I might get a little sentimental today. This is the 20th anniversary of my — well, really our — weekly column. In addition to feeling old, I also feel grateful.
It was actually slightly more than 20 years ago that I was living in Southern California, working as a freelance writer, when an editor from the Orange County Register called. The paper was launching a monthly regional magazine targeting owners of luxury homes — think Laguna and Newport Beach — and he wanted a column that would be the antidote to potentially pretentious content.
“So,” I said, “you want a column that is not about rich homeowners and their chichi architects and their museum-quality art collections and the exquisite homes they build on the bluffs overlooking the Pacific and how the whole experience was one giant lovefest, and they had money left over?”
“Right,” he confirmed, “a reality column.”
He’d found the right writer. At that point, I had built two homes from the ground up, had the debt and cortisol levels to prove it, and had an arsenal of frustrations.
Still disbelieving, I added, “You want me to write about the tile mason with the drinking problem, the neighbors who won’t speak to you because you’ve had an outhouse and a Dumpster parked in your front yard for three months, the dogs who got so fed up with the construction they ran away in search of a rescue, and about how the remodel took three times as long, cost three times as much, and you weren’t speaking to your spouse at the end?”
“Exactly,” he said. “Sprinkle in some advice. Be the girl next door who has the same problems as everyone else but is two steps ahead, because you’ve made the mistakes and know who to call.”
Eighteen months later, my then-husband and I moved from Southern California to Colorado — just one of my many moves. And soon, I had a syndicated column. That former editor congratulated me, then ominously added: “It’s great to have a weekly column, but one day, you are going to run out of ideas.”
Until then, a dry well hadn’t been on my worry list. I flashed back to when I was in kindergarten and got in trouble for talking too much in class. I wound up in the principal’s office with my mother to discuss “the problem.” When the principal asked why I talked so much, the answer was easy. “I just have so many important things to say,” I said, which was unintentionally hilarious.
So here we are 20 years and 1,040 columns later, and I still have things to say and no shortage of topics. Because I have never been able to see where home design stops and home life begins, my columns are about both. Here’s a brief look back at some of the moments we’ve been through together:
The calamities: You were there when my two custom seven-foot sofas arrived with the upholstery fabric inside out, when the back patio in our new Colorado home fell three feet into a sink hole, and when our rescue dog on his first night with us tested our commitment on the one-day-old living room carpet. (Who gets a new dog and new carpet on the same day?)
The many moves: You were there through 10 houses and nine moves, including the move to Florida, where I had a stint as a live-in home stager and moved six times in four years.
The life changes: You were there when I sent each of my children off to college, entering some sort of self-imposed dorm-decorating contest in which I was the sole contestant. You were there through my divorce and remarriage, the loss of two parents and the gain of three grown stepchildren.
The micro and macro: Together, we’ve covered the minor (how to choose drawer knobs and tea towels) and the major (the meaning of home and belonging and how to leave a meaningful legacy.
Million-dollar homes are the perfect blend of form and function, setting the stage for true elegance and luxury.
Whether it’s the understated minimalism seen in Kim Kardashian’s home or the opulent maximalism of designer high-end houses, the key lies in creating spaces where functionality becomes virtually invisible, contributing to an overall aesthetic that’s both breathtaking and discreet.
You can see this in the prohibitively expensive homes from shows like Selling Sunset and Million Dollar Listing. Those million-dollar homes focus on hiding conventional features and appliances, allowing the eyes to revel in the design without distraction.
The philosophy here is simple yet profound: less is more.
Luxury design hinges on the power of illusion – making the essential elements of a home feel like an integrated, almost indistinguishable part of the overall design.
This invisible functionality transforms living spaces into masterpieces of high-end hospitality and cozy elegance, where every detail is meticulously crafted to elevate the experience of luxury living.
Blend kitchen appliances with the design
Looking at luxury homes and apartments, you won’t find their microwave, stove, or refrigerator glaring out like sore thumbs in the kitchen.
One of the best examples we’ve seen of this is in actor Jesse Tyler Ferguson’s house in Encino, a newly built contemporary house in Los Angeles with impeccable interiors.
The impressive property’s most distinctive interior traits are the warm wood tones used throughout, which serve as both décor elements and provide tons of storage space — particularly in the kitchen, which is clad in cabinets and wood paneling made out of hemlock wood.
The refrigerator is an essential appliance in any home but as we can see in the Modern Family star’s home, it is artfully hidden within the cabinetry.
It perfectly matches the surrounding cabinets, giving a unified and uninterrupted visual flow that exudes sophistication.
