Improve Your LBI Real Estate Mortgage Rate
- Oct 29, 2022
- 3 min read
Updated: 6 days ago
Ways to Improve Your Mortgage Rate in the Long Beach Island NJ Real Estate Sales Market
All buyers in the LBI real estate market are concerned about the recent rise in interest rates. Over the last several months, we have seen the average interest rate more than double. This significantly impacts the ownership costs for a home in the LBI real estate market. The Long Beach Island NJ real estate market has never been that sensitive to interest rates, but it is not immune either. Anyone looking to buy a home in the LBI real estate market will want to secure the best interest rate possible, and there are a few ways to do this!
By: Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Improve Your LBI Real Estate Mortgage Rate
The first thing any buyer in the LBI real estate market can do is understand what determines an interest rate. While there are many factors, the principal elements are your credit score, current debt levels, income, and the relationship with the bank. The more attractive you can make yourself, the better your odds of getting a lower rate.
The type of loan you are looking to obtain can also greatly impact the interest rate and your overall ownership costs in the LBI real estate market. While many buyers opt for the traditional 30 year fixed loan, many other products may warrant consideration. For example, a shorter-term fixed loan often carries a lower interest rate. There are ARM products of 7 or 10 years that offer a period of fixed rate interest at a much lower rate. These options should be discussed with a mortgage professional and financial planner to see what makes the most sense.
Lastly, the relationship with the bank may help you more than you think! Many banks offer interest rate discounts if you start a relationship with them or increase the amount of money held at the institution. This is something to explore and discuss with the lender to determine the options available.
Ways to Improve Your Mortgage Rate in the Long Beach Island NJ Real Estate Sales Market
Remember, the LBI real estate market is a long-term play, and you can have a long-term plan. Most buyers in the LBI real estate market do not run a loan out for the full 30 years. Rather, they will sell, refinance or pay off the loan well before that time. Therefore, if you find a home that works for you, the best option may be to shop the rate in the best way possible and then work to lower the rate at a later time. For example,you can pay off more principal or refinance when the rate drops. It is also important to remember that, while rates have risen, they are still historically very low! You should speak with a lender to understand the current climate and what the best option is for you. For more information about buying, selling, or investing in the Long Beach Island real estate market, please do not hesitate to contact me.
If you are looking to buy, sell, or invest in the LBI real estate market, contact me, Nathan Colmer, for expert guidance backed by years of local experience, deep market insight, and a proven track record in helping clients navigate LBI's unique market. My experience extends over 20 years of selling homes on Long Beach Island, with a special focus on second homes and investment properties. In addition to representing buyers and sellers, I personally invest in the LBI real estate market and can share my firsthand knowledge of this investment strategy. Whether you are searching for a vacation home, planning a wise investment, or ready to list your property, I can offer you personalized strategies and unmatched knowledge to help you succeed.
By: Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
