbas, partner with Romer Debbas, a New York City law firm that represents many lenders, developers and homeowners, is also enthusiastic about Trump having a positive influence, thanks to the potential effect of his tax reform proposals and background as a prolific real estate developer/investor.

“Lowering taxes and maintaining the existing capital gains tax, as he has proposed, will mean additional liquidity, which can only be an advantage to the real estate market,” Debbas says. “Following the election, our market is being inundated with people wanting to close on condominium and office deals all over the city.”

Of course, many of these prospective buyers eager to purchase now are motivated by an undeniable post-Trump victory fact: mortgage interest rates have ticked up since Election Day, thanks to the improved economy, speculative investing, inflationary pressures, the bond market and other factors. Trump’s proposal to spend more on infrastructure may also influence the Federal Reserve Board to approve interest rate increases this year in order to keep inflation under control.

“Many economists are revising their

predictions upward for rates in 2017, which could hurt the first-time buyer market hardest by reducing affordability,” Taylor says.

“There’s also concern that Trump’s plans to spend money on infrastructure projects around the country could result in more laborers taking those jobs and leaving homebuilders even more shorthanded – hurting new construction,” Taylor says.

Additionally, Mr. Trump’s tough immigration stance is also likely to keep immigrants out of the country and the workforce—“another blow to homebuilders who rely on immigrants for construction jobs,” Taylor says.

Consider that labor shortages also contribute to rising wages for construction workers, which may, in turn, keep home prices high. If home prices continue to climb concurrent with interest rates rising, home sales could start to plummet under Trump’s watch.

“If you’re in the market for a home loan, I encourage you to act soon,” suggests Carolyn Riegler, a real estate broker/CPA in Bloomfield Hills, Mich., who feels the uncertainty surrounding Trump’s first year could drive interest rates higher. “Rates are still near all-time lows, but it’s unlikely they will move downward.” © CTW Features

February 2017

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February 2017

PHOTO BY MICHAEL PENN | JUNEAU EMPIRE FILE

Snowbird

An Alaska Airlines jet takes off at the Juneau International Airport.

CAPITAL CITY WEEKLY IS IN MORE SOUTHEAST ALASKA COMMUNITIES THAN ANY OTHER PAPER ANGOON Angoon Trading Angoon Health Center CRAIG A C Thompson House Annie Betty’s Bakery Cafe JS True Value NAPA Automotive Papa’s Pizza Shaub Ellison The Bread Box The Craig Public Library The Waffle House Tyler Rentals Whale Tale Pharmacy Zat’s Pizza DOUGLAS Breeze In Douglas Café Douglas Library ERA Helicopter Island Pub Mike Hatch Jeep SERRC (Cedar Park) Tanner Marine Service Center EDNA BAY Delivered to 27 Residents ELFIN COVE Delivered to 25 Residents GUSTAVUS Delivered to 240 Residents HAINES AK Sport Alaska Seaplanes Alaskan Liquor Alaska Marine Highway American Legion Big Foot Auto Canal Marine Captains Choice Chilkat Restaurant E & D / Radio Shack Eagles Nest Ferry Terminal Fogcutter Bar Haines Assisted Living Haines Quick Shop Haisler Hardware Halsingland Hotel

Harbor Bar Home Builders Howsers Moose Laundry Pioneer Bar Tesoro Gas The Hair Shop Visitors Center Wings of Alaska HOONAH Alaska Seaplanes Colette’s Cupboard Harbor Master Hoonah Cold Storage Hoonah Liquor Store Hoonah Medical Center Hoonah Senior Center Hoonah Trading Co. Huna Outfitters Icy Straight Lodge Misty Bar Lounge Office Bar Salvation Army Thrift Store Tideland Tackle HAWK INLET Delivered to 25 Residents HYDER Delivered to 145 Residents JUNEAU 1st Bank - 2 locations Action Appliance Airport Mall Alaska Cache Liquor Alaskan Hotel Alaska Job Service Alaska Marine Highway ANB Hall Arctic Chiropractic Asianna Gardens Aspen Hotel Auke Bay Harbor Master Bartlett Regional Hospital Bergman Hotel Best Western - 2 locations Bill Ray Center Blue Jeans Café Breakwater Hotel Breeze In - 3 locations