Similarly, the microwave is tucked away, out of the direct line of sight, allowing guests to focus on the elegant lines and luxurious finishes of the kitchen without the distraction of appliances.
Strategically concealing appliances amplifies the spaciousness and clean lines that are synonymous with luxury, making the kitchen not just a place for meal preparation but a statement of design excellence.
That’s not because the owners don’t own any and eat out for every meal but because their appliances are expertly designed to be hidden away when they are not needed.
Luxury designs do not break the viewer’s experience of ah and wonderment with the typical microwave or fridge sticking out.
Hide air vents in plain sight with frameless diffusers
When it comes to the interiors of the most coveted million-dollar listings, the devil is in the details—or perhaps, it’s the lack thereof. The luxurious spaces you see have a secret: the art of concealment.
This is particularly true when it comes to the mechanics of comfort, like HVAC air diffusers, which are essential yet often an eyesore.
But not in these homes. Here, they’re incorporated with such finesse that they’re almost invisible, represented by the hardly visible lines blending into the ceilings and walls as seen in the image below.
These aren’t your standard vents; they’re design statements in their own right, albeit in the most understated way.
Frameless diffusers like the ones from Invi Air are installed into the drywall and colored to match the room’s palettes for a nearly invisible finished look flush with the wall or ceiling.
They don’t demand attention. Instead, they support the room’s ambiance in quiet anonymity, allowing the stunning vistas outside the window or the curated art pieces to hold the gaze. Invi Air diffusers are easily customizable with any type of paint, allowing them to blend seamlessly with the color and texture of the surrounding surface.
The TV is almost always out of sight
In the modern luxury home, the television—once the centerpiece of every living room—has found a new role as the hidden gem of the room.
The trend in million-dollar homes is clear: the TV should be felt, not seen until it’s time for it to shine.
This philosophy has created creative solutions that make the TV almost magically appear when needed and disappear when not, maintaining the room’s sleek, elegant aesthetic.
Take Samsung’s Frame TV, for example. This ingenious device takes the concept of ‘hidden in plain sight’ to new heights, doubling as a digital art display when not in use.
It sits flush with the wall, encased in a stylish frame that one might mistake for an actual painting or photograph.
It’s a perfect fit for spaces where the presence of technology needs to blend with the strokes of interior design finesse.
Take this one step further with LG’s latest technological innovation: the transparent TV.
The TV becomes practically invisible when not in use and can even blend itself to look like a live fish tank or fireplace to disguise itself further.
When the TV is revealed, it’s not just about catching up on the latest series or movie; it’s an event. The act of the screen coming to life from its artistic camouflage adds a layer of luxury and technical prowess to the space. It’s a conversation starter, a nod to the homeowner’s taste for elegance and their flair for the dramatic.
The TV in a luxury home is no longer just a piece of technology; it’s part of the home’s dynamic, an indulgent experience that’s there when you want it without compromising the minimalist ethos of the space.
This approach to home entertainment design is yet another detail that sets high-end homes apart, offering a seamless blend of lifestyle and luxury.
As all the posh houses seen on Selling Sunset prove time and time again, a million-dollar home’s aesthetic is a symphony of design and technology where every note is perfectly pitched for an experience that’s both sumptuous and smart.
These homes aren’t just living spaces but canvases for expressing the height of personal luxury, where every hidden feature is a brushstroke in a masterpiece of modern living. And we don’t find it fair that they’re reserved for luxury homeowners, so we hope the above tips might inspire you and you’ll end up implementing them in your own home.
*Featured image credit: R ARCHITECTURE on Unsplash
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Luxury home prices are at the highest they’ve ever been, with prices rising twice as much as non-luxury homes, Redfin said.
The typical US luxury home sold for about $1.17 million in the fourth quarter of 2023, up 8.8% year-over-year.
“So many affluent buyers are able to buy homes in cash, rendering today’s elevated mortgage rates irrelevant.”
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Luxury home prices have hit an all-time high, rising at twice the pace of non-luxury homes, Redfin wrote in a report on Wednesday. While high mortgage rates have crushed the rest of the housing market, wealthy buyers have enough cash to pay for a home upfront, free from the rate “lock-in effect.”
“Luxury prices are rising at twice the rate of non-luxury prices largely because so many affluent buyers are able to buy homes in cash, rendering today’s elevated mortgage rates irrelevant,” the release stated. “High mortgage rates have a more chilling effect on the rest of the market, upping interest payments and keeping price increases modest.”
A typical US luxury home cost $1.17 million as of the end of last year, up 8.8% from a year earlier. Compare that to the price of a non-luxury home, which rose 4.6% to a record $340,000.
