Real Estate Weekly: August 12, 2022 by Skagit Publishing

AUG. 12, 2022 STATES WITH THE HIGHEST RATE FROMHOMEOWNERSHIPOFTOCONSIDERPURCHASINGINPAGE5GETTINGABOOSTAMORTGAGEGUARANTORPAGE7CLASSIFIEDSPAGE7 INSIDEThisIssue

RE-Weekly States with the highest rate of homeownership to consider purchasing in P5 Q&A Ask Our Broker ...................................................................... P6 Getting a boost from a mortgage guarantor P7 Classfieds P7 TABLE OF CONTENTS 5 PAGE INSIDE own the local real estate market expand your reach when you combine the power of our digital audience and premium print ads in the re weekly ask your multimedia account executive for details. ContaCt: 360.424.3251 • ads@skagitads.Com

All real estate advertised in Real Estate Weekly is subject to the Federal Fair Housing Act, which makes it illegal to advertise “any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation or discrimination.” We will not knowingly accept any advertising which is in violation of the law. All persons are hereby informed that all dwellings advertised are available on an equal op portunity basis. For further information call HUD Toll Free at 1-800-669-9777. All Houses subject to prior changes without notice. Neither advertisers nor Skagit Publishing are responsible for any errors in the ad copy. Skagit Publishing reserves the right to refuse any advertising, which we deem unsuitable for our publication. Unless otherwise noted, all photographs, artwork and ad designs printed are the sole property of Skagit Publishing and may not be duplicated or reprinted without express written permission.SkagitPublishing is not responsible for typographical or production errors or the accuracy of information provided by advertisers.

Aug. 12, 2022 3RE-Weekly 1.26RealSTATEstateStatmillion The inventory of unsold homes by the end of June 2022 is 1.26 million which is equivalent to about 3 months’ worth of inventory for the U.S. housing market. Source: National Association of Realtors Mission Statement: T h e Nor t h P u get Sou n d Associa t ion of R ea lt or s a d voca t es for R ea lt or s a n d their clients, and promotes the protection of property rights. NORTH PUGET SOUND ASSOCIATIO N of REALTORS® 525 East College Way, Ste. J Mount Vernon, WA 98273 360) 416 4902 www.npsar realtor Devastatingly effective wire frau d scam s are becoming more and more common in real estate transactions Sophisticated hackers are monitoring client and/or broker email accounts and waiting for a window to steal monies from clients The scammers convincingly imp ersonate t he broker or escrow agent, and then send messages urging the clients to wire funds to f ake accounts set up by the scammers The clients are left with no recourse to recover the stolen funds Ar e you prepared t o protect yourself? Washington REALTORS® in cooperation with the NWMLS, the Department of Licensing, Department of Financial Institutions and the Office of the Insurance Commissioner have created severa l resources to educate our mem bers and consumers about this widespread but preventable fraud.  Obtain the phone number of your real estate broker and your escrow agent at your first meeting.  Call the known phone number to speak directly with your broker or escrow officer to confirm wire instructions PRIOR to wiring.

4 Aug. 12, 2022RE-Weekly Record-low interest rates is renewing interest in the housing market for many people. “When sellers are interviewing real estate agents to market their homes, their primary focus is usually on the advertising that the agent will offer them,” says Jessica Goodbody of Weichert Realtors. Let us help you meet your marketing goals by advertising your listings in Real Estate Weekly. Now could be the time to sell a new home and earn a slice of the real estate pie. RealEstate weekly Call 360.416.2180 Today! In print and ads@skagitads.comgoskagit.comonline

This is good news for homeowners in those states, “as it means that their home will likely hold its value,” says Joshua Haley, founder of Moving Astute. “Additionally, a high homeownership rate usually indicates that there are good opportunities for investment in the state, as there will likely be a lot of people looking to buy homes there.” A state with a high rate of homeownership will have a greater sense of communi ty, too, according to Den nis Shirshikov, professor of economics and finance with City University of New York and strategist at Awning.com.“Withfewer people mov ing in and out, schools, community centers, parks, and local businesses all benefit,” he says. “It creates more stable neighborhoods andFurthermore,communities.”states with high homeownership rates tend to have lower median home prices and rent ing rates, per Jodi Hall, president of Nationwide Mortgage Bankers Inc., in Melville, New York. “In these states, homes are more affordable, and renting is not as popular as in other states,” Hall says. “Among the top 10 states with the onlyhomeownershiphighestrates,onestateexceeds a typical home price over $300,000.”Additionally, high homeownership rate states often promise a higher quality of life, “so residents may find that they enjoy living there more than in other states,” HaleyOreficeadds.says states ranked near the top of the list often share a lot of com monalities.“Theyhave lots of small towns and rural areas without much popula tion turnover, meaning there are a lot of legacy homeowners and few new developments. This keeps prices down for those who do move into the area,” he says. “None of the states at the top of the list are known for their big cities.” If you are considering moving out of state, do your homework. While it’s wise to consider the homeownership rate within your new targeted state, consider other factors as well before committing to a home purchase and a relocation.“First,ponder your personal finances to ensure you are in a good position to take on a mortgage. Second, consider your job security and the likelihood of being employed for the foreseeable future. Third, look closely at the schools in the area and the qual ity of education provided. Fourth, review the cost of living in the area and determine if it is affordable. Also, think about your personal preferences and what would make you happy living in that state,” suggests Haley. Ask Orefice and he’ll tell you that the availability of good jobs in the state and near the area where you want to purchase “should rank near the top of your list, except for people who are allowed to work remotely.”Finally,consider proxim ity to family and friends, social opportunities, qual ity of community services, crime rate, tax rates, and political leanings within your intended new loca tion.

