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Hoboken Real Estate| Hudson Tea | Rate Lock

By Brian Murray

Real Estate Agent with Prime Real Estate Group

May 16, 2011 05:21 AM

Hoboken Real Estate at 1450 Washington Street at Hudson Tea : The Rate Lock

The new construction building being erected between 14th and 15th streets in Hoboken comes with a cool feature: Rate Lock. It's Toll Brothers 1450 Washington Street at Hudson Tea, the latest new construction project in the Hoboken real estate market..

Imagine going to contract today on one of the 156 Condos at 1450 Washington Street at Hudson Tea featuring a 12 story tower on the north end with a 7 story tower on the south end. Although 1450 Washington Street at Hudson Tea, according to Toll Brothers, will be ready for delivery in March 2012 to July 2012 a buyer has a legitimate concern that rates will rise with impending inflation.

For example you purchase a $500,000 with 20% down leaving you a 30 year mortgage of $400,000 at today's rate of 4.875%. This will yield a monthly payment of $2117. Now if interest rates rise, as predicted to 6%, before you close next year, your mortgage on your new Hudson Tea condo is now $2398. That's $281 extra every month you own it!!! A lot of risk in today's market.

The solution from Toll Brother's mortgage.... A one year rate lock. All it costs is 1%. So on your $400k mortgage, it's $4k or about 14 months to break even. What is that worth to sleep at night.

Other info about 1450 Washington Street at Hudson Tea by Toll Brothers:

Taxes at Hudson Tea at 1450 Washington Street are estimated to be 1.3% of the sales price. Meaning a condo would selling for $500k would have an annual tax bill of roughly $6500. A reasonable number compared to other Hoboken Condos.

Maintenance at 1450 Washington Street at Hudson Tea ac cording to Toll Brothers is sixty one cents a square foot. This is the same price that Maxwell Place is charging.

I have more info.

1450 Washington at hudson tea