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New Buffalo Area Real Estate Market Report

It's a great time to start shopping for resort property in the Lake Michigan beach area of Southwest Michigan because it's a buyer's market. There are lots of good times here, and people are getting great deals on real estate locally. It's not unusual to get more than one buyer bidding on well priced property. Other times the seller will not reduce his asking price but will accept an offer substantially below his original asking price. Interest rates are still good and  home afford-ability high. Summer is here and it's a great time to buy your vacation home so you have time to get comfortable in it before the holidays.

Short sale and foreclosure opportunities do exist in the New Buffalo area, although they are not as plentiful as they are in other parts of Michigan. Buying a foreclosure or obtaining a short sale is not as easy as it might seem. Often times the properties have not been maintained as they should be. Other times there are long delays in getting the bank's approval to close the deal. I have substantial experience with foreclosures and short sales. Give me a call at 219-718-9452 to discuss buying or selling distressed properties.

Interest Rate Report

Coldwell Banker Home Loan 30 Year Fixed Conforming Interest Rate
Effective 5/30/08 6.27% with Zero Points Paid at Closing.

Shopping around for a good deal on a mortgage is a great idea. Having your credit checked several times when shopping for a mortgage does not lower your credit score. Be careful because many times mortgage rates are made to look better by raising the closing costs to bring the rate down.  Sometimes aggressive mortgage brokers or other lenders will quote the rate for a shorter duration loan when asked for a quote on a 30 year fixed note but the fine print of the quote will reveal the quote is actually for a less favorable variable rate product which should go for a much less. Other times there is a low introductory rate or even an interest free rate which converts to a much higher rate after a period of time and plays catch up for the interest free time.   Be careful to compare all the costs and make sure your quote is for the product you are seeking. Check the projected closing costs as often times high closing costs will sour what at first seems to be a good deal.

It is variable rate mortgages, sometimes represented as an interest only mortgage, which seems to be causing the most problems in the foreclosure crisis. Actually the foreclosure crisis has been much overblown by the media because although foreclosures are two or three times what they were in the past, really they are still only affecting 2 or 3 percent of the homes in most places.

Should I Pay Points to Reduce My Interest Rate?

Paying down your mortgage interest rate with points is not the cut and dried thing to do. Generally the longer your hold a property the greater the advantage in buying down your rate with points. For more on this, give me a call at 219-718-9452 or an email at George@GeorgePomeroy.com

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New Buffalo was Founded in the Mid 1830's

and began its history as a resort area when the railroad ended here and sailing ships would dock in New Buffalo to take passengers to Chicago. For more on New Buffalo Area history, click on "Local Information" and then click on "New Buffalo History" on the left side menu above.