“What Will Buyers Pay?” vs. “What Value Does a Bank Need to Refinance the Current Mortgage?” [Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.] If you’re an appraiser or mortgage lender, stop reading now. No? Good. One of...Read More
The Opposite of Buying Down Rates Wait a second! Isn’t borrowers’ goal to pay the lowest interest rate they can on their mortgage? Yes, but — especially for first-time home Buyers — there’s the added consideration of closing costs. On a $200,000 home, a typical amount would be 3%, or $6,000. Conserving Cash A popular...Read More
Avoiding Appraisal Minefields We may be small, but we’re slow. –Cal Tech football team slogan Once upon a time, when the credit spigots were wide open, Buyers’ financing didn’t much matter to Sellers: at closing, they received cash. Period. Today? With fewer, strong Buyers out there, tighter credit, and more appraisal minefields to navigate, there is...Read More
“Going, Going . . . Gone”According to my office’s in-house mortgage lender — Steve Mohabir of Edina Mortgage — the cupboard is almost bare at Minneapolis’ loan program for first-time Buyers, called Minneapolis Advantage. Specifically, only 4 loans are left out of 100 originally made available. According to Mohabir, other municipal loan programs around the...Read More
