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.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 September 30th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Garrett County Real Estate, Interest Rates and Loans, Obtaining a Mortgage

Two of the leading mortgage lenders in our area recently announced new loan programs that require less money down for real estate purchases financed in the Deep Creek Lake area and throughout Garrett County, Maryland.

John Simson, of MLend, announced a new second home loan program available for properties in the Deep Creek Lake area. This particular program will lend up to $417,000 with only 10% down for a single family vacation home. Borrowers must have a minimum 720 credit score and with only 10% down there is still PMI. This is quite a change from the past year or so when most banks were requiring at least 25%-35% down on a second home loan.  The recent tightening of credit standards requiring much more money down on a second home purchase have greatly contributed to the slowdown in the number of sales in the Deep Creek area over the past two years - especially in our $300,000 to $750,000 market segment. For more info contact John Simson at (866) 501-5625 or e-mail him at jsimson@pennswoods.net.

Another great new loan program is being offered by Jerry Merrick of BB&T Bank. This program is for anyone looking to purchase a primary residence in Garrett County that is NOT located in the Deep Creek Lake area.  So anyone seeking to buy a home in the areas of Oakland, Mt. Lake Park, Loch Lynn, Grantsville, Accident, or Friendsville should take note of this great new program. The program is called the Community Homeownership Incentive Program (CHIP) and is maintained and serviced by BB&T Bank. The program is for principal residences only and you can not own any other real estate at the time of closing.

This loan program offers tremendous benefits to buyers who don’t have the typical down payment needed for most conventional loan programs. Some of the benefits include 100% financing (no money down!) with a credit score of 660, no PMI, and all the closing costs can be in the form of a gift of paid by the seller. If your credit score is below 660 you may still qualify for the CHIP loan but your down payment requirement will be increased to 3%. The maximum loan amount is $417,000 and there are no income limit restrictions. Geographically most of Garrett County qualifies with the exception of the Deep Creek Lake area. For more info call Jerry Merrick at (301) 387-3219 or e-mail him at jmerrick@BBandT.com.

Hopefully these new programs are a sign of things to come. Loan programs like these that require less money down will certainly help spur on new real estate sales in the area.

By: JonBell jbell@railey.com 301-501-0735 May 13th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Interest Rates and Loans, Obtaining a Mortgage

My friend and fellow real estate agent emailed me a link to this recent Washington Post article titled “Want a Second Home? Save Up.” Unfortunately, she didn’t read the whole article before she sent the email and assumed that it was all bad news for the Deep Creek Lake area real estate market. She should have read the article and not just the title.

In my opinion this article is very positive with some great success stories! I encourage all potential or prospective second and vacation home buyers who are attempting to time the real estate market to “actually read it”. I will provide a link to the full article at the bottom of this post.

Several points of interest should be noted:

1. Dudley Dworken of Potomac, MD had been searching for the perfect Ocean City, MD beach front condo for over 2 years and recently purchased because he thinks the market has bottomed out and he found the perfect property at the “right price”. Dworken is quoted in the article stating ” I think we bought at the perfect time.”
2. Kathy Panco, Dworken’s real estate agent, notes that the large housing inventory has begun to shrink “possibly due to increased demand.”
3. Tom and Johanna Wells got creative with financing and were able to purchase a second home in Virginia Beach, VA. The buyers had to overcome a few obstacles to make their purchase a reality but Tom is quoted in the article noting that “in light of what’s happened with the stock market and my IRA account, I’d rather put the money into this condo, something that will appreciate and that we can enjoy.”

The Deep Creek Lake area is blessed with several great banks and mortgage brokers. Buyer’s credit history, savings and monthly income are strongly evaluated during the loan process (which they should be) but most local lenders have 10% down or better second home loan programs and mortgage interest rates that are still at historical lows.

