In these languid—and, for much of the country, excruciatingly, unbelievably hot—days of summer, the timeless allure of a large, cool body of water beckons. And while heading to the lake is, for some, an occasional destination, for others it’s a way of life.
Sure, some of America’s more famous lake towns are pricey. But there are others that are surprisingly affordable, offering lakeside living for bargain-basement prices. The data team at Realtor.com® dug into the data to find some of the cheapest lake town real estate in the nation.
It helps that there are a lot of lakes in America. According to the U.S. Geological Survey, there are just shy of 7 million bodies of water in the U.S. and in adjacent areas along the borders. Of those, 5.76 million are classified as a lake or pond, and 134,000 have official names.
Each of the lake towns we found has a unique charm, blending natural beauty and local culture. All of them are nestled in the most affordable regions of the country, especially the Upper Midwest to the Deep South—areas known for their low cost of living. As it turns out, they’re also ideal places for lake house shoppers not looking to stretch their budget.
As famously avid lake admirer Henry David Thoreau once wrote, “A lake is a landscape’s most beautiful and expressive feature. It is Earth’s eye; looking into which the beholder measures the depth of his own nature.”
To find the most affordable lake towns, we looked at all the home listings for the past year within a half-mile (roughly a 10-minute walk) of a named lake or pond. (Named bodies of water exclude reservoirs and lakes that folks can’t swim or boat on.) Then we calculated the median prices from July 2022 through June 2023 for homes in those areas to pinpoint the most affordable lake towns in 2023. Only towns with at least 50 home listings over that period were included.
We excluded big cities, because we’re looking for places where the lake plays a large part in the local culture. And we didn’t include extremely small towns, because you’ve got to have at least a few shops and restaurants to keep you busy when you’re not on the water. And we included only the single most affordable lake town in any state, to ensure geographic diversity.
So let’s set sail to the most affordable lakeside real estate in 2023.
Median list price: $154,900 Median list price per square foot: $76 Population: 29,534
Danville, a relatively small town in east central Illinois along the Indiana border, is home to Lake Vermilion. The human-made reservoir provides drinking water for the city, but it has also become a popular fishing and boating location. Cabins and docks line its forested edge.
The town was an industrial hot spot for the region from the mid-19th century to the mid-20th century, as a major coal mining town and a rail hub. Abraham Lincoln was known to visit the town and once delivered a speech from the balcony of the home of a prominent Danville resident.
The median home listing within a half-mile of Lake Vermilion over the past year had a price tag 65% below the national median list price of $445,000 in June. A three-bedroom home within walking distance of Lake Vermilion, with hardwood floors, a garage, and a big yard, goes for $120,000. And for just over $100,000, home shoppers can find a two-bedroom condo about as close to the lake.
Median list price: $140,000 Median list price per square foot: $79 Population: 2,838
Rogers City is the smallest of any of the spots on our list of affordable lake towns, just shy of 3,000 residents.
Situated on the banks of Lake Huron, about 45 minutes from Cheboygan, Rogers City residents have quick access to multiple parks along the lakeshore. They include Harbor View Park on the southern corner, Seagull Point Park on the northern tip of the town, and several in between, including the Rogers City Yacht Harbor and Lakeside Park.
Rogers City has been host to multiple salmon fishing tournaments in the summer, including the vividly named Fat Hogs Fishing Frenzy and the more straightforward Rogers City Salmon Tournament.
It’s also home to the Great Lakes Lore Maritime Museum and the Presque Isle County Historical.
A large three-bedroom home with a garage and a brick fire pit in the backyard can be found for $165,000, a short walk from Rogers City’s North Shore Park and beach.
Median list price: $122,750 Median list price per square foot: $83 Population: 12,651
The western tip of northern New York state, in the Chautauqua-Allegheny region, is known for its lakeside getaway culture. And although some of the area’s real estate is quite pricey, the lowest home prices within a half-mile of a lake can be found in Dunkirk at the edge of Lake Erie.
The area was first occupied by the Indigenous Erie and Seneca tribes, then colonized by the French, who erected the Dunkirk Lighthouse at Point Gratiot in 1826. This helped the town become a significant regional port for coal and lumber shipping. It’s now listed on the National Register of Historic Places.
Dunkirk has multiple beach parks, and it hosts several summertime events, including an annual strawberry festival, arts and music festivals, and a “Fly-In Breakfast,” which welcomes pilots from all over to the small lakeside town.
Duke McLachlan, a real estate agent with Howard Hanna Hold Real Estate in neighboring Jamestown, says that from June through August, life in this area is all about the lake, for residents and visitors alike.
“It’s the whole Chautauqua area,” McLachlan says. “The local economy really picks up.”
Buyers will find the most listings just before and after prime lake season. Sellers know they can find buyers looking forward to the summer in April and May. Meanwhile, other sellers will list in September and October after they used their homes for the summer.
Median list price: $129,900 Median list price per square foot: $86 Population: 10,465
Minnesota is called the “Land of 10,000 Lakes” for a reason: The state has 11,842 of them.
So don’t drop your oar in the water when you hear that Fairmont, a small town in southern Minnesota near the Iowa border, sits on a string of five small lakes. These include George Lake, in the northern part of Fairmont, and Budd Lake, near the center of town.
All five offer boating and fishing—and there is very affordable real estate near two of these bodies of water.
The median home that was listed over the past year near both Lake George and Budd Lake is less than half the national list price. The real estate near Budd Lake is a little pricier, due to its proximity to the center of Fairmont, and a couple of developed parks along its edge.
For those who want to live and work near the water year-round in the “City of Lakes,” Fairmont’s local economy is driven by the local Mayo Health System hospital, two small colleges, and a couple of modern industrial companies.
Median list price: $126,900 Median list price per square foot: $91 Population: 4,977
Cherokee Village, a small town in central northern Arkansas about 20 miles south of the Missouri border, boasts seven lakes in total.
Lake Cherokee, the smaller of the two lakes where we found low-priced homes, has a park and private docks. Meanwhile, Lake Thunderbird, the town’s largest lake, has a public marina and the town’s public recreation center, which has two swimming pools and a minigolf course.
For just under $290,000, a homebuyer can get a 1,200 square-foot, two-bedroom house with a backyard dock on Lake Thunderbird. For those looking for homes costing less, just across the street from Lake Cherokee, a two-bedroom townhome can be found for as little as $120,000.
Median list price: $169,900 Median list price per square foot: $95 Population: 9,305
Pickwick Lake, a popular boating and fishing destination, was created by the Pickwick Landing Dam on the Tennessee River near where Alabama, Tennessee, and Mississippi meet.
The lake is known for record-size smallmouth bass and catfish. Local fishing guides say 2- or 3-pound smallmouth bass are the norm—and catches of 5 to 6 pounds are not uncommon.
History lovers will also appreciate the small town of Sheffield. It became a major wartime aluminum smelting location in the 1940s, boosting the nation’s aircraft production. It’s also the hometown of Senate Majority Leader Mitch McConnell.
And it’s where you’ll find the famous Muscle Shoals Sound Studio, where a litany of modern musical icons came to record, including The Rolling Stones, Aretha Franklin, Cher, and Wham! The studio faded and was repurposed for several years, before a documentary reignited interest and a restoration brought it back to life. It’s now a museum during the day and a working studio at night.
Median list price: $135,000 Median list price per square foot: $96 Population: 65,440
Lorain is a small city on Lake Erie, in the far western corner of the Cleveland metro area. Like the other Great Lakes locations on our list, Lorain was once an industrial production mecca, dominated by steel.
Now, says Bill Swanzer, a real estate broker at The Swanzer Agency Realtors in neighboring Amherst, Lorain mixes a classic lake culture with good access to the city.
“You’re only 20 or 30 minutes from the Cleveland Browns‘ stadium,” Swanzer says. “So you can get to all the big-city things—live sports, live music, shows.”
But for Lorain residents, Lake Erie’s offerings are right in the backyard.
