The start of the New Year has already proven to be an eventful one for the mortgage industry. With increasing rates, upcoming fee announcements, and new borrowing limits, it’s more important than ever to stay updated with the latest information. Let’s get started with this week’s Mortgage Monday update!
Rates Update
The first week of 2022 brought expected rate increases that will likely continue into the New Year. On January 6, Freddie Mac reported “the highest level [of mortgage rates] since May 2020” with significant increases for both 30-Year and 15-Year options. This is the result of growing inflation and increased economic activity – even in the face of continued Omicron developments.
Despite all of this, mortgage rates are still relatively low; how much longer they will remain low, however, is up in the air. This much of an increase this early into the year should be taken as an indicator of more rate growth to come, so contact your Total Mortgage loan officer today if you’ve been considering a new home purchase or refinance.
FHFA Announces Upfront Fee Adjustments for High-Balance Loans
Last Wednesday, the Federal Housing Finance Agency (FHFA) announced upcoming fee increases for certain Fannie Mae and Freddie Mac home loans. Effective April 1, 2022, upfront fees for these options will have the following increases:
Upfront fees for high-balance loans will increase between 0.25 and 0.75 percent.
Upfront costs for second home loans (non-primary residence) will increase between 1.125 and 3.875 percent.
These increases will ultimately depend on each product’s loan-to-value ratio. “High-balance” loans qualify as any that go above the conforming baseline limit newly introduced on January 1 – more information on that below.
The main takeaway from this announcement: if you’re in the market for a higher-than-usual home loan or financing for a second property, now is the time to act. With mortgage rates increasing and updated fees coming in April, securing a home loan sooner than later will save you money in the long run. Contact your Total Mortgage loan officer to get started.
Now In Effect: New Borrowing Limits for Conventional and FHA Options
At long last, the 2022 borrowing limits for Conventional and FHA loan options are now in effect. These changes were originally proposed in late 2021 with the intention of combating rising market prices – and as of January 1, they’ll be offering more spending power than ever to borrowers everywhere. The conforming limit for single-unit home loans is now $647,200 – an 18.05 percent increase from last year’s limit.
Federal Housing Administration (FHA) loans also received some attention with updated borrowing amounts for 2022. See below for a full breakdown of your new options and contact your Total Mortgage loan officer if you have any questions.
In Closing
Even with just one week now in the books for 2022, we already have plenty of news to keep in mind and industry variables to monitor. If you’ve been considering a new home purchase, now may be the time; mortgage rates have remained low in recent months but are now following the upward trend experts have been anticipating.
For now, enjoy the rest of your Monday and contact us if you have any questions. Thanks for reading!
It’s almost mid-December, which means it is time for another round of mortgage and real estate predictions for the upcoming year.
I think it’s safe to say that 2021 has been another stellar year for both the mortgage industry and the housing market.
But it’s going to be hard to top or even match what we’ve experienced this year in terms of mortgage origination volume and home price gains.
However, the party might not be over yet, with additional home price gains on the horizon due to similar factors in play.
Let’s see what 2022 might have in store as we once again look into the crystal ball.
1. Mortgage rates will go up, but only slightly.
Experts have been calling this for years to no avail. We have been told year in and year out that the low mortgage rates are leaving the station.
But year after year, they remain. In 2022, I do expect them to rise somewhat, but not by a meaningful amount.
Sure, your 30-year fixed rate may go from 3% to 3.5%, but that’s not a huge jump. And any 30-year fixed in the 3s is generally very favorable.
It will put pressure on prospective home buyers who also have to grapple with rising home prices and a lack of inventory.
And it will certainly dent mortgage refinance demand, as most existing homeowners have already locked in a lower rate.
However, as I said in my 2022 mortgage rate predictions post, there will likely be opportunities during the year to snag a very low mortgage rate.
Why? Because the economy continues to be a bit of a mess and we’re still sorting out COVID. Until we put that stuff behind us, interest rates could swing in both directions.
2. Home prices will continue to rise a lot
Don’t be fooled by the old mortgage rates up, home prices down fallacy. There’s not a negative correlation, despite what everyone plainly assumes.
Both can go up at the same time, and that’s exactly what I expect to happen in 2022. Granted, mortgage rates will probably only rise slightly, while home prices will continue to surge.
For some reason, a new year gives folks new hope that a trend will simply come to an end.
But why would home prices just stop going up because it’s a new calendar year? The answer is they won’t.
As I’ve said before, the same fundamentals that have been at play for some time, continue to be in play.
There’s a severe lack of inventory and a surplus of would-be home buyers out there. It doesn’t take a genius to figure out what happens with prices.
When there’s a shortage of something people want/need, a premium must be paid until production ramps up.
Unfortunately, production (new home building) is still way behind and won’t catch up for a while.
In the meantime, expect more of the same, and higher 2022 home prices across the board.
The only difference is that estimates are all over the place, with some calling for just a 2.5% increase (CoreLogic) and others saying 11% (Zillow) or even 16% (Goldman Sachs) .
Personally, I’m bullish and going with the higher figures out there, but recognize gains will probably be lower in 2022 than they were this year.
3. Cash out refinances will finally get hot
Housing pundits have been talking about the massive pile of collective home equity we’ve been sitting on for years now.
And it has only grown even larger since then, with equity levels the highest on record.
In short, American homeowners have a ton of equity in their properties that is ripe for tapping via a cash out refinance or a second mortgage, such as a HELOC.
But we have yet to see a massive cash out boom like the one experienced in the early 2000s housing market.
I expect cash out refis and HELOCs to have their day in the sun in 2022 as more and more homeowners realize how much their properties have appreciated.
Per Freddie Mac, about 42% of refinances resulted in cash out this year, which is up a bit from prior years, but nowhere close to the 80%+ share seen in 2006 and 2007.
Despite slightly higher mortgage rates, it may still be worth unlocking this valuable equity to pay for upgrades, college tuition, and other expenses.
After all, a 3% 30-year fixed rate is still phenomenal, and many homeowners can take out a large sum of money while keeping their loan-to-value (LTV) ratio very low.
And you can expect mortgage lenders to aggressively pitch this product now that rate and term refinances have mostly been exhausted.
4. The bidding wars will remain (and may even worsen)
It won’t get any easier buying a home next year. Even if mortgage rates are slightly higher, this won’t “bring prices down to earth.”
I keep hearing that line and it just doesn’t make any sense. Financing has never been the problem here. It’s always been a lack of supply.
And there will continue to be a lack of supply well into 2022, so why should competition be any less?
If anything, I could see more desperation fueled by these expected higher interest rates as buyers won’t want to miss out on their low rate too.
If you think about the last few years, at least mortgage rates were rock bottom. Now that you’ve got to worry about a rising rate and finding a home, the panic could be even more pronounced.
As always, prepare yourself adequately, start looking for a home immediately, and be aggressive if you want to win the bidding war.
Oh, and make sure you use an experienced real estate agent who knows how to get the job done.
5. Home sales volume will be flat or even lower next year
While Redfin believes new listings will hit a 10-year high next year, I’m not so sure.
As much as there is motivation to sell a home due to sky-high asking prices, there remains the dilemma of where to go next.
Sure, you might be able to move to a different state, but those “cheap states” aren’t so cheap anymore.
At the same time, supply chain issues and a lack of workers is making it hard for home builders to ramp up supply of new homes.
Collectively, this will make it difficult for home sales to increase next year, as much as we all want to make a mint selling our homes.
