In this Issue: Real Estate Market Statistics Choosing a Type of Mortgage Coldwell Banker Island Properties 24 Baldwin Avenue Paia, Maui, HI 96779 Phone: (808) 298-8544 E-mail: Laurelee@MauiResidences.com We're on the Web! www.mauiresidences.com | Real Estate Market Statistics As of March 31, 2008, there were 228 home sales on Maui, compared with 341 a year ago. The average sales price was $909,894, compared with $1,037,061 a year ago - a 12% decrease. The median price was $602,783, compared with $625,000 a year ago, representing a 4% decrease. Total dollar volume decreased 41% during this twelve month period. Click Here to See All MLS Listings Choosing a Type of Mortgage How long do you plan to stay in this home?
Five years? Ten years? Thirty years? The length of time you will be in the home is a factor in determining which loan to apply for. If you only plan to be in the home for 5-7 years or less, you may want to consider an adjustable rate loan. If you intend on staying 20-30 years, a fixed rate mortgage may be right for you.
How much risk are you willing to accept?
If you want to know exactly what you will be paying each month for the term of the mortgage, a fixed rate mortgage will fulfill this need. The fixed rate loan, however, will also net a higher interest rate. If you are willing to take some risk of fluctuations in the interest rate, you may be able to receive a lower interest rate.
What are your income expectations?
Plan for the future. Do you anticipate a gradual or dramatic increase in your income in the next few years? If you expect a big increase, a graduated payment mortgage may be best for you.
How much cash do you have available for upfront costs?
If you have the resources, you may want to make a larger down payment to lower your monthly payment. By keeping a higher monthly payment however, you might be able to shorten the term of the loan to a 15-year loan in order to pay it off quicker.
Annual Percentage Rate (APR)
This is most likely the best way to make an "apples-to-apples" comparison of lenders. The APR reflects the cost of credit on a yearly rate and includes any points and fees in addition to the interest rate.
Interest Rate
Find out the rate the lender will commit to and how long the lender will guarantee it. Get any commitments in writing. Points and fees
These factors will vary greatly. Look out for hidden fees. Make sure the lenders disclose all fees; ask what they charge and what is included and what is not.
Loan Approval
Both approval and funding time should be considered. You don't want to lose a prospective home because your lender takes weeks to fund your loan. A lender should be able to fund the loan within ten days.
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