“The lake’s always been a big draw for us,” Swanzer says. “You’ve got kayaking, boating, fishing, swimming—you’ll see Jet-Skis on the water and parasailing.”
Median list price: $139,900 Median list price per square foot: $97 Population: 11,276
Two Rivers is uniquely situated on Lake Michigan, such that it remains cooler than nearby areas on hot summer days—earning the town its nickname “Cool City.” It became a summertime destination for folks looking for a reprieve from the heat.
The moniker is memorialized just about everywhere, from the annual Cool City Car Show & Cruise, the Cool City Brewing Co., and Cool City Coffee Shop to the Cool City Charters and Cool City Cleaners.
Summer activities include swimming and sunbathing at Neshotah Park & Beach, and hiking and camping in Point Beach State Forest, just north of town. There’s also boating and fishing on Lake Michigan and the town’s—you guessed it—two rivers. It’s also only about 30 miles southeast of Green Bay, offering relatively quick access to a big city nearby.
But what’s especially cool about Two Rivers for us is the low price of homes near Lake Michigan. Take this recently listed two-bedroom home with an updated bathroom and floors about a block from Lake Michigan, priced at just $134,000.
Median list price: $185,000 Median list price per square foot: $106 Population: 9,299
About 30 miles east of Wichita is Augusta and its 190-acre human-made lake on the north end. Augusta Lake, lined with parks, grassy embankments, and walking trails, is a community center of sorts. There are Little League tournaments, concerts, disc golf, and the town’s Fourth of July celebration, in addition to the standard lake activities like fishing, boating, and kayaking.
The town is known for its historic buildings, many of which have been added to the National or State Register of Historic Places.
Of course, we’re interested in the home prices, which are inexpensive, even for a relatively affordable state like Kansas. A three-bedroom, ranch-style home six doors away from Augusta Lake can be found for just $150,000.
Median list price: $285,000 Median list price per square foot: $125 Population: 7,565
Homes within a half-mile of Prestwood Lake are the most expensive of any place on our list of affordable lake towns—but they’re still about 35% less expensive than the national median list price.
Lauri McLeland, a Realtor with Better Homes and Gardens Real Estate Segars Realty in Hartsville, says it’s not uncommon to see small speed boats and jon boats on Prestwood Lake, and even some kayakers on Black Creek, which leads into the lake.
But although there’s a decent amount of housing within that half-mile of the lake, it can be a tight market for buyers looking for something right on the water.
The small South Carolina town, about an hour northeast of the state capital of Columbia, is a tight-knit community, says McLeland. Word of someone selling their home can lead quickly to an offer from another local looking to get closer to the water.
“Prestwood is a really pretty lake,” McLeland says. “There’s not a lot of housing right on the lake, and some of those sell before they even hit the market.”
New York Governor David A. Paterson is looking to keep more distressed borrowers in their homes by expanding previous laws and establishing safeguards against foreclosure scams.
New legislation would require banks and mortgage lenders to give all homeowners a 90-day pre-foreclosure notice so they have more time to work on viable alternatives; this was previously in place only for subprime loans.
Lenders would also be required to make a regulatory filing with the Banking Department within three days of the pre-foreclosure notice, providing specified borrower information so the Division of Housing and Community Renewal could provide targeted assistance to those most in need.
Tenants living in foreclosed properties would be given written notice of change of ownership and the opportunity to remain in the homes until the lease expires, or for an additional 90 days, whichever is longer.
Plaintiffs who obtain a judgment of foreclosure would be required to maintain the foreclosed property, and brokers who perform distressed property consulting services would be barred from accepting upfront fees.
Additionally, $25 million would be set aside to fund counseling and legal services to homeowners facing default or foreclosure.
“This legislation will provide added protections for homeowners who are behind on their mortgages and crack down on scams that prey on vulnerable homeowners,” said President and Chief Executive Officer of “NYHomes” Priscilla Almodovar, in the release.
“It will also offer greater opportunity to offer counseling to homeowners to help them stay in their homes. These proposals are consistent with our efforts to promote sustainable homeownership in New York State.”
Unfortunately, we’ve seen similar legislation in California do little more than delay an inevitable problem.
Former President Donald Trump has not made his real estate great again.
Trump has dominated the headlines recently, as he announced his intention to run for office again and then became the first former commander in chief to face criminal charges. But the polarizing politician and reality TV star is first, and perhaps foremost, a real estate mogul. And the past few years have not been kind to his sprawling residential real estate portfolio.
While home prices across America generally rose quickly during the “pandemic pump” housing market, sale prices at the properties listed on the Trump Organization’s website have either declined or appreciated at a slower pace than the local markets they’re in.
To be sure, the COVID-19-era real estate market will be one for the history books, defined initially by ultracheap mortgages, the liberation of newly mobile Americans who could pursue “remote work” away from their abandoned offices, and a continued housing shortage that all pushed home prices up in dramatic ways. The price gains have begun to correct in some areas, but in large part, historically high prices appear to have stuck.
But Trump’s real estate brand hasn’t benefited as much from the favorable housing market. Price appreciation for condos in properties listed on the Trump Organization’s website has been lower both in the luxury real estate and overall housing markets.
For example, the median condominium sale price in the U.S. rose 38% between 2019 and 2022, according to CoreLogic data. But over the same period, the median sale price at Trump Organization properties declined 14%. (The properties Realtor.com® analyzed were all condos.)
And while the price changes varied around the country, his condos didn’t outperform any of the local markets where they’re located.
Some local experts believe the price declines are related to the former president’s controversial politics, especially since most of his properties are in Democratic-leaning areas. Since he ran for office, his name has been pulled off some of his prime real estate holdings in major cities.
“A lot of people have said the buildings are great,” says Dan Neiditch, the president of River 2 River Realty in New York. “But when they have the Trump name on the buildings, it’s all about branding. And when that’s the case, you live and die by your brand, by your name.”
Trump was recently charged with 34 felony counts related to hush money payments made to an adult film star, is under investigation for election interference in Georgia, and is facing multiple lawsuits. That could also affect his real estate holdings, especially in places where the former president isn’t popular.
To come up with our findings, we pulled home sale records from CoreLogic, a real estate transaction data provider, for properties listed on the Trump Organization’s website. Then we compared them with condo sale prices for the counties where those properties are located. Because the CoreLogic data is not perfect, we also excluded transactions that appear to have erroneously high and low transaction amounts recorded (likely data entry mistakes).
While all of the Trump Organization’s condo projects were included in the national numbers, Trump real estate markets with fewer residential units (including Connecticut, Hawaii, and Westchester, NY) are not detailed in the pull-out sections below.
We used 2019—the year before pandemic fluctuations roiled U.S. housing—as a starting point/benchmark for our calculations.
Note: It’s unclear if every property listed on the Trump Organization’s website is owned by the organization. The Trump Organization is a privately held corporation, so it isn’t required to disclose the specifics of its real estate holdings to the public. And even though the Trump name might prominently grace a building, it doesn’t mean that the organization owns the property. The former president licenses his name for a host of different things, including real estate and consumer products.
The Trump Organization did not respond to a request for comment.
For decades, Donald Trump made a name for himself as a New York City real estate celebrity and tabloid fixture. The Big Apple was his launching pad, where the Trump Organization began developing residential properties in the early 1980s. And it’s still where his company has the most buildings.
He announced his first run for the presidency, in 2015, in his iconic Trump Tower on 5th Avenue, where he rode down a golden escalator.
But in the past few years, the organization’s Manhattan properties have fallen behind the competitive Manhattan condo market.
In 2022, the median sale price for all of the organization’s New York City properties combined was about $1.75 million. Within the past 10 years, that figure hit a high point in 2015, at $2.3 million, and a low in 2020, at around $1.4 million.
Since just before the COVID-19 pandemic, the Trump Organization’s prices are down about 16%—far behind the roughly 11% price growth for all condos in Manhattan over the same period.