This also reinforces the idea that home prices will continue to go up, and that the housing market will remain super competitive.
That being said, it will be a very lively housing market in 2022, just not one that necessarily sees a lot of growth.
6. Home buyers will continue to flock to new states
Yes, the cheap states aren’t so cheap anymore. But that won’t stop people from getting out of town.
Many young, prospective home buyers have been priced out of their local markets in California and other hot spots.
This, combined with the work-from-home new normal (sprinkle in some politics), will fuel a continuation of migration seen in recent years.
This means more folks from the Golden State will make the move to nearby states such as Arizona, Idaho, Nevada, Texas, and Utah.
While more affordable for them, it will exacerbate those local markets and make them more expensive for the people who already rent there.
Some of the hottest housing markets of 2022 include Salt Lake City, Utah, Boise, Idaho, Spokane, Washington, Indianapolis, Indiana, and Columbus, Ohio.
Basically any metropolitan area that was/is considered cheap and desirable will be less so next year as the out-of-state home buyers storm in.
So no matter where you happen to be, expect a fierce seller’s market.
7. First-time home buyers will purchase a second home or investment property (first)
This is an interesting one that I’m borrowing from Zillow because it’s seemingly odd, yet kind of savvy. And so 2021 and beyond.
Typically, a first-time home buyer will purchase a home to live in nearby where they work.
But because the real estate market is so hot and in such short supply, high-earning, cash-rich Millennials and Gen Zers may actually buy a second home or investment property instead.
The thinking is that they can get in on the real estate market by making an investment, even if it’s not in their overpriced backyard.
For example, a well-earning Gen Zer who lives in Santa Monica that may be priced out there could purchase a more affordable second home in Phoenix, Arizona, or an investment property in Las Vegas, Nevada.
Of course, this isn’t necessarily for the faint of heart, and this is exactly the type of thing that leads to trouble down the road.
But as long as mortgage lenders don’t get too careless with underwriting standards, it doesn’t signal the start of a housing crisis.
It does tell you just how crazy real estate has gotten though.
8. Home buyers will return to the city
While the suburbs have been hot in our post-COVID-19 world, I do believe more buyers will start to consider the city life again.
We will get through this pandemic, and once life returns to mostly normal, lots of folks will wish they owned in an urban center.
Prices in many once-hot areas close to lots of cool restaurants, bars, etc. have been deflated, but I expect that to reverse course in 2022.
The urban living trend isn’t going to disappear, even if more people work from home, or desire abundant outdoor space.
So look out for condo prices to see more price gains in 2022 and beyond, and play catch up with single-family residence gains.
There’s already proof in data here – Redfin noted that users filtered searches to single-family homes only (excluding condos/townhomes) in just 28% of searches in September.
That was down from a high of 37% in July 2020, when living in a city seemed unthinkable.
Condos also tend to appreciate the most at the tail end of a housing boom, which we could be approaching, so it all kind of makes sense.
9. There will be more layoffs, closures, and mergers
While there is some hope that cash out refis and home purchase loans will keep mortgage volumes afloat, it won’t be enough for all mortgage lenders out there.
For example, Freddie Mac is forecasting $2.1 trillion in home purchase origination in 2022, up from $1.9 trillion this year.
But also expects refinance origination volume to fall from $2.5 trillion to $995 billion. That’s gonna be a problem for the shops that specialize in refinances.
Ultimately, total volume dropping from $4.5 billion to $3 billion will be an issue and there’s no way around it.
As a result, you can expect more mortgage layoffs, similar to the Better.com layoffs, along with some outright closures.
I also believe there will be more consolidation in the fragmented mortgage market, with bigger banks and lenders swallowing up smaller ones.
10. The housing market won’t crash in 2022
I already said home prices will go up, but I’ll reiterate that the housing market won’t crash in 2022, either.
There is a large group of people who believe the housing market is due for a correction, mostly just because home prices have gone up a ton.
Sure, it’s easy to raise eyebrows these days when looking up what your house is worth, or your neighbor’s.
But that alone isn’t enough to make them reverse course, especially when there is a continued, historic lack of supply.
Additionally, mortgage lenders have yet to return to the loose underwriting that dominated the space in the early 2000s, and ultimately created the mortgage crisis.
For me, that means another year of strong housing appreciation, and another year without a housing market crash.
At the same time, it does mean we will be one year closer to a crash, which as history tells us, is inevitable.
Your debt-to-income ratio—the total of all your monthly expenses divided by your gross monthly income—is one of several factors that impact your mortgage rate, our experts say. Your debt-to-income ratio (DTI) determines the loans you can get and a higher DTI generally means you won’t get access to loans with lower mortgage rates.
“The better programs have thresholds with lower debt-to-income ratios. And better programs translate into better rates,” says Kevin Leibowitz, a mortgage broker at Grayton Mortgage.
Impact of DTI on buying choices
In New York City, co-op boards have their own DTI requirements for buyers, usually 22 to 24 percent. “Co-ops are usually stricter than banks when looking at DTI,” says Deanna Kory, a leading agent at Corcoran.
Of course lenders are also assessing your financial viability. “Every bank has guidelines with regard to the maximum debt-to-income they allow in order to approve a loan,” says Melissa Cohn, regional vice president at William Raveis Mortgage.
When you’re shopping for a mortgage, a loan officer or mortgage broker will offer you a rate based on your borrowing profile. This includes your credit score, your down payment, whether you’re buying a condo, second home, or investment property, and whether the mortgage is a cash-out refinance. “All these factors are layered on top of each other and it becomes a decision-tree matrix,” Leibowitz says.
Many lenders will allow for DTI ratios up to 50 percent but the terms available for the loans with a higher DTI are typically worse than those with lower DTI ratios. “Many adjustable and most jumbo lenders cap the maximum DTI at 43 percent in order to qualify,” Cohn says. If you are financing more than 80 percent and applying for private mortgage insurance (PMI), Cohn says the cost of the PMI increases with a higher DTI.
Put another way—if you have a small down payment, a low credit score, and a high DTI, Leibowitz says, “either the programs are going to disappear or the programs that are available come with worse terms.”
For example, let’s say a condo buyer has a low credit score and a high DTI and they are putting 50 percent down on a $500,000 apartment. That’s not necessarily a bad loan for a lender, Leibowitz says. A buyer is unlikely to default on $250,000 of equity or cash they’ve just put down.
However a higher DTI might rule out access to a loan with a better rate, Leibowitz says.
How to improve your DTI
One of the best ways to improve your DTI ratio is to limit or pay down any consumer-related debt. This might mean paying off your credit card debt, delaying a big purchase, holding off on a leasing arrangement for a new car, or setting up a loan repayment program for any student debt.
If you own a second home or hold a high balance loan amount, you may want to refinance sooner rather than later. That’s assuming you were thinking of refinancing.
The same goes for those planning to purchase a second home or take out a mortgage with a high balance, which is a loan amount above the baseline conforming limit.
The conforming limit for 2022 is $647,200, so if your loan amount will be north of that, take note.
Fannie Mae and Freddie Mac are raising loan-level price adjustments (LLPAs) for both types of transactions come April 1st.
Depending on the details of your loan scenario, this could drastically increase your closing costs and/or mortgage rate.
Second Home Mortgages and High Balance Loans Going Up in Price
In an effort to bolster its support for affordable housing and sustain equitable access to homeownership, the Federal Housing Finance Agency (FHFA) will be raising (LLPAs) for certain transactions.
