3-Year Low in Interest Rates Lead to Savings for Home Buyers

Add a heading-4.jpgLast week mortgage rates remained at a 3-year low of 3.6 percent. One year ago in August 2018, the mortgage interest rate was 4.53 percent. What does that difference mean for your wallet? Our friends at UrbanTurf calculated the impact of this lower interest rate on monthly payments for a home with an $800,000 purchase price and a 20% down payment. The lower interest rate led to a savings of $345 a month, $4,140 per year, or $124,010 over the life of the loan! If these low rates have you considering a purchase, here are a few steps to get started:

  1. Schedule a meeting with Kara and Wayne. At the consultation Kara and Wayne will walk you through the buying process and assess your needs and wants.
  2. Know your budget and get pre-approved Kara and Wayne can provide names of local reputable lenders who can meet the financing timelines needed in the competitive DC market.
  3. Refine your wish list. Once you’ve identified and discussed your desired locations and criteria with Kara and Wayne, start to narrow down what is a “Must Have” vs. “Would be Nice”.
  4. Don’t do this alone. Why do you need an agent? With Kara and Wayne, you get real estate professionals on your side with extensive knowledge of the DC market, dedicated allies in negotiations, and even access to listings before they come on the market. Kara and Wayne can help you create the most competitive offer possible and win your dream home.

If you would like more information or to start a conversation, reach out to Kara and Wayne, today!

Helpful Links for First-Time Home Buyers

Client Success Story: Kalorama

Our clients, Sarah and JB, are happily building equity in the home they purchased with Wayne’s help four years ago.  They purchased a 1,440 square foot 2-bedroom condo in Kalorama in 2012.  They were able to buy it for under the list price at that time for $526,000, and just recently, in anticipation of adding a 2nd full bathroom, they had their home re-appraised for a home equity line of credit, and the appraisal came back at $800,000 – and that was WITHOUT the 2nd bath added yet.  Congratulations, Sarah and JB!

Now expecting their first child they have embarked on adding the 2nd bath and a walk-in closet off the master bedroom.  The other day we had the pleasure of touring their work in progress which is almost finished except for some final tile work and fixtures.  It looks beautiful and is sure to add even more value than the pre-renovation appraisal indicated.  We are always thrilled to hear stories like that as our clients increase their net worth through real estate.

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Follow-up to Blog Post: Client Success Story Shaw

As a follow-up to a blog post I wrote in October 2015 about a client success story, our client Josh recently had his 2-unit property in Shaw re-appraised and the value came in at $1,085,000! So if we do the math, he paid $625K in 2014, it appraised for $925K in 2015, which makes a grand total of $460,000 in appreciation in 2 years! He invested in renovations and put in a lot of sweat equity and it really paid off!

Disclaimer: This example does not represent the average rate of market appreciation in Washington, DC and I make no guarantees as to the appreciation potential of properties I sell.

Client Success Story: Insane Equity in 1 Year

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 Josh in front patio

Josh Zimmerman, an engineer who works for the U.S. Patent Office, is a savvy investor whose sweat equity paid off big time. Josh purchased his purple 2-unit rowhouse in Shaw in October 2014 for $625,000. He used a 203K renovation loan to help finance the critical renovations (mold remediation, gutting the lower level unit, structural and roof repairs) and he put a lot of sweat equity into the kitchens, master bath, and cosmetic updates. In August 2015, he refinanced and his new and greatly improved home appraised at $925,000. That’s almost a 50% increase in value in less than 1 year and $300K in equity! Way to go, Josh!

Josh master bath before
Upper Level Master Bath Demo

Master bath AFTER
Master Bath AFTER

LL in progress
Lower Level in Progress

Josh basement kitchen after
Lower Level Kitchen AFTER

Upper level Kitchen in progress
Upper Level Kitchen in Progress

Upper Level Kitchen AFTER
Upper Level Kitchen AFTER

Upper Unit Main Level in Progress
Upper Unit Main Level in Progress

Main Level Upper Unit AFTER
Main Level Upper Unit AFTER