The list of Manhattan buildings listed on the organization’s website includes the Trump Tower, in Midtown, and Trump Parc, on the southern edge of Central Park. On the Upper West Side, the organization has six buildings that make up Trump Place, situated along the Hudson River. Three are apartment buildings, which were not included in this analysis, and three are condominium buildings. Residents voted to remove the Trump name from the buildings in 2019. There is also Trump International Hotel & Tower, on Central Park West. In Midtown East, the organization owns Trump World Tower, looking onto the East River, just across the street from the United Nations headquarters. And on the Upper East Side, the organization owns Trump Park Avenue, Trump Palace, and 610 Park Avenue.
Despite the successful efforts to remove the Trump branding from several of his New York properties, much of the Trump residential real estate is still highly valued among certain buyers.
According to luxury real estate broker Dolly Lenz, the properties themselves and their management are second to none.
“The management of the properties—whether it’s Trump Tower, Trump International, Trump World Tower—are some of the best-run buildings in New York,” she says. “They choose the best doormen, the best concierges, so the service is top quality.”
But many of the Trump Organization’s properties are older and have trouble competing with the newer buildings, which offer more modern designs, layouts, and amenities. Trump Tower opened in 1983—40 years ago.
For some local experts, it’s politics that have caused the lagging prices.
“New York and New Jersey are majority-Democrat states. I believe the prices of Trump’s properties take a hit just because of the politics of the people in the area,” says Neiditch, of River 2 River Realty. “We’ve had people who lived there, who said, ‘Hey, we want to sell. We don’t want to live in a building where that name’s on the outside.’”
Access to Trump Tower, which was more restricted during Trump’s presidency due to heightened security and Secret Service activity, also likely affected the value of the units in the bellwether building, says one real estate expert, who asked not to be named.
Fed up with the backlash against him and his politics, Trump officially left New York. Since 2019, the former president has called the purple state of Florida home. He now resides in his oceanside Mar-a-Lago resort in Palm Beach.
The Trump Organization has residential properties in and around Miami, including Trump Grande, Trump Tower Sunny Isles, and Trump Hollywood.
The Trump-branded properties in Florida’s Miami-Dade and Broward Counties appreciated by about 15% between 2019 and 2022, after first dipping in 2020, the biggest price gains of any location analyzed.
But prices shot up much higher in Florida during the pandemic as the Sunshine State saw an influx of companies and new residents. In the Miami-Dade and Broward markets where Trump properties are located, the median condo sale price has increased by more than 50%, going from just under $200,000 in 2019 to just above $300,000 in 2022.
And for the luxury condo segment in the same area (the upper 10% of sales by price), which is closer to the price range of the organization’s properties, prices grew by more than 60% over the same period.
Trump International Hotel & Tower’s opening in Las Vegas in 2008 marked the organization’s first expansion into the western U.S. But condo sale prices in the building have substantially lagged behind overall Las Vegas condo price appreciation.
The median sale price at Trump International Hotel & Tower took a significant hit in 2020, dropping from $305,000 to $214,500. Since then, the prices rose but were still down about 8% below pre-pandemic prices.
Meanwhile, in Clark County, which includes Las Vegas and the surrounding cities, the median condo sale price rose by more than 50% from 2019 to 2022.
June Stark, a real estate agent and broker at The Stark Team–Elite Realty, in Las Vegas, blamed pandemic restrictions as one of the reasons that Trump property prices dropped. Reduced tourism affected the building, which is a combined hotel and condo tower.
“The building itself is beautiful, probably the best-maintained hotel and condo tower in the city,” Stark says, noting that she was among the first agents to sell the residences.
Trump International Hotel & Tower in Chicago looms large in the city, with its height, distinctive style, and prime location, but the sale prices have taken a dive.
At 98 stories and reaching 1,388 feet, it’s the seventh-tallest building in the nation and second in Chicago (behind the Willis Tower, formerly known as the Sears Tower). The building’s off-centered, tapering spire is hard to mistake, but it’s the 20-foot-tall and 141-foot-wide “TRUMP” sign on the building on the northern bank of the Chicago River that informs anyone who passes by who owns the building.
But while the building’s prominence is unquestionable, the median sale price for residences there dropped by almost half in 2020 alone—going from just below $1.5 million the year before to $750,000. Since then, prices have come back some, but at $1 million in 2022, the median sale price is still down more than 30% compared with before the pandemic.
During the same three-year period, 2019–22, the median condo sale price in Cook County, which includes most of the Chicago area, rose about 12%. But for additional context, condos priced closer to Trump International Hotel & Tower in Chicago, those within the top 10% of sales by price for Cook County, also saw a big drop in prices in 2020, and an overall price decline greater than the Trump Organization’s building.
Across the Hudson River from the Trump Organization’s Manhattan properties is 88 Morgan Street Condominiums, formerly known as Trump Plaza Residences, in downtown Jersey City. The 55-story building, developed by the organization in the late 1980s, provides a sweeping view of the Manhattan skyline and the Upper Bay.
But 88 Morgan Street has not seen the same price gains as condos nearby. The median condo price in Hudson County, NJ, which includes everything from Bayonne to North Bergen and from the Hudson River across the Hackensack River to Kearny and Harrison to the west, saw modest appreciation during the pandemic, rising by about 14% from 2019 to 2022.
In Jersey City, condo sale prices at 88 Morgan Street rose only 4%.
“I know in those buildings in New Jersey, there have been fights about taking his name off,” says Neiditch, of River 2 River Realty, “but that’s been going on since back in 2016.”
New York Governor David A. Paterson is looking to keep more distressed borrowers in their homes by expanding previous laws and establishing safeguards against foreclosure scams.
New legislation would require banks and mortgage lenders to give all homeowners a 90-day pre-foreclosure notice so they have more time to work on viable alternatives; this was previously in place only for subprime loans.
Lenders would also be required to make a regulatory filing with the Banking Department within three days of the pre-foreclosure notice, providing specified borrower information so the Division of Housing and Community Renewal could provide targeted assistance to those most in need.
Tenants living in foreclosed properties would be given written notice of change of ownership and the opportunity to remain in the homes until the lease expires, or for an additional 90 days, whichever is longer.
Plaintiffs who obtain a judgment of foreclosure would be required to maintain the foreclosed property, and brokers who perform distressed property consulting services would be barred from accepting upfront fees.
Additionally, $25 million would be set aside to fund counseling and legal services to homeowners facing default or foreclosure.
“This legislation will provide added protections for homeowners who are behind on their mortgages and crack down on scams that prey on vulnerable homeowners,” said President and Chief Executive Officer of “NYHomes” Priscilla Almodovar, in the release.
“It will also offer greater opportunity to offer counseling to homeowners to help them stay in their homes. These proposals are consistent with our efforts to promote sustainable homeownership in New York State.”
Unfortunately, we’ve seen similar legislation in California do little more than delay an inevitable problem.
Academy Mortgage recently celebrated its 30th anniversary, having been founded back in 1988.
It began as a humble family-owned company opened by Duane Shaw, and remains one today with his son-in-law Adam Kessler in charge, serving as CEO.
With three decades under its belt, it’s clear Academy is a mature player in the mortgage space, which now includes all types of fintech-focused newcomers like Better Mortgage and Movement Mortgage.
It’s a very competitive business, so those who are able to stick out it for so long have proven staying power if nothing else. They must be doing something right, right? Let’s find out.
Academy Mortgage Prides Itself on Doing Everything In-House
They are an independent direct mortgage lender based in Utah
That only operates via the retail direct-to-consumer channel
Licensed to do business in 49 states and DC (not licensed in NY)
Have over 260+ branch offices nationwide
The Draper, Utah-based company’s claim to fame is that it’s a direct lender “100% focused on retail mortgage banking.”
What it means is they only work with borrowers directly, instead of dabbling in the correspondent or wholesale channels. So they’re laser-focused on the customer.
