Feds Cut Rates

The Federal Reserve's cut in Key interest rates makes 30 year fixed mortgage rates the lowest since the 1960's, sparking a surge in homeowners looking to cash in and refinance. Some lenders are now offering rates as low as 4.5 %. Last March, I refinanced my own home at 5.5% and was thrilled with that rate. Does it make sense to seek out a refi? It could depending on what your current rate is, how long you plan to be in your home etc. One rule of thumb that I hear a lot is that if the difference in your current rate and the new rate is at least 1.5% you should consider it. You need to determine how much the refinance is going to cost you in real costs and how long it will take to realize any savings. In other words, if it cost you $1500 to refinance and you are going to save $100 per month, it will be 15 months before you realize any true savings.

Another good reason to refinance is if you are in an adjustable rate mortgage (arm) that is getting ready to reset, already has or in general has simply become too expensive. Lenders are stricter with credit, requiring higher credit scores and borrowers equity position of at least 20%.

All of this leads one to believe there is a strong possibility of a big refinance boom. If you're trying to sell and haven't been able to this could really help you out. With lower interest rates there are more able borrowers out there to buy your home. The other possibility is that if you have enough equity in your home, you can pull some out to make improvements. In any event, the loosening of the credit hopefully will help stimulate the housing market followed by the rest of the economy.

Office Space for Rent

Great location for a small business. Approximately 1000 SF with parking available for low key tenant -- account, lawyer etc. $1500 per month including utilities. Location is 847 Sea Island Parkway, right next to What's In Store in the heart of downtown Frogmore. For further information, email me at cindy@islandrealty.info.

Unusual Weather

Good Afternoon:

As I write, the temperature on Harbor Island is 64 F. This is a bit unusual for the lowcountry at this time of year. The good news the temperature is supposed to be 77 F by Wednesday. So if you're local, it seems like a good time to get in a few last rounds of golf. If you aren't here, well I wish you were so you could share this delightful time with us.

Cindy

1% Transfer Fee on Dataw

Recently a special meeting was called to amend the Dataw Island Owners Association Covenants adding Section 9.04.01 - the Property Transfer Assessment -

The change called for a 1% transfer fee on properties to be paid by the Buyer. The effort to enact this new fee failed 68% - 31%. A 75% approval is required.

This is a good thing for real estate on the Island. In these tough times we shouldn't make it tough on buyers to buy or give them reasons to look elsewhere.