What Are The Current Deep Creek Lake Second Home Mortgage Rates?
Rate’s below provided by Deep Creek Lake BB&T as of 4/28/09

• 30 year fixed purchase under $417,000 - 4.875%
• 30 year fixed purchase over $417,000 JUMBO- 5.625%
• 15 year fixed purchase over $417,000 - 4.500%

Contact: Jerry Merrick of BB&T for more information. Office phone: (301) 387-3219
Email: JMerrick@BBandT.com

How is the Deep Creek Lake Real Estate Market?
Real estate sales in the Deep Creek Lake Area and Garrett County seem to be improving. Reports show that Garrett County, Maryland residential sales volume has almost doubled in the past 2 months.

• On February 28th 2009 there were 27 houses under contract (sale pending) and 9 building lots.
• On April 30th 2009 there were 46 houses under contract and 7 building lots under contract (sale pending).

How is Railey Realty Doing?
Of the 36 sale pending properties as of February 28th 2009, Railey Realty represented 17 of the sellers in these transactions. Of the 53 sale pending properties as of April 30th 2009, Railey Realty represented 25 of the sellers in these transactions.

*Real Estate Market Statistics provided by MRIS the Deep Creek Lake Area MLS service provider.*

Read “Want a Second Home? Save Up.” on the Washington post website at the following link: http://www.washingtonpost.com/wp-dyn/content/article/2009/04/17/AR2009041701646.html?referrer=emailarticle

By: DebraSavage dsavage@railey.com 301-616-4085 April 18th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, Interest Rates and Loans, Obtaining a Mortgage

Why is now a good time to buy a house for sale at Deep Creek Lake or in Garrett County? Whether you are looking to purchase a vacation or second home at Deep Creek Lake, a cabin retreat in the woods, or if you are first time home buyer - there are two reasons that now may be the right time to buy real estate;

• Sellers now understand that we have not only have moved into - but are now lodged in a ‘Buyer’s Market’ and they must now properly and realistically price their home if they desire to sell in this current market.

-and-

• Interest rates are at historically low levels.

EXAMPLE; An $800,000 jumbo loan or mortgage on a vacation property at Deep Creek Lake at 6 percent on a 30 year fixed-rate mortgage will cost you $926,717 in interest over the life of the loan.  If interest rates increase just 1 percent - that same loan will now cost you $1,116,025.  That is an additional $189,308 in interest paid over the life of the loan!

A $400,000 conforming loan for a primary residence at today’s current rate of 4.75 percent on a 30 year fixed-rate mortgage will cost you $351,164 in interest over the life of the loan.  Once again, there is a tremendous amount of additional interest to pay if the rate rises just 1 percent. That 1% rate increase will cost you an additional $89,180.00 in interest over the life of the loan.

So, negotiate your best possible contract price and then take advantage of these historically low interest rates.  The current buyer’s market and low interest rates won’t last forever!

By: DebraSavage dsavage@railey.com 301-616-4085 March 10th, 2009 Category: Deep Creek Lake Buyer Info, Interest Rates and Loans, Obtaining a Mortgage

Many potential home buyers here at Deep Creek Lake and in Garrett County frequently ask me - “When is the best time to lock in my interest rate?” I posed this question to one of our local mortgage experts- Jerry Merrick of BB&T Bank and below is his most informative response;

I always advise my clients to lock in their interest rate at the earliest opportunity. Gambling with a client’s interest rate is never advisable. In my business, I have a standardized system in place that we adhere to for all of our clientele.

A mortgage loan cannot be closed without locking in a rate and there are two main elements to take into consideration:

Interest Rate
Length of lock

Locking in a rate does not obligate the client to commit to the loan until the appraisal is ordered and costs are incurred. The lock simply eliminates any risk of the borrower being exposed to market volatility. It provides the security of having time to complete the mortgage and real estate transaction with some sense of order.

My team and I let our clients know that interest rates fluctuate daily and do not want them to fall victim to, I wish I would have locked and now I’m stuck with the higher rate. We try to lock in a rate when we receive the application to minimize excessive volatility and allow the borrower to focus on paint colors and not interest rates.

We advise our clients to lock rates that are conducive with their transaction. For instance a 30 day lock is less expensive than a 45 day lock. There are lenders out there that compete on price alone and do not disclose the difference in the rate is because of the shorter lock period.