Perhaps this is how they were able to navigate through the mortgage crisis that occurred in the early 2000s, only to grow bigger and stronger since then.
Additionally, they do all the loan underwriting, processing, and funding in-house, instead of having a fragmented sales and operations team offsite.
Everything is carried out in one of their 260 branch offices throughout the country. Speaking of, they’re licensed to do business in 49 states and Washington D.C.
Some of those branches were the result of their acquisition of Republic Mortgage back in 2014, which allowed them to grow to 200 branches and 2,100 employees.
In 2017, they also acquired Oklahoma-based First Mortgage Co., which operated many branches in the Southwestern United States and Texas.
They also pride themselves on quick turn times, and refer to themselves as the “Gold Standard” in loan origination.
So it’s obvious that customer satisfaction reigns supreme with the company.
Getting a Home Loan with Academy Mortgage
The company employs hundreds of loan officers nationwide
You can call them directly to get paired up with an employee
Or visit their website and use their online directory to choose someone specific
It’s also possible to visit one of their many branches if you prefer face-to-face interaction
The company employs thousands of individuals, including a large fleet of mortgage loan officers throughout the country.
If and when you apply for a home loan with Academy, you can call them directly or choose a specific loan officer to work with.
They have a loan officer directory on their website that allows you to search by zip code, by name, and by branch (city and state location).
I imagine many of the loan officers are referred to clients, either by a real estate agent, or by a former customer who had a good experience with the company.
You can also visit a branch if face-to-face is your thing, though these days folks seem more interested in using a smartphone to make contact.
The one downside here is it appears that you can’t apply for a mortgage online.
Academy Mortgage a Top-40 Mortgage Lender
They’re a top-40 mortgage lender nationwide
The company closed more than 35,000 mortgages in 2019
The majority of those loans were for home purchases (about 70%)
With the remainder tied to home refinance transactions and HELOCs
Based on the latest HMDA data, Academy Mortgage was the 37th largest mortgage lender overall in the nation based on total loan volume in 2019.
The company closed 35,000 residential mortgages throughout the year on nearly $9.5 billion in total loan volume.
While that’s fairly big, it pales in comparison to Quicken Loans, which mustered over $81 billion during the same time period. However, it shows they’re no slouch either.
For home purchase loans, they tend to rank in the top 20 nationally since a large share of their mortgages are for that purpose.
For home refinance loans, they rank quite a bit lower due to lower volumes, but they’ve still got plenty of options for borrowers either way.
But it is clear that the independent home loan lender focuses heavily on home purchases as opposed to refinances, likely partnering up with local real estate agents to generate business.
Academy Mortgage Interest Rates
They don’t disclose their mortgage rates on their website
So it’s impossible to know where they stand without getting a quote first
My guess is their rates are average relative to other mortgage lenders
If super low they’d probably openly advertise them to draw in business
Unfortunately, the company doesn’t advertise their mortgage interest rates anywhere online. So it’s impossible to know how competitive they are pricing-wise.
If we consider the fact that most of their loan volume comes from purchases as opposed to refinances, we could guess that their mortgage rates probably aren’t super competitive.
Or at least not necessarily lower than the competition. After all, if they had the lowest price out there they’d probably want to advertise it, or at minimum make it known somewhere.
My guess is their rates are run-of-the-mill, but again, that’s just speculation.
If you do include Academy in your mortgage loan search, be sure to compare rates and closing costs to other lenders to see where they stand.
What Academy Mortgage Offers
The company offers a variety of home purchase and refinance solutions
Including conventional, jumbo, FHA, VA, and USDA options
You can get any number of fixed or adjustable-rate products
And even a zero down home loan via their exclusive GSFA Platinum Program
The company calls itself a “top-tier lender” when it comes to purchase loans, FHA loans, and builder loans.
This includes home purchase loans, refinance loans, renovation loans, and streamline refinance options.
You can get the basic Fannie Mae and Freddie Mac-backed conventional loans that allow for down payment as low as 3%.
They come in a variety of fixed-rate options, including 30-year, 25-year, 20-year, 15-year, and 10-year terms. That’s typically more choices than most lenders offer.
Academy also offers the usual adjustable-rate mortgage options, including a 10/1 ARM, 7/1 ARM, 5/1 ARM, and 3/1 ARM.
If you’re interested in a government home loan, they offer all the usual suspects including FHA loans, VA loans, and USDA loans, including FHA 203k renovation loans and FHA Energy-Efficient Mortgages.
It’s also possible to get a zero down home loan if you’re a first-time home buyer via their so-called exclusive GSFA Platinum Program, which includes a grant for up to 5% of the loan amount to cover down payment and closing costs.
The grant funds, which are provided by the Golden State Finance Authority, aren’t required to be paid back if certain conditions are met.
Lastly, they offer jumbo home loans up to $1.5 million loan amounts, with down payment requirements as low as 10%.
You may also be able to avoid PMI even when putting just 10% down!
Academy Mortgage Also Offers Commercial Loans
While they only operate a retail channel for residential mortgages
They do have a commercial lending division as well
It offers a very wide range of commercial and small business loans for commercial and multi-family properties
It should be pointed out that the company also offers commercial loans via a separate lending division.
Their offerings range from life insurance company loan programs to Fannie Mae and Freddie Mac programs for apartment buyers.
They also offer conduit loans and conventional loan programs for those wishing to purchase a commercial property.
Additionally, they offer multi-family loan programs, including those backed by the FHA/HUD, along with construction and bridge loans.
Lastly, you can get your hands on a variety of Small Business Administration (SBA) loans, including the SBA 7(a) Program and the SBA 504 Program.
So the appear to have you well covered if you need a commercial loan for just about any purpose.
The Verdict on Academy Mortgage
What they appear to lack in technology might be more than made up for by their excellent customer service
They have a near-five star rating on Zillow (4.96 out of 5 at last glance)
Which is even more impressive based on the many reviews completed (nearly 25,000!)
So if you want a great home loan experience they might be a great fit
While they seem to be a good lender on paper, with both high marks on customer service and awards for being a great place to work, we don’t know much about their rates and fees.
For those interested in securing the lowest-cost mortgage, some more digging and comparing will be necessary to see if they’re the right choice.
Academy doesn’t highlight any technology either, which seems to be a major factor these days for a lot of consumers.
There’s no mention of a digital or paperless process, a smartphone app, or anything really on that front. That’s not to say it doesn’t exist, but chances are if it did, it’d be emphasized.
But they’re a top-20 home purchase loan lender, which that says something, especially since they don’t seem to advertise very much.
Perhaps the service speaks for itself, and they receive a lot of referrals from past customers and real estate agents.
They have an excellent rating on Zillow, with 4.96 stars out of 5 on nearly 25,000 reviews at last glance.
Monday’s trading session offered little by way of anything significant or interesting for the bond market. Yields fell in Europe and pushed back steadily higher in the first few hours of domestic trading. AM data was stronger but not noticeably in sync with the selling pressure. Even then, the selling was weak enough to disregard, not to mention the fact that bonds rallied back in the PM hours to hit the 3pm CME close in modestly stronger territory. We could be waiting all the way until next week’s Fed announcement for the next big source of inspiration, but tomorrow and Thursday’s econ data could also move the needle.
NY Fed Manufacturing
1.1 vs -4.3 f’cast, 6.6 prev
09:34 AM
losing AM gains. 10yr now unchanged at 3.832. MBS down just over an eighth (may look like more at times due to illiquidity).
12:22 PM
MBS bouncing back a bit, now unchanged on the day. 10yr down 1bp at 3.82
02:38 PM
Modest gains continue. MBS up an eighth. 10yr down 2.5bps at 3.805.
