Nancy Braam

Should I Refinance?

There are some rules of thumb about refinancing when the interest rate drops 2 percent. There are other guidelines too, but maybe you shouldn’t refinance at all – think about this:

We’ve been using home ownership wrong. The idea is that 30 years after you buy your home, it will be paid off and you will own it free and clear. If you get a 15 year mortgage or make bi-weekly payments, you’ll get it paid off much sooner. It used to coincide nicely with retirement. Now instead of getting our homes paid off -we are refinancing every 3 or 5 years to grab a lower interest rate. The problem with that is you go back to the start of the 30 years, again and again and again. How long does it take to pay off a loan with no end?

We get blasted with marketing at every turn. Take that dream vacation. Put your kid through college. Remodel. US Bank has an advertisement with a faucet on the side of a house and that’s exactly how we are using it. This is a big part of the reason some people are upside-down in their homes – they refinanced and spent the money. Now the house has depreciated and they just cooked up a recipe for disaster.

I talk to sellers all the time who say they are going to lose money selling their house because they will barely be able to pay off the mortgage. They aren’t losing money – they already spent their profit when they pulled extra money out of their house when they re-financed.

We’re an instant gratification society. We want to buy something big right now. We look at lowering our house payment a couple hundred dollars a month and that looks good. We figure we’ll be paying less interest and that’s good too, isn’t it? Maybe.

Before you refinance, figure out why. Is it to “pay-off” high interest credit cards? To lower your monthly payment? To take advantage of low interest rates?  Next, figure out what it’s costing you and when you’ll reach the break-even point. Sometimes that alone will render the idea ineffective.

A word about the credit cards. You are not paying them off - you’re just paying them off over 30 years. If you owed $10,000 at 18% interest and paid it off over 3 years, you’d pay $3014 in interest. The same $10,000 at 4% interest paid over 30 years would have you paying $7186 in interest! Over double.

If you decide to refinance, to counteract the extra years you are adding on, think about getting a shorter term, like a 15 year loan, or start bi-weekly payments or pay one extra payment each year (which is exactly the same). What if you banked the amount you save with the refinance? A couple hundred a month is $2400 a year. Ideally, you’d put that in your real estate investment account and save to buy more real estate for your retirement.

Just remember – there is more involved in refinancing than just the interest rate. Put “Owning my home free and clear.” back on your bucket list. It’s a worthy goal and one that will keep your golden years untarnished. You’ll never get there if you keep refinancing.

The Cherry Point Controversy

Cherry Point today

Cherry Point is the last deep water port location available on the West Coast. A company named SSA Marine has started the application process to built the Gateway Pacific Terminal. This has caused a HUGE controversy.

Here are the key points:

1. Shipping Coal to China
2. Increased traffic of super heavy coal trains (Our railroad tracks run right along the coast and right through town)
3. Coal dust

Shipping Coal to China

This is the big environmental issue that I don’t believe will be solved one way or the other whether this terminal is built or not. Would we like to get rid of coal burning altogether? If yes, will not building this terminal accomplish that? Will building this terminal increase coal burning?

Increased train traffic

Currently 15 trains per day run on the tracks. There are already these super heavy coal trains running on the tracks but Burlington Northern won’t say how many. The historic high appears to be around 26 total trains per day. I can verified when I checked one time 10 years ago they told me there were 23 trains per day (mostly at night).

According to the terminal builders, the new terminal can handle 8 trains per day at maximum production. They say these will not be 8 new trains because they expect to waylay some of the trains already on the tracks headed for terminals in BC.

Opponets say the heavy trains will compromise the bluffs along the route causing property damage and unsafe conditions. Burlington Northern says they routinely handle slides and it is their job to keep the tracks operational and safe. They say they are all over it.

A question I keep asking is, “What control do we, as citizens, have over how many trains can be run on the tracks?” The answer appears to be “None.” At least one case made it to the 9th Circuit Court who upheld their right to run as many trains as they want.

Coal Dust

It’s nasty, there is no doubt, but is it a risk to local residents? The Northwest Clean Air Agency has had no coal dust related aliments reported in the 20 years they have been monitoring.

At the loading terminal itself, opponents march out photos of 30 year old terminals with huge coal dust clouds eveloping the area. This is deceptive. It would be impossible to build those same terminals today anywhere. You can go to their website and check out SSA Marine’s proposed plans. It seems like they embrace state-of-the-art designs for dust containment.