CTW There’sFeaturesstrength in numbers, they say. And that’s certainly true when it comes to owning a home and the areas around the country that enjoy higher rates of (75.6%),linafollowedhomeownershipginiaCensusdataingownershiptheCurioushomeownership.whichstateshavemostimpressivehomerates?Accordtofirstquarter2022providedbytheU.S.Bureau,WestVir-hasthehighestrateofat79.6%,bySouthCaro(76.3%),DelawareIowa(75.6%), and Maine (75.6%). The states with the lowest homeownership rates in clude Hawaii (59%), New York (54.3%), California (54.2%), and the District of Columbia (40.3%). Why are these numbers significant? The homeown ership rate signifies more robust demand for housing in that state. “This indicates that an area will likely have a relatively low cost of living, a good property tax base, and lots of good middleclass jobs to support all of these homeowners,” says Martin Orefice, founder of Rent to Own Labs.

Aug. 12, 2022 5RE-Weekly

By Erik J. Martin

States with the highest rate of homeownership to consider purchasing in

ARM agreements have historically contained caps to limit interest increases, however, because of the historically low rates seen during the past few years, recent ARM agreements also have “floors” to assure that rates do not go below a certain rate.

ASK OUR BROKER

QQ&A&A

Adjustable-rate mortgages

By Peter G. Miller

Question: With mortgage rates up substantially during the past year, is now the time to finance with an ARM? Answer: Borrowers are more willing to trade low rates for future risk when mortgage costs are rising. That’s what happens when borrowers finance with adjustable-rate mortgages (ARMs).Witha fixed-rate mortgage, you have a single-interest rate for the life of the loan and monthly payments for principal and interest that are always the same. For instance, a $300,000 loan over 30 years with a 5.5% interest rate will have a $1,703 monthly payment. While the payment amount does not change, each month a little more of the payment goes to reducing the principal and less goes for interest. With an ARM there is typically a fixed start rate that lasts five, seven, or ten years. A loan with a five-year start period that then adjusts each year is a 5/1 ARM. If the start rate is for seven years, the loan is described as a 7/1 ARM. The shorter the start rate, the lower the interest level.Inlate June, the typical fixed-rate mortgage was priced at 5.81% while 5/1 ARMs were available at 4.41%, according to Freddie Mac. For a $300,000 mortgage, the fixed rate loan has a $1,762 monthly cost for principal and interest over 30 years versus $1,504 for the ARM. That’s a difference of $258 a month or $3,096 a year. After five years with a 5/1 ARM, the interest rate can move up or down every 12 months. We have gone from the fixed “start” rate to the movable “fully indexed” rate. There are caps to protect buyers against excess rate hikes and payment shock. For instance, increases might be limited to 2% with the first adjustment, 2% for each adjustment thereafter, and a lifetime interest cap equal to 6%. This is a 2-2-6 ARM. For an ARM with a 3.5% start rate, such caps mean the first adjustment cannot result in a rate above 5.5% (3.5% plus 2%). The lifetime cap is 9.5% (3.5% + 6%).

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ARM interest rates are based on two factors. First, an independent index that moves up and down, such as Treasury bills. Second, a fixed amount called the “margin.” If the index is at 2% and the margin is 2.5% then the interest rate is 4.5%. If the index moves up to 3% then the new rate is 5.5% (3% plus the 2.5% margin). Are ARMs a good deal for borrowers? They can be attractive if rates stay low after the start period ends, but ARMs can stick buyers with steeper monthly costs if rates rise.Email your real estate questions to Mr. Miller at peter@ ctwfeatures.com.