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Efficiency, Fulfillment, Correspondent Products; Offices Into Housing; Capital Markets
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Efficiency, Fulfillment, Correspondent Products; Offices Into Housing; Capital Markets
By: Rob Chrisman
Mon, Jul 17 2023, 10:25 AM
I am often asked about the jumbo segment of our business. Frankly, aside from the coasts and a couple cities in-between, much of the nation is not overly concerned with it. Paying $1 million or more for a house may seem excessive to most Americans, although that doesn’t mean million-dollar homes aren’t prevalent in some parts of the U.S. Per LendingTree, only an average of 6.68 percent of owner-occupied homes in the nation’s 50 largest metros in 2021 were valued at $1 million or more. The share of million-dollar homes has grown: That’s up from an average of just 4.71 percent of owner-occupied homes in the nation’s 50 largest metros in 2020. San Jose (66.3 percent) and San Francisco, CA (52.9 percent) have the largest share of million-dollar homes, the only two cities where most homes are worth at least $1 million. Including San Jose and San Francisco, the four metros with the highest percentage of million-dollar homes are in California. Only four metros (Buffalo, NY, Cleveland, Pittsburgh and Louisville, KY) have fewer than 1.00 percent of owner-occupied homes valued at $1 million or more. (Today’s podcast can be found here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. To experience how Richey May can help you transform your mortgage business, visit richeymay.com. Hear an interview with Richey May’s Nathan Lee on outsourcing considerations and changing fixed costs into variable costs.)
Lender and Broker Software, Services, and Products
“Citi Correspondent Lending remains dedicated to serving diverse markets as well as continued responsible, sustainable growth. With a growing product suite that includes our new HomeRun program (no MI, up to 97% LTV and as little as 1% borrower down payment contribution required), a robust set of CRA pricing incentives and a quality-focused pre-purchase loan review process, Citi is well positioned to help you grow your business. Complete our Prospective Correspondent Questionnaire or request an appointment to talk with a Citi Account Executive at the Western Secondary Conference next month. We would welcome the opportunity to chat with you about all that Citi Correspondent Lending has to offer.”
If you’re looking for ways to squeeze every dollar out of each loan transaction, check out Computershare Loan Services (CLS). You can turn your fixed costs into variable expenses by outsourcing your processing, underwriting, and closing to CLS’ originations fulfillment team. They maintain top-tier POS, LOS technology, and a robust compliance program that keep you one step ahead. CLS’ money-saving solutions continue! Membership in their mortgage cooperative gives you exclusive access to negotiated pricing on commonly used mortgage services like VOI, flood determination, and trailing doc solutions. They do the hard work, uncovering best-in-class services that positively impact lenders. You’re one call away from savings that could dramatically improve your bottom line. Contact Computershare Loan Services today.
Blend has always put borrowers at the forefront of their mortgage products. KeyBank, a regional bank that’s been around for nearly 200 years, knows that customers are the backbone of their business too. And with modern mortgage expectations, they needed a modern mortgage solution. Learn how KeyBank’s partnership with Blend improved their NPS scores, operational efficiency, and LO adoption in this case study.
Sleep in Your Office? What About the Vacant Homes Conspiracy?
Before “van life” people would occasionally sleep in their offices. But what about making the office into a place to sleep?
There’s an anomaly facing major cities in the U.S.: many office buildings are empty while housing is in short supply. There has been a lot of talk of simply converting large offices into more apartments, but it’s much more difficult than it seems. Conversions are possible, but real estate developers face a variety of physical, regulatory, and financial constraints. Zoning restrictions and regulations restrict alterations and limit the scope for office-to-residential conversions. Structural complexity and code requirements mean that not all buildings are conducive for repurposing (e.g., ceiling height, access to lighting, plumbing considerations, etc.), and many structures have to be reinforced with more steel. Repurposing is often an expensive process that comes on top of initial acquisition costs, and ultimately will not save or make any money.
High costs require high rents to offset, meaning that most office conversions tend to cater to the luxury segment of the market and won’t help to alleviate a shortage of affordable housing in the city. Finally, as the status of remote work remains in flux, there’s a big question mark over the desirability of these conversion projects in the first place.
While we’re talking about inventory solutions, Chris Maloney with BOKF had some recent thoughts on people who look at the level of vacant single-family homes “that are, to them, evidence of a nefarious plot by speculators to hold supply off the market, drive prices higher and then sell at an even greater profit.” “There are a number of problems with this viewpoint, the most evident being that the total of vacant houses in these United States is currently far below its historic average.
“Except that of the 145 million or so housing units in the country, only about 15.1 million (or 10.4 percent of total housing stock) are vacant, which if it were proportionate to what the average has been this millennium (12.7 percent of total housing stock) would mean we’d have about 3.3 million more vacant homes than we currently see. The supply of vacant homes, like everything else in the housing market, is scarce. And of the 15 million housing units that are vacant, the Census Bureau number crunchers estimate only about 3.6 million fall into the ‘other’ category where speculators reside, and of that 3.6 million only about 227,000 fall into a sub-category (such as “preparing to rent/sell”) which points to the unit being readied for a near-term sale.
“Bottom line, it does not appear (at the national level) that speculators holding homes off the market, waiting for a better selling point, are the cause of the housing crisis. Of course, an institutional investor can concentrate its fiscal firepower onto specific areas, but even if they do the question here comes down to private property. If someone buys a home and wishes to take the risk of holding it off the market until they decide it’s the right time to sell, that is their right as it is their house, not society’s.” Thank you, Chris.
Capital Markets
Where to start with last week? Upbeat quarterly earnings reports on Friday from three of the largest U.S. banks capped a week in which almost everything rallied in markets. JPMorgan Chase, Citigroup, and Wells Fargo all reported above-consensus results to kick off the Q2 earnings season. However, the main economic headline over the last week was the continued deceleration in inflation, as core CPI was below 5 percent for the first time since November 2021. Consumer prices rose 0.2 percent in June and core CPI increased 4.8 percent from one year ago as durable and nondurable goods saw price declines. U.S. inflation is down from its peak of 8.9 percent, and suddenly “disinflation” is the buzzword on trading desks.
While the lower inflation numbers were welcomed by the markets, the Fed is still expected to increase the federal funds target following its next meeting on July 26. The committee is likely to feel validated that tighter monetary policy is slowing inflation while economic growth has not turned negative. Housing costs may continue to be a headwind in the Fed’s fight to get back to 2 percent inflation as higher interest rates not only reduced demand as intended but have also severely limited supply which has buoyed home prices. For those thinking that the Fed is done hiking rates, Fed Governor Waller said on Friday that he expects two more rate hikes this year.
This week kicks off with a limited calendar that consists of just NY Fed manufacturing for July. Data and supply pick up over the remainder of the week and include June retail sales, June industrial production/capacity utilization, May business inventories, and July homebuilder sentiment tomorrow, June housing starts and permits on Wednesday, and July Philly Fed manufacturing, June existing home sales, June leading indicators, and $17 billion in new 10-year TIPS on Thursday. After the 10-year U.S. Treasury yield dropped 23 basis points over the course of last week to 3.82 percent, in the early going to start the week, Agency MBS prices are better about .125 versus Friday, the 10-year is yielding 3.78, and the 2-year is 4.72.
Employment
Black Knight is hiring an MSR Account Manager in its Optimal Blue division. This person will be responsible for helping clients with strategies related to mortgage servicing rights valuation and hedging, whole loan valuations, and more through the employment of industry-leading, proprietary analytics. This position is available in Chevy Chase, Md., Denver, Colo., and San Francisco, Calif. For more details on this role, contact Betsy Meek. In addition, Black Knight is always looking for talent across many roles. Visit BlackKnightInc.com/Careers for a full listing of all open positions.
Recently named by Euromoney.com as the Best U.S. Super Regional Bank in 2023, Citizens is garnering attention for its clear vision, strong leadership and disciplined execution. With the recent strategic acquisitions of HSBC branches and Investors Bancorp., making it geographically complete, Citizens is looking for talented salespeople (managers, loan officers, account representatives) in all three mortgage lines of business – Retail, Wholesale and Correspondent businesses throughout the Northeast, MidAtlantic, Midwest and Florida. Our deep product mix allows us to help many different loan needs, from affordable loan programs such as HomeReady to a best-in-class one-time close construction to permanent product, Citizens has what you need to succeed. Our specialty loan programs such as condo/co-op financing, rate protection programs with extended rate locks, along with an amazing Private Wealth discount value proposition for high net worth banking clients, ensures you have all the tools to win in this challenging market. To learn more, contact Sean Reilly or visit here.
