Log In   ·   Become A Member

Hamptons Mortgage Rates Dropping

John A. Viteritti

This beautiful detailed, meticulously renovated 1922 quintessential Classic Hamptons style residence is located in beautiful East Hampton. Listed for $1.15M by Lisa Levitin of Rosehip Partners Real Estate. (Courtesy Photo)

According to a recent New York Times article, the average rate on a 30 year fixed-rate mortgage was 3.8%, the lowest since May 2013, and far below the 5% plus-rates of early 2011.

Families who mortgaged their properties when rates were higher than at present may be induced to refinance if the savings from the lower monthly payments justified the up-front costs of refinancing. It would also seem logical that the lower rates would result in more purchases and presumably at higher prices.

Just how mortgage interest rates affect the a-typical Hamptons real estate market were questions I posed to Christopher Minardi, Branch Manager of the East Hampton Division of GuardHill Financial Corp.

How common are cash as opposed to mortgage-financed purchases in the Hamptons real estate market?

CM: The higher the price the better the chance it's a cash deal. I don't see many loan applications for waterfront. More and more deals are cash, but with low interest rates I've seen many more inquiries from people who do not include a mortgage contingency in the purchase contract but do mortgage the property to take advantage of the low interest rates.

Is that true in particular price points?

CM: I would say the 2 to 3 million dollar price range.

Do lower interest rates have the same impact in the Hamptons as other real estate markets?

CM: Yes. Low rates means cheaper borrowing power, more house for the same money, or same house on a better budget.

Do lower interest rates lead to refinancing as much as other markets?

CM: Yes. The funny problem I see is that in 2004-2006, and then 2010 to present, rates have been at an all-time low and everyone has already financed. People are reluctant to do it again because lenders are tough on paper work and guidelines. I try to make the process as easy as possible which is why I have been busy non-stop for the past fifteen years.

Is it difficult to get a mortgage?

CM: No. It's difficult to be well qualified. If you're not, then you need an expert to get it done correctly, or at least a quick "no." I'm a believer in a quick yes or no.

How are first-time buyers and senior citizens affected by lower rates?

CM: First-time buyers get lower rates which equal lower payments or more buying power. I don't encounter seniors much, but they would be able to refinance to lower carrying costs if they are on a fixed income.

To gain some perspective on the Hamptons real estate market, consider that in New York, a high-priced area, Fannie Mae and Freddie Mac will buy loans and the Federal Housing Administration will insure loans up to $625,500. The median prices of homes in Suffolk and Nassau Counties 300k plus and 400k plus. In the Hamptons it is closer to 1 to 2 million depending on location.

John is a St. John's University graduate, licensed Real Estate broker, lecturer, teaches real estate license classes at LIU, NYU, and Cook Maran Real Estate School, and is a well-respected consultant to the real estate industry. www.johnaviteritti.com

Related Articles:

Be the first to comment on this article. (Just fill out the form below)

Submit Your Comment

Please note, you are not currently logged in. Your comment will be submitted as a guest.
To submit your comment as a member, please click here.
Your Name:
* Comments will be reviewed and posted in a timely fashion
* All fields are required
Please type the word 'water'
(For spam prevention, thanks)
Gary R. DePersia, Corcoran Real Estate
With over $2 billion in transactions, Gary DePersia is consistently ranked among the top producers in the Hamptons. A year-on-year member of The Corcoran Group President’s Council, he has qualified as a national list maker since 2007. In the 2016 REAL Trends & The Wall Street Journal list of America’s top real estate professionals, he was designated #22 nationally and #5 in the Hamptons by volume with nearly $200 million of transactions for the past year.

East End Tick Control
The East End's only New York State licensed dedicated tick and mosquito control specialists!

Bridgehampton National Bank
For over 100 years Bridgehampton National Bank has been the East End's hometown bank. Many success stories...one bank, BNB!

Advertise on Hamptons.com - Have your business be seen by over 2 million viewers including NEW searches
Hamptons.com- Our exclusive online magazine has 2.6 million Page Views YTD for 2015. Contact us to join our elite group of clients that benefit from having a presence on the Hamptons award winning publication www.Hamptons.com

Hamptons Carpet One Floor & Home
We pay less,and so do you.With over 1,000 stores in our buying group, we can get the lowest prices from the best flooring manufacturers — and pass the savings on to you.Visit our other locations: Hamptons Carpet One Floor & Home, 675 North Sea Road,Southampton, NY 11968

Southampton Masonry-Visiting the Southampton or the Wainscott locations is an exciting experience.
Southampton Masonry has been serving Long Island's masonry and tile needs since 1975. Delivering quality products from Manhattan to Montauk for over three decades. The company's continued success is due primarily to their number one priority: customer satisfaction, with a promise of prompt and courteous service from the professional, knowledgeable staff. Southampton Masonry has the largest inventory on the east end. As direct importers they can offer a large variety of the finest quality products at the most competitive pricing for both your interior and exterior projects.

Hampton Coffee Company is dedicated to making sure you have the best possible experience with our brand, whether you visit one of our cafés, our Mobile Unit, one of our wholesale partners, order through our website, or purchase our coffee on the supermark
We strongly believe that one of the most important parts of being a successful business in the community is truly becoming a part of it. Hampton Coffee Company is proud to support more than 100 different local charities, schools, and organizations each and every year. It is our pleasure to participate in events that are important to our staff and our customers.

RJD Gallery specializes in contemporary art with a focus on Magical, Figurative Realism, Narrative Portraiture and Urban Landscape.
We exhibit representational artists from around the world, who produce fine art of exceptional quality that challenge collectors to contemplate concepts about the artist, themselves, and our human experience. Utilizing timeless techniques in creating their drawings, paintings and sculptures, our artists have developed unique, signature styles that present a current vision of our world.