October 2022 Mat Su Real Estate Guide

Stephanie Gamble REALTOR® stephaniegamble@kw.com

by:

Stephanie Gamble

Keller Williams Realty Group of Wasilla

Hey Cora, I know you get this question all the time, but what are rates doing right now?

Signed Wanting to Buy.

Dear Wanting: Do you remember in Janu ary and February when I told you that you needed to buy something because rates were going to increase? Well, here we are! Yes, inter est rates on home mortgages have increased. And this increase has literally put some buyers out of the market! On a $350,000 home, an increase of just 1% can cause your payment to increase by $225 per month! That’s no small Tootsie-Roll! This means that if you quali fied for a home at $350,000 at a 5.5% interest rate, at 6.5%, you only qualify for $314,000. A $36,000 difference! That’s hard to swallow isn’t it!

But do not fret, there are some options out there. Here are a couple interesting possibili ties for you:

2:1 Buy down Okay, this is interesting. This program allows the SELLER to help the buy er with 2 years (yes, I said 2 years) of their mortgage payments by pre-paying a portion of interest for 2 years. Here’s how it works. Let’s say that Bob and Betty Buyer want that home for $350,000. They need that home because they already have 3 kids and twins on the way. So, before the twins are born, Bob and Betty want to be settled into a new home. When they find the home they want, they negotiate with the seller (through their trusted Realtor of course) that they would participate in a 2:1 Buydown. If the interest rate is currently 6.5%, the seller would pay the difference to “buydown” that first year rate by 2 percentage points, making the first year’s payments 4.5%. Year two, that rate would be bought down by 1 percentage point bringing it to 5.5%. At the beginning of year three, month 25, the rate would go to its full rate of 6.5%. Now this leaves the seller with quite a large contribution on behalf of the buyer and most of these are happening with new construction. How big you say? In this scenario with Bob and Betty Buyer and family, the seller would have to contribute $11,070 to buydown this rate for two years.

here for 2 years. This would help them a great deal. Ultimately, Bob and Betty are hoping that rates will drop during those 2 years, and they can refinance at a lower rate.

ARMS – now don’t get scared, not all ARMS are bad. Look at gramma’s arms! They are always there to give you a great big hug! But Mortgage ARM’s are a little different. An ARM (adjustable-rate mortgage) is a loan typi cally offered with a 30 year or a 15 year term. A 5/1 ARM has a fixed rate for the first 5 years of the loan. The rate then becomes “variable” and adjusts every year for the remaining life of the loan term. So yes, that does sound much scarier than Gramma’s arms! Who knows what that rate would be at the end of the 5 years. My suggestion, if you find that an ARM works for you, refinance it before the end of the 5 years once the rate drops a bit. Although, even that still has its risks as the rate may not drop. You will either want to sell that home in 5 years or less, or refinance at a permanent rate. Right now, today, that rate is about 5% but this can go up or down depending on the day AND your credit score. You could also do a 10 year ARM, around 5.25%.

Experience Matters!

If you think that you are going to live in your home for 7 years, a 10 year ARM may be right for you, because you can sell the home before it changes to a variable rate.

Keep in mind what we talked about last month (assumable mortgages). An ARM will not be attractive for someone to assume. So, if you want to have an assumable loan, you would not use an ARM.

We will see more and more innovative ways to get a mortgage loan and ways to keep the payments down for the next few years. When you decide to buy something, please call me and we can discuss all the different lending options that are out there for you. Some you may not even have heard of! Some are going to be better than others, and some may not be right for everyone, but perfect for you and your unique needs.

Now, how could this really help the buyer you ask? Well, it allows Bob and Betty to be able to qualify for more house now, when they need it. Unlike an adjustable-rate mortgage, it also locks the rate to go no higher than 6.5%. Perhaps Bob and Betty are only going to be

Keep in mind, I am always out there look ing for a good deal for you. You may get a random call from me saying “hey, you need to look at this house, it’s perfect for you, and a re ally great investment.” I’ll be straight with you! We will begin to see some creative ways to get interest rates down, and that’s always good for you! Don’t be shy, let’s find the right house for you today!

You might be wondering if buying a home right now is a smart

nancial decision. The fact is, homeownership is key to building long-term wealth, no matter when someone buys. Studies show that, over time, most homeowners will steadily build equity. For example, during the past three decades, home values have increased an average of more than 6.0% per year.* Of course, owning a home is much more than a way to gain a fi nancial edge, it’s also where you raise a family and create life-long memories. Work with a REALTOR,® a member of the National Association of REALTORS®, they can show you options in your area that best

t your situation. To learn more,

HousingMarketFacts.com.