Nations Lending continues growth, expanded opportunities for producers! Nations Lending is continuing its growth with multiple in-house product offerings, creating a world of opportunities for its origination team nationwide. The company’s dedication to servicing almost all its agency business and its licensure in all 50 states highlights its commitment to building the businesses of its loan officers. This proves true with the expansion of its recent product offerings: RIO and ACE. RIO is the company’s DSCR product (underwritten in-house), which eliminates proof of employment or income verification, services LLCs, and caters to short-term rentals. With ACE, borrowers complete their loan application and receive financing approval before initiating the homebuying process, varying largely from traditional pre-approval methods. Corey Caster, EVP of National Production says, “We know the headwinds originators are faced with today and our goal is to give them as much ammunition as possible. Every day our Leadership Team is focused on how we can improve our platform.”
“At Guaranteed Rate Affinity we believe our loan officers need the perfect combination of technology and human touch to succeed in this market. Not only are we a fintech organization but we focus on memorable experiences to drive loan officers’ personal branding. We have a dedicated events team to support our loan officers in the creation of these experiences that will leave a lasting impact. Build your business by leveraging the power of events to make connections and partnerships organically and stay top of mind in your community. Your Events Coordinator will take care of everything from start to finish, all you have to do is host your referral partners and clients. Learn more about what sets us apart. Contact Tim McGraw to get started.”
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At some point, many city dwellers realize they’ve had enough of the tiny, exorbitantly priced apartments, the noise and gridlock, the angry drivers, and the packed sidewalks. They find themselves longing for a simpler life—perhaps even putting down roots in small-town America, where they’re not always in a rush and a walk through town is sure to include at least a few friendly faces.
As you’ve probably heard, small- and medium-sized communities, farther from the country’s historic coastal population centers, have had quite a housing renaissance in the past few years. While mortgage rates were near zero and workers had more flexibility to work remotely during the COVID-19 pandemic, many descended on pretty, tranquil, formerly affordable, smaller towns—and that caused some prices to skyrocket.
But here’s the news: It’s not too late to trade in big-city bustle for small-town serenity without busting your budget. The Realtor.com® data team found America’s most affordably priced, small towns that also have lots to offer residents. These aren’t just nice places with low-priced real estate. These are places where you might actually love to live.
“I drive down the street and see 10 people I know,” says Kelsey Janssen, a Realtor® and associate broker at Coldwell Banker Town & Country Realty of Kearney, NE, one of the top spots on our list. “Even people who don’t know you wave here.”
Janssen says she has clients who have come from California, or neighboring Colorado, and they’re blown away by how friendly everyone is—on top of how much more affordable the homes are.
Some of these smaller communities have carved a niche for themselves, whether it’s live music, like in Branson, MO, or the old-world German charm of New Ulm, MN. Each has a different flavor.
To find these desirable small towns, the Realtor.com data team looked at real estate in every U.S. “micropolitan area,” the collection of counties with a population between 10,000 and 50,000. (With the surrounding areas included, a micropolitan area can technically have a population as large as 200,000, but we’re focusing on the core town within.) Then we pulled together U.S. Census Bureau data detailing the dining, entertainment, recreation, and quality-of-life business establishments in the area, and calculated their rate per 100,000 residents. We ranked the towns using an equal combination of those categories, as well as home list prices.
We limited our list to places where the median list price per square foot is less than 150% of the national average, and we selected only the highest-ranking micropolitan area in any given state, to ensure geographic diversity.
Here’s our list of the most affordable small towns with big quality of life.
Median list price: $159,250
Our No. 1 affordable small town with lots of big-city appeal is Cortland. The residents of the town in central New York have quick access to some larger cities, sitting about 35 minutes north of Ithaca and 45 minutes south of Syracuse. And the median list price is just about one-third of the national median in May. You get a lot for your money here.
Cortland, which has a history dating to the late 18th century, is surrounded by tree-covered hills, which transform into a patchwork of orange, gold, and crimson in the fall, which sets the mood for the annual Great Cortland Pumpkin Festival.
“The community events are just wonderful here,” says Jason Hage, a local real estate broker at Hage Real Estate.
“You’ve got the Pumpkin Festival and also the Homer Fireman Field Days. We have two or three parades a year,” he adds. “Every Wednesday night from June through August, we have Music on the Green at the Homer elementary school. It’s such a cool thing to be able to hang out there with your neighbors and check out live music.”
Cortland, like any good small town, has a Main Street dotted with restaurants, bars, coffee shops, vintage boutiques, and tattoo parlors. Other local attractions that boost Cortland’s small-town bona fides include the Cortland Repertory Theatre, offering up a range of performances, and The 1890 House Museum, where residents can learn about the town’s history and architecture.
For the more adventurous Cortlanders, Greek Peak Mountain Resort is where to go for downhill skiing and snowboarding, as well as snowshoeing and cross-country skiing—and it’s only 15 minutes outside of town.
Median list price: $384,450
Located in the heart of the Midwest, Kearney is about 2.5 hours west of Omaha and 2.5 hours east of the Colorado state line.
Kearney (rhymes with “Barney”) began as a historic Army outpost, founded in 1848, along the Oregon Trail. It became an important stop for those wagons driving west during the expansion of the U.S.
Now, “it’s just one of the best places to live,” says Realtor Janssen,
She tries to tell people moving to Kearney not to be alarmed when people they don’t recognize wave at them, she says. “That’s just how friendly people here are.”
There are hiking and biking trails, parks, golf courses, and white water rafting on the Platte River bordering Kearney to the south. There are also affordable homes for sale.
A three-bedroom home on the edge of Harmon Park, just a few minutes from downtown Kearney, is listed for $189,000.
Median list price: $320,000
Branson is a lake lover’s dream. It snagged one of the top spots of the Realtor.com annual list of the nation’s most affordable lake towns for four of the past five years. The town is located in the southern Ozarks, just a little north of the Arkansas border.
The area is known for its mountainous terrain and the large bodies of water nearby, Table Rock Lake and Lake Taneycomo. The lakes were created by the sort of dams that came to typify this section of the country in the 20th century. Lake Taneycomo came first with Powersite Dam in 1913, and the much larger Table Rock Lake Dam was constructed in the 1950s.
Branson ranks the highest among all our towns in the Census Bureau’s “amusement, gambling, and recreation” industries, as the town has become a hub for tourism and live music.
The Dutton Family Theater, Clay Cooper Theatre, and Presley’s Country Jubilee all offer something for music lovers in the area. But crime is higher in the area than in the other small towns, according to AreaVibes.
Buyers here can enjoy lower home prices, as properties in the Branson area are priced about 25% below the national median. This two-bedroom, one-bathroom house is for sale at $145,000.
Median list price: $257,450
Sandusky is another popular lake town that made it on our list. Perched on the edge of Lake Erie, about midway between Toledo to the west and Cleveland to the east, the town has plenty of restaurants and bars downtown and along the thriving waterfront.
One of the most popular attractions is the iconic Cedar Point Amusement Park, which sits on a peninsula that juts into Lake Erie, offering unparalleled views from the top of the park’s 16 world-class roller coasters. In fact, Cedar Point is known around these parts as “The Roller Coaster Capital of the World.”
History buffs can soak up exhibits on shipbuilding, shipwrecks, and pirates at the Maritime Museum of Sandusky.
Homes in Sandusky are about 35% less expensive than the national median. Buyers can check out this three-bedroom, two-bathroom for $210,000.
