HOMEARAMA® Comes to the City in 2020

HOMEARAMA® Comes to the City in 2020

Everything you need to know about Walworth Junction

Site of HOMEARAMA® 2020

The Highlights:

  • First LEED ND Certified Neighborhood – Greenest Neighborhood in the area!
  • 39 Luxury, Single Family Homes 
  • Site of HOMEARAMA® – July 2020 

For the first time in, well, ever, HOMEARAMA® 2020 is coming to the City of Cincinnati. We’re especially excited with this site as it’ll be one of the most impressive and ground breaking (literally) that we’ve ever had the pleasure of being a part of. Why? Well because this happens to be an old railroad maintenance site that has been completely remediated by the developer and EPA to be the future site of 39 contiguous, luxury single family homes. It’ll be a one of a kind community in the City of Cincinnati for so many reasons…

Here’s what you need to know:

The History:

As a former railroad maintenance station, this site is rich in railroad history, formally known Pendleton Yards. Not to be confused with Pendleton outside of OTR, this yard and station saw it’s fair share of traffic and cars up to the mid 20th century. Over the summer of 2019, the developer in conjunction with EPA and Terracon, have been removing dirt to turn a former “brownfield” into a gorgeous new community!

The Developer:

East End Develepment LLC is comprised of two veteran developers, TJ Ackermann and Ralph Meierjohan. The two partners have developed countless communities over the years, including recent Citirama sites, Woodlawn Meadows and Springrose Meadows. Having decades of experience in development and building, they’re gaining national attention for Walworth Junction because of it’s site remediation, design and it’s location!

The Location:

Located just down the street from the Precinct Restaurant on Delta, it’s ideally located on the edge of Columbia Tusculum in the East End and around the corner from Hyde Park and Mt. Lookout. All 39 homes are walkable to Eli’s BBQ, Hi Mark, Allyns and Pearls, not to mention countless other little shops and watering holes. This is the draw of Walworth Junction. And better yet, it’s a hop, skip and a jump from Downtown Cincinnati.

The Amenities:

One of our favorite features of Walworth Junction is it’s own park. As you enter into the community, the park stretches hundreds of feet along Walworth and ends with a tunnel connecting homeowners and neighbors to Riverside Drive. Additionally, each home will have views of the River and the City of Cincinnati. It’s raised topography allows for these views from the 2nd and 3rd floors along with the rooftop decks, should owners go that route. AND…each owner will utilize the private drive, alley way for a rear entry garage, which means the front elevations and the streetscape isn’t dominated by garages on the front of homes!

The Taxes:

With all of the homes being LEED Gold by Green Building Council, the tax rate is locked in for ALL 39 homes. This is part of the LEED ND (Neighborhood Development) certification, making Walworth Junction the first community in Cincinnati with that designation! In addition, there is an additional TIF Assessment on all of the lots for the EPA site mitigation, which is still being finalized. Details will be released in the coming months on this..

The Builders

With HOMEARAMA® set for July 2020, the preferred builders have been set and homes will start coming out of the ground in Dec of 2019. Currently, the featured builders for Walworth Junction are:

Frazier Homes
JNB Custom Homes
Redknot Custom Homes
Somerset Custom Homes
Sterling Homes

 

The Green: 

Walworth Junction will be “the greenest” Homearama show ever! And did we mention, the first in Cincinnati to be LEED ND (Neighborhood Development) certified. Without getting too technical, this means ALL of the new homes will be LEED certified, there are points for the smart location and linkages being so close to the City, and due to it’s overall design. It will be the first subdivision that has mandated LEED Gold for every home…so you’re in good company as a resident of Walworth Junction.

So what are you waiting for? Now is the time to take a drive over to the community and meet with the builders so you can get your hands on one of the best lots!

Visit the Website at WalworthJunction.com or call us at 513-260-0424 and we’d be happy to set up a site walk!

How Does the Current Low Interest Rate Environment Impact Home Buyers?

How Does the Current Low Interest Rate Environment Impact Home Buyers?

How Do Interest Rates impact Buyers? 

On July 31st of this year, the Federal Reserve lowered the Federal Funds Rate 25 basis points in a much-
anticipated move. As a mortgage broker, I’ve fielded many questions from our firm’s clients about this
development. Specifically, people want to understand how this shift in policy impacts their mortgage and
buying power in the future.

How does a Federal Reserve rate cut impact mortgage rates?

The short answer I give to my clients is to pay attention to the 10-year treasury bond rate. There is a
common misconception that the Federal Funds Rate directly correlates to mortgage rates. Instead, the
10-year treasury bond is the main index lenders use to price mortgage rates. The reason? While most
mortgages are 30-year products, those mortgages typically get paid off within 10 years, making it a great
benchmark to determine where rates are going.

To provide an illustration, if you look at the 10-year treasury rate between January 2019 (around 2.75%)
and August 2019 (around 1.66%), that 100 basis point drop is a direct correlation to how the conforming
30-year fixed mortgage rate has performed. In January 2019, that rate was around 4.5% and in August
2019 that rate is in the 3.5% range.

What are things to consider as a potential homebuyer?

1. Low interest rates represent higher home buying purchasing power

Let’s say you’re applying for a 30 year fixed mortgage loan for a new primary residence and have been
prequalified to borrow up to $400,000.
Last year, assuming a 740+ credit score, a 30 year fixed rate would have been in the ballpark of 4.75%. The
principal & interest payment would be $2,075.43 per month.
In today’s environment, that rate could be as low as 3.5%. on conforming loan amounts (<$484,350). The
principal & interest payment would be $1,790.54 per month. That’s a difference of $285 per month.
That also means, in today’s low rate environment, you could get approved up to $463,500. The principal &
interest payment would be $2,075.43 per month at 3.5%.
The drop in rates represents an ability to borrow up to $63,500 more.

