Real Estate Weekly: March 11, 2022

INSIDE

This Issue BUYING A HOME WITH BITCOIN? ARE YOU A GOOD CANDIDATE FOR A CRYPTO MORTGAGE? PAGE 5 INCOME TAX WRINKLES FOR HOME-BASED EMPLOYEES PAGE 7 CLASSIFIEDS PAGE 7 MARCH 11, 2022

TABLE OF CONTENTS Buying a Home with Bitcoin?

Are you a good candidate for a crypto mortgage?..........................................................P5 Q&A

Ask Our Broker.......................................................................P6

INSIDE

Income Tax Wrinkles For Home-Based Employees............................................P7

PAGE

5

Classifieds ...........................................................................P7

RE-Weekly To advertise in RE-Weekly or other Skagit Publishing publications, Call: 360.416.2180 or Email: ads@skagitads.com ©2022 by Skagit Publishing | All rights reserved.

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 opportunity basis.

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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.

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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.

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March 11, 2022

STAT Real Estate Stat

6.50 million units The rough number of homes sold in the United States during the month of January 2022.

Source: National Association of Realtors

FEATURED REALTOR: MEET PATRICIA BOX

NORTH PUGET SOUND ASSOCIATION of REALTORS® 525 East College Way, Suite J

Mount Vernon, WA 98273

Tel. (360) 416-4902

Skagit Tradition Realty LLC 3780 E. College Way Mount Vernon, WA 360-424-0300

www.npsar.com

Creating a Home's First Impression Curb appeal is a home’s first impression, and the first chance to impress potential buyers. Whether buyers are amazed by a beautiful and immaculate yard or turned off by dirty exterior walls and an overgrown lawn can meaningfully affect the speed and price at which a home sells. Improving a home’s curb appeal can be as simple as repainting a front door and getting rid of weeds in the front yard, or as involved as creating an outdoor lighting design and replacing all of a home’s windows.

Before placing a home on the market, it is important to make sure that the home is prepared - inside and out - so it sells quickly and for top dollar.

Source: https://www.nar.realtor Mission Statement: The Nor th Puget Sound Association of Realtor s advocates for Realtor s and their clients, and promotes the protection of property rights.

March 11, 2022

www.skagittraditionrealty.com

Although I grew up in Seattle, I consider myself to be a local, since I had one set of grandparents (and numerous aunts, uncles and cousins) living here in the Skagit Valley. I spent my summers here, my first job being a berry picker, wasn’t that everyone’s first job? I have since lived here full time for over 30 years, working at K-mart, Crosswinds at the Port, Goodwill and of course owning my own business, A Cup Above Espresso and Deli in Sedro Woolley.

Patricia Box Office Manager O: (360) 424-0300 C: (360) 941-9186

My awesome husband (local from Camano Island) and I have three beautiful grown children, six grands (4 boys and 2 girls) and 2 needy chihuahuas. As you can see from my photos, my husband and I love Christmas and Halloween!

Beginning in June of 2012, I joined Skagit Tradition Realty as the full -time office manager. I have loved assisting Danya and the other brokers with their clients, greeting, directing calls and emails, creating advertising and flyers, scheduling and whatever else they need.

I chose to get my own Real Estate license in the fall of 2019. I am still the office manager but am now able to do even more to assist Danya and my other brokers.

I am a Realtor and a member of the Residential Real Estate Council, working toward my Certified Residential Specialist designation.

I am also building my personal client list and am enjoying working with both buyers and sellers. If you or someone you know is looking for help with Real Estate questions, whether selling or buying, please don’t hesitate to call, text, or email me. patricia@skagittraditionrealty.com

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Now could be the time to sell a new home and earn a slice of the real estate pie.

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.

Call 360.416.2180 Today!

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RealEstate weekly In print and online goskagit.com ads@skagitads.com

c e r o c t m M p

3 p e b f March 11, 2022

Manhattan Beach, California.