So there you have it - as with most things in life - the answer in a nutshell is it all depends on your situation and comfort level. I highly urge and recommend anyone looking to borrow money to purchase a house that they consult at least 2 or 3 of our local lenders to get all your questions answered.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 February 10th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Interest Rates and Loans, Obtaining a Mortgage, Uncategorized

This afternoon I had a conversation with local mortgage lender Jerry Merrick of BB&T Bank.  He had mentioned that refinance interest rates in the Deep Creek Lake and Garrett County areas are actually higher than purchase rates and no one seems to be noticing this. Conforming mortgage rates on a home  purchase are still below 5%! I questioned why the discrepancy in rates and below is his response.

While interest rates remain historically low some lenders are raising their rates to control the flow of refinance applications. The typical 30 year fixed rate refinance loan is priced at 5.125% today on any loan amount under $417,000. The matter is simply supply and demand, meaning that lenders are offering very low rates but they are typically understaffed and lack the support necessary to get these deals to closing prior to the rate lock expiration dates.

Consumers should be leary of using lenders that they are unfamiliar with who may be offering lower than market rates. The first item to address is how long is my rate guaranteed to be locked in for, and what are my options if the rate does expire prior to settlement? Ask yourself the question what good is a below market rate if you never go to settlement. At BB&T our clients are locked in for 60 days in order to ensure the integrity of their lock. Those terms are disclosed upfront in the form of a signed rate lock disclosure.

The flipside represents the purchase market which finds lenders still very aggressively priced. Purchase loans are priced today at 4.875% on 30 year fixed rate products. That’s a solid .250% below what the refinance transaction costs. The difference is purchase money transactions are moving faster and have priority in underwriting, because unlike the refinance these loans are new loans for the lender and the refinance transactions are already homeowners.

 With so many variables affecting the market, it’s more important than ever to have an advise -based strategy when structuring your loan, I appreciate you trusting me with this role. 

Jerry Merrick

Deep Creek Lake’s #1 Lender

Vice President

BB&T Mortgage

Mortgage Loan Consultant

301-387-3219 Phone

301-387-5393 Fax

301-616-0037 Mobile

21287 Garrett Hwy suite 500

Oakland, MD  21550

www.bbt.com/mlo/jmerrick

By: Mike Kennedy mkennedy@railey.com 301-616-6106 December 17th, 2008 Category: Deep Creek Lake Real Estate, Interest Rates and Loans, Obtaining a Mortgage

John Simson, a local mortgage broker in Garrett County with Sweitzer Simson of Spectra Funding, announced that mortgage rates have come down substantially as of today. Here are some current interest rates you could lock today if you were thinking about possibly buying real estate, a second home, or resort property at Deep Creek Lake or in Garrett County Maryland.

Here is the note from John;

Rates are the best I have seen in a long time possibly ever!!

They are inverse from what they follow typically, but we can do:

Up to $417,000

    15 year fixed  4.75%

    20 year fixed 4.625%

    30 year fixed 4.5%

Above $417,000

    Balloons

        30/15  6.00%

        30/10  5.75%

        30/5    5.5%

        3/1      5.125%

        5/1      6.00%

Pricing is subject to Loan to value, credit scores, & income ratios.

No one can say for sure that interest rates will stay this low or come down any more in the next few days or weeks to come but one thing is for sure - today’s rates on conforming loans (or those loans less than $417,000) are quite possibly the lowest  anyone has seen in decades.  Jumbo rates (or those loans more than $417,000) have improved over the past few weeks but with the spread it still probably makes sense to try and finance $417,000 or less when purchasing a home or piece of land.  It may be an excellent time for those who may be on the fence deciding whether or not to buy real estate right now to take advantage of these low rates. Give us a call or drop us an e-mail - there are certainly some good properties for sale in our market right now.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 October 15th, 2008 Category: Interest Rates and Loans, Obtaining a Mortgage

Jerry Merrick, Vice President of Mortgage Lending at BB&T Bank, stopped by our office again yesterday to give us an update on the mortgage industry after what was certainly a turbulent week on Wall Street and other financial sectors. For buyers out there who may be considering purchasing a second home or vacation home for sale at Deep Creek Lake - here are some points to consider if you will be obtaining a loan;

Credit Scores

Lenders still very much want to lend money - however, only those borrowers with 800+ credit scores are going to get the lowest rates without paying any upfront points. Borrowers with credit scores less than 800 can still get loans - but the banks are now charging upfront points to these people to get the same rates. If you are thinking of purchasing a piece of real estate at Deep Creek Lake or in Garrett County Maryland and are going to borrow, it may be a good idea to check your credit score first to see where you stand.