If you don’t envision owning your home for longer than 7-10 years, you might consider refinancing into a
10-year fixed Adjustable Rate Mortgage (ARM). A 10-year ARM is amortized over 30 years but offers a
lower interest rate than a traditional 30-year mortgage for the first 10 years. This can be a great way to
save on interest payments. For example, if you compare a $1MM loan with a 30-year fixed rate at 4.25%
to a 10-year ARM at 3.125%, there is an interest savings of nearly $107,000 over 10 years. Typically, you
can refinance as much as a $3MM loan balance into this type of loan.

2. Look at a 15 or 20 year mortgage

Ideally, we all would like to pay off our debt in as short and inexpensive way as possible. In comparison to
a 30 fixed mortgage, 15 & 20 year fixed options offer lower interest rates. The amount of interest you pay
over the term of a 15 or 20 year fixed loan compared to a 30 year fixed mortgage is drastically lower. In
fact, many financial advisors and personal finance experts recommend homebuyer’s utilize15 year fixed
mortgages.
So why do most buyers not finance their mortgage into a 15 year fixed loan?
They can’t budget the higher monthly mortgage payment of a 15 or 20 year fixed loan into their budget.
There’s too many other expenses, whether it be putting money away for retirement, school tuition, or
lifestyle expenses.
Assuming you can comfortably budget a 15 or 20 year mortgage payment, it’s a great financial tool to
build up equity in your home quickly and eliminate interest expense.

3. Adjustable Rate Mortgage option

Consider this example. Say you don’t envision owning your home for longer than 7-10 years. You might
consider a 10-year fixed Adjustable Rate Mortgage (ARM). A 10-year ARM is amortized over 30 years but
can offer a lower interest rate than a traditional 30-year mortgage for the first 10 years. This can be a
great way to save on interest payments. For example, if you compare a jumbo $1MM 30-year fixed rate at
4.0% to a 10-year ARM at 3.125%, there is an interest savings of nearly $82,000 over 10 years when you
compare them side-by-side. That’s a massive amount of savings. If you select the 30 year fixed option and
moved in year 10, that’s $82,000 in interest you didn’t need to pay.

As you can see, the reasons to pay attention to rate changes are many and varied. However, as a
homebuyer, low interest rates represent a great way to increase your borrowing capacity and save
thousands of dollars in interest over the life of your loan.

Making the decision to buy a home can be an overwhelming. Tim O’Brien, at Zipfel Capital, can help you understand opportunities that will provide clarity in a complex situation like purchasing a home.

About the Author

Tim O’Brien is an equity partner in Zipfel Capital, a mortgage brokerage company
based in Hyde Park, specializing in residential and commercial lending. Tim has
been acknowledged by the Greater Cincinnati Mortgage Bankers Association
(GCMBA) as a Diamond Level Producer, given to less than 1% of industry
professionals. He has also been featured in the Cincinnati Business Courier’s “Ask
the Expert” series. Tim holds a bachelor’s degree in Xavier University and is a
graduate of The Summit Country Day School. He lives in Mt. Lookout with his wife
and three children.

Introducing the Meadows at Peterloon

Introducing the Meadows at Peterloon

Introducing the Meadows at Peterloon

New Opportunity to Build in Indian Hill

Every once in a while a new development comes around and REALLY excites us. The Meadows at Peterloon is one of those! With a proposed 42 lots in The Village of Indian Hill, right off Montgomery Rd, on storied ground, this new community will be sure to make a statement and has already garnered much attention.

Here’s why:

Located on 142 acres of ground still owned by a few of the descendants of the Emery family, the tradition and history runs deep. The development team is working to preserve this heritage and pay homage to it’s history by designing a community that their family would be proud of.

As you may know, Indian Hill has very distinct zoning districts, typically in 1, 3 and 5 acre zones. This acreage happens to fall into each of those. That means, there are lots as “small” as 1 acre and up to 5 acres. Over the 142 acres, there are sections of woods as well as open farm fields, many of which have sweeping views. In total, there are 42 lots in the entire community, 27 of which will be developed in the 1st phase off two cul-de-sac streets.

Situated on the northern portion of Indian Hill, this property has a few very unique selling features. Walkability it the one we’re most excited about. There aren’t too many areas in Indian Hill that you’re connected to sidewalks. Nestled up against the City of Montgomery, the entrance of Meadows of Peterloon is right across the street from the Montgomery City Building. This allows access for residents to capitalize on all of the sidewalks in the community as well as dozens of restaurants and watering holes! Pretty rare for an Indian Hill Community!

One less glamorous feature is the access to sewer and water! Indian Hill is often synonymous with on-site sewer systems because of it’s rural nature. But, there are NO on-site systems needed in Meadows of Peterloon! That saves buyers anywhere from $50-$75,000+ depending on the size of the home.

These are just a few of the reasons buyers are clamoring to get into Meadows of Peterloon. Many lots are already under hold as they begin to start the development. Although much is still subject to change, the layouts and designs are being finalized by the developer and Village of Indian Hill. The developer and their team tell us that they plan to have lots ready for building towards the end of the Summer 2020. That means you could be in by that time 2021…trust us, that’s not too far away.

If you’re considering building in Indian Hill, you owe it to yourself to consider this new community. And we’re happy to share information! Classic Living Homes and Sterling Homes are already working on plans for homes in the community and would be happy to sit down with you to discuss the options!!

Don’t wait as lots are being locked up as you read this!

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