As you might already know, Western Oregon has a definite winter season. Not so much in terms of cold, but it can get really wet in the winter months. From November through April the rain can fall heavily and steadily. Trying to start a home construction project during these months is asking for trouble. The initial step is the dig-out for the foundation. This should not be attempted when rain is falling hard and steady.

Pouring concrete foundations is doable in the rain, but concrete slabs are out of the question. Slabs could wait until later when the roof is covering the slab areas.

If the framing is done during the rainy season, the lumber will absorb a lot of moisture. This could cause problems after sheetrock is installed over the studs. As the wood dries out it shrinks, creating a gap behind the sheetrock. Then if the wall is bumped, the nail or screw heads will pop out through the surface, causing “nail pops“. These are unsightly and can be expensive to repair.

The best time of year to start a custom home in Oregon is no later than April through the first part of November. This will keep your exposed house from being subjected to the heavy rains and prevent potential problems from arising later.

30 year or 15 year Mortgage?

What about the question of 30 year vs. 15 year mortgage? Which is the best way to go?  It’s really dependent upon personal factors. Each individual needs to answer certain questions to come to the right conclusion.

The main difference between the 15 year and the 30 year loans are the fifteen year loans have higher monthly payment, but you pay out less interest over the life of the loan. The thirty year mortgage offers you lower monthly payments, but you pay about 2-1/2 times more interest over the term of that loan. With the 15 year loan you own your home 15 years sooner than with the 30 year loan.

You can use a free online mortgage calculator to determine the difference in monthly payments. Some calculators will even show you the total interest paid.

How Big is Your Emergency Fund?

After you sign on the dotted line for your mortgage, you’re committed to those monthly payments. If you go for the 15-year loan, it’s wise to have a substantial cushion in your savings to cover unforeseen expenses (which are so predictable you could almost call them “foreseen”), job loss, or other emergencies.

How big should your emergency fund be? A lot of financial experts recommend 3 to 6 times your monthly expenses. If you could have 12 months of expenses tucked away that would be even better.

If your current cushion isn’t that large, you would be safer sticking with the 30- year loan term. Having that lower monthly payment would give you the opportunity to create your emergency fund or build a larger retirement account.

How Close are You to Retirement?

If you’re within 10 years of retirement, and you’re thinking about going with the 15-year loan, make sure you can still maximize your IRA’s, SEP’s, or 401k’s. You don’t want that higher mortgage payment to hinder you increasing those accounts. Here’s a handy retirement calculator to help with your planning.

Paying off your mortgage could be a wise part of your retirement plan. Without a mortgage payment, your monthly source of income would go a lot further.

How Disciplined are You?

Maybe you can afford the payments on a 15-year loan, but the possibility of losing your job or other unexpected financial hits, are causing you to lean more toward the 30-year loan. A good compromise would be to sign on for a 30-year loan term, but pay extra every month so you pay off your loan in fifteen years.  You would still pay about 3% more in total interest, but it’s still better than paying 250% more interest during the entire 30 year term.

There’s only one catch. Only about 2.7%  of borrowers pay extra on their mortgage. It takes real discipline to pay extra in every month, and most people don’t have it. If you can do it, go for it.

Tax Savings vs. Interest Savings

Because the interest you pay on a 30-year loan is more per month than a 15-year loan, you get more of a tax savings. But this tax savings still doesn’t outweigh the interest savings you get with the 15-year loan.

For example, on a $160,000 mortgage, you save $238 in taxes per year going with the 30-year loan term. Multiply that times the 30 years and  your total saved is $7,140. However, the total interest saved by choosing the 15-year loan is a whopping $88,893!

Which Loan Term is Best for You?

In summary, the best mortgage term will be determined by your own personal financial situation. The obvious best choice in terms of financial savings is the 15-year mortgage. But it does carry higher risk. You could always refinance and convert to a 30-year loan, but every time you refi, it costs money, plus you might end up with a higher interest rate. And you start the whole 30 year mortgage over again, thereby prolonging the ultimate goal of paying off your mortgage.

So weigh all the factors like your job stability, prospects for higher income, your retirement account, and the size of your emergency fund cash status, then decide. Or if you feel real disciplined, opt for the 30-year mortgage and send in extra payments. We hope this discussion about financing options provided by Custom Home Builder Portland has been helpful.

Even if you already have your plans drawn, it’s not too late to build your home using these ideas. The contractor we recommend can easily add these energy saving ideas to your home. You’ll not only be helping your planet, you’ll be helping your wallet!

Why Do We Need to Build Energy Efficient New Homes?

by: Amy Nutt

Wasting energy not only hurts your wallet, but also the planet. Homes use energy from fuels such as oil, coal, and electricity which add toxins to the air and water, contributes to global warming, and increases habitat loss. With the unstable oil and gas markets, many people are looking for ways to cut down on energy costs. Fortunately, new homes are being built to increase energy efficiency and lower energy costs.

There are many benefits to building energy efficient new homes that include:

Reduced Costs: An energy efficient new home is constructed to keep heat from escaping so you are not running the furnace 24 hours a day. Many mortgage companies offer incentives to people building energy efficient new homes. There are also federal tax incentives for building these new homes.

Sound Investment: Each year more people are looking for these kinds of homes. Building an energy efficient new home now will increase the future value of the home.

