buying a homecondo financingcondominium speciaisthome financinghome loansmortgage interest ratesRobin Myers/Condo Specialist April 27, 2023

Mortgage Interest Rate Buydowns

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If you’re thinking about buying a home, the good news is mortgage interest rates continue to decline. Rates are in the low 6% range compared to over 7% a few months ago. There are ways to lower the mortgage interest rate even more with a temporary or permanent mortgage buydown, but there are pros and cons.

A mortgage rate buydown allows a buyer to secure a lower interest rate on a mortgage by paying more money up front in the form of discount points. Each “point” is equal to one percent of the total loan amount. This can be beneficial when mortgage rates are high.

Permanent or Temporary Buydown?
With a permanent interest rate buydown, the interest rate is reduced for the life of the loan, but there are generally heftier up front costs. With a temporary interest rate buydown, a borrower can get a temporary discounted interest rate and ease into the permanent mortgage interest rate.

1-0 buydown mortgage – a 1% discounted interest rate for the first year
2-0 buydown mortgage – a discounted interest rate for the first two years of the loan. The first year the interest rate is 2% lower, decreasing to 1% the second year.
3-2-1 buydown mortgage – a 3% discounted rate the first year, 2% in the second year and 1% the third year.

With a temporary mortgage buydown the borrower must qualify for the mortgage at the higher interest rate even though initially paying a lower rate.

Does it pay to permanently buy down a mortgage? Mortgage payments will be more affordable for the life of the mortgage, but there are higher up front costs. If you plan to stay in the home for a long period of time, this could be a wise financial decision, but if you plan to move in a few years you may not break even given the up front costs.

Talk with your lender or mortgage broker for information about current interest rates, loan programs, mortgage buydowns and calculations to see which scenario is the best for your financial situation and future plans.

 

buying a homecondominium speciaistcondominiumsfirst time buyersreal estaterentalsRobin Myers/Condo Specialist March 7, 2023

Rent vs. Buy – What Best Fits Your Current Lifestyle? Copy

There are definite advantages to owning a home, as a vehicle for building wealth and the security of owning a safe place to call home. Matthew Gardner, Windermere Real Estate’s Chief Economist, speaks to the advantages of owning a home in this short video. While most of us can agree with all the points in Matthew’s video, the reality is that sometimes life happens and it might be wiser to make a temporary decision to rent before you explore buying a home. Lifestyles change, relationships change, jobs change . . . wherever you are in life, if you need information about condos, townhomes or houses for sale, or if home ownership is a year or two away, I have resources for lenders, market data, movers, contractors, property managers and rental properties to help you with whatever you need.

 

 

buying a homeeconomyELECTIONfirst time buyersreal estateRobin Myersselling a homeWindermere Real Estate November 13, 2020

Post Election Housing Thoughts

How could a Biden administration impact real estate? Matthew Gardner, Windermere Real Estate’s Chief Economist, shares his thoughts.

 

economyreal estateWindermere Real Estate August 24, 2020

Good News – Nationwide Mortgage Delinquency Rates are Down

Matthew Gardner, Windermere Real Estate’s Chief Economist, is back from vacation (sporting a new look) and talks about the relatively unknown U.S. Household Debt and Credit Report. While this may not sound very sexy, it actually contains interesting information. The report provides insights and data on national housing finance. Not surprising, mortgages and student debt represent the largest debt numbers, but the good news is that mortgage delinquency rates are down. Take a quick look, and have a great week.

 

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Interesting Look at Historical Data Regarding US Home Ownership

This week with Matthew Gardner  –  interesting information on historical data regarding US home ownership rates. Millennials still represent the greatest increase in home ownership in the last year.

 

 

economyhousing marketreal estateWindermere Real Estate July 20, 2020

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Started in 2010, the information in the National Housing Survey contains information about consumer attitude, intentions and financial confidence as it relates specifically to housing.

 

 

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COVID-19 Impact on the Housing Market – You Might Be Surprised

lifestylereal estateurban livingWindermere July 9, 2020

An Online Furniture Shopping Newbie

Robin-MyersI don’t do a lot of online shopping unless its for a product I’ve purchased before or from a retail store I’m familiar with and trust. Buying groceries online, a t-shirt from Nordstrom or replacing a kitchen item from Amazon is a safe bet. I’ve never made a significant online purchase like furniture.

Replacing the ottoman in front of my sofa with something more contemporary and more sturdy has been on my list for some time. A glass of red wine sitting on a tray on an upholstered ottoman is a disaster waiting to happen, especially when you have a dog. With working and spending more time at home in recent months, and maybe drinking wine more regularly, the physical and visual issues of the ottoman have been more noticeable.

Welcome to Wayfair  –  there are so many choices. After extensive research (probably to much) I parked several glass coffee tables in my shopping cart to ponder. I finally selected a table that checked all the boxes  –  not too large, contemporary, glass top and interesting style. When I was finally ready to to push the “purchase” button, I was delighted to find it was on sale for the Memorial Day holiday weekend sale. Awesome!

The table arrived a few weeks ago. It was easy to assemble and it’s perfect! Fits the space exactly as expected, the glass top visually makes the room feel larger, it’s a nice update to the room and its a more stable spot for a glass of wine. Couldn’t be happier. I’ve been thinking about new bedroom nightstand lamps . . . there could be another online shopping success story in my future.

 

 

Robin Myers is a condominium specialist with Windermere Real Estate/East, Inc.

 

 

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The Important Role First Time Buyers Play in the Long Term Housing Market

This week Matthew Gardner, Windermere Chief Economist, speaks to the importance first time buyers will play in the recovery of the country’s housing market.

 

affordable housingcondominium speciaisteconomyreal estateWindermere Real Estate June 29, 2020

Can We Expect to See More Entry Level Affordable Housing In the Future?

This week Matthew Gardner, Chief Economist for Windermere Real Estate, discusses housing affordability and what we can expect moving forward. On average median housing prices nationwide are have increased by 23.5% above the 2008/2009 recession. While there has been some impact on values due to COVID-19, high demand from buyers in a market with limited inventory will continue to increase prices. What’s the solution? There’s high demand for entry level housing, but there’s no easy answer as to how to create affordability.