JULY 1,1998
Page A6
(Elie JJortlanò (líbseruer
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Greening Hollywood
Far & Away, Best Value Any where !
T a m in g t h e D o w n P a y m e n t B e a s t
O kay now y o u ’v e ta k en the
steps to get p re-ap p ro v al to buy
y o u r new ho m e co n tac ted a R e al­
to r to hel p you and are read y to go
•Ä*
B y C hris G uinn of
M illenium P roperties in
N ortheast P ortland
hom e sh o p p in g but you forgot
so m e th in g , the dow n paym ent.
Y es. th a t sm all chunk o f change
need ed to put dow n to w ard s the
p u rch a se o f y o u r hom e and to
co v e r so m e o f the clo sin g cost.
H ow m u c h sh o u ld you have to
put d o w n ? W hat are c lo sin g cost?
H ow do you get that m uch m oney
to put dow n on an item as ex p e n ­
sive as a hom e? Just relax and pay
clo se atten tio n to th ese next few
p arag rap h s and you w ill find how
to tam e th e w ild dow n p ay m en t
“b e a st.”
F irst lets p ut w hat
a dow n p ay m en t is into p e rsp e c ­
tive. O ne o f the g reat ad v a n ta g es
o f b uying real estate th at d iffe rs
from other p u rch ases is lev erag e
one can use to w ard s the p ro p erty
w ith a co m p arativ ely sm all sum o f
m oney. I like to use this an alo g y ;
Y ou get an in c re d ib le o p p o rtu n ity
to p u rch a se a b ran d new 1999
M ercedes fo r $ 2 0 0 0 .0 0 . H ow ev er
you only have $300 to y o u r nam e
in th e bank. I w ill bet m ost p eo p le
w ill have ac q u ired that ad d itio n al
$ 1700.00 b efo re the sun set. W hy?
T hey rec o g n ized th e trem en d o u s
v alu e and eq u ity they w o u ld im ­
m ediately gain by p u rch asin g such
an ex p e n siv e au to m o b ile fo r so
lit'.le. T his is th e sam e p rin cip al
w hen w e talk ab o u t a d ow n p ay ­
m ent for a hom e. A lthough m ost o f
th e tim e d o w n s are n ot ch ick en
feed, they are relatively sm all w hen
com pared to th e p rice o f the hom e.
So en o u g h ev ad in g th e is­
hom es for m uch less. A lso in som e
s itu a tio n s’ sellers w ill sp lit or
co m p letely carry m ost o f the c lo s­
ing cost. 1 w ill ex p lain clo sin g
cost in a fu tu re article. T h ere are
also 0% d ow n loans for th o se w ho
qu alify . T h ey g en erally req u ire a
great cre d it ratin g b ut ca rry a
slig h tly h ig h e r in terest rate. Y ou
will w ant to talk to y o u r m o rtg ag e
b ro k er o r b an k er to d eterm in e
w hat k ind o f loan b est fits y o u r
needs.
T he w ay s to acq u ire a lum p
sum for a dow n vary. O f co u rse
putting m oney asid e each m o n th
w orks o r sav in g y o u r in co m e tax
refund fo r a co u p le o f y ea rs in ­
stead o f b u y in g th at new auto.
B o rro w in g from a clo se rela tiv e
or frien d o r an area m any o f us
forget is b o rro w in g ag a in st o u r
401k p lan s at w ork. T his m ay
o nly req u ire a p ay m en t o f 40 to
60 d o lla rs per p ay ch eck !. If w e
really g rasp the im p o rta n ce o f
hom e o w n ersh ip and sin c erely
w ant to m ake it h ap p en w e can
q u ick ly turn the scary dow n p a y ­
m ent b east into a cu te little pu p p y
dog.
su e o f m oney an d lets ex am in e
so m e co ld h ard n u m b ers. H ow
m uch is a g o o d do w n p ay m en t?
Ju st lik e any o th e r p u rch ase the
m ore m oney dow n the better. H ow ­
e v e r now w e are g o in g to d isc u ss
m in im u m s. T h e a v e rag e p rice o f a
ho m e in the P o rtlan d M etro area is
aro u n d 1 4 0 -15 0 ,0 0 0 d o llars. M ost
co n v e n tio n a l loans req u ire ab o u t
ten p ercent dow n or 14-15,000 d o l­
la r s . W e a ll h a v e th a t ly in g
a ro u n d ....rig h t? W ell, th e re are
p ro g ra m s d esig n ed for us w ith a
little less cash. O n e is the FHA
lo an (F ed eral H o u sin g A u th o rity ).
T h is is a g o v ern m e n t back ed loan
th a t req u ires o n ly th ree p erc en t
dow n.
