Smith Mountain Lake Real Estate | Vicki Millehan

Smith Mountain Lake Business Expo Scheduled for May 5th

The Smith Mountain Lake Business Expo, a local networking event hosted by the Smith Mountain Lake Regional Chamber of Commerce, is taking place on Friday, May 5th from in Downtown Moneta. Over 120 businesses will be on-hand to showcase their trades and services to the public from 11am-4pm.

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Smith Mountain Lake Real Estate Market: First Quarter Report

Real estate sales at Smith Mountain Lake showed impressive gains in the first quarter of 2017 with higher numbers of sales across all categories of waterfront homes, water access homes, condos & townhouses, and waterfront lots, versus the same time period last year.  Plus, prices rose slightly in all but condos & townhouses.  This is encouraging news for sellers and they showed their enthusiasm by coming on the market at nearly double the pace from a year ago.

If you are thinking about selling, buyers are anxiously waiting for new listings to appear.  But, competition remains high so preparing your home for sale and pricing right are critical.

If you are planning to buy, the selection is still vast, but don’t wait too much longer as the market is starting to shift and interest rates are rising.

Either way, call me at 540-520-2401 or visit my website at www.VickisLakeHomes.com!  I am ready to help you through the process of either buying or selling.

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Should you pay discount points?

2140642.mediumThe low mortgage interest rates that you find online or in the newspaper aren’t necessarily what you’ll pay when you apply for a loan. Why? Because banks will charge you “discount” points to get the best rate, which adds to the cost of the loan.

Points, or discount points, are expressed as a percentage of the loan amount. The point “discounts” the interest rate, that’s why it’s referred to as a discount point. If your mortgage is $300,000, then one “point” is $3,000. For each point you pay, your interest rate should be reduced by about ¼ percent.

On a 30-year mortgage loan at $300,000 and 5.00%, the monthly payment works to $1,610 without any points.Paying one point ($3,000) would reduce the rate to 4.75%, making your discounted payment $1,564 per month.

That’s a reduction of $46.00 per month. Now weigh the cost of $3,000. To get that, divide $46 into $3000. The result is 65. It will take you 65 payments to break even, nearly 5 ½ years. It’s worth it if you’re planning to stay in your home for 5 to 10 years or longer. If not, you’re far better off using the $3,000 to pay down your loan principal or buying furniture for your home.

There’s another way to get the best mortgage interest rate – that’s to have the best credit scores possible. Those with near or perfect credit are considered low risk by banks. As always, consult your financial advisor for more information about home loans.