These LLPAs get passed onto consumers in the form of either more expensive closing costs or higher mortgage rates.
As noted, they pertain to the financing of second homes, whether a purchase or refinance, and high-balance loans, those which exceed the conforming limit.
The idea here is that these types of home loans go toward more affluent individuals. And they also create more risk for Fannie Mae and Freddie Mac, which are backed by taxpayers.
After all, large loan amounts and vacation properties are more likely to default and/or create larger losses for the Enterprises.
And that could jeopardize the mission of Fannie and Freddie, which is mainly to provide affordable financing to first-time home buyers, as well as low- and moderate-income borrowers.
Looked at another way, these new fees will subsidize programs like HomeReady, Home Possible, HFA Preferred, and HFA Advantage, which provide cheaper financing to lower-income borrowers.
Speaking of, fees won’t be going up on those programs, or for first time home buyers in high-cost areas with incomes at/below 100 percent of area median income.
How Much More Expensive Will Mortgage Rates Be in April?
Before you get too worried, the cost of these changes may be minimal, depending on the loan scenario in question.
For example, upfront fees for high balance loans will increase anywhere from 0.25% to 0.75%, depending on the loan-to-value (LTV) ratio.
If we’re talking about a loan amount of $750,000 on a primary residence, another .25% in fee is roughly $1,875.
This might move the dial on your 30-year fixed mortgage from 3.25% to 3.375%, or simply increase closing costs.
If that fee is .75% higher due to an LTV of 80%, we’re talking $5,625 in cost, which will more than likely increase your mortgage rate an eighth of a percent or more.
It’s not the end of the world, but it’s yet another thing working against homeowners and home buyers as mortgage rates have started off 2022 higher.
And they tend to peak during spring and early summer, which means financing will be that much more expensive.
The situation is even worse for second home buyers or owners, where pricing adjustments will increase anywhere from 1.125% to a staggering 3.875%.
Using our same loan amount of $750,000, even at a low LTV ratio, the increase in upfront costs could equate to around $10,300.
If we’re talking a high balance loan on a second home at 80% LTV, which isn’t out of the question, it’s an additional cost of about $31,000.
Again, depending on if you let the rate absorb these additional costs, you could be looking at a rate that’s .25% to .50% higher, or more.
Second Home Owners and Those with Large Loan Amounts Should Review Their Mortgages Now
If you believe these changes may affect you, it could be a good time to review your outstanding home loans.
The same goes for prospective home buyers thinking about purchasing an expensive property or a vacation home, which are en vogue due to COVID.
As illustrated above, these higher pricing adjustments have the ability to raise mortgage rates considerably. Or at the very least bump up your closing costs.
With home prices and mortgage rates also seemingly headed higher by spring, it could make sense to accelerate any refinance or home purchase plans to avoid these looming fees.
The FHFA said the new fees won’t go into effect until April 1, 2022 to “minimize market and pipeline disruption,” aka higher pricing for confused customers.
But watch out for mortgage lenders beginning to price in changes earlier on. Simply put, this is yet another reason to make any planned move sooner rather than later.
If you own an investment property, the same types of pricing changes might be on the horizon. So if you’re looking for better terms or cash out, now might be the time.
The Green Mountain State’s most expensive listing just hit the market for $20 million.
The 15,774-square-foot megamansion sits on a 110-acre lot in the rolling fields of Stowe, VT.
“To have that kind of acreage in a most desirable neck of the woods as Stowe is certainly one of the things that makes this property stand out,” says listing agent Geoffrey Wolcott, of Four Seasons Sotheby’s International Realty.
Plus, that immense acreage provides significant opportunities for an ambitious buyer.
“The 110-acre parcel size qualifies it to permit for a PUD (Planned Unit Development) commercial development,” Wolcott says.
Exterior
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Solarium
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Standout estate
The stone, slate, and copper, European-style country retreat was built in 2004 and features six bedrooms and 10 bathrooms.
“The quality of the home is second to none,” Wolcott notes. “There are wall coverings that are made of sculpted suede, and Italian crafted interiors found throughout. Most of the woodworking was done by a crew from Italy.”
A cozy solarium with a fireplace is surrounded by a wall of windows, offering a breathtaking mountain views.
Kitchen
(Realtor.com)
Living room with fireplace
(Realtor.com)
The stylish, gloss-black and stainless Boffi kitchen features a concealed, walk-in pantry. The listing says the cabinetry shows more like “a work of art.” There are four distinct prep stations here and plenty of dining space in the breakfast room.
A remarkably designed living room has a soaring ceiling and another fireplace.
“It’s a very dramatic room with ceilings that are about 2.5 stories high,” Wolcott says.
The library features built-in bookcases and handsome, wood-paneled walls.
Posh pool
One of the most impressive amenities just might be the mosaic-tiled, indoor pool and spa. It’s surrounded by loads of limestone, along with a coffered ceiling overhead and walls of windows that overlook the property.
There’s also an adjoining gym.
And when it comes to entertaining, the home is fully quipped. There’s a circular wine cellar with a tasting area, a dumbwaiter that serves three levels, commercial laundry, and a “self-contained guest suite.”
Pool
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Wine cellar
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Bedroom
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Patio
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An enormous primary suite boasts a soaring ceiling and a sitting area in front of arched windows that offer pristine outdoor views. The spalike primary bath has built-ins and many windows to soak in the scenery.
The property also comes with a four-car, heated garage and extensive woodland trails.
So who will move in next?
“It’s very difficult to speculate who will be the next buyer, as buyers come from all over the world—and often where you least expect it,” Wolcott says. “It will certainly be someone who is looking for a second home, with that kind of acreage, and the ability to turn it into a family compound.”
A 15-time Grammy Award-winning singer/songwriter/producer, not to mention best-selling author, entrepreneur and The Voice judge, Alicia Keys is a trailblazer.
With a thriving career that spans more than two decades, the Empire State of Mind singer is one of the biggest names in the music industry. And her personal life is equally full of achievements.
Back in 2010, she married record producer/rapper Swizz Beatz (by his real name, Kasseem Daoud Dean), and the two welcomed two children to the family: Egypt Daoud and Genesis Ali Dean.
So it only makes sense that this exceptional artist lives in a house that’s just as impressive as her neverending list of trophies and awards.
Alicia Keys’ house in La Jolla, California. Credit: Gary Kasl courtesy of The Agency
In 2019, Grammy Award-winning singer Alicia Keys and husband Swizz Beatz paid $20.8 million for a striking cliffside mansion in San Diego’s upscale La Jolla neighborhood.
The high-profile purchase even made its way to our TV screens, as part of Bravo’s Million Dollar Listings LA show, which brought the already-famous property back into the spotlight.
The one-of-a-kind architectural masterpiece — widely known as The Razor House — has been getting people talking since it was first designed in 2007 by San Diego-based architect Wallace E. Cunningham.
The imposing concrete and glass mansion is perched on the edge of a cliff overlooking the Pacific Ocean.
And while many have been dubbing it ‘the Iron Man house’ due to its resemblance to Tony Stark’s house, it may be time for a new nickname that suits its famous owners better.
Alicia Keys and Swizz Beatz, the famous owners of the Razor House. Image credit: Georges Biard, CC BY-SA 3.0, via Wikimedia Commons
A closer look at Alicia Keys’ house, an architectural marvel overlooking the ocean
The modern cliffside mansion was designed by AD100 architect Wallace E. Cunningham, most famous for his striking residential projects, which he likens to sculptures.
