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Community Corner

House Hunt: Mendota Heights Buyers Should Do Some Homework on Mortgage Rates

Mortgage rates not entirely tied to Federal Reserve.

Despite recent decisions by the Federal Reserve not to raise the prime rate until at least 2013, mortgage interest rates can still rise. Mortgage rates are affected more by economic uncertainty and political machinations over issues like the debt ceiling than by decisions by the Fed. Mortgage rates are also determined by a borrower’s credit rating, debt load and income, which determines their perceived ability to pay a set monthly mortgage payment.

Buyers who are waiting for home prices to fall further may find themselves not only paying more for their mortgage if interest rates rise, but possibly not qualifying at all for the home they want to purchase. An interest rate increase of only one percent, from a current 4.5 to 5.5 on a $200,000 mortgage, would increase monthly mortgage payments twelve percent. If rates go up two percentage points to 6.5 (still historically low), then monthly payments on a $200,000 home would rise 25 percent.

Buyers who are waiting for a price drop are essentially betting that housing prices will fall 25 percent before interest rates go up two percentage points. This isn’t likely.

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The ability to qualify can change with even a small rise in rates. A half-hour talk with any mortgage lender costs nothing and can let prospective buyers know how much home they can afford now or if rates rise. Serious buyers should meet with a lender, do the math and then decide if it’s best for them to wait or to buy now.

 

Find out what's happening in Mendota Heightswith free, real-time updates from Patch.

House No. 1: 2573 Concord Way, Mendota Heights

Listed by: Bridge Realty

Price: $154,900

Taxes: $1,280

Association fee: $155

Description: Side-by-side town home; two bedrooms, two baths and 1,288 finished square feet. This end-unit home had a bright open floor plan with a two-car garage, vaulted ceilings, a skylight, main floor laundry, gas burning fireplace, a loft and lots of extras. The air-conditioner and water heater are both newer and there’s an Aprilaire humidifier on the furnace. The association takes care of the  sanitation, outside maintenance and all the mowing and shoveling. A quick sale is possible.

 

House No. 2: 1308 Aspen Way, Mendota Heights

Listed by: Re/Max Advantage Plus

Price: $400,000

Taxes: $5,362

Association fee: $300

Description: Side-by-side town home; three bedrooms, three baths and 3,140 finished square feet. This is a potential short sale which means that this beautiful end unit just might be the bargain you’ve been wanting to see. There are granite countertops in the kitchen, upgraded cabinets and stainless steel appliances. The master suite has a separate soaking tub and shower. The lower level includes two bedrooms, a family room, a game room and an office. The mail level features a living room and dining room, a large master bedroom and a den. The deck overlooks beautifully maintained green space. Dogs and cats are OK here.

 

House No. 3: 1373 Knollwood Ln., Mendota Heights

Listed by: Re/Max Results

Price: $439,900

Taxes: $4,110

Description: Two-story single family home; three bedrooms, three baths and 3,242 finished square feet. It’s like having a very private home in a park. Bright and contemporary with a very open floor plan features a stunning great room featuring soaring vaulted ceilings, windows everywhere and a wood burning fireplace. The kitchen is bright and sunny, made for the serious cook. The home is located on a corner lot on six-tenths of an acre of land. This modern home also includes a large deck overlooking the backyard, walk-in closets, lower level rec room and walk-in closets.

 

House No. 4: 681 Brookside Ln., Mendota Heights

Listed by: Edina Realty

Price: $649,000

Taxes: $5,813

Description: Two-story single family home; five bedrooms, four baths and 5,624 finished square feet. This home has everything; two family rooms, a rec room, an amusement room, a home theatre and huge indoor spa and sauna including a whirlpool bath overlooking the backyard.  There’s so much more, including hardwood floors, walk in closets, a security system, balcony and vaulted ceilings and two-story windows.  For the in-home office, the home includes a local area network and multiple phone lines. The large deck looks over a yard surrounded by trees and a privacy fence. There’s nothing else like this home on the market today.

 

House No. 5: 1889 Hunter Ln., Mendota Heights

Listed by: Edina Realty

Price: $998,000

Taxes: $7,221

Description: Two-story single family home; three bedrooms, four baths and 5,005 finished square feet. This lovely home has the best of both worlds,  sitting on 1.5 cares filled with woods and wildlife with wonderful bluff view of downtown Minneapolis. There’s a new state-of-the-art eat-in kitchen with an indoor grill and breakfast area, a large living room and dining room, and a spa and exercise room in the lower level. The very large deck overlooks the sparkling waters of a swimming pool big enough for real exercise. This home is elegant but comfortable and very private.

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