Peace of Mind: Building an energy efficient new home allows homeowners to enjoy their home knowing they are meeting energy efficiency guidelines.

Fewer Pollutants: It is estimated that 16 percent of U.S. greenhouse gas emissions are generated from the energy used in houses nationwide. When you use less energy, you decrease the amount of pollutants being released in the environment. This will lead to less of an impact on global warming.

Improved Air Quality: Cold drafts blowing through the home can be uncomfortable and increase the risk of sickness. An energy efficient new home ensures air tightness keeping the home cozy. These new homes also protect against cold, heat, drafts, and moisture. Not only does an energy-efficient new home improve indoor air quality, it keeps temperatures consistent.

General features of an energy efficient new home include: Engineered Lumber: Build a new home using lumber from trees that are identified as a renewable species because they grow fast and help protect the environment.

Roofing: Selecting durable roofing materials such as cement reduces the amount of regular roofing waste entering landfills.

Improved Insulation: Better quality insulation that is properly installed in attics, walls, ceilings, and floors, will decrease energy use and reduce energy costs.

Energy-Efficient Windows: Manufactured and installed windows using new technologies that include protective coatings and improved frames. These windows ensure that heat stays outside during the summer and inside during the winter. Energy efficient windows also block damaging ultraviolet sunlight.

Energy Efficient Doors: Installing improved seals around doors and patio doors will stop cold air flowing into homes or warm air escaping.

Energy Efficient Heating and Cooling systems: Furnaces, heat pumps, and thermostats that are energy efficient allow new homes to use less energy and save money. Heating and cooling systems are quieter and reduce indoor humidity.

Solar Heat: A number of new energy efficient homes are designed to benefit from solar heat coming through larger windows

Ducts: Sealing the heating and cooling duct systems reduces drafts, moisture, and dust. Tight ducts will ensure that the proper amount of warm or cool air is reaching every room.

Energy Efficient appliances: Modern and energy efficient appliances allow you to save money while using less energy. Appliances include ovens, dish washers, washer and dryer machines, and refrigerators…etc.

Low-Flow Faucets, Shower Heads, and Toilets: Decreases water use and reduces hydro fees

Air Filtration Systems: Installing energy efficient air filtration systems is healthy for the family and saves money.

Whether your home energy comes from oil, gas, or coal, it has a direct impact on the environment and your wallet. These energy sources contribute to global warming, habitat loss, and increases toxins in our air and water. By building an energy efficient new home, you can do your part to help the planet while lowering your energy costs.

Ontario’s home building company specializing in new homes buildings. Visit us to learn more: London Ontario Homes

Here’s an informative video on why you should build an energy-efficient home: 

Are you thinking of having a custom home built in the Portland area, but you’re not moving ahead because of fear of making serious mistakes? Or are you overwhelmed with all the steps involved and don’t know where to start?

Custom Home Builder Portland is here to help you! Read on and we’ll give you advice on how to avoid some common, yet costly mistakes.

As you probably already know, the process of building custom homes is a fairly complex undertaking. You have the design phase, locating available lots, the financing, and the construction phase. Things can go wrong in any one or all of these areas making your building experience a virtual nightmare.

Then you have the building contractors who will try to scam you by taking your money and heading for the border or by giving you a quote to build your home then increasing the price as the job progresses. Some just put out low quality workmanship. Still a bad thing.

We at Custom Home Builder Portland have researched all the possible pitfalls and dangers involved in having a custom home built and are here to share them with you so you can enjoy the building process and minimize the stress which can accompany this venture.

One mistake potential homeowners make is to pay big bucks for a designer to create an architectural design of a dream home without first talking to a mortgage broker about how much money they qualify to borrow. How much you can borrow will determine the size and style of your home as well as what type of lot you can build on.

Your income, credit rating, and down payment may put you in the luxury homes category, or it may require you to build a more affordable classic home with standard features.

So don’t go plunk down thousands of dollars for a set of plans you’ll never be able to use. Get some building cost estimates, add in the prices of available lots, and total it all up on a mortgage calculator. Then get pre-qualified by a lender. This will help you decide what size home you can build.

Another costly mistake people make is to hire a custom homebuilder on a cost plus basis. The home is built based on estimates from the builder. His profit is based on a percentage of the total cost of building the home. Because there is no guaranteed cost figure, it can and does go sky high. To make more profit, the contractor actually wants the price to go up.

You’re much better off to sign a fixed contract that you know won’t go up during the building process. Of course the cost will go up some if you make a change or two, but at least you have control over that.

When you hire someone to build your custom home in Portland, make sure that he is a custom home builder. Avoid using a tract home builder or a contractor who usually specializes in remodeling. You want a builder with preferably years of experience building custom homes.

You might want a builder who can include energy efficient features in your home. Maybe you want to build a green home.

Here’s the bottom line: Your home is your largest investment and you don’t want to screw it up. You want the best value for your dollar. You want your project to flow smoothly all the way from the design of the floorplan, through the financing stage, through the building process, to the completion of your dream home.

The building contractor is a major factor in how your home building experience will be. Make sure you hire the right one.

Custom Home Builder Portland has other articles which will assist you in your quest to build that perfect home. Feel free to visit these other informative links to continue your education. We also have a local Portland builder who we can highly recommend.

Villa Home CCB# 108910