From Steep Premium to Discount In the wake of the 2008 Financial Crash, rates on jumbo mortgages (over $417k in most parts of the country) skyrocketed to 7% or even higher. Assuming you could find one. Fast forward to Fall 2015, when jumbo’s can now be had for as little as 3.75% — a slight discount to...Read More
Weighing Three Variables Homes on busy streets typically fetch a discount. Is there an equivalent discount for homes located across from a school? (which, in a way, is really just a subset of the “busy street” discount). I’ve never seen data on this, but I’d guess “yes.” I’d further speculate that the discount varies depending...Read More
Saving 2.7% of $0 Contrary to popular perception, not all “For Sale by Owner” homes (“FBO’s”) are created equal. Perhaps the biggest misconception is that FSBO sellers are trying to avoid paying any commission. Wrong. The vast majority are only trying to save half a commission — specifically, the portion payable to the agent representing...Read More
Contingent Offer Multiple Choice [Editor’s Note: Nothing in this post or on this blog should be construed as offering legal counsel. If you require legal advice, please consult an attorney.] Test your knowledge of the Summer, 2015 housing market and field this question: Contingent offers — when a Buyer buys contingent on being able to...Read More
Did the Appraiser Goof? A client trying to refinance his mortgage recently ran into a not-uncommon problem: a low appraisal. My client was convinced that the appraiser goofed because — amongst other things — the appraiser listed the home as only having one Bathroom, not two. Unfortunately, the second Bathroom is in the basement. Because...Read More
From Premium to Discount on 30-Year Mortgages In the aftermath of the 2008 financial crash, funds for jumbo mortgages virtually dried up. At a time when rates on conventional, 30-year mortgages were fetching around 4.5%, jumbo rates were 6% or 6.5% — if you could find such products at all. Today, that premium and scarcity has been replaced by...Read More
