POCATELLO’S ELECTRONIC NEWSLETTER
March 1997
Volume 1 * Issue 3
WELCOME to this edition of POCATELLO’S ELECTRONIC NEWSLETTER. Time is often a luxury in today’s world of near-instant communication. As a subscriber to this newsletter, you know firsthand how technological communications greatly impacts your workday- leaving little time to glean new ideas and information from traditional resources.
Now when you’re up against the clock, you can turn to POCATELLO’S ELECTRONIC NEWSLETTER for quick bites of new information about Pocatello. In just one letter, you’ll get expert advice, practical tips, and plenty of food for thought from local experts.
In fact, POCATELLO’S ELECTRONIC NEWSLETTER wants to hear from you. Share your ideas with us so we can improve the type of information offered on a monthly basis. Your contributions will keep POCATELLO’S ELECTRONIC NEWSLETTER timely and relevant- making it a "must read" for anyone serious about what’s happening in Pocatello!
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THE ECONOMY & FINANCE UPDATE
by Larry Bell with First Security Bank
Real Estate Production Center
Email:
Site Address:
This month I would like to address the question "Can I get a real estate loan over the Internet?" The answer to this question is yes you can, but why would you want to. There are many people offering mortgage loans, but as many customers have learned what appears to be the best deal may not ultimately be the least expensive way to finance the purchase of your new house. It is very important that you deal with an experienced, knowledgeable loan officer that can answer all of your questions and possibly provide alternative loan types for your purchase.
One may ask I know what I want why should I deal with a loan officer rather than over the Internet? A knowledgeable loan officer will have in excess of 100 mortgage loan products to offer. This count of over 100 includes all of the different lock in alternatives for the many varieties of loans. An applicant can lock in their interest rate at the time of application or they can "let the rate float." By letting the rate float the applicant is accepting the rate at the time they are ready to close. As many of you have heard once previously in your life, this can be "for better or for worse." Many applicants choose to lock in their interest rate at the time of application. Another variation available to the applicant is a float down rate which allows them to accept a lower interest rate one time between the time of application and closing. As you can see this can be very confusing and that is why I strongly recommend that you deal with a knowledgeable loan officer to help you through all of your options.
Another decision the loan applicant must decide is do I want to take the standard mortgage loan rate with a 1% loan origination fee or should I select one of the other options available? The other options available include paying a slightly higher interest rate without a loan origination fee or if the borrower is willing to pay an even higher interest rate they can obtain a loan and the lender will pay all of their closing costs. The thing the borrower needs to keep in mind is many of these programs are designed by the lenders on behalf of the lenders. One obvious consideration is how long will I spend in this house. The shorter amount of time the borrower spends in that particular house may dictate that they select an option with a higher interest rate, but lower front end costs. A knowledgeable loan officer can work you through these options and show you the break even point for each of these options.
An applicant may decide they will be in their new house too long to take a no fee high rate option, but they want a rate lower than the prevailing thirty year fixed rate offering. There are several options available for this borrower. These options include a loan with a fixed rate for seven years and a one time adjustment with the rate being the adjusted rate for the remainder of the twenty three years. Another option may be an adjustable rate mortgage. Again, adjustable rate mortgages come in many varieties. One variety features a low introductory interest rate with an adjustment one year after the inception of the loan. Other varieties allow the borrower to have a lower "introductory rate" for a three or five year period and then a one year adjustable after that. Even with the adjustable rate loans there are many questions to be answered, is the loan convertible to a fixed rate, if so during what time frame and what are the costs of the conversion. Another consideration for the variable rate loans is what is the margin, that is how much do I pay over the index and what is the index, are many indexes available. The borrower needs to also consider the history, volatility, and how the index is calculated.
As you can see a person that navigates their own mortgage loan or accepts a telephone or mail solicitation from an uniformed originator is taking a very large chance. In many cases the borrower has to "live with" this mortgage for the next thirty years. There are many other issues that an applicant should consider that I have not touched upon. Even for a fairly sophisticated applicant I strongly recommend tat you deal with an experienced mortgage loan originator. You will find that the price offered by the mortgage originator is the same or in some cases lower than the rates offered through the Internet or through the mail. Often times originators that work through the mail or the Internet are assuming that the applicant will think this is a good rate and will not shop rates when in fact the rates are not very competitive when compared to the local market. The decision is yours you can deal with your computer screen or with a bright smiling face of a mortgage loan originator. Why take the chance, why not deal with a friendly person that can assist you in your mortgage loan application. Most applications are approved the same week they are taken, therefore, you do not have a time delay. I am looking forward to seeing you in the future when you decide to purchase that new home.
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PUBLIC SCHOOLS
by Chris Williams, Public Information Officer
School District #25
Email: mailto:williach@d25.k12.id.us
Site Address: http://www.d25.k12.id.us
For the second year in a row, School District No. 25 has been placed in the nation's top 10 percent of public school districts.
That distinction comes from SchoolMatch of Columbus, Ohio, the nation's largest school selection consulting firm.
SchoolMatch is an independent nationwide service which helps corporate parent employees find schools that match the needs of their children. It also assists corporations with site selection studies.