T h is is ideal fo r first tim e b u y ­
ers an d p eo p le w ith m o d erate or
lo w er incom es. S ud d en ly the dow n
p ay m en t on th at sam e hom e has
m a g ica lly d ro p p e d to less than
$ 5 0 0 0 d o llars. T h ro w in an o th er 2
o r 3 g ran d fo r clo sin g co st and you
can still o b ta in o w n ersh ip o f a
$ 1 5 0 ,0 0 0 item fo r less than 10
grand! R em em b er th e se are fig ­
u res b ased on th e a v e rag e cost o f a
h o m e. T h ere are still m any q u ality
m
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o w n e r s h ip a r e a l i t y f o r a m a ­
jo r ity o f p e o p le .’ G o v e rn o r
K itz h a b e r p r a is e d th e c o o p ­
e ra tio n b e tw e e n in d u s try and
g o v e r n m e n t in o p e n i n g th e
d o o r s o f h o m e o w n e r s h i p to
th o u s a n d s o f O r e g o n f a m i lie s .
“ T he G o v e rn o r’s p ro c la m a ­
tio n r e a f f i r m s th e i m p o r t a n c e
o f b e in g a h o m e o w n e r to m a n y
O r e g o n ia n s ,” s a id b o b R e ­
p in e , D ir e c to r o f O re g o n
H o u s in g a n d C o m m u n ity S e r ­
v ic e s D e p a r t m e n t ( O H C S D ) .
to c r e a t e a n d p r e s e r v e o p p o r ­
tu n itie s fo r q u a lity , a f f o r d ­
a b le h o u s in g f o r lo w a n d m o d ­
e r a te in c o m e O r e g o n i a n s . T h e
D e p a rtm e n t a lso a d m in is te r s
f e d e r a l a n d s ta te a n t i - p o v e r t y ,
h o m e le s s a n d e n e r g y a s s i s ­
ta n c e c o m m u n ity s e r v i c e p r o ­
g ram s.
F o r m o r e in f o r m a t i o n o n
H o m e o w n e r s h ip p r o g r a m s
o ffe r e d th r o u g h th e d e p a r t ­
m e n t, c a ll o u r h o t lin e at
(5 0 3 ) 9 8 6 -2 0 1 5 .
“ In lin e w ith th e s e v a l u e s , o u r
d e p a rtm e n t s p o n s o rs a v a r i­
e ty o f p r o g r a m s s u c h as h o m e
b u y e r e d u c a tio n , d o w n p a y ­
m e n t a s s is ta n c e an d w e a th e r­
iz a tio n . T h e s e s e rv ic e s a re
v i t a l to h e l p i n g O r e g o n ia n s
e n jo y s u c c e s s fu l H om e o w n ­
e r s h ip .”
O r e g o n H o u s in g a n d C o m ­
m u n it y S e r v i c e s D e p a r t m e n t
( O H C S D ) is th e s t a t e h o u s in g
fin a n c e a g e n c y , p ro v id in g f i­
n a n c ia l an d p ro g ra m s u p p o rt
plants.
T he difficulties from A sia and this
G M strike will begin to bite, but we
w on’t see that affect housing until the
fourth q u a rte r," said Paul Taylor,
senior econom ist at A m erica’s C om ­
munity Bankers.
For now , low m ortgage rates are
the key incentive to hom e buying.
The average rate on a 30-year fixed-
rate mortgage stood at 6.96 percent
in the week ended June 26, close to
its lowest level in five m onths. At the
same time, m ore people are applying
for mortgages, the M ortgage Bank­
ers Association said last week.
M ortgage interest rates rem ain in­
credibly affordable,” said Robert
V an O rd e r, c h ie f e c o n o m ist at
Freddie Mac, last week. “T his has
been aboon to the housing industry.”
In financial m arkets, the price on the
U.S. governm ent’s benchm ark 30-
year bond fell 3/32, pushing up yield
alm ost 1 basis point to 5.64 percent
ahead o f the Federal R eserve’s two-
day m onetary policy m eeting begin­
ning tom orrow . Stocks w ere higher
after a survey show ed Japanese ex ­
ecutives w ere optim istic about their
nation’s econom y. The Dow Jones
Industrial A verage rose 89, or 1.0
percent, in m idday trading.
More Records
The housing strength has been
defined by the longest stretch ever o f
new h o m e s a le s e x c e e d in g an
8 0 0 ,0 0 0 -u n it an n u al p ace. M ay
marked the ninth straight m onth the
pace o f sales w as above that level.
Sales o f new one-fam ily hom es in the
first quarter averaged 855,000 a
month at an annual rate, a record and
up 3.3 percent from the 828,000 av ­
erage per month in the fourth quarter.
W e’v e ju st got great affordability,”
said Robert Strudler, chairm an and
chiefexecutive officer at U.S. Homes
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S Q U A R E
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* * ** R E S T O C K E D
P R IC E S
D A IL Y * * *
I
L 4636 N.E. 42ND ÄVL'
i P ortland , or 97218
(503) 284-9237
HOURS
MON-SAT 9 A.M. to 7 P.M.
SUN NOON to 6 P.M.
lim m m m m m m
abrí
THE LARGEST, MOST COMPLETE RETAIL FABRIC STORE IN THE WEST
SAI F
EXTENDED!
30 OFF
U.S. Economy: New Home Sales Rise to Record Rate in May
U.S. sales o f new hom es forged
ahead in M ay to a record level against
a backdrop o f low interest rates and
high consum er optim ism that will
drive the industry through year’s end.