More specifically, as the architect himself put it, he designs “one-of-a-kind sculptures for people to live in.”
SEE ALSO: Drake’s House in Toronto, the Star of his ‘Toosie Slide’ Video, Is Peak Luxury
And that couldn’t be more true for some of his iconic residential projects: the Harmony House and the Wing House in Rancho Santa Fe, and the architecturally distinct Razor House that Alicia Keys and Swizz Beatz now call home.
Alicia Keys’ house in La Jolla, CA, known as The Razor House. Credit: Gary Kasl courtesy of The Agency
Perched on the edge of a cliff overlooking the Pacific Ocean, the concrete and glass structure has long been rumored to be the real-life version of Tony Stark‘s futuristic mansion.
But the home has never made an appearance in any blockbuster movie.
View from the Razor House at sunset. Credit: Gary Kasl courtesy of The Agency
It was, however, used for a VISA Black commercial and a luxurious Calvin Klein ad, but that’s pretty much all the screen time the mansion got.
That’s a shame because the house itself is worthy of the biggest screens on earth.
Nearly every wall in the residence is glass, while the floors are mostly hewn from travertine stone. An extra-long infinity pool (one of many) juts out over the cliff’s edge, turning swimming into the stuff dreams are made off.
Front-facing view of Alicia Keys’ home. Credit: Gary Kasl courtesy of The Agency
Swizz Beatz and Alicia Keys’ house has endless concrete terraces that make the most out of the mesmerizing views of surrounding hills and the ocean below.
The three-story home comes with 6 bedrooms and 6.5 baths, with nearly every room opening up to stunning views.
SEE ALSO: Lizzo’s house in Los Angeles, a $15M luxe ‘treehouse’ with a celebrity past
Inside Alicia Keys’ house. Credit: Gary Kasl courtesy of The Agency Bedroom with ocean views inside Alicia Keys’ house. Credit: Gary Kasl courtesy of The Agency
Fashioned with a state-of-the-art kitchen and giant round living room anchored by a fireplace, Alicia and her music producer husband, Swizz Beatz, have everything they need to unwind with their sons, Egypt and Genesis, including several outdoor lounge areas.
Inside Alicia Keys’ house, La Jolla, CA. Credit: Gary Kasl courtesy of The Agency
SEE ALSO: Where does Adele live? A look at the $58M ‘house that Rocky built’
Inside Alicia Keys’ house, La Jolla, CA. Credit: Gary Kasl courtesy of The Agency
Among its most notable amenities, the Razor House lists: an extensive fitness space, two steam rooms, a den, a theater, and a library with a custom-made Ralph Lauren pool table.
Inside Alicia Keys’ house, La Jolla, CA. Credit: Gary Kasl courtesy of The Agency
The Razor House was initially listed for $30 million
Initially listed for sale in 2018 for $30 million, La Jolla’s most famous home took a little over a year to make a buyer fall in love with it up to the point of committing enough to put a ring around…. those house keys.
The Razor House in La Jolla, CA. Credit: Gary Kasl courtesy of The Agency
But when it did, it nabbed more than just a nice selling price and some very famous new owners.
Putting an end to the property’s year-long run on the market, Alicia and her powerhouse music producer husband Kasseem Dean, better known as Swizz Beatz, purchased the Razor House for a cool $20.8 million.
The $20M+ selling price (despite being a considerable drop from the initial asking) made it one of the most expensive homes sold in La Jolla, California in 2019 — proving once again that whatever Alicia Keys does, she does in style and ready to set new records!
Neither Alicia Keys nor Swizz Beatz (who has produced hit singles for the likes of Kanye West, Jay-Z and Beyoncé) had any connection to La Jolla or the larger San Diego area when they bought the home, leading people to speculate that the iconic residence will serve as a vacation home for the couple.
But a tour given to Architectural Digest in late 2021 proved them wrong.
Not only do Alicia Keys and Swizz Beatz live in the Razor House, but they’ve turned it into an elegant, art-filled, inviting home. Take the tour:
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The history of the Razor House before it became Alicia Keys’ home
According to the San Diego Reader, the futuristic structure was named after the land it sits on, a three-quarter-acre lot near Razor Point.
Created for original owner Don Cooksey (a software designer and entrepreneur who later filed for bankruptcy) many architects initially backed away from the ambitious project, calling it “rebuildable”.
That’s until Cooksey approached Wallace E. Cunningham, who bought the modernist gem to life — and built the dramatic estate to match the breathtaking landscape that surrounds it.
By 2011, following the financial hardships of its initial owner, The Razor House ended up in bankruptcy sale.
The Razor House in La Jolla, CA. Credit: Gary Kasl courtesy of The Agency
According to Realtor.com, Donald Burns, a Florida-based telecom entrepreneur and inventor of the magicJack — a device that allows you to make calls from your computer — purchased the property as a second home at the 2011 bankruptcy sale.
Burns paid $14,097,000 for the home and invested heavily in the property.
“He made a lot of upgrades to it,” Matt Altman, one of the property’s listing agents and star of reality TV show Million Dollar Listing Los Angeles said.
“He updated to the next level. He wasn’t doing this to make money; he was doing this to make a nice home. He did a significant amount of work on this house.”
The entire home is automated and optimized for iPad control of everything from audio and visual systems to motorized window coverings and control of the home’s radiant floor heating, air conditioning.
There’s also a backup generator to ensure power never goes down, and an entire computer room is dedicated to housing the home’s automation control systems. So basically, The Razor House may not be Iron Man’s house, but it does comes with its own Jarvis.
*This article was first published in September, 2019, reporting on the famous couple’s purchase of the home. It has since been updated for timeliness and accuracy.
More celebrity homes
Travis Scott’s House is a $23.5M Ultra-Modern, Yacht-Inspired Mansion Where Does Lady Gaga Live? Check Out Her ‘Gypsy Palace’ in MalibuZendaya Owns a $4 Million Home Fit for a Disney Princess Chrissy Teigen and John Legend’s house in Beverly Hills
The home-buying process can seem daunting for first-time homebuyers. The good news is there are some mortgage lenders that offer home loan products designed to provide more ease with the process, which can be very appealing to many first-time future homeowners.
To help you get started, CNBC Select rounded up a list of the best mortgage lenders first-time homebuyers should consider. We evaluated home loan lenders based on the types of loans offered, customer support, credit score requirements and minimum down payment amount, among others (see our methodology below.)
Beyond just the lowest rates, it’s important to go with the lender that offers the best loan terms to suit your needs. There’s a learning curve when it comes to homeownership, but we’ve included an FAQs section below to help you get a better understanding of some aspects of the process.
The best mortgage lenders for first-time homebuyers
Best for loan variety
PNC Bank
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, HELOCs, Community Loan and Medical Professional Loan
Terms
10 – 30 years
Credit needed
Minimum down payment
0% if moving forward with a USDA loan
Pros
Offers a wide variety of loans to suit an array of customer needs
Available in all 50 states
Online and in-person service available
Cons
Doesn’t offer home renovation loans
Who’s this for? PNC Bank has a wide variety of home loan options, making it easy for first-time homebuyers to find a loan that suits their circumstances. This lender offers conventional loans, FHA loans, VA loans, jumbo loans and HELOCs. On top of that, PNC Bank offers USDA loans, which can be tougher to find among some lenders. PNC Bank also has some specialized loan options, like the Community Loan, which is meant for individuals with lower cash reserves and allows for a down payment as low as 3% and no PMI (private mortgage insurance).
