A low down payment could mean a higher interest rate when buying luxury homes in Highlands NC. The financing of luxury homes typically involves a jumbo loan and these types of loans are private, which means the lender can charge a higher interest rate and most likely will. The plus side is that a worthy borrower can purchase a luxury home in Highlands and not have to use up all of his capital to do so, freeing up some cash to invest in other things.
While the lending market has certainly changed in recent years it is getting easier for qualified borrowers to secure a loan, great news for Highlands real estate. If you are looking to purchase a home with less than 20% down however, you will most likely end up with a higher interest rate for your mortgage. This is a trade-off that is worth considering when weighing your decision on which home to buy.
Contact the team at Meadows Mountain Realty today for more information on buying Highlands real estate. We welcome the opportunity to update you on current market conditions while getting you started on your property search. Let our knowledge and experience serve as your guide to real estate in Highlands NC.
Click here to read “Low Down Payments Mean Higher Interest Rates” from The Wall Street Journal.