I’m not sure that I support the terminal, although it certainly would be nice to have the high-paying jobs that Bellingham so desperately needs. I’m also not sure I support the opposition to the terminal. There are a lot of issues that are skewed and then emotionally charged and fed to the public. It is succeeding in riling up the locals.

What I do know is there are about 15 government agencies that have to be satisfied. Way too many for any palm greasing or funny stuff. The odds of this going through are pretty slim.

How do you feel? Where have you gathered your facts?

French Flea Market Meets Driftwood Salvage – Design Trends For 2012

It means that most anything goes in 2012. With the housing market still in the dumps, many people are choosing to update their current home. Here are some tips from top designers.

Emphasis on contrasts… in textures, patterns and colors.

“The basics get bolder: Over the last year, we’ve seen wood finishes getting lighter, rougher and unfinished. As a result, upholstered furniture is fighting back from beige! We are seeing a slow trend towards bright, colorful and bold patterned sofas and chairs. It’s not “grandma’s floral,” but rather rich velvets, silks and chintz with bold patterns and contrast.”  Kelli Ellis Interiors, Orange County, CA

“Layers of silky fabrics and luxurious wool, the combination of velvet and brick, stainless steel and wood design ideas create attractive contrasts.  Mixing decor accessories, made of natural stone and shiny plastic, metal, wood and fabrics are interesting home decorating ideas that add charm and unique character to contemporary interior design.”  Accord Staging – see their blog.

What’s happening on the color front? We continue with deep and bold colors.

“The dominant color is Grey. Warm Grey, Light Grey, Charcoal Grey. On walls, furnishings, window treatments, artwork, grey will be everywhere. Also coming on strong will be Yellow! In addition, know that Orange will still be hanging around; Purple is on its way out and Brown, which had a very long run, is gone.” Stephanie Henley (Stephanie coined the title phrase.)

Remember: Paint is still the cheapest improvement with the most impact. Fresh paint makes everything look new. Pick a  modern color scheme to make your home current.

Supersizing is still in…giant mirrors, large wall art, over-sized graphic scale. On a budget? Try stencils, framed posters or enlarged photographs.

If moving isn’t in the cards for you this year, remodeling and updating can make your current home your dream home.

More Bellingham Washington Weather Facts

• 

  Here’s the weather today!

  Bellingham snowfall – 11 inches

• Ski area snowfall – 647 inches
• Sunny days – 71
• Partly sunny/cloudy days – 93
• Cloudy days – 201
• Measurable rain – 150 days
• Occasional strong winds – 25-35 mph
• Humidity – monthly averages 73-83%

Weather Facts For Bellingham, Wa

How To Make The Most Of A Scouting Trip To Bellingham

Take the harbor walk

Thinking of moving to Bellingham, WA, but have never even been here? Lots of people want to check out the area to determine if its a place they actually want to live. Here’s a plan to make the most of a short trip to Bellingham.

Before You Get Here

1. Make a list of what’s important to you. Like to hike?  Want a hospital close by? Are you a big shopper? Like quality entertainment? Ride horses? Weave or knit? Hunt?  Take classes?

It doesn’t matter what it is, but if it’s important to you, it goes on the list. Hobbies and interests give you great opportunities to meet people and get connected in your new community.

2. Make a housing needs list. What kind of environment do you like? Quiet and wooded? Urban and bustling? You’ll want to check out the housing possibilities while you’re in town.

3. Call or email me to schedule a time to meet. Talking to a local is invaluable and will save you tons of time! If you share the above lists with me, I’ll have mega information ready, tailored to your needs.

When You Arrive

1. Get an overview of the area

We’ll get out a good map and circle all the areas and neighborhoods you should drive while in town. Talking with a local will insure that you don’t miss the gems. I’ll fill you in on the best restaurants, shopping and things to do. Read the rest of this entry »

You Know You’re A Lousy Neighbor If…

Have you ever wanted to move because you have a lousy neighbor? It happens more often than you might think. We have to live together and how you show respect to the people you live around says a lot about you.

You aren’t a good neighbor if:

You allow your dog to bark all night (or all day when you are gone).

