Buy a New Home While Interest Rates Are Still Low

Interest rates spiked in June from fear that the Fed would back off on stimulus program.[/caption]

While some homeowners are refinancing their existing mortgage to get a better rate and lower their monthly payment, there are many homeowners and renters that are shopping for new homes. With the overall inventory of available houses still tight, it makes sense to buy a new home as the initial cost is about the same as a pre-owned home but there is a large savings in energy bills and maintenance. In addition, homebuyers can often get the features they want in a new home without having to spend their weekends, remodeling a pre-owned home that they just purchased.

A typical family of four will spend over $4,000 a year on utilities and over $3,000 a year on maintenance for a 15 year old 2,500 sq. ft. home. With an energy efficient new home, the utility cost will be around $3,000 a year and maintenance costs are almost zero. That results in a savings of over $4,000 a year with the additional benefit of having more time on weekends to do something other than home maintenance.

In addition to being more energy efficient, new homes generally have more bathroom space, larger closets, higher ceilings, efficient kitchen design, and more storage space. Home buyers that are looking for communities with amenities such as swimming pool, clubhouse, golf course and walking trails, will also benefit from buying in a new modern community where the amenities are newer, well designed and maintained.

McKee Homes builds beautiful open floor plan homes in desirable neighborhoods in the Fort Bragg and Fayetteville, NC areas. Large open kitchens with granite counters and hardwood flooring, plenty of storage space, mud rooms, bonus rooms and finished third floors are just a few of the features offered to families looking to get the most bang for their buck.

Our neighborhoods are family-friendly and all within a short drive to Fort Bragg. We have two communities in Anderson Creek Club offering amenities such as golf, swimming, and tennis. The Cottages at North Ramsey, in one of the best location in Fayetteville/Fort Bragg, offers detached townhome style cottages with exterior maintenance and lawn maintenance included which are ideal for busy professionals, military families, and retirees.

The McKee Homes website has detailed information about our neighborhoods, floor plans, and available properties. If you have any questions, you can start a live chat with one of our agents right on the website, or just give us a call at 910-672-7296. We’ll be happy to help you find the perfect home in the best neighborhood for your family.

Buy a New Home and Get Exactly What You Want

With the recent rise in mortgage interest rates, many home buyers are ready to get off the fence and make a purchase before the rates go up even further. The biggest problem facing home buyers in the current market is low inventory of homes for sale. With a large number of buyers competing for a limited number of homes for sale, it can be difficult to find a home in a desirable neighborhood and buy at a good price.

There are still many home owners who would like to sell their homes but are waiting to see if the prices will continue to rise, or are still upside down on their mortgages and can’t sell until the prices go up considerably. This is keeping the inventory of homes for sale very low and making it difficult for home buyers to find a good home to buy.

Fortunately there is an option that is a win-win for home buyers. It can cost the same or less to buy a brand new home in the current real estate market as it would to buy a pre-owned home. One of the advantages of buying a new home as opposed to a pre-owned home is that you can purchase the home before it is completed, which can give you the option of customizing the finishes to get exactly what you want instead of having to settle for something that’s isn’t exactly what you were looking for. With most previously owned homes, the home buyer will have to spend additional money after they buy the home to change paint colors, wallpaper, and other finished to get the house they way they want it. New homes also come with a full warranty which you generally don’t get with an pre-owned home.

kitchen with granite counters and hardwood laminate flooring

Another advantage of buying a new home is that they are much more energy efficient than pre-owned homes, the appliances are brand new, and the economic life of the house is longer. The new building codes offer up to 15% better energy savings than homes built in previous years.

McKee Homes builds beautiful open floor plan homes in desirable neighborhoods in the Fort Bragg and Fayetteville, NC areas and gives home buyers more house for less money. Large open kitchens with granite counters and hardwood laminate flooring, plenty of storage space, mud rooms, bonus rooms and finished third floors are just a few of the features offered to families looking to get the most bang for their buck. Our neighborhoods are family-friendly and all within a short drive to Fort Bragg. We also offer detached townhome style cottages with exterior maintenance and lawn maintenance included which are ideal for busy professionals, military families, and retirees.

Customizing

McKee Homes offers presale agreements for customers who want to select options for their new home such as floor coverings, counter tops, paint color and other available options.  McKee Homes will work with you to make sure you are getting the new home that meets your family’s needs.

Neighborhoods

McKee Homes offers homes in some of the best neighborhoods in the Fort Bragg and Fayetteville, NC area including The Cottages at North Ramsey, Forest Hills Pointe, James Creek South, Oakmont, Patriot Park Village, River Glen, Sinclair, and The Cottages at Carriage Creek and Valley Stream in Anderson Creek Club.

Financing

McKee Homes’ preferred lender is Caliber Home Loans. Caliber Home Loans provides excellent home financing services, competitive pricing, local processing and local decision making. McKee Homes has partnered with Caliber Home Loans in order to offer our customers priority treatment through the dedicated Caliber Home Loans team. Priority treatment means lower rates, lower closing costs, and faster close times. Caliber Home Loans offers VA loans, USDA loans, FHA loans, conventional, fixed rate, and adjustable rate loans. There are also no-money-down options for qualifying VA and USDA loans.

The McKee Homes website has detailed information about our neighborhoods, floor plans, and available homes. If you have any questions, you can start a live chat with one of our agents right on the website or just give us a call at 910-672-7296. We’ll be happy to help you find the perfect home in the best neighborhood for your family.

Now Is the Time to Buy a New Home

If you’ve been waiting to buy a new home thinking that the interest rates and new home prices will continue to stay as low as they are, or go even lower, you may miss out on the opportunity to get the best deal before they start going back up.