Median list price: $127,425
Of all of the places on our list, Galesburg is the cheapest, with prices 70% below the national average. That’s after about a 25% appreciation compared with before the pandemic, without any real slump in prices over the past year of mortgage interest rate hikes.
This small town is located in the western part of the state, about an hour south of Davenport, IA.
The town has a rich history, having been established in 1837 by abolitionists from New York. It’s named after George Washington Gale, a Presbyterian minister who helped lead the local anti-slavery movement and aided in the escape of fugitive slaves, and it became a stop on the Underground Railroad.
While crime here is higher than the national average, the local economy is relatively diverse, with BNSF Railway, Knox College (also established by Gale), and the local OSF HealthCare hospital topping the list of the area’s main employers.
Buyers can snag a three-bedroom, one-bathroom ranch for just under $80,000. Or they can “splurge” on a three-bedroom, 2.5-bathroom home on the market for $185,000.
Median list price: $287,900
In the northeast corner of South Dakota, Aberdeen is known for its prairie landscape, dotted with parks, lakes, and creeks. The Mina Lake Recreation Area is where locals can find boating, fishing, and camping opportunities.
There are plenty more perks. Aberdeen is home to Northern State University, a small public university, and Presentation College, a private Catholic college. On the northern edge of Aberdeen is Wylie Park, which has “Storybook Land,” a theme park based on storybooks and fairy tales. There’s also Wylie Lake, a minigolf course, bumper boats, and go-karts.
Plus, real estate here costs about half the national average. This three-bedroom, two-bathroom ranch is listed at about $240,000.
Median list price: $280,000
In 2022, Rutland ranked high on our list of great ski towns with homes regular people can afford. It’s just 25 minutes from one of the largest ski resorts on the East Coast: Killington, known as the “Beast of the East.” But homes are about half of what they cost in Killington, VT, at the base of the resort.
Rutland has lots more to offer as well. In the warmer months of the year, the Green Mountains to the east and the Taconic Mountains to the west offer an abundance of hiking and biking trails. The town has a quaint Main Street, dotted with shops and restaurants.
And as this town, like many in the upper Northeast, turns from deep green to burnt umber and red in the fall, Rutlanders can attend the nation’s longest-running Halloween parade (that’s what the locals maintain).
Rutland homes are priced about 35% below the national average, so buyers can still find deals. This three-bedroom, one-bathroom house is for sale for $215,000.
Median list price: $202,450
Iron Mountain is no stranger to our most affordable small towns list. Located on Michigan’s Upper Peninsula and straddling the Wisconsin border, this is our northernmost affordable small town. Homes here cost about 40% less than the national average per square foot.
The area ranks the highest for museums and historical sites, a reflection of the area’s history of mining. Iron Mountain was established during the mining boom of the late 19th century.
Residents can soak up the history at the local Mining Museum, located at the Chapin Mine Steam Pump Engine, a national historic site dubbed “The Cornish Pump.” At 60 feet tall, it’s the largest reciprocating steam-driven engine built in the U.S., created to keep water out of the mines below.
The town is also a regional center for outdoor tourism, including hunting, fishing, and skiing. The Pine Mountain Ski & Golf Resort is located on the northern edge of Iron Mountain, with a small downhill ski mountain and the relatively well-known Pine Mountain Ski Jump, which hosts International Ski Federation competitions.
Median list price: $267,400
Sitting in the Minnesota River Valley, about 90 miles southwest of the Twin Cities, New Ulm is the smallest of any place on our list and one of the most distinct.
New Ulm was founded by German immigrants in 1854, and the German heritage is unavoidable. Classically German half-timbered “Fachwerk” architecture can still be found across the town. New Ulm’s downtown gets a full transformation for Christmas, and the town’s Oktoberfest is a destination for anyone looking for an authentic experience. There’s even a 45-foot glockenspiel, whose chimes can be heard throughout the town during the day, and which is adorned with a rotating stage with figurines depicting characters from the town’s history.
Flandrau State Park, on the southern edge of New Ulm, is where the town’s residents can go for swimming, camping, hiking, or just lounging on the beach.
This century-old, two-bedroom, 1.5-bathroom house has been updated and is on the market for about $215,000.
Median list price: $559,000
Last on our list—and with the most expensive real estate—is Taos. Housing prices here are about 40% more than the national average per square foot, but the area’s museums, historic sites, as well as a devotion to arts and culture earn it a spot on our list.
This small town is rich with Native American culture and Spanish colonial history. The Pueblo de Taos, about a mile north of the modern town, is an ancient dwelling of the Puebloan people who inhabited it for hundreds of years before colonists arrived. It’s estimated to have been built between A.D. 1000 and A.D. 1400, and it’s designated as a UNESCO World Heritage Site.
More recently, Taos has become synonymous with high-desert tourism, recreation, and leisure.
Taos sits at almost 7,000 feet elevation, at the base of the Sangre de Cristo Mountains, where residents and tourists can quickly access hiking and biking trails in the summer and snow sports in the winter. It has become one of the Southwest’s outdoor activity hot spots, year-round.
“People have known us for the skiing and the snowshoeing,” says Ryan Trujillo, an associate broker at Berkshire Hathaway HomeServices in Taos. “But now it’s also whitewater rafting, kayaking, and other water sports.”
If you’re like me, you’ve received lots of mailers from a bank called “Third Federal Savings & Loan,” promising a low rate mortgage with very few fees.
After maybe the 10th piece of mail from them came through my mailbox, I decided it was finally time to write a review. So here we go.
Third Federal Has Been Around Since 1938
Began during Great Depression in Cleveland, Ohio
Initially served immigrants from Poland and other Eastern European countries
Now operates in 25 states and DC, with branches in Florida and Ohio
They are a direct mortgage lender that offers purchase loans, refinances, and home equity products
First off, let’s talk a little history. Third Federal isn’t a newcomer like Better Mortgage or Rocket Mortgage.
They’ve been around since 1938, which if you’re counting, is nearly a century. That gives them some credibility, and if you ask, they’ll tell you that staying power can be attributed to conservative lending.
In other words, avoiding fads and questionable product choices like subprime or Alt-A in exchange for lasting relationships and more stability.
The company was started by Ben S. and Gerome Stefanski in Cleveland, Ohio during the Great Depression, using $50,000 in capital provided by members of the Slavic Village neighborhood.
It began by serving struggling immigrant families from Poland and other Eastern Europe nations who had settled in the area.
Over time, the business grew and thrived, and today they do business in 25 states, and run a branch network in the states of Florida and Ohio.
Where Third Federal Mortgage Operates
As noted, they do business in 25 states and the District of Columbia, but not all products are offered in all states. So pay close attention.
You can get a purchase loan or refinance in the following states: OH, FL, KY, NC, VA, MD, NJ, PA, IN, IL, GA, MO, TN.
And you can get just a refinance in these states: CO, NH, CA, NY, OR, MA, CT, DC, WA.
Additionally, home equity loans are available in: OH, FL, KY, CA, PA, NJ, VA and NC.
Lastly, bridge loans are available in all purchase markets mentioned above if you need to buy before you sell your existing home.
What Home Loan Programs Does Third Federal Offer?
You can view real rates and apply for a mortgage online
Or generate a free, true pre-approval that can even be locked in
They offer lots of interesting conventional loan products like Smart Rate ARMs and jumbo loans
But do not offer government loans or finance second homes or investment properties
While they don’t sound like a disruptor in the mortgage space, they do offer a similar digital experience along with interesting loan products.
If you want to apply for a home loan or equity line of credit, you can start the process online in minutes.
You can generate a pre-approval letter and even lock in your rate before you find a property via their prelock option.
The company specializes in conventional loans, meaning non-government stuff backed by Fannie Mae and Freddie Mac, along with jumbo loans on owner-occupied properties.
You won’t find FHA loans, VA loans, or USDA loans here, or mortgages for second homes and investment properties, but they do everything else, including home equity lines of credit.
