Log In   ·   Become A Member
http://www.hamptons.com/gallery/ads/2145.gif

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, DOS Certified Instructor, lecturer, teaches real estate license classes at Cook Maran Real Estate School, and is a well-respected consultant to the real estate industry. He previously taught at LIU and NYU. 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:
Location:*
Comments:*
* Comments will be reviewed and posted in a timely fashion
* All fields are required
Question:*
What color is a banana?
(For spam prevention, thanks)
 
 
 
http://www.hamptons.com/gallery/ads/1824.gif
http://www.hamptons.com/gallery/ads/2328.gif
East End Tick Control
The East End's only New York State licensed dedicated tick and mosquito control specialists!

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

CP Complete- Landscape Design & Construction
Paul Guillo And Chris Hall Two Of The Most Respected Names In The Community Together, they are partners in CP Complete. They bring their years of experience and integrity to creating and renovating luxury backyards.

Hamptons luxury real estate specialist for 33 years, Andrea Ackerman offers outstanding expertise in the field.
Hamptons luxury real estate specialist for 34 years, Andrea Ackerman offers outstanding expertise in the field. Trusted, experienced and successful, Andrea has solidified herself as the go-to broker of the Hamptons and a wholehearted advocate for her clients. A pioneer in the real estate industry on the East End of Long Island, she is driven by her passion for the business. Andrea is based in the Bridgehampton office of Brown Harris Stevens as a licensed real estate associate broker and consultant. Formerly, a principal partner and Senior Director at Brown Harris Stevens, Andrea now assists in developing their corporate strategy for the Hamptons region, advising other brokers and sales associates, as well as being one of the top producers and listors.

Southrifty Drug 54 Jagger Lane, Southampton Village
Southrifty Drug is a small, neighborhood pharmacy with limited shelf space, and we have to be very selective about which over-the-counter items we carry. As a result you'll find a no nonsense concentration of very effective, high quality and useful products on our shelves. In this new section, we feature a number of these products that we feel are especially worthy of your consideration.

Burner Law Group, P.C.
Burner Law Group, P.C. are full service elder law attorneys concentrating in the areas of Estate Planning, Trust and Estate Administration and Litigation, Special Needs Planning, Guardianship and Elder Law. Offices in East Setauket‚ NY, Westhampton Beach, NY, and New York, NY.

Calissa is Mykonos in the Hamptons.
Our menu focuses on seafood and Greek dishes such as salt baked fish, seafood pasta and Mediterranean mezze. Our wine list has been awarded The Award of Excellence from Wine Spectator and boasts the largest selection of rosé in the Hamptons. The name Calissa is derived from the brightest constellation in the summer sky.Our sister restaurants in New York are Amali and Bar Marseille, opening 2020 in the Rockaways. Calissa offers private dining spaces for groups from 10 to 300 people. To plan your next wedding, corporate event or gathering, please email events@calissahamptons.com. 1020 MONTAUK HIGHWAY, WATER MILL

Suburban Propane in Bridgehampton, New York has been serving proudly supporting our community for 90 years.
Suburban Propane has been serving the energy needs for home owners and business in the Hampton’s for decades. We offer friendly service by local professionals you know and trust, plus the peace of mind that comes from knowing we are among the leaders in the industry for safety.

WordHampton Public Relations
We build client revenues and reputations. Our reputation is built on delivering a strong media presence and, as a result, demand for our clients' offerings, resulting in a positive impact on sales. Successful campaigns start with understanding the goals of our clients and developing a customized strategy that will achieve those objectives.