Bridge Adult Day Care Bullwinkle’s Pizza - 2 locations Cancer Center Care-A-Van CBJ Info Chamber of Commerce Chan’s Thai Kitchen Coldwell Banker Custom Cuts DeHart’s Denali Credit Union Don Abel Building Supplies Donna’s Restaurant Dragon Inn Driftwood Duck Creek Market El Zarape Emporium Mall Exit Realty Extended Stay Hotel Family Health & Birth Center Family Health Care Family Practice Physicians Fireweed Senior Center Foodland IGA Foreign Auto Fred Meyer Frontier Suites Gas-N-Go Gastineau Humane Society GCI - 2 locations Glacier Pediatrics GonZo Gruening Park Admin. Off. Harri Plumbing & Heating Heritage Coffee - 6 locations Home Liquor & Deli Honda Hut Hot Bite J&J Deli Jordan Creek Center Juneau Assembly Building Juneau Arts & Humanities Juneau Bowling Center Juneau Courier Service Juneau Foot & Ankle Juneau Hotel Juneau Airport - in 4 locations Juneau Library

Juneau Pizza Juneau Senior Center Juneau Urgent Care K-Plaza Canton House Kenny’s Liquor Lemon Creek Liquor Les Schaub Tires Little Hong Kong Marine View Bldg.

McDonalds McDowell Group Mendenhall Apartments Mendenhall Mall - in 3 locations Merchant’s Wharf Mi Casa Miner’s Mercantile Moose Lodge Nugget Mall Papa Murphy’s Petco Pioneer Home Powell Realty Prospector Hotel Rainbow Foods Rainy Day Books Rayco Sales Re/Max Rejuvinations Reliable Transfer Safeway - in 2 locations Sandbar Grill Sandpiper Restaurant SEARCH Clinic Senate Building SERRC Shattuck and Grummet Silverbow Bagel Southeast Foot and Ankle Southeast Furniture Southeast Mining Supply St. Vincent de Paul State Farm - 3 locations Super Bear Swampy Acres Temsco Tesoro The Canvas The Rookery Cafe

The Viking Tlingit Haida Bldg.

Tram Travelodge True North FCU - 3 locations Tyler Rental UAS Library UAS Mourant Building University Book Store Valley Lumber Valley Medical Valley Paint Valley Restaurant Washboard Laundry Western Auto Wildflower Court Wingnut Auto Salon Wings of Alaska World Wide Movers KAKE Delivered to 220 Residents KETCHIKAN 1st Bank - 3 locations Alaska Job Service Alaska Public Assistance Office Alaska & Proud Ketchikan Alaska Marine Highway Cape Fox Lodge Cape Fox Mall Community Connections Highliner Laundromat Ketchikan Indian Community Madison Lumber Newtown Liquor Pacific Airways Peacehealth Ketchikan Clinic Pioneer Home Plaza Mall Promech Air Red Anchor Café Safeway Food & Drug Taquan Air Tatsudas Grocery The Landing Tongass Federal Credit Union Tongass Substance Screening UAS - in 2 locations

KLAWOCK Black Bear Klawock Market Klawock Liquor Store Island Air METLAKATLA Annette Island School District Metlakatla Community Council PELICAN Delivered to 125 Residents PETERSBURG Alaska Airlines Alaska Marine Highway Coastal Cold Storage Glacier Laundry Hammer & Wikan Hammers Hardware Hammers Marine Joan-Mei Petersburg Motors Rexall Drug Rockys Marine Scandia House SE Island Fuel Tides Inn Trading Union USFS Office Wings of Alaska POINT BAKER Delivered to 40 Residents SITKA Agave Restaurant CFC City Building Ernie’s Old Time Saloon Gary’s Outboard Repair Hair Loft Harrigan Centennial Hall Lakeside Mall Lyles Market Center McDonald’s Murry’s Pacific NAPA Petro Marine Pioneer Bar Ready Mix Rentals SEARHC

Sea Mart Sitka Airport Sitka Pioneer Home SMC Contractors Spenard Builders Subway Super 8 The Back Door Cafe Tongass Threads Totem Square Westmark SKAGWAY AB Hall Alaska Liquor Alaska Marine Highway Dahl Memorial Clinic Fairway Market Ferry Terminal Garden City Glacier Smoothies Library Mile Zero National Parks Service Petro Marine Sergeant Preston’s Lodge Services Unlimited Skagway Pizza Station Skagway Rec Center Sweet Tooth Westmark Whitehouse Wings of Alaska You Say Tomato SNETTISHAM Delivered to 10 Residents TENAKEE Don Pegues THORNE BAY Thorne Bay Market WRANGELL Bob’s IGA City Market Raymes Stikine Inn Zak’s Café YAKUTAT Delivered to 400 Residents

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