ENTER THE “PORTABLE MORTGAGE”
May, 2000 by Jim Woodard In the near future, when a homebuyer obtains a new mortgage, that mortgage may be the last one they will ever need. It could be used for all their future home financing or refinancing needs. A new mortgage plan, currently being developed by several major lenders, is called a "portable mortgage." It moves right along with the homeowners from residence to residence. Most of these plans will include a line of credit, allowing the homeowner-borrower to acquire more funds on the same terms for a more expensive home purchase in the future or to buy furniture, landscaping, or to finance a remodeling project. Once qualified for this special mortgage, and the property is used as the borrower's primary residence, the buyer may never again have to hassle with stacks of application forms. This also applies to refinancing the property. As long as the appraisal comes in at a satisfactory value, the homeowner can simply draw from his original mortgage. If and when the owner wants to acquire a more expensive home, he can obtain financing at the same interest rate or lower. If the prevailing rate has risen, he is still locked-in at the original rate. If the rate has lowered, his new rate will be proportionately lowered to that level. That's the way the new portable mortgages are being structured, like those now being developed by Countrywide Home Loans. This lender expects to make the loans available beginning next year. The portable mortgage will be particularly appealing to corporate transferees and human resources departments of major corporations. But they will probably become popular with all homebuyer types and situations. This is one of the most dramatic new developments in the home mortgage field, but it's one of many new plans being considered and developed. The widening spectrum of mortgage plans will greatly benefit consumers. Homebuyers will be in a better position to pick and choose a mortgage plan that precisely fits their personal needs and capabilities. The key reason for this expanding mortgage product availability is the offering of mortgages and loan-related information on the Internet. It's made the mortgage field more competitive than ever before, thus expanding the variety of offerings. Lenders cannot afford to let another firm gain a competitive edge by developing a new and popular mortgage plan, and making it readily available via their computer. So they not only copy other lender mortgage plans that appear to be taking an increasing share of the market, but they come up with new, innovative plans of their own. Thus the borrower has a growing selection of mortgage products on the shelf to look at and consider. * * * So you think home prices and mortgages are high in your area. Maybe you'll change your mind when you learn about prices in Aspen, Colorado. The average single-family home price in Aspen last year was $2.5 million. Condo prices averaged $737,000, according to a report from Coates, Reid, Waldron Real Estate, a leading brokerage firm based in Aspen. Home prices per square foot in this small but famous mountain town now ranges from $600 to $1,000. On the low end, you can possibly find an older style condo in Aspen for $400 to $500 per foot. "Colorado is full of mountain towns," said Bob Ritchie, a broker and owning partner with the real estate firm. "But this area has long had a very special appeal. The natural beauty is incredible. And the area has a level of sophistication you just can't find anywhere else." * * * A recent survey revealed that the quality of schools in an area has a direct impact on home values. Finding a home in an area where the kids can go to an exceptionally high-rated school is an important priority for many families, and they're willing to pay more for a home in an area where such schools are located. A good Web site that provides information on the quality of schools throughout the country is located at: www.SchoolMatch.com . This is an educational research and database service site that specializes in rating schools - K-12 - using current data. School districts are ranked in a percentile format, making it possible for comparisons by parent or corporation. The site has alliances with an increasing number of national firms such as Microsoft, Chase Manhattan Mortgage, CyberHomes and Lexis-Nexis. | 