You allow your dog(s) to frighten and intimidate neighborhood walkers and bicyclists.

You make your neighbors look at your junk stash. My favorite is when you put it out of your view, behind, say, a garage, but in your neighbor’s view.

You plant landscape trees that will eventually block your neighbors views.

You let your existing trees grow up and block views.

You throw a hissy fit when someone wants to cut trees that belong to them.

You engage in loud activities on a regular basis. Notice that I didn’t say “late at night”.

You claim the public right-of-way in front of your house as yours and try to restrict its use by others with gardens and things to block parking.

You paint your house an obnoxious color.

You may say, “That’s why I own a house – so I can do what I please.” And I absolutely defend that stance, but keep it appropriate. For example, if you must be surrounded by trees, don’t live in a valuable view area, go to the woods. If you have to express yourself through crazy colors, do it inside where you can enjoy them more intimately. If you are in a band or run loud equipment, sound-proof the garage.

We do all have to live together. Don’t insist on your God-given right to be a source of constant irritation to the people around you.

Tulip Time! Skagit Tulip Festival Starts This Friday

There are a lot of activities, events and attractions going on for the entire month of April in Skagit County. Check out the Festival website: http://www.tulipfestival.org

Runs, art shows, music and much more.

Click photos to enlarge.

Do You Understand Your Credit Score? Don’t Lie To Yourself

First of all, there is a different rating system for different industries. For a car loan you can top out at 1000. For a home mortgage, it’s 900. The algorithms are a mystery, but a few things have been deduced. Here’s what we know, your score is weighed like this:

35% of your score is based on payment history. The number one thing you can do to improve your credit score is to make your payments on time. On time from a credit point-of-view is less than 30 days late. If your payment is due on the first, the bank will charge you a late payment if you pay after the 15th of the month. They will not report it to the credit bureaus until it is 30 days late. You can make your payment late but never let it be 30 days late.

30% is based on the amount owed. This is not the total amount owed. This is the percentage owed against the credit limit. The magic number is 30%. So if you have a credit card with a $10,000 limit, to obtain the biggest credit juice you can’t owe more than $3,333.00 on it. Lately, if you are late, even 1 day, the credit card company may reduce your credit limit down to what you owe. That act alone will damage your credit score.

15% Length of credit history. This is why you don’t close out those cards you don’t use and have had for years.

10% New credit. You don’t want to be applying for credit repeatedly. You get docked, but truthfully, not as much as any of the above.

10% Types of credit used. Real estate at the top end, consumer credit bottom.

You know there are 3 reporting agencies. Experian, Equifax, TransUnion. You are entitled to a free credit report once a year or when you are turned down for credit. A better option is to sign up for a credit service that emails you any changes to your credit report.  They cost $10-20 a month and are well worth it, considering the identity theft risks that exist today.

Have you ever paid a payment late when you have the money and just didn’t get around to it. Don’t do that anymore. Credit scores play into much more than when you want to borrow money. They play in to security clearances and employment too. Keep your credit clean if it is, and if it isn’t do everything you can to clean it up. It won’t take as long as you think. If you have questions, google it, or talk to me.

Bellingham’s Airport Expansion: A Smart Move

Drawing of New Airport Expansion

The real reason Bellingham’s airport has become such a going concern boils down to money. Airlines pay a per passenger fee. SeaTac’s fee is $18. Vancouver’s fee is $14. Bellingham is $2.50. That price has made Bellingham the cheapest airport in the US according to Cheapflights.com.

Right now the airport is 26,000 square feet. Over 100,000 square feet will be added to accommodate Bellingham’s huge increase in customer traffic which is up over 500% in seven years. The airport now serves over 400,000 passengers a year.

The first phase has begun and is adding 20,000 square feet which will add more seats to the gate area. The next phase will add 80,000 square feet. When completed there will be 5 gates, expanded ticketing, security and a real baggage claim. Additional parking areas will also be added.

Bellingham’s cheap flights have attracted passengers from Canada who account for about 40% of traffic. Right now we have north/south flights. The airport has interest from other airlines and wants to include east/west flights, but until the expansion is completed, they just can’t be accommodated.

For local residents, being able to fly directly from Bellingham is a huge advantage. You can be in Las Vegas, San Francisco or Phoenix in about the same time it would have taken to drive to SeaTac.