“But it’s still a regular mortgage loan. Due to the extreme volatility of crypto, we only take 50% of the crypto’s total value. We look at it as one of many assets a borrower can utilize. You’ll still need to provide your credit score and pertinent financial documentation.”

Weragoda points out that borrowers with crypto today could also liquidate it and use the cash for a required down payment on a conventional loan.

“In the future, buying a home simply by transferring crypto from buyer to seller might be possible, but it’s not happening at this moment in time.

The number of hoops you have to jump through to do the transaction with crypto makes it impractical,” he continues.

Before committing to any kind of crypto mortgage, make sure you know who you are dealing with and what is involved.

“Are you using crypto to qualify for the loan or is it being used to pay for the mortgage?

You need to understand what a crypto mortgage is. You should be able to call the company and get a licensed loan officer intermediary into the process.” on the phone to explain it to not a novel concept. Instead, it’s a message that crypto has Good candidates for Milo’s you,” Weragoda recommends. value to the lender,” he adds. product include borrowers “Check to see if the company Brain Penny, CEO of who have made large gains in has the proper licenses and Thought for Your Penny in crypto, “as it allows for the use that they’ve done these types Tucson, Arizona, cautions that of appreciation without payof loans before. Otherwise, this mortgage is not underwrit- ing tax,” Migdal notes. “This you may be gambling your ten in crypto. product is designed for a small “Your bank is simply a segment of the population that prospective homeownership loan service provider. The has enough crypto to replace a by using a mortgage company that might be as volatile as actual lender is typically a down payment.” government-backed agency Other lenders are also getting crypto itself.”Others echo those concerns. like Fannie Mae or Freddie in on the crypto bandwagon “Read the mortgage contract Mac. Those agencies are not but in different ways. very carefully,” advises Penny. issuing mortgages in Bitcoin “What our company does is “For example, the last thing or you would’ve heard about we use crypto as a means of you want is to become homeit by now,” explains Penny. “If qualification for a mortgage less because Bitcoin’s price you choose this loan product, loan,” says Desh Weragoda, dropped lower than your house that means you’re inserting this chief technology officer with crypto mortgage provider as an mortgage lender MBANC in value.”

Buying a Home with Bitcoin Are you a good candidate for a crypto mortgage?

the transaction with no down payment in dollars needed, ou can use cryptocurrency resulting in an even quicker purchase than via a convenlike Bitcoin to purchase tional mortgage. At the time cars, electronics, bling, and of this writing, loans have even insurance. So why not been approved for early-bird real estate? Indeed, it was only a matter of time before a applicants, with the crypto mortgage available to more company came up with a way prospects sometime in early to offer the world’s first “crypto 2022. Until then, you’ll have mortgage,” now available via to join a growing waitlist for Milo, a financial tech enterthe product. prise.

(Milo was contacted for this Milo’s new low-interest rate story but did not reply to mes30-year crypto mortgage sages.) permits prospective borrow“A product like this is quite ers with pledged Bitcoin to simple in concept,” says buy a home and be eligible Christina Prostano, a licensed associate real estate broker with for financing up to 100% of

By Erik J. Martin

Y

March 11, 2022

Compass in New York City.

“Instead of using a house or property as collateral on the loan, the lender is using crypto.

You borrow against that collateral. If you default on your traditional loan, the lender will foreclose and repossess your house. But with a cryptobacked loan, if you default you lose your Bitcoin.”

Josh Migdal, a founding partner of Mark Migdal & Hayden in Miami, notes that the crypto is also being used as a substitute for a down payment.

“Here, you are replacing crypto for cash. Lenders already do this with other securities, so it’s

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Q&A

We Want to Reduce Our Current Mortgage Balances.

ASK OUR BROKER

Is it better to have a mortgage refinance or a mortgage modification?

Question:

Our mortgage has a $300,000 balance. We want to reduce the current balance by $75,000. Is it better to have a mortgage refinance or a mortgage modification?