Wasilla,

(907) 376-5080

Very private cabin on 5 acres with amazing views of the Wrangell Mountains. Convenient to stores and schools. Sauna with bedroom, cast iron pitcher-pump water faucet, claw foot bathtub, and cabinet wood heater. All furniture, tools, and equipment stays with property. Large workshop with 2 bay areas, wood shed...and more.

MLS# 21-10756 • $120,000

2 Cabins. One older unfinished cabin, one room with a loft and a second, larger unfinished cabin. 1.5 acres of mostly raw land. Propane lights. Outhouse, woodstove, log siding, metal roof. Very private. Both cabins need finishing to make this a dream getaway or a full time home! Rent one and live in the other or a perfect home with a guest cottage!

MLS# 22-9482 • $115,000

Spacious 3 bedroom log cabin in the heart of Chitina. Lots of character and charm. Kitchen, arctic entry, dining room, living room, hardwood floors, 1.5 BA, 3 BR. Wood stove, fireplace, 7k watt generator with shed, metal roof, storage shed. 3 Chitina lots (50x100 each). Located minutes form the Copper River. An adventurer’s dream!!

MLS# 22-9466 • $124,000

Ranch style house with 2 En-Suites! Views, views and more views make this house the unique place that it is! Spacious floor plan, large kitchen, over-sized 3 car garage, large windows to bring in the views and lots of light! Two full bathrooms in each en-suite, and two extra bedrooms to use for whatever you wish! Half acre lot. A must see!

MLS# 22-4925 • $695,000

2222 S Sanctuary Dr. Palmer

Looking for acreage?! This property offers over 10 acres of unrestricted land and conveniently located across from Nancy Lake! Perfect for farmers, equestrians, nature lovers and entrepreneurs. The possibilities are endless with the oversized garage/shop, high tunnel, and even an artisan well. This custom home features 4 bedrooms with two being ensuites, one on each level.

finishes throughout the home include quartz countertops, tile, and

laminate. MLS# 22-5668

Build your hanger home on this FAA Certified Airport Park (FAA 65AK) located outside city limits. Bypass congestion with easy access to Anchorage. Close to shopping, schools & recreational trails. HOA fees planned to stay very low at only $28/mo. Electric is on site, gas adjacent. Build your home on the bluff side with awesome views. 2nd access from E Kirby is ideal for your hanger! Landing strip is 2700 x 75 ft. MLS# 22-10108

Buying a home these days doesn’t require a 20% down payment.

While 20% down was a standard for conventional loans, today’s buyers have many other options. You may now qualify for a home loan with down payments ranging from 0% to 3.5%, leaving you with extra cash for the home appraisal, home inspection and closing costs.

one of our expert mortgage loan originators to discuss your options.

CHRISTY HUDSON

Mortgage Loan Originator

NMLS #202116

Direct: (907) 865-9403

Cell: (907) 227-4708

850 E. USA Circle, Suite B Wasilla, AK 99654

Apply online 24/7 at www.christyhudson.com

TINA CHOWANIEC

Mortgage Loan Originator

NMLS #685901

Direct: (907) 376-0355

Cell: (907) 355-0623

850 E. USA Circle, Suite B Wasilla, AK 99654

Apply online 24/7 at www.tinachowaniec.com

TRACY OTTINGER

Mortgage Loan Originator

NMLS #196900

Direct: (907) 646-8729

Cell: (907) 301-8028

892 E. USA Circle, Suite 105 Wasilla, AK 99654

Apply online 24/7 at www.tracyottinger.com

Lake!

erty

toys. Nice large deck for summer BBQs and a covered area too. Great sunsets

for all

of Sleeping Lady and a nice long dock to fish on.

2 attached sheds, AND another

Fully fenced property. New Blaze King wood stove. Please make appointment to view, as there are protective dogs needing to be kenneled before your arrival.

Great lakefront location off the grid to build your own private homestead! Features beautiful mountain views on E Papoose Lake and is a 1/4 mile hike from the Little Su known for great salmon fishing! Floatplane accessible. Recently surveyed and marked in 2 lots.... sell one and keep one to recoup your money!