New single-family hom e sales rose
0.3 percent in M ay to a 890,000 units
at an annual rate, the C om m erce
D epartm ent said, breaking the previ­
ous record set in April. A nalysts had
expected a drop in M ay sales to an
877,000-unit annual rate.
The fall in m ortgage rates over the
past year is pow ering hom e sales
activity to new h ig h s,” said Ian
S hepherdson, c h ie f econom ist at
HSBC Securities Inc. in N ew York.
“T here is m ore strength to com e" as
today’s low interest rates will take
about three m onths to translate in to
hom e sales, he said.
T he robust housing industry will
help offset som e o f the slow dow n at
U.S. factories expected from weak
Asian econom ies and the nationw ide
shutdow ns at G eneral M otors Corp,
m
____—-—
TH R if t
June Is Home Ownership Month
( S a le m , O r e g o n ) G o v e r n o r
Jo h n A . K itz h a b e r h as e m p h a ­
s iz e d th e i m p o r t a n c e o f h o m e
o w n e rs h ip fo r O re g o n ia n s by
d e c la rin g Ju n e as H o m e o w n ­
e r s h i p M o n th in a p r o c l a m a ­
tio n s ig n e d o n J u n e 1 0 th .
T h e p ro c la m a tio n s ta te s
th a t ‘ H o m e o w n e r s h i p is th e
A m e r ic a n d r e a m a n d f o r m o r e
th a n tw o c e n t u r i e s , o u r n a t io n
h as e m b ra c e d th is d re a m . O r ­
e g o n w a s o n e o f th e f i r s t s ta te s
in th e W e s t to m a k e h o m e
will be held in late July and early
August. Everyone that attends one or
the other will be entered into a draw ­
ing for an electric lawn mow er. The
dates, tim es, and locations are:
- Tuesday, July 2 1 st from 7-9 PM.
Rose City Park U nited M ethod­
ist Church
5830 NE A lam eda
- Monday, August 3rd from 7-9 PM
H ollyw ood Senior C enter
1820 NE 40th A ve
If you are unable to attend either
o f these events, you can still provide
your input. And, you can still be
entered into the lawn m ow er draw ­
ing. GNN will have an inform ational
booth at Starfest. Y ou can stop by
there and fill out a survey form. For
additional inform ation on G N N , call
the Portland Energy O ffice at 823-
7222.
Residents in and around the Holly­
wood neighborhood are encouraged to
provide their ideas and input to the
G reen N eighborhood Network (GN N).
GNN isacommunity-focused partner­
ship designed to reduce resource use (
and the related expense) and help make
the Hollywood area a more livable
community. The resource-conserva­
tion efforts will be focused on five
areas: Energy, Water, Waste, Trans­
portation, and Vegetation.
GNN w ants to hear from the com ­
munity about what they w ant to do in
their hom es and neighborhood. The
options include creating printed m a­
terials, putting on educational events,
offering incentives, and more. W hat­
ever is done will be tailored to com ­
munity interests and needs.
There are two meetings scheduled
to obtain your input. These meetings
$209,000 In Alameda,
you we he impressed with
this charming 3 bedroom
1.5 bath w/bonus room.
Elegance, hardwood
floors, Fire Place with
built-ins. Spacious
kitchen, tile in bath,
detached garage. New
roof, & more. This is a
beautiful home on a
picturesque street. Teisha
Helgerson 699-3924.
Mason to 4132 NE 30th
Ave.
Corp, in Houston. “ It’s a wonderful
com bination o f full employment, low
interest rates and a high degree o f
consum er confidence."
Everything in the store1
jA Solid & Cleon F o H vcss
|--------1 F A IU tlC D E P O T C O U P O N T—
ALL VOGUE PATTERNS
70% OFF
4 DAYS ONLY!!
Limited to stock on hand, lim it 6, valid 6/4-6/7/98
4135 NE Mallory
$104,500
6
6
6
6
6
3 + Bedrooms
Open & Spacious
Eat in kitchen
Photographers Darkroom
Hardwood floors
Outdoor Warehouse
6 Gas stove, refridgerator,
washer & dryer remain
6 Water filter system - entire
house
6 2 car detached garage 220V
Sale Starts M ay 3 0
40
OFF
s e le c te d
¿
.7
i periti.
M in im u n i C ut 1 yard
A ll m e rc h a n d is e as is A ll sa le s fin al
CHRISTMAS
FABRICS-
BF. SURF. TO CHECK OUR STORE FOR “MANAGER’S SPECIALS"
6
Park like yard with fenced privacy
♦Discounts do not apph In special purchase or prcvioush discounted or marked down items $26/98 thru O ') 98
104
fo r more/ ímformatícm a b o u t
CasoV
C M ter
E R A P ounder R ealty
ERA
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768-4046(VM) » 256-0220(0)1
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RETAIL -WHOLESAIJE
\1< >VI HI iii.m v 'i iNipm
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700 S.E. 122nd Ave
Portland, OR
WHOII S M I H O I Rs
M O V I R I’ Afi.nnS s.ipn,
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Visit our website at
www.bbricdepat.cofn
1-8OO-392-3376