Answer:

A mortgage “refinance” and a mortgage “modification” are not the same thing. Which is better depends on what you’re trying to accomplish.

With a mortgage refinance, you replace an existing loan with new financing. If you have a current balance of $300,000 and $75,000 in cash to reduce the debt, the new loan amount will be $225,000. A refinance is typically done to get such advantages as a lower rate, a smaller monthly cost, an end to mortgage insurance coverage, or to switch from adjustable to fixed-rate financing.

With some loans, such as FHA and VA financing, you may qualify for a “streamline” refinance. This means you can get a new and lower rate with little paperwork. The lender can often avoid credit checks, income reviews, and appraisals if you have a good payment history.

Why might a lender allow less paperwork? With a lower rate, the new mortgage also has a smaller monthly payment.

That means less risk for the lender than the current financing.

Refinancing can often be a “twofer.” The borrower can lower the interest rate AND eliminate monthly mortgage insurance costs.

If you have a $300,000 mortgage at 3.75% and bought with less than 20% down, your monthly cost over 30 years will be

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$1,389.35 for principal and interest. The monthly mortgage insurance cost can vary, depending on the amount down and other factors. If we say it’s roughly $212.50 per month for mortgage insurance, then the total is $1,601.85. Taxes and other costs are extra.

Refinance $225,000 ($300,000 less $75,000) at 3.5% and the monthly cost for principal and interest is $1,010.35. There’s no need for mortgage insurance with at least 20% equity. That’s a savings of $591.50 per month ($1,601.85 less $1010.35) or $7,098 per year.

A modification works differently.

Instead of replacing the current loan with a new one, with a modification, the existing mortgage remains in place. The interest rate stays the same, but the mortgage balance declines, and the need for mortgage insurance can be eliminated.

It’s a common situation to buy a home with less than 20% down. That means the borrower must pay for FHA, VA, or private mortgage insurance.

However, given the fast-rising home values seen during the past few years, most homeowners now have more equity.

They can get rid of their mortgage insurance payments by refinancing.

With refinancing, you first have to qualify with a lender, and that means the usual paperwork requests and financing standards. Second, you’ll need an appraisal or electronic valuation. Third, you must have a closing. That means paying certain transfer taxes, lender fees, title insurance costs, and legal fees – remember, with refinancing, there’s no seller in the picture to offset costs. The money in the escrow account with

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By Peter G. Miller your current lender will ultimately be returned to you, but maybe not in time for closing the replacement loan.

The result of refinancing is that getting a lower rate or better terms requires a complex process with big costs.

With a mortgage modification, the situation is different.

First, a modification is not available to everyone. You need cash to have leverage with a lender.

Second, typically, the interest rate does not change. Instead, the monthly payment is recalculated to reflect a smaller outstanding loan balance.

Third, with some existing mortgages -- but not all -- a modification can end the need for monthly mortgage insurance payments.

Lastly, with a modification, the existing mortgage stays in place. There’s no need for a new closing, title insurance policy, or transfer taxes because public records are unchanged. A mortgage modification is cheaper up-front than refinancing as a result.

How much cash is enough to get a mortgage modification?

It depends on the outstanding loan balance, the lender’s policies, and how much cash you’re comfortable putting up.

Speak with your current lender for modification details and specifics. Get answers in writing before transferring money.

Write out and compare the costs and benefits of each option.

Be sure to look at closing costs for each choice and get help if you’re uncomfortable speaking with your lender.

Email your real estate questions to Mr. Miller at peter@ ctwfeatures.com.

March 11, 2022

REAL ESTATE FOR SALE Houses for Sale

NEW TODAY

516 S Anacortes Street, Burlington $599,900 Great investment opportunity! Large 2,787 SF, 6-bedroom 3.5 bath home with Mother-in-Law suite - Currently rented as duplex as 1 unit with 1 bed & 1 bath with a garage and the 2nd unit is rented as a rooming home with 6 rooms rented out. There are separate gas and electric meters for both units.

