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Understanding Interest Rate Buy Down

Understanding Interest Rate Buy Down

WHAT ARE MORTGAGE DISCOUNT POINTS?

Mortgage discount points are fees paid to a lender to reduce your interest rate. They allow a borrower to trade paying more money upfront in exchange for a lower interest rate. A borrower can pay more in closing costs for smaller monthly payments over the life of the loan. Having an understanding of this substantial savings opportunity over the life of the loan is key. When reviewing interest rates from mortgage lenders, you’ll often see different numbers listed, including:

1. Mortgage interest rate
2. APR (Annual Percentage Rate)
3. Points

The mortgage interest rate is the percentage of the loan you are paying your lender to borrow the money. APR is the yearly income received by the lender over the life of the loan, reflected as a percentage of the loan amount (this includes other fees and costs charged in addition to the interest).

Points are fees associated with buying down your interest rate. Each discount point equals 1% of your loan amount and this discount point typically decreases your interest rate by about 0.25%. 

How much will you save when buying mortgage points?

Depending on your circumstance, buying mortgage points can save you significant money over the course of your loan. Here’s an example:

Paying discount points to get a lower interest rate can be a great strategy. Lowering your rate even just 25 basis points (0.25%) could save you tens of thousands over the life of the loan.

Other things to know about mortgage points

The terms around buying points can vary greatly from lender to lender. Here are some important things to consider:

The lender and the marketplace determine your rate reduction, and it can change after the fixed-rate period for your mortgage ends. That’s why it’s important to make sure your break-even point occurs well before the fixed-rate expires. For Bank of America customers, however, if rates go up during the adjustable period, your rate will be lower based on the points you initially purchased.

Contact a tax professional to see whether buying mortgage points could affect your tax situation.

If you need to decide between making a 20 percent down payment and buying points, make sure you run the numbers. A lower down payment can mean also paying for private mortgage insurance (PMI), which could cancel out the benefit of buying points for a lower interest rate.

 

RE/MAX Heritage has served the Central Florida real estate market for over 30 years. 

If you are interested in buying, selling or renting a property in the Disney Orlando area of Central Florida please complete the form below to provide us with more information so that we can better serve you.

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Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

Avoid Scams During the Aftermath

Avoid Scams During the Aftermath

Avoid Scams During the Aftermath

Avoid Scams During the Aftermath

Residents are warned to be aware of the possibility of fraud and disaster scams in the aftermath of Hurricane Ian.

Following a disaster like Hurricane Ian, qualified contractors are usually in high demand and often become booked up for months. Scammers or unqualified out-of-state workers may flood in to take advantage of Floridians in need of expert service.

If property is damaged from the storm, the Florida Attorney General’s Office offers these tips when hiring a contractor:

 

  • Have an insurance company evaluate damage before arranging repairs to ensure the work will be covered under a policy.
  • Get at least three written, itemized estimates on bids or repairs.
  • Watch out for unsolicited offers or contractors claiming to perform repairs at a discount with leftover supplies from another job.
  • Research a company and its reputation-look for references online or ask a friend. Also check to see if a company is properly licensed, insured and if there are any consumer complaints filed against a licensed contractor at MyFloridaLicense.com or by calling the Florida Attorney General’s Office at (866) 9NO-SCAM.
  • Make sure a contractor is bonded and verified with a bonding agency.
  • Read the entire contract, including the fine print, before signing to ensure it includes the required buyer’s right to cancel language. Understand penalties that may be imposed for cancellation.
  • Insist on releases of any liens that could be placed on the property from all subcontractors prior to making final payments. Homeowners may unknowingly have liens placed against their properties by suppliers or subcontractors who have not been paid by the contractor. If the contractor fails to pay them, the liens will remain on the title.
  • Never pay the full amount of a repair expense upfront and be wary before providing large deposits. Do not sign a certificate of completion or make final payment until satisfied with the work performed.

Florida’s Chief Financial Officer warns individuals and businesses looking to contribute to Hurricane Ian relief efforts to be cautious of imposter GoFundMe style crowdfunding websites and charity scams. Floridians are encouraged to donate to the Florida Disaster Fund. To contribute, visit  www.FloridaDisasterFund.org or text DISASTER to 20222.

The Federal Trade Commission offers these tips to avoid charity scams:

  • Don’t let anyone rush you into making a donation.
  • Some scammers try to trick you into paying them by thanking you for a donation that you never made.
  • Scammers can change caller ID numbers to make a call look like it’s from a local area code.
  • If someone wants donations in cash, by gift card, or by wiring money, don’t do it. To be safer, pay by credit card or check.
  • It’s a good practice to keep a record of all donations and review your statements closely to make sure you’re only charged the amount you agreed to donate – and that you’re not signed up to make a recurring donation.
  • Before clicking on a link to donate online, make sure you know who is receiving your donation. Read Donating Through Crowdfunding, Social Media, and Fundraising Platforms for more information.

