Why the Lowest Mortgage Rate Could Cost You Thousands

Why the Lowest Mortgage Rate Could Cost You Thousands

As a loan officer, many borrowers tell me they want the lowest possible interest rate. I listen carefully, and then I begin to ask questions.  Experience has shown me that the lowest possible interest rate could actually end up costing borrowers thousands of dollars!


JSRealty4U Mortgage Lowest Rate Real EstateMany borrowers will scour the internet for the lowest possible mortgage rates. Low rates will indeed pop up, but most often they won’t apply to most borrowers. The rates may assume a very high credit score, a large down payment, or even the cost of paying discount points to get the advertised rates. Many of the low rates that are advertised are also coming from mortgage brokers. Typically, mortgage brokers are third parties that have relationships with multiple investors. This means they can “shop around” for the lowest rates when it is time to lock in. Because the broker is a third party, they don’t control the processing and underwriting aspects of the loan. If something unusual is found during the loan process, many times the issue is not communicated immediately and causes loans to close late. Once a sale is postponed due to loan issues, the buyer can face the possibility of losing their earnest money deposit and can be sued for damages by the seller. This is why lower rates aren’t always the best way to go for a borrower.


JSRealty4U variable mortgage rates lowestGenerally, an adjustable rate mortgage (ARM) will offer lower rates than a 30 year fixed rate mortgage with the shortest term on the ARM offering the lowest rate. For example, a 5/1 ARM may have a rate of 3.375% while a 30 year fixed loan may be at 3.75%. The monthly payment for the ARM will be less than the 30 year fixed rate for the first 5 years. After five years, the rate will adjust based on the then current market. Since rates today are close to the lowest ever, it is likely that in five years the interest rate will soar – causing the monthly payment to skyrocket!


JSRealty4U lender man mortgage assumption lowest rateFHA loans also offer lower rates than a conventional loan. Currently, a conforming FHA loan may offer a rate of 3.375% with the corresponding conventional loan offering the same 3.75% as in the previous example. The difference is the FHA loan adds an additional 1.75% to the loan amount in what is referred to as an “Upfront Mortgage Insurance” premium. The FHA loan also has a monthly mortgage insurance premium that remains on the loan for as long as you own it. The rate for this monthly mortgage insurance payment is most often much higher than a corresponding monthly mortgage payment on a conventional loan. The result: a higher monthly payment on a loan with a lower interest rate.


JSRealty4U paper deposit real estate lowest mortgageAnother thing to factor in is Mortgage insurance. Mortgage insurance comes into play when a purchaser is putting less than 20% down on their desired home. There are a couple of ways in which the mortgage insurance can be paid. One way is to make monthly mortgage insurance payments. If making the minimum payment required each month by the lender, these mortgage insurance payments continue until the loan-to-value reaches 78%. In the case of a beginning loan-to-value of 95%, these payments may take as much as 9 years before reaching the 78% threshold where the payments stop.  The second method of dealing with mortgage insurance is to have the lender pay for the mortgage insurance premium. This results in a higher interest rate – but no mortgage insurance payment. The overall monthly payment will be lower on this option even though the rate may be up to .5% higher. Paying even $25 more each month for 9 years will cost the borrower $2,700!


JSRealty4U mortgage rate lowestIt is always important to let a lender help you determine the best possible loan solution. Some of the most important factors for the loan officer to know are:

  • Monthly Income
  • Monthly debt
  • Credit score
  • Credit history
  • Cash available for down payments and closing costs
  • Length of time you expect to own the loan

With this information, your loan officer should be able to provide multiple loan options. In addition, they should provide explanations as to why one would be preferred over another. And more often than not the loan with the higher interest rate becomes the best long term solution!

Thinking about buying or refinancing a home? Make sure you speak to a lender first! You can reach Keith Harris, Senior Loan Officer at Intercoastal Mortgage Company online or by calling 703.259.0788.

Keith Harris at Intercoastal Mortgage Company
NMLS ID # 838973
Company NMLS ID # 56323
Intercoastal Mortgage Company is an Equal Housing Lender.

Word of the Week: Commission

Breaking down Real Estate commission, and how the JS Realty Team differs

Commission is the method of compensation for agency services, which is generally determined by an agreed upon percentage of the selling price.commission

Did you know? Fees for services are set by the individual brokers and firms. It would actually be a violation of antitrust laws for multiple firms to agree upon or fix a commission rate.

In traditional home sales, the sellers typically pay the agent’s commission—but there are exceptions. Auctions, for instance, usually charge buyers an additional “premium”.

The listing agreement is a contract between the seller and the agent, and it clearly specifies the commission rate. It details the terms under which a the rate is paid and the total commission to be paid. Therefore, buyers cannot negotiate the commission on the sale of a home. A buyer can only negotiate the purchase price and terms of the sale. The buyer’s agent is typically paid by the seller, because the listing agent is sharing a percentage of the commission. Sharing this is called cooperating, or a co-op commission.

And don’t forget, real estate commission—along with most costs associated with buying and/or selling a home—can be tax deductible!

How the JS Realty Team @ Samson Properties is different

commissionThe JS Realty Team proudly offers Full Service Listings for 4.5% (total Real Estate commission)! Other local agents charge 5, 6, even 7% of the purchase price, which means the JS Realty Team could save you thousands of dollars. In addition to a 4.5% rate, you also receive our Full Service listing package at no extra cost!