Aug. 12, 2022 7RE-Weekly

REAL ESTATE FOR HousesSALEfor Sale

Getting a boost from a mortgage guarantor NEW PROPERTYEQUESTRIANLISTING!w/Stable&Arenas. Immaculate and better than new equestrian prop erty on beautiful Camano Island. Whole home gen erator, barn with stables, lighted dressage arena, round pen, heated pump house and fully fenced. Detached shop has 220v and an RV bay. Enclosed sun room with spa, office, gym, laundry shoot, and whole house intercom. Primary suite w/private bath room has its own dedicat ed floor on the upper level of the home. This property has every thing you could need to run a business from home while enjoying your pri vacy. Lower level has a 1 car attached garage w/ separate entrance into the house (should you choose not to use the main level entrance) where you can find the potential for multi generational living. Come see why this is where you should call home. ONLY Sedro-Woolley, WA Brand 3 bedroom, 2 bath, 6,000 square foot Immaculate and better than new equestrian prop erty on beautiful Camano Island. Whole home gen erator, barn with stables, lighted dressage arena, round pen, heated pump house and fully fenced. Detached shop has 220v and an RV bay. Enclosed sun room with spa, office, gym, laundry shoot, and whole house intercom. Pri mary suite w/private bath room has its own dedicat ed floor on the upper level of the home. This property has every thing you could need to run a business from home while enjoying your pri vacy. Lower level has a 1 car attached garage w/ separate entrance into the house (should you choose not to use the main level entrance) where you can find the potential for multi generational living. Come see why this is where you should call home.

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lot. 2 decks with partial fencing, 2 car concrete spaces, and birch trees. Ranch Rambler. In a nice neighborhood. Asking $425K 360.630.4219. or gwhiggins77@gmail.comemail HousesRENTALSfor -UnfurnishedRent NE W TODA Y One Bedroom Studio For rent, no pets. Un Estudio De Renta Tiene Un Cuarto. No Sedro-Woolley360-540-0229$700mascotas.month. in Classifiedsthe FOR HousesSALEfor Sale NEW PROPERTYEQUESTRIANLISTING!w/Stable&Arenas.

Camano290MLS#1972277MileHighDr.Island,WA98282Price:$1,150,000Bedrooms:3Baths:2.25SqFt:3,700Acres:4.78

Camano290MLS#1972277MileHighDr.Island,WA98282Price:$1,150,000Bedrooms:3Baths:2.25SqFt:3,700Acres:4.78 Shown by appointment

By Marilyn Melia Kennedy

“More buyers are using a guaran tor,” notes Rick Palandri of First Centennial Mortgage. Also known as co-signors or nonoccupant borrowers, a guarantor “has joint liability for the note with the borrower,” read rules from Fannie Mae, a governmentsponsored agency that purchases mortgages. While carrying re sponsibility for timely mortgage payments, a guarantor is often not listed on the deed, and has no ownership in the home. Usually, it’s a buyer who is close to fully qualifying on his own who can benefit from a guarantor, who offers his own good finan cial profile as added security to a Brucelender.Biggers, of Planet Home Lending, Rockford, Il, adds that a guarantor can often help a bor rowers qualify for a lower interest rate on the purchase than they’d receive otherwise. In many cases, the expectation is that the home buyer adheres to a budget and makes his payments “Guarantorsresponsibly. are usually parents or close relatives,” explains Tina Pecoraro of Nationwide Mortgage Bankers, Inc. “The assumption is that the special connection will drive the borrowers to go above and beyond in fulfilling their Still,obligation.”theguarantor’s financial profile must be strong. “Lenders often require guarantors to have access to substantial cash reserves in the form of [home] equity, or near zero mortgage obligations on their home,” Pecoraro says. While parents are often amenable to being a guarantor, they might not want to share their personal money matters with their adult children. The lender, however, needs to review the same income and asset statements for both bor rower and guarantor. “Some tell me ‘I don’t want my kids to know my finances. I tell them to send it to me separately,” says Biggers. This keeps the process moving and upholds the financial privacy of the guarantor.

Shown by appointment ONLY. Contact me or your favorite agent for more details. Calais425-328-0456Johnson Houses for Sale 425 East Jones Road in Sedro-Woolley, WA Brand new 3 bedroom, 2 bath, 6,000 square foot lot. 2 decks with partial fencing, 2 car concrete spaces, and birch trees. Ranch Rambler. In a nice neighborhood. Asking $425K. 360.630.4219. or gwhiggins77@gmail.comemail HousesRENTALSfor -UnfurnishedRent

NE W TODA Y One Bedroom Studio For rent, no pets. Un Estudio De Renta Tiene Un Cuarto. No Sedro-Woolley360-540-0229$700mascotas.month. in Classifiedsthe

CTW Features In this price-spiraling housing market, the only way many have been able to purchase is with a cash gift from family or friends. Now, with higher interest rates squeezing affordability further, buyers need another boost to reach mortgage approval. But this time it’s not cash, but a good faith promise that’s needed.

8 Aug. 12, 2022RE-Weekly