They offer both fixed-rate mortgages and adjustable-rate mortgages, including lesser-known options like the 3/1 ARM and 10-year fixed mortgage.
Interestingly, their ARMs are tied to the Prime Rate, as opposed to say the LIBOR or some other index. Once the fixed period ends, they reset to Prime minus 1%.
They have two caps, including a periodic cap of 2%, meaning your rate could increase (or decrease) by up to two percentage points at the first adjustment.
And a lifetime cap of 6%, meaning the most the rate could increase during the life of the loan is six percentage points.
Their ARMs come in three different terms, including a standard 30-year term, 15-year term, and 10-year loan term. That’s pretty unique.
Additionally, they offer a discount on jumbo loans as opposed to charging more for them, which is typically the norm.
If you’re happy with your first mortgage, they also offer home equity lines of credit with no teaser or introductory rate.
They say it’s “always Prime minus 1.01%,” a rate they believe is 20% lower than most other lenders.
It comes with no closing costs and no prepayment penalty, and costs just $65 per year after being free the first year.
They also offer construction-to-perm loans and an end-loan mortgage product.
Third Federal Mortgage Rates
They openly advertise all their mortgage rates online
Rates offered with or without most closing costs (Low Cost option)
Their Smart Rate feature allows you to relock your rate whenever you want
Appear to be competitive with other lenders but always shop around
One thing I like about this bank is its transparency. They let you know about everything. And it’s no different when it comes to their mortgage rates.
They are advertised right on their website for all to see, without the need to apply or create an account.
You can see current rates for the 30-year fixed, 15-year fixed, 10-year fixed, 5/1 ARM, and 3/1 ARM.
Low Cost Mortgage Option – Pay Just $295 in Closing Costs!
Additionally, they show the “Low Cost” version of many of their loan programs, which requires just $295 in closing costs ($595 in NY).
They pay for everything other than pre-paid items like interest, taxes, and insurance, along with transfer taxes if applicable.
You aren’t on the hook for an application fee, underwriting fee, processing fee, appraisal, credit report, title insurance, recording, notary, and so on.
Nor do you need to pay a loan origination fee or mortgage points, unless you wish to pay discount points to obtain a lower-than-market rate.
These “Low Cost” options come with slightly higher interest rates to offset the lack of closing costs, and could be a good choice for someone who doesn’t plan to keep their mortgage long.
Their rates appear to be pretty competitive, and with low fees and no commissions paid to their loan officers, the APRs are similarly low.
One nice benefit is that they don’t charge extra for cash out refinances, so if you want to tap some equity, your interest rate won’t be higher as a result.
As always, compare their rates to other banks, credit unions, mortgage brokers, and so on to ensure you’re getting the best deal for your particular loan scenario.
Third Federal Smart Rate ARMs Feature Rate Relock Feature
Their ARMs feature a free Rate Relock option that allows you to fix your rate at any time
If your 3/1 ARM or 5/1 ARM is about to reset higher, you can relock for just $295
Fixed rate is then extended for three or five years, respectively
You can take advantage of this option as many times as you’d like during the loan term
They also offer a “Rate Relock” feature that allow you to relock your rate at any time if you take out one of their so-called “Smart Rate” adjustable-rate mortgages.
The process is apparently super simple and quick, and does not require an application or appraisal. However, I do believe they check your credit.
You just request the Rate Relock, pay a low $295 fee ($595 in NY), and your new interest rate will be relocked at current rates.
In the month following your request, the new interest rate will go into effect.
That way you don’t have to worry about your ARM exploding higher after the initial fixed period comes to an end.
It could be super beneficial if rates remain low or go down, as you could lower the interest rate on your mortgage without refinancing.
The company says with Rate Relock, “you’ll never have to refinance again!”
While true or not, it’s a neat little feature, just make sure the convenience isn’t built into a higher mortgage rate versus the competition.
Why Use Third Federal to Get a Mortgage?
They offer unique home loan programs you can’t find elsewhere
Purchase loans come with Lowest Rate Guarantee and On-Time Closing Guarantee
Standard rate lock period is 60 days as opposed to just 30
They service all the loans they close instead of selling them off to other companies
Assuming you live in a state where they do business and your property qualifies, Third Federal offers some really interesting loan options like ARMs with various loan terms.
Additionally, their mortgage rates appear to be pretty competitive, especially with the lack of most closing costs on their Low Cost option.
If you have a jumbo loan, your rate could be even lower, and all mortgages come with a standard 60-day rate lock as opposed to just 30 days.
Those purchasing a home with a Third Federal mortgage can take advantage of both their Lowest Rate Guarantee and On-Time Closing Guarantee.
And you can take out a mortgage up to 85% LTV without paying private mortgage insurance.
Also, they service 100% of the loans they originate, as opposed to selling them off to some unknown loan servicer you might not like.
Ultimately, they are probably a good choice for someone interested in taking out an ARM vs. a fixed mortgage.
You get added flexibility on the ARM with the Rate Relock feature, which could be really beneficial if mortgage rates continue to stay flat and/or low.
However, as mentioned, they do have some limitations when it comes to borrowing on all property types, and their fixed mortgages might not be as competitive as other banks.
Mortgage Passport Review
Recently, Third Federal launched a new online lending division known as “Mortgage Passport.”
They refer to the company as the coming together of high tech and human touch. In other words, same great service you’d get from a bank, but with the latest technology.
They pride themselves on their low rates, easy-to-use digital loan application, and their “smart” non-commissioned loan officers.
Mortgage Passport appears to offer refinances in the following states: CA, CO, CT, DC, GA, IL, IN, KY, MA, MD, MO, NC, NH, NJ, NY, OR, PA, TN, VA, and WA.
The Mortgage Passport division seems to be focused on refinances, and specifically cash out refinances that allow you to tap equity.
And they aren’t shy about showing off their mortgage rates, with daily rates prominently displayed on their website.
You can easily compare standard closing cost mortgages, no lender fee mortgages, and no closing cost mortgages side-by-side without having to log in or provide personal information.
From what I saw, their mortgage rates were very competitive, even the no-fee options. Note that no cost loans are not available in NY.
To get started, simply head to their website, click on “Apply Online” and you’ll be off to the races.
From there, a loan officer will reach out to review your application and collect a deposit (likely an appraisal fee) so your loan can be processed and underwritten.
While there aren’t a ton of Mortgage Passport reviews just yet, they do have a 4.9-star rating out of 5 on Bankrate from 8 reviews, with a 100% recommend rating.
And on their own website, a 4.8-rating and 100% recommend rating from five reviews. So it appears the feedback thus far is very positive.
If you’re looking for a digital mortgage process and a low mortgage rate on a refinance (with a variety of different closing cost options), Mortgage Passport could be a good choice
Here’s some good news – first-time homebuyers in the state of New York will now be able to take advantage of a new federal tax credit.
The so-called “New York State Mortgage Credit Certificate” (MCC) will enable first-time buyers in the state to claim a tax credit equal to 20 percent of their annual mortgage interest costs.
For example, a borrower with a $150,000 mortgage at 5.5 percent would pay roughly $8,200 in interest during the first year.
With the mortgage credit certificate, that borrower would be able to claim 20 percent of the interest, or $1,640 as a direct tax credit, saving about $137 month; the remaining portion would also be tax deductible as usual.
The average homeowner would save approximately $1,520 per year over the first 10 years of the mortgage with the program.
“The best way to jump-start the housing market is to encourage home purchases by first-time homebuyers,” said NY Governor David A. Paterson, in a press release.
“The New York State Mortgage Credit Certificate will make it easier for first-time homebuyers to buy their first home and will help stimulate the State’s economy.”
“It also means some form of federal tax credit will be available for homebuyers even after the federal government’s tax credit program expires in November.”
The state plans to provide about $20 million in MCC tax credits, with 700 new homeowners expected to take advantage of the program this year alone.
In addition to the MCC, borrowers in the state can take advantage of the existing $8,000 first-time homebuyer tax credit.