Blog :: 07-2006

Stay up to date on Killington real estate activity with regular updates and information on sales activity

Intermediate Fixed Rate Mortgages - Are they for you?

Intermediate Fixed Rate mortgages (sometimes referred to as Short-Term Fixed Rate mortgages, or Hybrids) come in numerous varieties; the 3, 5, 7 and 10-Year Fixed. These are all 30-year loans that carry a fixed rate for a set number of years, and then roll over to an Adjustable Rate Mortgage.

For example, in a 7-Year Fixed Rate scenario, the rate would be fixed the first seven years, and the loan becomes an Adjustable for the remaining 23 years. The main advantage of these hybrid programs over a traditional 30-Year Fixed loan is typically a slightly lower interest rate.

These types of loans often work well for people who do not plan on being in their home for an extended period of time, such as first time home buyers or, perhaps, vacation home buyers. The most important question to ask when going into an Intermediate Fixed Mortgage is how long will the borrower need the money?

If the borrower intends to sell the home in four to five years, then a 5-Year Fixed loan offers stability and a lower interest rate for the time that money is needed. However, in this example it would not be wise to pay points up front to obtain a lower interest rate, because the likelihood of recuperating the cost of those points would be diminished with the short tenure in the loan.

The borrower's financial planner and mortgage consultant should work hand-in-hand to provide guidance to the borrower in these matters.

Killington Real Estate Sales decline in 1st half of 2006

Twenty four condominiums have sold in Killington during the first 6 months of this year, the lowest number of transactions during the first half of the year in memory. Four one-bedroom units sold for between $135,000 and $192,000. Thirteen two-bedroom units sold for $125,000 to $305,500 and seven three-bedroom units sold for $206,000 to $560,000. There are twelve condominiums currently under contract and scheduled to close in the near future. Nine of these are new construction Topridge condominiums that are almost completed.Twelve homes have sold in Killington since January 1, 2006. This is down from twenty one sales during the same period in 2005. One house was listed for $1,300,000 and sold for $975,000. The average listing price of the other eleven homes was $364,000 and the average sales price of these eleven was $335,000. Only three houses are under contract with an average listing price of $313,000.For a copy of the full 2nd quarter 2006 newsletter, send an e-mail to info@prestigekillington.com

 

 

 

Trailside condo sells in Killington

One of the most convenient trailside condominiums in Killington just sold for $347,500.  It was a two/three bedroom two level condo with two baths, a sauna, and private hot tub on the deck.  Any of you who are familiar with the Killington ski area know that there are few opportunities to own a condo literally "on the mountain".  Trailside Village is an association comprised of eight condominiums and three single family homes.  For information on what is currently available at killington, be sure to visit Prestige Real Estate's website frequently.