By: Mike Kennedy mkennedy@railey.com 301-616-6106 July 20th, 2010 Category: Deep Creek Lake Buyer Info, Interest Rates and Loans, Obtaining a Mortgage

The overall interest rate environment for buyers looking to finance a real estate purchase in the Deep Creek Lake second home resort market continues to improve as Jumbo Loan Rates have recently decreased as well. Current Jumbo Loan rates for loans over $417,000 are now in the the 5.25%-5.375% range. These rates are the lowest we’ve experienced since 2003 and may not last long! Last year at this time Jumbo Rates were on average about 1.00%-1.50% higher. The down payment requirement for a second home loan between $417,000-$650,000 is 20%. Loan amounts between $650,000-$1,000,000 requires 25% down and any loan amount over $1,000,000 requires 35% down.

Lower Jumbo Rates can have significant benefits for a vacation home buyer. First, the monthly payment is much lower resulting in substantial savings over the life of the loan.  Secondly, it also allows a buyer to have more purchasing power allowing for other alternatives that may be more desirable to them. For example, last year at this time someone borrowing $480,000 at 6.5% for a $600,000 Deep Creek Lake home would have a monthly payment around $3,034. Right now with the lower Jumbo Rates, the payment on the same loan would be approximately $2,650 a  month - or a savings of about $138,240 over the life of the loan.

In addition, if the same buyer decided to purchase something a little more expensive now - they could borrow approximately $550,000 - or $70,000 more - with the same monthly payment as last year at this time. This allows a buyer to consider other options that may be more desirable to them. In this market it could mean the difference between buying a lakefront house versus another type of setting.  Or it could mean the difference between purchasing a bigger house with more features regardless of the setting.

These lower rates may not last long. This is a great opportunity to save a significant amount of money  or to increase your purchasing power. If you are buying or selling Deep Creek Lake real estate contact us. We can be your trusted advisor and guide you through the entire process.  Please contact Jerry Merrick of BB&T Bank at (301) 387-3219 or John Simson of MLend at (301) 501-0676 for more information on vacation or second home loans at Deep Creek Lake.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 July 2nd, 2010 Category: Deep Creek Lake Buyer Info, Interest Rates and Loans, Obtaining a Mortgage

Conforming interest rates on 30 year fixed mortgage loans under $417,000 are near all time historical lows. As of today, the current interest rate is 4.50%.

Even though the federal government’s $8,000 tax credit has expired, this low interest rate is a great opportunity for a buyer to save a substantial amount of money over the life of their loan. In addition, this lower interest rate also gives a buyer more purchasing power. If you are planning on buying a house or real estate sometime this year it may benefit you in the long run to buy sooner than later by taking advantage of this extremely low rate. This is also a great opportunity to refinance your existing mortgage as well depending on your situation and future plans to buy or sell. Here are a few professional mortgage lenders in Garrett County you can contact to get more information about financing your primary residence or vacation home at Deep Creek Lake.

• MLend - John Simson (301) 501-0676
• BB&T Bank - Jerry Merrick (301) 616-0037
• Brinsfield Mortgage - Alan Brinsfield (301) 707-3431

As always, ask lots of questions and become very familiar with the lending process before making any decisions.  Give us a call if you would like to see any home or building lot for sale in Garrett County or Deep Creek Lake. Please note, we can show you any listed property for sale - even those listed with other real estate companies.