Rising Mortgage Rates- What you need to know

Over the last week, every client I’ve met with has had at least one thing in common with all of my other clients—they’re all asking about rates.

If you haven’t seen the news or read the paper over the last week, you probably heard Ben Bernanke and the Federal Reserve announce on Wednesday that they will likely begin to reduce the bond purchasing program by the end of this year. What this means for everyone thinking about purchasing a home in the next 12 months is this: interest rates will likely be going up.

If you’re reading this and you’re anything like some of the other folks I’ve sat down with this week, this is a cause for concern.

Although this is not welcomed news, it’s important to keep this news in perspective.  The historical average for 30 Year home loans is 5.5 percent. With rates currently hovering around 4 percent we’re still well below the historical average.

For anyone that’s been on the fence about purchasing a new home, it’d be a good time to sit down and look at the difference in what you’ll be able to afford if rates continue to rise.

A one-point rise in the interest rate on a $300,000 home would result in approximately $150 more per month in your monthly payment. What this means for buyers is that you can purchase a $325,000 home now for the same monthly payment as a $300,000 home if today’s rates rise a full point.

See the below video for a great recap of these recent events and as always, feel free to reach out with any questions! - TJ Southmayd Email

VIDEO: Why are mortgage interest rates rising?

Rooftop Verandas at Avinity and Old Trail

A few months back we were sitting outside the model home at Avinity admiring the view.  We had just finished up an open house for CAAR Realtors that we co-hosted with the nice folks at Trump Winery.  We were showcasing our new decorated model home (See that here or on YouTube if you missed it) while still framing the last 3 homes in our first building.  At the time, Avinity was Charlottesville's newest townhome community.  In case you're a visual person, we were standing right about here beside the clubhouse:

Then randomly someone said something to the effect of "Wouldn't it be cool if you could add a 4th floor with a Rooftop Deck or Veranda?"  We all sort of laughed and said something similar to "Wow.  That would be something...imagine having your friends over and hanging out on the rooftop."  Someone else added, "what if you made the 4th floor a bedroom and that was someone's room?".  We then paused and thought about what we would use for the roofing material.  One of us had a house on the Potomac River with deck that had a commercial grade roofing membrane- We could use that!  After fantasizing about everything a 4th floor would add to the home, we all agreed that it was something we wanted explore further and pitch the idea to our design team.

Fast forward 60 days past all of the approvals and design process associated with architecture... We now had a set of plans with the 4th floor both as an open loft and as a bedroom suite.  They even expanded our idea further to add a Balcony off the Owner's Suite...kind of like a Romeo and Juliet type of idea.  Here's what we came up (full floorplan here):

Craig Builders Rooftop Deck with Bedroom Suite

Craig Builders Rooftop Veranda with Loft

This morning we all just got some added satisfaction as we got to visit the first one being constructed at Avinity.  5 out of the 6 homes in the new building will have the 4th Floor Rooftop and we can't wait to share more photos as they are each built.  Here's where we are so far:

2 Sets of Double Doors Leading to a Rooftop Deck

The Carter's Mountain View :)

Added Storage Space...A Bonus!

We look forward to keeping you posted on their progress.  If you're interested in learning more about our Rooftop Verandas at Avinity or at Old Trail Village feel free to email or call TJ Southmayd at (434) 218-2352...he'd be happy get you all the information you need or even to arrange a tour of the homes under construction.

More to come...

Our new website

Have you seen our new website?  We love all of the pictures and the virtual tours...what's your favorite part?  Special thanks to our friends at Birch Studio for the new look!

www.craigbuilders.net