The Federal Emergency Management Agency gives the following tips to avoid scams, protect your identity and stay informed:

  • FEMA, the Department of Homeland Security, and the Small Business Administration and other federal agencies will never charge you for disaster assistance.
  • Always ask to see identification. FEMA personnel will always have an official ID badge. Do not offer any personal information unless you are speaking with a verified FEMA representative.
  • Stay tuned to trusted local media for updates from your local officials on disaster fraud and scams.
  • Contact FEMA’s Investigations and Inspections Division by email at StopFEMAFraud@fema.dhs.gov or call (866) 223-0814 or by mail at 400 C Street SW, Suite 7SW-1009, Mail Stop 3005, Washington, D.C., 20472-3005.
  • Contact your state consumer protection offices.
  • Report corruption, fraud, waste, abuse, mismanagement, or misconduct to DHS Office of the Inspector General or file a complaint with the National Center for Disaster Fraud.
  • Visit IdentityTheft.gov to report and recover from identity theft.

Get Connected. Stay Alert.  
For more information on Hillsborough County’s response to Hurricane Ian, visit HCFLGov.net/StaySafe and sign up for the HCFL Alert system. Additionally, you can follow Hillsborough County on social media at Facebook, Twitter, and Nextdoor for updates.

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Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Existing-Home Sales Fell 3.4% in May

Existing-Home Sales Fell 3.4% in May

Existing-Home Sales Fell 3.4% in May

WASHINGTON (June 21, 2022) – Existing-home sales retreated for the fourth consecutive month in May, according to the National Association of Realtors®. Month-over-month sales declined in three out of four major U.S. regions, while year-over-year sales slipped in all four regions.

Total existing-home sales,1 https://www.nar.realtor/existing-home-sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 3.4% from April to a seasonally adjusted annual rate of 5.41 million in May. Year-over-year, sales receded 8.6% (5.92 million in May 2021).

“Home sales have essentially returned to the levels seen in 2019 – prior to the pandemic – after two years of gangbuster performance,” said NAR Chief Economist Lawrence Yun. “Also, the market movements of single-family and condominium sales are nearly equal, possibly implying that the preference towards suburban living over city life that had been present over the past two years is fading with a return to pre-pandemic conditions.”

Total housing inventory2 registered at the end of May was 1,160,000 units, an increase of 12.6% from April and a 4.1% decline from the previous year (1.21 million). Unsold inventory sits at a 2.6-month supply at the current sales pace, up from 2.2 months in April and 2.5 months in May 2021.

“Further sales declines should be expected in the upcoming months given housing affordability challenges from the sharp rise in mortgage rates this year,” Yun added. “Nonetheless, homes priced appropriately are selling quickly and inventory levels still need to rise substantially – almost doubling – to cool home price appreciation and provide more options for home buyers.”

The median existing-home price5 for all housing types in May was $407,600, up 14.8% from May 2021 ($355,000), as prices increased in all regions. This marks 123 consecutive months of year-over-year increases, the longest-running streak on record.

Properties typically remained on the market for 16 days in May, down from 17 days in April and 17 days in May 2021. Eighty-eight percent of homes sold in May 2022 were on the market for less than a month.

First-time buyers were responsible for 27% of sales in May, down from 28% in April and down from 31% in May 2021. NAR’s 2021 Profile of Home Buyers and Sellers  released in late 20214 – reported that the annual share of first-time buyers was 34%.

All-cash sales accounted for 25% of transactions in May, down from 26% in April and up from 23% recorded in May 2021.

Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in May, down from 17% in April and 17% in May 2021.

Distressed sales5 – foreclosures and short sales – represented less than 1% of sales in May, essentially unchanged from April 2022 and May 2021.

According to Freddie Mac, the average commitment rate(link is external) for a 30-year, conventional, fixed-rate mortgage was 5.23% in May, up from 4.98% in April. The average commitment rate across all of 2021 was 2.96%.

Realtor.com®’s Market Trends Report(link is external) in May shows that the largest year-over-year median list price growth occurred in Miami (+45.9%), Nashville (+32.5%), and Orlando (+32.4%). Austin reported the highest growth in the share of homes that had their prices reduced compared to last year (+14.7 percentage points), followed by Las Vegas (+12.3 percentage points) and Phoenix (+11.6 percentage points).

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Vacation rental supply evolution in top cities

Vacation rental supply evolution in top cities

Vacation rental supply evolution in top cities

London has by far the largest number of short-term rental properties (36,000 in October 2021). In addition, Europe is the continent with the most listings, with the city with the highest number of listings (9). Most are the capitals of major supply nations, plus Milan, Barcelona, and St. Petersburg.