Interest Rates

With all the turbulence in the markets last week - interest rates went up nearly 1 whole percentage point between Wednesday of last week and Monday of this week. In fact, at one point last Friday, Jerry reported he was receiving new rate sheets every 15 minutes! That is how uncertain the mortgage industry was reacting to last week’s events on Friday. Should you lock in your interest rate now? That’s a question only you can answer - but if you are someone who doesn’t mind taking chances then you might want to consider waiting a while to see if rates come back down. If you are someone who doesn’t like to take chances and you are comfortable with your payment terms at the current rate levels then you may want to consider locking in now to avoid the chance that rates may go up again. It all boils down to your comfort level - no one can predict for certain which way interest rates will head in the future.

Appraisals

Lastly, starting at the end of this month a new regulation goes into effect that changes the way appraisals are ordered. Banks and mortgage brokers will now have to order all appraisals thru an independent 3^rd party - this 3^rd party will then order that appraisal from a licensed appraiser who agrees to do it for the lowest price. This is both good and bad. Good in two ways - (1) that it will probably lower the appraisal price for the borrower and (2) it will now eliminate any upfront communication or chatter between the lender and the appraiser - which some would say created most of the current problems in the mortgage industry we have now.

However, it’s bad in the sense that this new system is now searching for the lowest priced appraiser and not the most qualified appraiser. In our real estate market, it may result in the lower priced appraisers from Frostburg and Cumberland coming up and doing appraisals at Deep Creek Lake. Our local appraisers, who do charge a little more, have proven they do quality work in a very specialized market - they understand this resort market - appraisers who work in other markets, who may bid the lowest price just to get the work, more than likely do not have this same same specialized knowledge and experience. This new system may very well create another set of problems for the mortgage industry down the road - underwriters making loan decisions based on appraisals from what some would consider “less” qualified appraisers.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 September 9th, 2008 Category: Deep Creek Lake Real Estate, Interest Rates and Loans, Obtaining a Mortgage

Over this past weekend, the federal government announced it would step in and officially take control of both Freddie Mac and Fannie Mae - two of the nation’s largest private agencies that provide loan guarantees on over ½ of all the outstanding mortgage loans in this country. Both agencies have been struggling to stay solvent during this recent national mortgage crisis that started in 2007.

But will this bailout have any effect on the local Deep Creek Lake and Garrett County Maryland real estate markets?

Lower Interest Rates

Most experts are predicting that this government takeover will result in lower mortgage rates. This takeover should result in more government control over the entire mortgage market and interest rates. If the government is truly trying to help the national real estate market slump, lower interest rates may be expected in the near future. Those who are betting on lower rates are saying that we might see rates a full point lower than current rates.

From a historical perspective lower interest rates usually have a positive effect on real estate values in most markets - with lower rates the effective cost of owning a house or piece of real estate is essentially lower. There is no doubt the Deep Creek Lake market has benefited from the historically lower interest rates we have experienced since the start of this decade. Lower rates in the near future may help spur on some additional demand for local real estate.

Current Lending Restrictions

Some experts are even predicting or hopeful that federal control of Fannie Mae and Freddie Mac will result in less restrictive lending guidelines than what we are currently experiencing. No one is advocating returning to the extremely loose lending guidelines that many say caused this current credit crisis. But a little less restrictive than today’s standards and more normal lending guidelines may also help local real estate as well.

Overall, some view this government takeover as an extreme negative - while others will see it as a positive. Certainly, this federal takeover will cost taxpayers billions and billions of dollars in loan losses. Others will argue this takeover was necessary - without it both Fannie and Freddie were certain to fail thus increasing the chances of a national economic depression - and with a depression it may have cost working taxpayers much more money in the long run. Only time will tell if the government made the right decision on this matter.