It also offers a Medical Professional Loan for interns, residents, fellows or doctors who have completed their residency in the last five years. Eligible borrowers for this loan can borrow up to $1 million and won’t have to pay PMI, regardless of their down payment amount.
In addition to all these offerings, PNC Bank gives eligible borrowers the chance to qualify for a $5,000 grant to be used toward closing costs. Eligible borrowers must have an income at or below 80% of the median household income for the metropolitan statistical area (MSA), or their desired property must be located in a low- or moderate-income census tract as designated by the FFIEC, according to PNC’s website.
Best for educational offerings
Bank of America Mortgage
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loans, FHA loans, VA loans, jumbo loans, doctor loans and the Affordable Loan Solution mortgage
Terms
15 – 30 years
Credit needed
Not disclosed
Minimum down payment
0% if moving forward with a VA loan; 3% if moving forward with the Affordable Loan Solution mortgage
Pros
Offers a wide variety of loans to suit an array of customer needs
Offers an Edu-Series for educating first-time homebuyers as well as other learning resources and materials
Online and in-person service available
Fixed-rate and adjustable-rate mortgages offered
Reduced cost of mortgage insurance
Cons
Doesn’t offer USDA loans
Who’s this for? Bank of America stands out for its first-time homebuyer educational resources. Aside from home loan calculators, which are typical for mortgage lenders to provide on their websites, Bank of America has an online “Edu-Series” for first-time home buyers. There are also guides on its website that break down key terms and a list of FAQs geared toward first-time home buyers.
Bank of America also offers a variety of loan options, including a home loan for medical professionals. With this loan, doctors, dentists, residents and fellows can make down payment minimums that are tiered based on the size of the loan they’re applying for. They’ll put down at least 3% on mortgages up to $850,000, at least 5% on mortgages up to $1 million, at least 10% down on mortgages up to $1.5 million and at least 15% down on mortgages to $2 million. If you’re a medical professional, Bank of America will also exclude your student loan debt from your total debt when you’re applying for the loan. This could bring down your debt-to-income ratio for the purposes of applying for the loan and make it easier for you to qualify.
Even if you aren’t a qualifying medical professional, you can still potentially take advantage of tiered down payment terms through the Affordable Loan Solution mortgage option. With this loan, eligible borrowers can make a down payment as low as 3% on loan amounts up to $726,200, and as low as 5% on mortgages up to $1,089,300. Mortgage insurance would be required if making down payments lower than 20%, but according to Bank of America’s website, the mortgage insurance would come at a reduced cost compared to that of other conventional loans.
Best for lower credit scores
Rocket Mortgage
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA loans and Jumbo loans
Terms
8 – 29 years, including 15-year and 30-year terms
Credit needed
Typically requires a 620 credit score but will consider applicants with a 580 credit score as long as other eligibility criteria are met
Minimum down payment
3.5% if moving forward with an FHA loan
Pros
Can use the loan to buy or refinance a single-family home, second home or investment property, or condo
Can get pre-qualified in minutes
Rocket Mortgage app for easy access to your account
Cons
Runs a hard inquiry in order to provide a personalized interest rate, which means your credit score may take a small hit
Doesn’t offer USDA loans, HELOCs, construction loans, or mortgages for mobile homes
Doesn’t manage accounts for jumbo loans after closing
Who’s this for? First-time homebuyers tend to be younger and may not have a long credit history, which can make it harder to qualify for a good mortgage rate. Rocket Mortgage stands here because it accepts applicants with credit scores as low as 580. The lender also has a program called the Fresh Start program that’s aimed at helping potential applicants boost their credit score before applying.
Rocket Mortgage offers conventional loans, FHA loans, VA loans and jumbo loans but not USDA loans, which means this lender may not be the most appealing for potential homebuyers who want to make a purchase with a 0% down payment. Rocket Mortgage doesn’t offer construction loans (if you want to build a brand new custom home) or HELOCs, but if you’re a homebuyer who only plans to purchase a single-family home, a second home, or a condo that’s already on the market, this shouldn’t be a drawback for you.
This lender offers flexible loan repayment terms that range from 8 – 29 years in addition to standard 15-year and 30-year terms.
Best for no lender fees
Ally Bank Mortgage
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loans, HomeReady loan and Jumbo loans
Terms
15 – 30 years
Credit needed
Minimum down payment
3% if moving forward with a HomeReady loan
Pros
Ally HomeReady loan allows for a slightly smaller downpayment at 3%
Pre-approval in just three minutes
Available in all 50 U.S. states
Online support available
Doesn’t charge lender fees
Cons
Doesn’t offer FHA loans, USDA loans, VA loans or HELOCs
Who’s this for? Ally Bank doesn’t charge any application fee, origination fee, processing fee or underwriting fees. These are what’s collectively known as “lender fees” and they can cost you anywhere from a few hundred to a few thousand dollars, and eat into the money you put aside for buying your home. When you’re a first-time home buyer, going through the process as affordably as possible is often top-of-mind, so saving on these fees will let you keep more of your money for other things, like renovations or moving costs.
Keep in mind, though, that Ally Bank may still charge appraisal fees and recording fees and may charge for the title search and insurance. As long as you have all the necessary documents handy and submit complete and accurate information, you can get pre-approved for a loan in as little as three minutes online and submit your application in just 15 minutes.
Best for no PMI
CitiMortgage®
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA loans and Jumbo loans
Terms
15 – 30 years
Credit needed
Minimum down payment
Terms apply.
Pros
Citi’s HomeRun Mortgage program allows for a downpayment as low as 3%
Citi’s Lender Assistance program gives eligible homebuyers a credit of up to $5,000 to use toward closing costs
Ability to choose between fixed-rate and adjustable-rate mortgages
New and existing Citi bank customers can qualify for closing cost discounts based on their account balance
HomeRun mortgage program allows for a downpayment of less than 20% without PMI
Provides homeownership education and counseling
Cons
No options for a 0% downpayment
Existing customers need high account balances to receive some of the highest interest rate discounts
Who’s this for? CitiMortgage gives homebuyers a chance to save big-time by waiving the PMI (private mortgage insurance) requirement on loans with down payments below 20%. This can be done by applying for a mortgage through Citi’s HomeRun program, which also allows for down payments as low as 3%.
PMI is typically a required monthly charge with other home loans if you make a down payment of 20% or less. But PMI can cost you tens of thousands of dollars extra over the entire life of the loan. The money you save from not paying PMI could potentially go towards saving for a second property, a home renovation, or any other financial goal you have. HomeRun mortgages also allow borrowers to lock in a fixed rate on their mortgage so they won’t have to worry about their rate increasing down the line.
FAQs
How do mortgages work?
A mortgage is a type of loan you can use to purchase a home. This agreement essentially says you can purchase a home without paying for it in full, upfront — you’ll just need to put some of the money down — usually between 3% and 20% of the home price — and pay smaller, fixed monthly payments over a certain number of years, plus interest and potentially other charges. Having a mortgage allows you to own the property even if you don’t have the hundreds of thousands of dollars in cash needed to purchase it outright.
What is a conventional loan?
A conventional loan is a home loan that’s funded by private lenders and sold to government enterprises such as Fannie Mae and Freddie Mac. It’s a very common loan type and some lenders may require a down payment as low as 3% or 5%.
What is an FHA loan?