Eight cities from North America are among the top 20; we learn about vacation rental supply evolution in New York City, Los Angeles (LA) and Kissimmee. Also classified under North America are Mexico City, Playa del Carmen, Havana, Montreal and Toronto.China logically has the most cities represented (8), while other cities represented include Dubai, Cape Town, Bogota, and Rio de Janeiro.

Out of the top vacation rental nations, China has seen the most supply growth since 2018. More recently, however, many major Chinese cities have seen inventory shrinkage. In fact, 5 of the 8 featured cities have experienced a significant decrease in inventory levels.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Landsea Homes Is Now The Seventh Largest Homebuilder In Central FL

Landsea Homes Is Now The Seventh Largest Homebuilder In Central FL

Landsea Homes Is Now The Seventh Largest Homebuilder In Central FL

On January 19, 2022 it was officially announced that Landsea Homes Corp. completed the acquisition of Orlando-based Hanover Family Builders for a purchase price of $179.3 million, subject to certain post-closing adjustments and assumption of debt, which was refinanced with the company’s unsecured revolving credit facility. 

 In 2021 Hanover Family Builders closed 632 homes at an average selling price of $328,323 and ended with more than 4,100 lots under control, 469 homes in backlog worth more than $200 million, and 18 active communities. 

 “In 2021, Landsea Homes surpassed the milestone of $1 billion in revenues and completed our first year as a public company. We believe our acquisition of Hanover Family Builders is another truly transformative event for the company,” says Landsea Homes CEO John Ho. “With the closing of this transaction, we have increased our lots under control to more than 12,800 and further accelerated our asset-light strategy by increasing our controlled lots to approximately 50% of our total lot inventory.” 

 Hanover Family Builders was established in 2017 by the brothers Matt, Steve, and Andrew Orosz in partnership with Colby Franks. It all began with nine communities in the Orlando region, Osceola, Lake and Polk counties. The Orosz family previously formed Cambridge Homes in the 1990s and Royal Oak Homes in 2011, which were sold in 2005 and 2014 respectively. Over the decades, the various companies have received the highest recognition for their growth, customer service and commitment to the community.  

 “Hanover Family Builders has established a great reputation for providing wonderful homes and outstanding customer service across central Florida,” Ho says. “Given their strong track record, local market knowledge, and long-standing relationships, we believe that Hanover will play an integral role as we expand in this region.” 

Landsea Homes first penetrated the Florida housing market in 2021 with the acquisition of Vintage Estate Homes, providing homes in the Orlando area, including Palm Bay, Ormond Beach, Palm Coast, Sorrento, Lake Helen, Merritt Island, and DeBary. 

 “We were very impressed with Landsea Homes’ strategic approach and commitment to building great homes with top-tier customer service—values that closely align with ours,” says Hanover Family Builders co-president Steve Orosz. “Their senior leadership team is experienced and thoughtful, and they have created a culture of integrity that is dedicated to ensuring they provide best-in-class homes in each of their markets.” 

Ho says that Hanover Family Builders’ focus on the more affordable segments of the market “aligns strongly with our broader product positioning goals.” The acquisition of Hanover Family Builders is expected to have an immediate impact on Landsea Homes’ earnings, and Ho says this acquisition will drive the company’s return “on beginning equity to exceed 20% in the fiscal year 2022 and beyond.” 

 “Our mission is to create a best-in-class home building company that focuses on delivering high-quality homes at a great value to our customers, while providing superior customer service,” Ho says. “Hanover Family Builders fits perfectly into that mission, and we are excited to welcome them into the Landsea Homes family.” 

 

In the course of eight years, Landsea Homes has has grown into one of the premier national homebuilders and established a footprint in each of its key markets, including Arizona, Northern and Southern California, Texas, and Florida. 

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Coming soon- New Retirement Community to Central Florida

Coming soon- New Retirement Community to Central Florida

Coming soon- New Retirement Community to Central Florida

On January 5, 2022 the Polk County Planning Commission unanimously approved a binding site plan for 232 apartment units on 11.6 acres off Lake Hatchineha Road. 

 The project is located “on the north side of Bayberry Street, west of Marigold Avenue, east of Allegheny Road, north of Hatchineha Road, east of the city of Dundee.” The land is owned by Gordon Land LLC. 

 This proposal is part of the larger Poinciana Planned Unit Development — addressing the remaining portion of Neighborhood 3 within Village 7. The area was rezoned to multifamily in 2005 but was in need of a binding site plan. As a result, commissioners were evaluating the design of the proposed project, rather than the compatibility of the proposal’s high density. 

 The project is proposed as a 55+, retirement community, but Florida law prevents the county from enforcing age restrictions on development requests, according to county documents. 

The planned buildings will be four stories and courtyard style. Access to the development will be via an extension of Allegheny Road. 

The RE/MAX Heritage team is trying to obtain all details and we’ll be sharing shortly.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.