"I really think it is a very important and a very coveted kind of award," Superintendent Dr. David Peck said. "It's not something you apply for. They just send it and tell you that you match up."
To be included in SchoolMatch's top 10 percent, school districts must be:
1) Competitive and academically solid in academic test scores but not so rigorous as to intimidate students;
2) Recognized for excellence by a national foundation or by the U.S. Department of Education;
3) Accredited;
4) Above average in teacher salaries;
5) Above average in instructional expenditures;
6) Above average in expenditures for library and media services;
7) Known for small class size.
The availability of programs at the secondary level was also important to SchoolMatch, since relocating parents often focus upon finding a school system that produces a certain quality of high school graduate.
A SchoolMatch news release reported a search of the firm's 22-field database revealed only 10 percent of the nation's public schools - 1,665 districts - closely provide what parents consistently want in public education.
"I think it is something that the community should be very proud of, to have that kind of recognition for our school system," Peck said. "I think that is really significant."
SchoolMatch is a full-service educational consulting and research firm with an extensive database on all 15,619 school districts in the country. It collects data from auditable sources such as county and state auditors, state taxing authorities and state boards of education.
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REAL ESTATE
by W. James "Jim" Johnston, Associate Broker
Coldwell Banker Landmark
Email: mailto:jimj@mykro.com
Site Address: http://www.HomeSpecialists.com
According to information from the Idaho Department of Labor, "Idaho’s economy grew for the tenth year in a row." Employment in 1996 is estimated to increase nearly four percent and unemployment dropped to the lowest level since 1978, five percent.
Idaho’s labor force grew by 3.5 percent in 1996. In Idaho, construction has been a driving force to add to the robust economy. The 1996 construction values showed nearly a 23% increase over 1995. Residential construction values were way out in front of the economic surge.
Pocatello has powerful new home builders that are leading the way with new technology and designs to meet the diverse nature of the growing population.
As of the first of March there were 350 single family homes on the market and for the first two months the average sales price was $80,776- down from $84,425 in the previous twelve months. There are 172 developed lots on the market with a good selection especially in the above $20,000 range.
There are some very good buys available in all price ranges and in both single family residences and income producing multiple family units.
People are always asking us about what is happening with real estate and my response is that it is unbelievable! Where else can you be and have the high quality of living and have such affordable housing. Pocatello is such a great place to live. I just returned from the International Business Conference of Coldwell Banker Real Estate and people from all over were amazed at our low crime rate and reasonable home prices.
If you have questions about specific homes that might meet your needs, my email address is jimj@mykro.com or click here to email me now: mailto:jimj@mykro.com
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WEATHER HISTORY
by Steve Cannon, weatherman
KIDK TV 3
Email: mailto:kidktv3@msn.com
Site Address: http://www.srv.net/~kidktv3/homen.html
March is often called a "Transition" month… a time between the white of winter and the green of spring. March, along with November, are called the "brown" months by some observers. But, March heralds the end of the long winter and the beginning of Spring! Season-watchers should set a clock for Thursday, March 20th at 6:55am… for that marks the Spring Equinox… the official start of the new season. In theory, it also marks the beginning of longer days… when there’s more daylight than darkness. But, the actual equinox takes place in Pocatello on March 17th, with sunrise taking place at 6:39 am, and sunset happening at 6:39pm.
March marks the beginning of seasonal warming as well, with an average daily minimum temperature still falls to 24.9. March is a moist month, with .94’’ the monthly average precipitation. For the record, the warmest day in March was just a few years ago… March 28th, 1986, when the daytime temperature reached 75. It can still get cold in March. The record low temperature is a cool -12, set on March 16th and again the next day, March 17th, 1906. That year, 1906, was a wet year as well; 26.5’’ of snow fell in March, 1906.
Easter Sunday occurs in March this year, because of an early full moon. Easter is determined by: the 1st Sunday following the 1st full moon after the spring equinox. The 1st full moon after the equinox occurs on Palm Sunday, March 23rd… so Easter Sunday falls on the next Sunday, March 30th.
If your looking for a great light show, or lack-of-light show, check out the first full solar eclipse in two years… it occurs on the 8th. Trouble is, you have to be in Siberia to experience totality. However, on Palm Sunday night, check out Mars… it will be in over two years.
If your of Welsh decent, March 1st is St. David’s Day… the Welsh national holiday. Notables with a March birthday include Dr. Suess, born on March 2nd, Albert Einstein, on the 14th; Andrew Lloyd Webber, on the 22nd. March is also a month that literally goes to the birds. The buzzards return to the small town of Hinckley, Ohio, on March 15th, and the famous swallows return to San Juan Capistrano, California, on March 19th.
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THE LAST WORDS
POCATELLO’S ELECTRONIC NEWSLETTER is published monthly by Michael James Johnston. Any questions, concerns, ideas or criticisms are to be directed to him via Email at mailto:editor@mykro.com
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Copyrighted 1997 by Mykro Computer Company. All Rights Reserved. No part of this material may be used or reproduced in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher except in the case of brief quotations embodied in critical articles and / or review.