Listing Courtesy of OCEAN ATLANTIC SOTHEBY'S INTL REALTY
For Dewey Beach home shoppers who anticipate taking advantage of today’s low mortgage interest rates, the Consumer Financial Protection Bureau has a few words of interest. The CFPB thinks it has found a way for consumers to get the best home loan deals.
The way they recommend is to shop around.
Now, it may seem as if everybody in Dewey Beach would know that without needing the Consumer Financial Protection Bureau to clue them in, but the CFPB has evidence to the contrary. The last time they looked, nearly half of mortgage borrowers hadn’t shopped around before they signed up for their loan (47% of them, to be precise). That is rather surprising, since even an eighth of a percentage point difference in the interest rate works out to a lot more than spare change. Why more home buyers don’t compare mortgage deals may be due to a number of factors.
For one thing, anyone who has spent much time on the internet has had the unfortunate experience of being promised that they can “see today’s rate” with no strings attached, only to eventually discover (after entering a lot more information than seems relevant) that they will be contacted (phone number, please) by what is likely to be a high pressure salesman. You get the feeling that you may have shared too much information to web denizens you don’t really know.
Another reason might be concern about qualifying. If you’ve had credit rejections in the past, the good news that comes with receiving any offer might make some folks accept it out of sheer relief.
Yet another reason might be especially true in today’s Dewey Beach market. Especially if you have earlier familiarity with the much higher rates from previous eras, the first mortgage rate you hear may be so low that you are delighted to accept it. There is also the fact that if you are offered several options with different loan types, terms, and point-rate tradeoffs, the act of choosing between them can satisfy the natural inclination to shop around.
The CFPB would like to encourage more aggressive consumerist behavior. To accomplish that—to make everyone “feel comfortable shopping in the mortgage market”—their web site has various educational tools. Their staff produced a number of charts. The one that shows interest rates from 1990 to 2014 slopes delightfully downward. Less informative is another chart that shows how borrowers who feel “confidence in their knowledge of available interest rates” are almost twice as likely to shop around as those who say they are “unfamiliar with available interest rates.” That doesn’t seem to be much of a revelation—it’s like saying that learning to read price tags increases your ability to comparison shop…
For those who do expend the effort to do mortgage comparisons, there is also agreement that having a professional in your corner leads to the most satisfactory results. It’s another good reason why, on the way to acquiring your Dewey Beach dream home, giving me a call is an excellent idea! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.
It can be perplexing—and not least because it’s one of the least-discussed details you run into when buying a home. The issue is flood insurance, and it’s sometimes first brought to the fore when you are buying a home in Sussex County that you would not have thought was on a “flood plain.” If it is, it’s going to require flood insurance before the bank will sign off on a loan.
As we only see from time to time, devastating floods can strike when and where least expected: sometimes, in areas where that ruinous flooding is unprecedented. In 2005, when FEMA paid out over $17 billion in flood claims, it once again became clear why flood insurance is absolutely necessary. Here’s what you need to know about flood insurance if the home you are looking at is in a flood plain.
FEMA assigns different zones within a single flood plain. For example, homes that are located on the bank of a creek may be assigned to Zone A, (floods highly likely). Homes that are further away from a water source may be assigned to Zone Z, (lower risk). Naturally, Zone Z premiums are a good deal more affordable than premiums for Zone A. In fact, if your home is in a Z zone, you may even qualify for a special price break for two years before full premium goes into effect.
Unlike car or home insurance, you won’t find a better rate on flood insurance by shopping around. The federal government sets flood premium rates based on factors like the zone, the home’s value, and the value of its contents. You may choose to insure the home only, but it’s seldom a good idea to leave contents without coverage. Any Sussex County insurance agent specializing in flood insurance will be able to assist you in determining the cost of the policy; they will also answer any questions you may have about the process.
Buying a Sussex County home that turns out to be on considered within a flood plain means factoring in some added insurance expense, and possibly even potential risk to your personal items. But when the house is right, and your heart is absolutely set on the property, it’s a dollars-and-cents calculation. I’m always at the ready to help my clients clarify this and all other the other details that go into buying a home in Sussex County.
Call/text 302-228-7871 or email me, Russell Stucki, REALTOR ® of Beach Real Estate Market to provide detailed information on Delaware homes for sale, investment and commercial properties, luxury and waterfront homes, condos/townhomes, new construction, lots and land, farms and equestrian properties located in but not limited to Bethany, Bethel, Bridgeville, Dagsboro, Delmar, Ellendale, Fenwick Island, Frankford, Georgetown, Greenwood, Harbeson, Laurel, Lewes, Lincoln, Milford, Millsboro, Millville, Milton, Ocean View, Rehoboth Beach, Seaford, Selbyville, Delaware.