A Federal Housing Administration loan, or FHA loan, is a loan program that has some slightly looser requirements. For example, this loan program may allow some borrowers to be approved for a loan with a lower credit score or be able to get away with having a higher debt-to-income ratio. You’ll typically only need to make a 3.5% down payment with this type of loan.
What is a USDA loan?
A USDA loan is offered through the United States Department of Agriculture and is aimed at borrowers who want to purchase a home in a qualifying rural area. USDA loans don’t require a minimum down payment, so borrowers can use this loan to purchase a home for almost no money upfront (you’ll still likely pay fees, though).
What is a VA loan?
VA mortgage loans are provided through the U.S. Department of Veterans Affairs and are meant for service members, veterans and their spouses. They typically require a 0% down payment and borrowers don’t have to pay private mortgage insurance.
What is a jumbo loan?
A jumbo loan is meant for home buyers who need to borrow more than $647,200 to purchase a home. Jumbo loans usually have stricter credit score and debt-to-income ratio requirements, and they also typically require a larger minimum down payment.
How is my mortgage rate decided?
Mortgage rates change almost daily and can depend on market forces such as inflation and the overall economy. However, your specific mortgage rate will depend on your location, credit report and credit score. The higher your credit score, the more likely you are to be qualified for a lower mortgage interest rate.
Be sure to submit the necessary information for more personalized rate estimates from your desired lender.
What is the difference between a 15- and 30-year term?
A 15-year mortgage gives homeowners 15 years to pay it off in fixed, equal amounts plus interest, while a 30-year mortgage gives homeowners 30 years to pay it off. Monthly payments are generally lower with a 30-year mortgage since you’ll have a longer period of time to pay off the loan. However, you’ll wind up paying more in interest over the life of the loan since it is charged on a monthly basis. A 15-year mortgage, on the other hand, lets you save on interest but you’ll likely have to make a higher monthly payment.
How does private mortgage insurance (PMI) work?
Lenders charge private mortgage insurance (PMI) to protect themselves in the event that a borrower defaults on their loan. PMI is assessed to your account if you choose to make a down payment of less than 20%. You’ll be responsible for paying this in addition to your monthly mortgage payments.
However, you can usually have the PMI waived after you’ve made enough payments to build 20% equity in your home.
Bottom line
If you need to take out a mortgage to purchase your first home, you have options. Certain mortgage lenders stand out for first-time homebuyers by considering applicants with lower credit scores, offering lower down payments and providing useful educational resources.
Keep in mind that mortgage interest rates fluctuate often and the rate you receive will vary depending on your location, credit score and credit report. While lenders may post general interest rate ranges on their websites, the best way to get a more accurate estimate of your rate is to provide the necessary information to check your rate.
Our methodology
To determine which mortgage lenders are the best for first-time homebuyers, CNBC Select analyzed dozens of U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.
When narrowing down and ranking the best mortgages, we focused on the following features:
Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
Types of loans offered: The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. In addition to these loans, lenders may also offer USDA loans and jumbo loans. Having more options available means the lender is able to cater to a wider range of applicant needs. We have also considered loans that would suit the needs of borrowers who plan to purchase their second home or a rental property.
Closing timeline: The lenders on our list are able to offer closing timelines that vary from as promptly as two weeks after the home purchase agreement has been signed to as many as 45 days after the agreement has been signed. Specific closing timelines have been noted for each lender.
Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender. Though some lenders on this list do not charge these fees, we have noted any instances in which a particular lender does.
Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
No early payoff penalties: The mortgage lenders on our list do not charge borrowers for paying off the loan early.
Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches.
Customer support: Every mortgage lender on our list provides customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
Minimum down payment: Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders that offer additional specialty loans that come with a lower minimum down payment amount.
After reviewing the above features, we sorted our recommendations by best for loan variety, educational offerings, lower redit scores, no lender fees and no PMI.
Note that the rates and fee structures advertised for mortgages are subject to fluctuate in accordance with the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee the interest rate and monthly payment remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
If you’re a Netflix fanatic like us, you’ve probably binged shows like Selling Sunset or The Real Housewives of Beverly Hills, meaning you already have an idea of what life is like in sunny Los Angeles — and its ritziest surroundings.
The truth is, Cali living is just about as glamorous as you’re imagining. Just by walking on the streets of L.A., you’re bound to bump into Hollywood celebrities at some point in the week — and there’s no place with bigger odds for celeb spottings than Beverly Hills.
Biggest celebrities living in Beverly Hills, California
If you’ve ever wondered what celebrities live in Beverly Hills, we’re here to solve that mystery for you. Because it’s not just housewives who live here if you know what we mean (we’re looking at you, RHOBH fans).
Some of the most famous people in the world reside in Beverly Hills, and we’re about to give you a run-down of our favorites.
After a little bit of real estate detective work, we’ve compiled a list of celebrities who live in Beverly Hills at the moment – they do tend to move around a lot. If you’re planning a visit and are thinking of taking a tour of celebrity homes in Beverly Hills, then make sure these next Hollywood stars — and power couples — are on your list.
John Legend and Chrissy Teigen
Image credit: Simon Berlyn for Sally Forster Jones of Compass, inset Featureflash Photo Agency / Shutterstock
Celeb power couple John Legend and Chrissy Teigen paid $14.1 million to buy Rihanna’s former home in Beverly Hills back in 2016. The couple and their two children made the most of their stunning home during Covid19 lockdown and shared jaw-dropping images of the family hanging out at the property.
But the couple was soon ready for a change, and they listed their long-time home for close to $24 million in the summer of 2020. They found their new dream home pretty quickly, and it was another Beverly Hills gem that cost them $17.5 million – a price worth paying for the zip code alone (90210).
The couple’s new home features 6 bedrooms, 9 bathrooms, a 10,700-square-foot open floor plan, and 24-foot ceilings. They also get panoramic city-to-sea views from almost every corner of the house – a pretty nice upgrade, if you ask us.
SEE INSIDE: Chrissy Teigen and John Legend’s house, a Beverly Hills trophy home
Ashton Kutcher and Mila Kunis
A sporadic Shark Tank host and savvy investor, Ashton Kutcher knows how to wisely invest his growing fortunes. And it’s no surprise that the former That 70s Show actor, along with his equally (if not more) talented wife joined the ranks of celebrities living in Beverly Hills.
Mila Kunis and Ashton Kutcher live in a striking hilltop farmhouse that overlooks the rest of Beverly Hills. The two have taken the farmhouse life seriously and set out to turn their million-dollar property into a fully sustainable farm.
Fun fact: Ashton Kutcher (@aplusk) and Mila Kunis have the sustainable L.A. farmhouse of your dreams (and ours, too, for the record).
The design-obsessed couple gave us a tour of their six-acre property for the cover of our June issue: https://t.co/DDOzrGEiSr pic.twitter.com/5LS1WPYu7c
— Architectural Digest (@ArchDigest) May 18, 2021
KuKu Farms, as the couple lovingly call their homestead, now features a well — that irritates the land — and a corn field, on top of a sprawling garden full of squash, tomatoes, lettuces, and more.
But don’t let that fool you into thinking the property is a rural farmstead. In fact, it’s one of the most beautiful celebrity homes in Beverly Hills, proving that style and sustainability are not mutually exclusive.
Jack Nicholson
Jack Nicholson owns many properties across the country, but his long-time residence is located in Beverly Hills, on the notorious Mulholland Drive.
