Why a Hybrid Mortgage May Be the Right Choice to Save You Money

There are many great Washington D.C. area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (202) 290-1313 for a FREE home buying or selling consultation to answer any of your real estate questions.

Explaining Hybrid Mortgages and How they can Help You

With interest rates moving up, it may be time to consider a hybrid mortgage. In the past, rates were so low that a 30-year fixed mortgage was basically a shoe-in for a buyer. However, we're now experiencing a rise in rates and that can open up options for buyers who aren't sure about the best way to finance their home.  

So, what are these hybrid mortgages? One example of these types of mortgages (some can be pretty exotic) is the Adjustable-Rate Mortgage (the 'ARM'). In this type of 15-30 year loan, the rate at the beginning is cheaper than at the end.  

Why to consider the ARM: Rates are still very good, but they are rising, and for some people who may not be living in their home for an extended period of time, it could be more affordable to go with an ARM Mortgage. These could also be helpful if you are considering moving out and keeping a property as an investment. In general, if you're unsure of how long you will be at a certain property, a hybrid loan could be the most economic choice for your situation. 

At a minimum, you have to consider a different mortgage even if you reach the same conclusion because as the market shifts, so too should the way we think about it.

If you are seriously considering a hybrid mortgage, please contact me because there are many things to consider. 

Call me at (202) 290-1313 or email me at carlos@enggarcia.com

Did You Know That D.C. is a Hub for International Investors?

Here at Eng Gracia Properties, we have a systematic way of selling properties. One of the things we like to do is analyze information and data; along those lines, I have information on foreign investment in Washington, D.C. The job market in Washington, D.C. is terrific and it attracts many investors, both foreign and domestic. I happen to work with many investors here in Washington, D.C. that range from business owners to people working in professional capacities that have a little extra money and want to invest.

There are also larger organizations, like investment funds, that are pooling their resources and focusing on Washington, D.C. as one of the top markets in the country. For example, we have a large project downtown near our basketball arena called “CityCenterDC” and had actually stalled during the recession. Since then, the country of Qatar has funded almost $650 million to the project. If you read about Qatar and her priorities, one of the things they are focusing on is real estate in this country; with Washington, D.C. being one of the top areas of focus.

CityCenterDC is a project that will consist of high-end residential on top of high-end retail. Some of these apartments will fetch $1,000 per square foot; some of us are skeptical if there will be demand for them, but some are beginning to sell. There are model units available to be seen and visited if you are interested.

When you learn about Qatar, they are focusing on growth markets and markets that have a strong employment base. As I like to say, even if public opinion and congressional priorities shift and cause the size of government diminish, it would still be the number one employer on the planet. The good news is that Washington, D.C. has other elements producing a more well-rounded economy.

Initially, we saw many industries that sprouted and branched off of the government such as contracting and hospitality. However, we are seeing the emergence of new industries ranging from Biotech to National Security. This is sparking the interest of Qatar along with the influx of young professionals moving to D.C. Even during the downturn, D.C. saw increases in career opportunities.

When looking at a market in which you would like to invest, there are many elements that a person should analyze. Within that information, 50-70% of that information is related to the health of the employment base. If you have any desire to learn more about investing in D.C., don’t hesitate to contact us.

Thanks and have a great day!

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What Did The D.C. Market See in 2013?

What Did The D.C. Market See in 2013?

Now that we are in early 2014, I wanted to look back and review 2013. Clients have been asking how I would characterize 2013; I would call 2013 a growth year. I say this because more homes were sold and approximately 20% more condos and co-op apartments were sold. Depending on your community, the past 2-3 years have shown a serious decline in inventory but now it has stabilized. However, we are saying that 2013 was the first year where we haven’t seen a 20-30% drop in inventory and are still currently in a low inventory market.

For the apartments and co-ops in the city, the number of units sold was up 20.6%. That is serious movement! For single family homes, 9% more were sold in 2013. In essence, the big pieces of news to take away are that inventory has stabilized and the number of transactions has risen. We are currently analyzing the rates, the REO's and the builder updates to get the information out to you.

Thanks and have a great day!