According to Bloomberg, House prices, after falling for more than five years, are rising again. All the major sales-price indexes show that there have been modest national increases in recent months, even after adjusting for seasonal patterns.

The San Francisco Business Times reports that Luxury home values in the Bay Area and other key California cities are chalking up their biggest gains since the housing boom went bust in the last decade. Bay Area luxury home values soared 6.6 percent in the second quarter, the biggest year-over-year gain since the first quarter of 2006.

Other major cities are seeing similar trends, and Forbes reports that according to CoreLogic’s August MarketPulse Report which provides insight into the current and future health of the U.S. economy with emphasis on housing and mortgage metrics, “While the general U.S. economy continues to struggle to make gains, for the first time since the end of the recession, housing may actually make a significant contribution to economic growth in 2012, a welcome change to affairs for an otherwise struggling economy.”

The cost of buying a new home is not completely dependent on the cost of the home itself but is also determined by the amount and interest rate of the home mortgage. Every percentage point the interest rate goes up could cost a home buyer hundreds of dollars more each month on their mortgage payment, or lower the amount that they can afford to borrow to keep their monthly payment where it needs to be.

For example, say you need to keep your monthly house payment at $1,000 or less. With the interest rate at 3.5%, if you can borrow approximately $220,000, a one percentage point rise to 4.5%, would only allow you to borrow around $177,000 to keep your monthly payment at $1,000/mo. If the interest rate goes up to 5.5%, you would only be able to borrow approximately $159,000. These figures are only approximate, and the amount of a home mortgage will be determined by additional factors such as credit rating, but even a one percentage point rise in the interest rate makes a large difference in the amount of money you can borrow for a set monthly payment.

If you are in the market for a new home in the Fayetteville NC area, please visit the McKee Homes website to view our Fayetteville new homes as well as our Fort Bragg new homes. McKee Homes offers such a great value for your money, you may find that you can buy a brand new home for the same amount or less than a pre-owned home. McKee Homes also works with a dedicated preferred lender team to get you the lowest interest rate new home financing available with no-money-down options for VA and USDA loans.

Monthly Payment

Max Loan at 3.5%

Max Loan at 4.5%

Max Loan at 5.5%

$900

$200,000

$177,000

$159,000

$1,000

$222,000

$197,000

$176,000

$1,200

$266,000

$237,000

$211,000

$1,500

$334,000

$296,000

$265,000

The data shown in this table is only approximate and is based on 30 yr loan with good credit rating.

Energy Efficient New Homes

In March of 2012, the North Carolina Sustainable Energy Association announced that the 2012 North Carolina building codes should reduce energy consumption in new homes by at least 15 percent from homes built in previous years. Improvements in insulation levels and window performance, as well as building envelope air leakage reduction should result in a substantial step forward in saving energy and reducing monthly electric and gas bills for home owners.

In previous years The U.S. Department of Energy determined that a typical resale home scores 130 on the HERS Index, while a standard new home is awarded a rating of 100  (based on the 2006 International Energy Conservation Code), making a new home 30% more energy efficient than a resale home. When you add to that the 15% reduction in energy consumption with the new 2012 building codes, new homes built after March 2012 should deliver a significant reduction in monthly heating and cooling bills for home owners.

The HERS Index (Home Energy Rating System) is the industry standard by which a home’s energy efficiency is measured and the nationally recognized system for inspecting and calculating a home’s energy performance.

Most people understand the importance of having a well insulated home when it comes to energy efficiency; however the energy performance ratings of windows, doors, and skylights are also very important as is sealing a home against air leakage.

  • Insulation:Proper insulation offers one of the biggest energy saving benefits. Proper insulation also provides added comfort and noise reduction, thus improving the overall livability of your home.
  • Windows, Doors, and Skylights:Windows, doors, and skylights can gain and lose heat in several ways:
    1. Direct conduction through the glass or glazing, frame, and/or door. Low-E windows, doors, and skylights can protect your home from unwanted UV rays which can fade your carpets, and damage your furniture. They also help control radiant heat (infrared light) as it enters and leaves a room which keeps your house warmer in the winter and cooler in the summer.
    2. Radiation of heat into a house (typically from the sun), and out of a house from room-temperature objects, such as people, furniture, and interior walls.
    3. Air leakage through and around windows, doors, and skylights. The energy performance ratings of windows, doors, and skylights tell you their potential for gaining and losing heat, as well as transmitting sunlight into your home.
  • Air Sealing: Energy efficiency and comfort is compromised when air enters a house uncontrollably through cracks and openings – this is called infiltration. Infiltration reduces energy efficiency, and can cause problems with moisture, mold, and dust. Air sealing or properly sealing cracks and openings in your home can significantly reduce heating and cooling costs, improve building durability, and create a healthier indoor environment. Air sealing also reduces the likeliness of certain insects from entering your home.

If you’re considering buying a home in the Ft. Bragg/Fayetteville area of North Carolina, remember to consider more than just the price of the home, but also the cost of monthly heating and cooling bills. An energy efficient new home from McKee Homes can save you money every month and command a higher resale price while improving the quality of life enjoyed by you and your family.

McKee Homes, North Carolina’s #1 Choice for New Homes

McKee Homes has highly skilled team members dedicated to creating the best home building and buying experience possible in Eastern North Carolina. Areas we are building in include: Fayetteville, Pinehurst, Southern Pines and Aberdeen, Raleigh and Wilmington NC. Some of our new home resources we can provide you include: New Home Financing, Specially Adapted Housing, Buyer Incentives and more.

By John Rives