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The multiple Academy Award winner is a veteran Beverly Hills celebrity resident, having first bought his property in 1969, purchasing additional parcels over the years to expand its footprint. He even bought Marlon Brando’s former neighboring home in 2005, razed it, and had it rebuilt.
Nicholson’s Beverly Hills home is also famous for darker reasons. It’s here that director Roman Polanski reportedly abused an underage girl, while Nicholson and his then-girlfriend Anjelica Houston were away.
The original house that used to stand on the site burned down, and various other incidents took place on Mulholland Drive, leading some to claim that the entire area is cursed. Maybe that’s what inspired David Lynch to make a movie about it.
Taylor Swift
Taylor Swift’s Beverly Hills abode is in a league of its own. The singer paid $25 million for movie mogul Samuel Goldwyn’s home back in 2015 — yeah, that Goldwin, you know, of Metro Goldwyn Mayer?
Taylor Swift’s house in Beverly Hills, seen from above. Photo credit: Zillow, insert Raph_PH, CC BY 2.0, via Wikimedia Commons
Swift’s mansion was actually granted landmark status in 2017, which means the young musician now owns a piece of Hollywood history. The property has never before been owned by someone not part of the Goldwyn family, so Swift is also writing history, if you think about it.
The 10,982-square-foot mansion is to be restored to its former glory, with the approval of the Beverly Hills City Council, of course.
The singer also owns a sprawling house in Rhode Island, which got a shout-out on her 2020 album, Folklore, with the song The Last Great American Dynasty paying tribute to the wealthy (and eccentric) socialite that owned the house before her.
SEE ALSO: Taylor Swift’s Holiday House — Home to “the Last Great American Dynasty”
Adele
Photo credit: Simon Berlyn / Compass, inset via DFree / Shutterstock.com
Grammy-winner Adele is another Brit who has a thing for California living. The singer purchased her first home in Beverly Hills in 2016 for $9.5 million, and her second in 2018, after splitting from husband Simpon Konecki.
She didn’t venture very far to find her second home, though, as the two properties are across the street from each other. Adele’s second Beverly Hills abode cost her $10.65 million and was built back in 1961 in the gated community of Hidden Valley. It was previously owned by film producer Michael Hertzberg, according to the L.A. Times.
But the singer didn’t stop there.
Adele added another stunner to her real estate portfolio in 2022, when she shelled out $58 million for a property previously owned by Sylvester Stallone.
Adele’s sprawling mansion boasts the iconic 91210 zip code and is located in Beverly Park, which is still pretty close to Beverly Hills if you ask us. The new luxurious estate is now her home base, although she continues to own several properties in Beverly Hills.
SEE INSIDE: Adele’s house in Beverly Park, the $58M ‘house that Rocky built’
Sandra Bullock
Actress Sandra Bullock is also part of the elite group of Hollywood stars who reside in Beverly Hills. Our beloved Miss Congeniality paid $16.9 million in 2011 for a seven-bedroom mansion right next door to Ricky Martin.
Photo credit: Michael McNamara at ZenHouse Collective and Preview First, inset Fred Duval / Shutterstock.com
Bullock also used to own a 3,153-square-foot home right above the Chateau Marmont on the Sunset Strip, which she rented out for a whopping $18,500 per month. She reportedly had enough of her role as landlord and sold that property in 2018.
An avid real estate investor and collector, Bullock has an impressive real estate portfolio to her name. While her current home base is in New Orleans, Louisiana, Bullock also spends time at her residences in Beverly Hills, Malibu, Austin, and New York City, to name just a few.
In early 2021, the actress paid $2.7 million for a 1946-built bungalow nestled in the mountains above Beverly Hills. The multi-acre property features 3 bedrooms, 3.5 bathrooms, a swimming pool with a waterfall, and gorgeous views. The Hollywood actress likes to keep her personal life private, so there’s no telling how much time she gets to spend at each of her various properties.
Jennifer Lawrence
Hunger Games star and Hollywood darling Jennifer Lawrence moved into her gorgeous Beverly Hills home back in 2014. The luxurious five-bedroom home came with a price tag of over $8 million, and an impressive list of previous homeowners, which includes Jessica Simpson and, shocker, Ellen DeGeneres.
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The property boasts a romantic, European-inspired vibe, which you might not have expected from a strong personality such as Lawrence. The actress enjoys beautifully landscaped grounds, a koi pond, a swimming pool, and even a home gym. No wonder she’s in such good shape.
Nicole Kidman and Keith Urban
Actress Nicole Kidman and her husband, country singer Keith Urban purchased their current Beverly Hills residence in 2008 for roughly $4.7 million, adding to their already heavy portfolio of real estate.
Photo credit: Google Maps, insert Kathy Hutchins / Shutterstock.com
Since the acquisition, Kidman and Urban upgraded the property to include fun amenities for their children, including a jungle gym, a pool slide, and a chic cabana.
Their main residence is still in Nashville, but they own properties across the U.S., and their Beverly Hills mansion is reportedly one of their favorites. We say reportedly, because the couple is very private, and not much is known about their whereabouts. Even the interior of their Beverly Hills home remains a mystery, but we can safely suspect that it’s nothing short of glamorous.
Jason Statham and Rosie Huntington Whiteley
Next up on our list of Beverly Hills A-listers is probably the most good-looking couple on the planet. British movie star Jason Statham and supermodel Rosie Huntington-Whiteley settled in Beverly Hills in 2015, when they paid $13 million for a stunning five-bedroom mansion.
Their incredibly beautiful home was designed by Jenni Kayne, and is a perfect mix of contemporary architecture and timeless elegance. We wouldn’t have expected any less from the Victoria’s Secret model, as her taste is always impeccable.
You can take a peek inside the couple’s Beverly Hills mansion by watching Vogue’s 73 Questions With Rosie Huntington-Whiteley video:
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Not to mention that Statham is a passionate houseflipper. The couple and their young son spent lockdown at their modern mansion, where Rosie even filmed several Youtube videos sharing her beauty and style tips.
Kendall Jenner
Kendall Jenner’s art-filled Beverly Hills home is so gorgeous that it was even featured in Architectural Digest. The supermodel gave us all a sneak peek inside her sprawling, $8.55 million Mulholland Estates home that was once owned by Hollywood bad boy Charlie Sheen.
Photo credit: Youtube / Architectural Digest
Jenner purchased the house back in 2017, and she listed a team of experts to help her redesign it to her heart’s desire. The result is a cozy, serene, and quiet escape from Jenner’s busy daily life, and a perfect retreat away from the prying eyes of the media.
The 6,625-square-foot home features meditation corners, a peaceful backyard, and an art studio where Jenner gets to unleash her creativity.
SEE ALSO: Keeping Up With the Incredible Homes of the Kardashians – the 2023 edition
Jeff Bezos
Amazon CEO Jeff Bezos is another celebrity with an impressive real estate portfolio under their belt. But this one is on an entirely different level, because Bezos owns the most expensive property in Beverly Hills, and probably one of the priciest in California.
Bezos paid a whopping $165 million for the Jack Warner Estate, previously owned by David Geffen, in early 2020. It was a record sale for a private residence in Los Angeles County, and one of the priciest residential sales in the country.
The Warner Estate was built back in the 1930s and is a one-of-a-kind historic gem worthy of Great Gatsby-style parties. Since purchasing the luxurious mansion, Bezos invested heavily in upgrades, adding a pool house, a powder room, and more high-end amenities.
