Bigger Is Better for Custom Homes in St. Tammany Parish
The real estate market is coming back in the Greater New Orleans area, and this is good news for buyers interested in purchasing a new custom home in St. Tammany Parish. Thanks to the “generosity” of big banks – yeah, we know that’s a shock – interest rates
for conventional loans for homes priced at$417,000 or above have been lowered to match the same conventional mortgage for homes priced below this threshold. You may not know it, but most banks, lenders, and mortgage companies typically charge 1/4 to 1/2 percentage point for what they call jumbo mortgages, mortgages higher than a certain amount in different markets. In St. Tammany Parish, this home price if $417,000, but in pricier markets, say California, the home price threshold is $625,500 for “jumbo rates.”
In addition to lowering the interest rate to match any home price on a conventional mortgage, big banks such as Wells Fargo and Bank of America have cut the down payment requirement from 20% to 15% for jumbo mortgages. Because of this business practice, some of the larger competitors also cut their rates. There is one “catch,” though, you have to have a credit rating of 740 or higher in order to score the best interest rate and reduction in down payment.
Also, because of low interest rates, your loan is going to “cost you” less. So, if you crunch the numbers, and they turn out in your favor; some home buyers are purchasing discount points in order to reduce their interest rate even further. Discount points are added into the closing costs. As a home buyer, what you need to look at is how long it will take you to “pay off” the cost of your discount points from your closing costs. If the time period and costs are minimal compared to the savings the percentage point(s) will garner you, some home buyers are still able to get record-breaking low interest rates on their new home mortgages.
At Bedico Creek Preserve in Madisonville, Louisiana, a large majority of our lot buyers purchase a new lot for sale and then build a new home on the lot. Because we offer a new home subdivision, complete with a selection of 13 builders from which to choose, some home buyers prefer to use one of our community builders’ existing floorplans. However, some buyers prefer to have a more personalized interest in building a new custom home. Custom homes in St. Tammany Parish are featured in almost every subdivision. St. Tammany Parish builders have experience building some of the most ornate and elegantly designed homes with imported “everything!” At Bedico Creek, our builders can build you a “spec home” (already existing home ready to sell), or they can build you a new, custom home to your exact specifications.
Whichever style of home you decide to build, in the current real estate market, you can still enjoy the perks of getting the same interest rate for a higher priced, custom home on your conventional mortgage as you would if you purchased a lower-priced home. Contact Bedico Creek Preserve today to learn more about lots for sale, custom home builders, and financing for your new home. Call 985-845-4200 or E-mail [email protected].