New roof in 2020. MLS #1888614 Geri Cole, 360-391-1614 WRE/Skagit Valley Windermereskagit.com

Income Tax Wrinkles For Home-Based Employees

By Marilyn Kennedy Melia Pandemic-bred remote workers transformed the housing market; fleeing to suburbs and far-flung locales. Now, income tax preparation is transformed for many of these WFH employees.

Specifically, remote employees who’ve relocated to a different state than the one their employer is based can face hitches on their state tax bill. And, when your home is where the office is, can’t you deduct office expenses?

Here, experts provide tips for those who’ve converted their spare bedroom to an office or made a long-distance move: Help for home office expenses.

Unfortunately, even if they’ve spent to converting home space to a work March 11, 2022

zone, remote workers – whose paycheck comes from an employer – can’t take any deductions. Only the self-employed can write off home-based work expenses.

However, at least ten states have laws whereby “employers have to reimburse [remote workers] for items that are required to perform their particular job,” says Robyn Hopper, of the Society for Human Resource Management.

And, even if the law doesn’t require it, many companies have or are developing their own reimbursement policies.

Out-of-state workers face state income tax snafus.

Given the quick rise in remote work, both companies and workers often misunderstand state income tax issues, says New York City accountant Sallie

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Mullins Thompson.

An employer may be deducting the worker’s tax from his pay, for instance.

But then, the worker is paying the income tax where the company is based … not in the state he lives.

“Depending on the states involved,” Thompson explains, if a resident has paid taxes to another state, he may be credited for the amount – but usually not the full amount – owed in his own state.

One way to rectify this situation is to file a tax return in the employer’s state and get a refund, Thompson adds.

Then, the employee files and pays for his correct state.

“The employee should inform the employer of the error, so this does not reoccur,” concludes Thompson.

Save time & money selling in your local classifieds!

Find it fast in your local Classfieds!

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Remembering Lyle Hicks Lyle Hicks started as an ad representative for the Skagit Valley Herald back in the 1950’s. He was a brilliant and hardworking ad sales representative who created a new level for marketing real estate.

For example, the use of photos of homes for sale depicted was a direct result of Lyle’s creativity. Lyle was promoted to manager of ad services for the Skagit Valley Herald. Then in 1966 Lyle was promoted again and transferred to Pullman, Washington as publisher for the Pullman Herald.

In 1968 Lyle Hicks was made publisher of the Rhinelander Herald in Rhinelander, Wisconsin. Rhinelander is a beautiful place, but not so great if cold and snow is not your strength.

Therefore, Lyle requested a transfer and moved his family to Coeur d’Alene, Idaho and worked for Coeur d’Alene Press, while waiting for his next and final assignment. In 1970 Lyle became publisher of the Columbia Basin Herald. The photo is of Lyle on his retirement in 1985. His family photo from the early 1960’s in Mount Vernon includes his wife Barbara, sons Kevin and Ryan, and Dino their illustrious Fox Terrier, humorously described as a “Rat Terrier”.

My heart aches that we have lost Lyle, and his beloved wife Barbara just a month earlier. They were married 67 years ago. Their work ethic, friendship, and loyalty will always be cherished. They raised their kids to be the same. What an incredible family.

In Loving Memory, Danya

Patricia Box Office Manager O: (360) 424-0300 C: (360) 941-9186

JoAnn Boudreau (360) 391-0746

Juanita Bunch (360) 941-5530

Carla Fischer (360) 982-0010

Elva Hunter (360) 202-3086

John Hunter (360) 202-3086

Suzanne Jenkins (360) 941-2983

360.424.0300

Phil LaMay (360) 840-3086

Russ Lanker (360) 708-1117

Brett Tacker (360) 840-7931

Danya Wolf Designated Broker/ Owner (360) 708-8294

3780 E. College Way, Mount Vernon www.skagittraditionrealty.com 203316-1

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March 11, 2022