Our Full Service listing package includes, but is not limited to:
-MLS Service
-Just Listed Postcard, Full Color Brochures
FREE Home Market Analysis
-Enhanced listings on Realtor.com, Trulia.com, Zillow.com & others
-Professional Photography
-Featured on JSRealty4U.com and Samson Properties Website
YouTube video & Social Media Posts—Facebook, Instagram, etc.
-Seasoned negotiators

We’re here for you! If you’d like to learn more about us or have any questions about the services we offer, please visit our website. You can also contact us at any time for additional information.

Incentives for Van Metre Homes

Current incentives for buying a new Van Metre home in Brambleton

incentivesBuying a new home is exciting! Picking out kitchen cabinets, flooring, and other design options to make the space your own is a lot of fun. It can also often come with a hefty price tag.

Since 1955, Van Metre Homes has matched more than 16,000 Northern Virginia families with their dream home. They not only create custom, quality, luxury homes – they’re affordable, too! And right now, if you take advantage of the incentives they have available, you can build the home of your dreams in Brambleton without breaking the bank.

jsrealty4u van metre homes incentivesCurrent Van Metre Brambleton incentives include:

-Closing cost discounts of up to $10,000 when using Intercoastal Mortgage Company for your loan and Walker Title for settlement

-Receive a $10,000 Design Studio Credit through February 29th!

What this means for you:

-Saving the $10,000 at closing costs could lower mortgage insurance costs, and in turn, lower monthly mortgage payment
jsrealty4u van metre incentives award-The savings could also be used for upgrades or options such as a walk-way, deck, porch or finished basement
-A new home from an award winning builder
-No concerns about maintenance and upgrades
-Location, location, location! Loudoun County is one of the fastest growing and affluent counties in the USA

Interest rates are still hovering around historic lows. While fixed rates seem to be trending up, adjustable rate mortgages with initial fixed periods are still near all-time lows. If you’re ready to move into a new home, Van Metre has several quick delivery options available, and some can still be customized. It’s a great time to lock in low rates on a quick delivery home and take advantage of the current incentives!

JS Realty Calculating Money Finance incentivesWe’d love to help you build the home of your dreams! If you’d like more information about obtaining a loan through Intercoastal Mortgage, contact our preferred Lender, Keith Harris.


It is always a great idea to check in and understand how our real estate market is doing. So today we are taking a look at our local market – specifically 20148. This includes all of the Brambleton market and some other great surrounding neighborhoods.

For the full report, click here: Market Statistics-20148-Q12015

real estate market graph increaseIn the first quarter of 2015, things are looking pretty positive all the way around. Our most impressive number is the sold volume dollars, which is up by + 34.7%. The number of units sold is up by +34.26%. This tells us quickly that there was a larger selection of homes for Buyers to choose from, and they did in fact choose to buy – which pushed these percentages up. Interestingly enough, this did push days on the market up just a bit, as it rose 13.79%.  Days on the market increasing gives a slight lean towards a Buyers’ market, which is reflected somewhat in the average sold price per unit, which is down slightly -0.80%.

JS Realty variable mortgage ratesThe key fact here is the the market is moving! Sellers are listing and Buyers are buying. Interest rates remain at a historically low rate, keeping our market healthy. The “buzz” in the lending world is that we should expect to see interest rates rise slightly, potentially headed towards 5% within the next 12 months. Keep this in mind while planning your next move, whether it is buying or selling, as both markets will feel the effects of higher interest rates.

Brambleton is located in the 20148 market and it remains a hot neighborhood not only locally but as a nationally recognized, award winning community!

Fun Facts about the Brambleton market:
JS Realty Female Women Cafe Lunch-Average adult age is 42
-Average household income is $139,971
-There are +2.32% more females (in the local population)

The JS Realty Team are your local Brambleton experts! We offer 4.5% Full Service Listing fees and cash back to our Buyers!  If you are looking to Buy or Sell, contact us today for a free analysis of what we can do for you.

JS Realty Free Analysis Contact Us

The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.


Recently I provided an overview of what makes mortgage interest rates fluctuate. Today, I want to provide an update of the mortgage industry in a general sense.

In the summer of 2013, the Fed announced that they would begin tapering the purchase of mortgage backed securities (MBS). The practice of buying MBS’s was intended to help keep mortgage rates low. That announcement caused a spike in JS Realty Interest Ratesinterest rates from the low 3% to over 4.5%.

At the beginning of 2014, rates on 30 year fixed rate conventional loans continued to remain in the high 3% to the low 4% range. At that time, you would be hard pressed to find anyone who thought rates at the beginning of 2015 would be as low as the year before. Well, that is exactly what happened! During the second full week of January, rates dropped to their lowest point in over a year with 30 year rates hitting the 3.625% mark. Rates have fluctuated between 3.625% and 4% for the past few months. As we begin the month of June, we have seen rates rise the first few days of the month.  But what does that mean for the future?

JS Realty increase mortgage rateNo one can tell for sure what rates will do, but everything I hear and read indicates that interest rates will rise gradually through 2015.  We may see rates approaching 4.5% or even higher by the end of the year.

From an historical perspective, rates are lower now than they have been for the last 10 years and are only slightly higher than the lowest point in 30 years, which was near the end of 2012 and the beginning of 2013. It is only reasonable to JS Realty Mortgage Loan Applicationbelieve that rates will gradually increase. It is also reasonable to assume that rates may rise to the 5% mark by the end of 2015 or the first half of 2016.

We have been very fortunate to have had such low rates for the past five years. It is a great time to purchase a home and it is a great time to consider refinancing if you haven’t done so since 2010. As the saying goes “There’s no time like the present.

JS Realty Keith Harris
Keith Harris
NMLS # 838973

Every borrower has a unique need, as far as their loan is concerned. If you have any questions or would like more information, please contact our preferred Lender, Keith Harris at Intercoastal Mortgage Company.



The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.