Lizzo
In October 2022, acclaimed singer and songwriter Lizzo paid $15 million to snag Harry Styles’ former luxury mansion in Beverly Hills. The house was built in 2019 and boasts the legendary 91210 zip code, as well as 5,300 square feet of living space, 3 bedrooms, and 4 bathrooms.
Lizza and her house in Beverly Hills. Property photo credit: Alex Zarour, insert Cosmopolitan UK, CC BY 3.0, via Wikimedia Commons
Nestled in a private, gated community perched in the mountains atop Beverly Hills, Lizzo’s new home was owned by singer Harry Styles from 2014 to 2016. Since then, the property was remodeled and upgraded to meet the needs of modern A-list buyers like Lizzo.
The musician has not been shy about showing off her new digs, posting content on social media of her enjoying her stunning home theater or gorgeous infinity pool.
Rihanna and A$AP Rocky
Rihanna made the news rounds in 2023 after headlining the Super Bowl halftime show, reaching another level of awesomeness in her career. Luckily, she’s got quite a few luxury properties to retreat to and unwind after an adrenaline-driven show.
The singer boasts quite an extensive real estate portfolio, splitting her time between her properties in Beverly Hills, Century City, the Hollywood Hills, and Barbados.
Rihanna’s house in Beverly Hills. Photo credit: Realtor.com, inset Cubankite / Shutterstock
Rihanna had a busy year in 2020, purchasing a five-bedroom mansion in Beverly Hills’ 91210 zip code for $13.8 million. Just months later, she paid $10 million for another four-bedroom mansion right next door. This investment might be a sign that this is where the singer and her partner, Asap Rocky, plan to settle down and raise their growing family.
The 7,600-square-foot home was built in 1938 and features 5 bedrooms, 7 bathrooms, huge walk-in closets, marble bathrooms, large private terraces, and stunning views. But above everything, the property offers privacy from the inquisitive eyes of the paparazzi.
Who knows, the house next door could house a recording studio, additional security and staff, or more baby rooms!
SEE INSIDE: Rihanna’s house in Beverly Hills
These are just some of our favorite celebrities who live in Beverly Hills. This eclectic enclave is a magnet for Hollywood stars, so the list could go on and on, but we’ll stop here – for now. Stay tuned for more celebrity-related real estate coverage on Fancy Pants Homes!
More celebrity homes you might like
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The nation’s leading mortgage lender, United Wholesale Mortgage, has re-launched the 1% down payment home loan.
It comes at a time when housing affordability continues to be pressured by high asking prices and equally high mortgage rates.
While it may be seen as a boon to prospective buyers, it will surely have its critics as well.
Like other low-down payment programs, it targets those with lower incomes who would otherwise struggle to qualify for a home purchase.
It’s reminiscent of the frothy days in the early 2000s, when creative financing allowed high home prices to persist.
The Return of Conventional 1% Down
Home loans backed by Fannie Mae and Freddie Mac, known as conforming loans, typically require a 3% minimum down payment.
But the re-launch of this loan program, known as “Conventional 1% Down,” requires just a 1% down payment from the borrower.
For example, a $200,000 home purchase would require just $2,000 from the buyer.
And UWM would chip in the other 2%, $4,000 in this example, to put the loan-to-value (LTV) ratio at the minimum 97%.
This would technically make the loan a 3% down mortgage set at 97% LTV, thereby qualifying for backing by Fannie Mae or Freddie Mac.
It would also lessen the burden of coming up with a down payment, often a roadblock for home buyers.
Proponents will argue that it allows would-be buyers to get into a home sooner, instead of waiting to save for a larger down payment.
Those against it will argue that such financing is too accommodative, and that those who can’t squirrel away the minimum down payment should wait to buy a home.
This is further exacerbated by the fear of falling home prices, which could quickly land borrowers in negative equity positions.
While that may sound familiar to the previous housing run-up, one glaring difference between now and then is that borrowers are fully-underwritten today.
Back then, borrowers were often qualified via stated income and came to the closing table with very little (or no money) down.
Who Qualifies for a 1% Down Payment Mortgage?
Home buyers that make 50% or less of area median income
Borrower must put down at least 1% of purchase price
UWM will offer 2% of purchase price up to $4,000 max
Minimum FICO score of 620 required
Follows guidelines of Freddie Mac’s Home Possible
Loan will be 97% LTV backed by Freddie Mac
As noted, there are income limits on this new program. Namely, it’s an option for borrowers with income at or below 50% of the Area Median Income (AMI).
It’s also limited to home buyers (no refinances) and those purchasing an owner-occupied property qualify.
That means no investors or second home purchases, aka speculators, but condos and other 1-unit properties should qualify.
Because it follows the guidelines of Freddie Mac’s Home Possible, a minimum FICO score of 620 is likely required.
Those interested must use a mortgage broker, as UWM is a wholesale lender, meaning they don’t work directly with the public.
While the down payment hurdle will effectively be cleared, borrowers will still have to contend with much higher housing payments.
This is the result of still-high asking prices coupled with mortgage rates that have doubled in the span of a year.
The 30-year fixed is currently priced around 6.5%, up from closer to 3% to start 2022.
Is This What the Housing Market Needs Right Now?
Ironically, the Fed has been raising its own fed funds rate to curtail housing demand, but lenders have ramped up affordability options at the same time.
This has kept the housing market perhaps too competitive, thanks to an ongoing dearth of supply.
Take the ‘California Dream For All’ Home Loan that allows home buyers in the state to purchase a property without a down payment.
That program sold out in about a week due to unprecedented demand. In that case, homeowners sacrifice future appreciation for a zero down home mortgage.
This new 1% down payment option can likely be emulated by other lenders too, so it could mark a return of the offering industry-wide.
As a result, the housing market may continue to run hot despite affordability gauges signaling stress.
In the third quarter of 2022, Pontiac, Michigan-based United Wholesale Mortgage (UWM) became the nation’s largest mortgage lender, beating out cross-town rival Rocket Mortgage.
They’ve still yet to beat out Rocket an annual basis, though that could be in the works.
UWM is holding a hiring event this weekend in a bid to hire 500 new employees at a time when other lenders are closing their doors.
Both the National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) launched efforts to save the at-risk mortgage interest deduction, which is at risk of being cut or eliminated.
In a press release, NAR claimed that any changes to the mortgage interest deduction “could critically erode home prices and the value of homes by as much as 15 percent.”
The group also cited a recent survey, which found that of about 3,000 homeowners and renters polled, nearly three-quarters of homeowners and two-thirds of renters said the mortgage interest deduction was “extremely” or “very important” to them.
The NAHB went a step further in creating a website dedicated to the cause, called SaveMyMortgageInterestDeduction.com.
It includes information about the mortgage interest deduction, the threat to do away with it, and a twitter feed to keep track of related news.
“Home owners who itemize their taxes can deduct 100 percent of their mortgage interest payments on a first or second home for up to $1 million of mortgage debt and $100,000 of home equity loans,” the NAHB said on its new website.
“For most home owners, this means they can deduct ALL of their mortgage interest on their home. This particularly makes the cost of owning a home much more affordable for first-time home buyers and those who have been in their home for just a few years, since the bulk of their monthly house payments go toward interest, which is fully deductible.”
However, the mortgage interest deduction is estimated to cost the government roughly $100 billion this year (mortgage interest deduction by state).
The homebuyer tax credits have come with a price tag of about $22 billion, which many have argued simply pushed would-be buyers into the fold a little earlier.