Redfin defines a luxury home as “those estimated to be in the top 5% of their respective metro area based on market value.” Non-luxury homes fall in the 35th to 65th percentile.
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The share of rich homebuyers paying all cash in the luxury home market rose to a record 46.5% in the fourth quarter of 2023. That’s up from 40% a year ago.
“A lot of luxury buyers are coming in with cash, snapping up expensive homes,” a Redfin Premier agent, Heather Mahmood-Corley, said. “High-end homes are selling fast, especially in desirable areas like luxurious Scottsdale, or Tempe, which West Coast transplants love because it’s centrally located. One client recently bought a house in Tempe, flipped it, and it sold for $1.4 million in two days.”
What’s driving the surge is not just the fact that wealthy Americans can skip taking out a home loan. It’s also that the supply of luxury homes is still low, driving up competition and pushing bid prices higher.
The luxury housing market as a whole is performing well, and new luxury listings have risen 19.7% year-on-year — the biggest jump in two years, according to Redfin. The total number of luxury homes on the market also rose by 13%. Sales dipped by 1.7%, but that’s the smallest decline the market has seen since 2021.
Welcome to Summerlin, the epitome of tranquility and luxury living in the heart of Las Vegas.
With its meticulously designed neighborhoods and vast array of exclusive amenities, Summerlin truly embodies the perfect blend of opulence and serenity.
From exquisite gated communities to world-class golf courses and award-winning schools, every aspect of life in Summerlin is centered around providing the utmost comfort and convenience.
And people have started to take notice.
Summerlin has seen an influx of new residents in the past few years, fast becoming Nevada’s top-selling community.
In the first half of 2023 alone, an impressive total of 544 new homes were sold in the master-planned community, pushing it to rank #5 nationally in new home sales in a recent midyear report by national real estate consultant RCLCO.
Celebrities too have been flocking to the area, with A-listers like Mark Wahlberg ditching the glamorous L.A. lifestyle and buying homes in Summerlin, Nevada.
To get a better feel of the local real estate market, we’ve reached out to industry expert Cami Lincowski, a prominent luxury Las Vegas real estate agent and former star of HGTV’s Say Yes to the Nest.
Talking about the appeal of the area of its rise in popularity, Cami tells us that “Summerlin is not only thriving, but when you throw in the latest and greatest shopping & high-rated restaurants the valley has to offer; there’s no denying that this area ranks amongst the top cities to call home.”
So let’s take a closer look at what makes this Las Vegas Valley community such a great place to live.
The luxury lifestyle in Summerlin
Summerlin is synonymous with luxury.
This master-planned community boasts some of the most prestigious homes in Las Vegas, offering residents an unparalleled level of elegance and sophistication. From sprawling mansions to stylish townhouses, Summerlin has something to suit every taste and preference.
The meticulously designed neighborhoods of Summerlin showcase architectural excellence and attention to detail.
Gated communities like The Ridges, Tournament Hills, The Lakes, and Red Rock Country Club provide residents with a sense of exclusivity and security. Impeccably landscaped streets and manicured lawns add to the overall aesthetic appeal, creating a sense of grandeur at every turn.
More recently, The Summit Club has emerged as the pinnacle of luxury living in Summerlin. The 555-acre resort community south of The Ridges (and only 9 miles away from the Las Vegas strip) is the only fully private residential golf and lifestyle club community in all of Las Vegas.
In addition to the stunning homes, Summerlin offers a wealth of amenities that cater to the luxury lifestyle.
Residents have access to world-class golf courses, private country clubs, and state-of-the-art fitness centers. The community also boasts a wide range of recreational facilities, including tennis courts, swimming pools, and parks, ensuring that there is always something to do for those seeking an active lifestyle.
The real estate market in Summerlin
The real estate market in Summerlin is thriving, thanks to its reputation as one of the most desirable places to live in Las Vegas. But you do have to have deep pockets – or an outstanding credit score – to afford to buy here.
The demand for homes in Summerlin has been steadily increasing over the years, leading to a rise in property values. The community’s prime location, coupled with its exceptional amenities and quality of life, make it an attractive choice for both homebuyers and investors.
But despite being a top luxury home destination, Summerlin’s house prices can accommodate a wide range of budgets — and are considerably less prohibitive compared to those found in other top luxury markets on the West or East Coasts.
“Anyone can call Summerlin home,” luxury agent Cami Lincowski tells us. “With price ranges starting at $400k & tipping the scale at $15m+, this city is not just made of city lights, but all walks of life.”
The community offers a wide range of housing options, from single-family homes to luxury condominiums and townhouses.
Whether you are looking to buy a home or invest in real estate, Summerlin offers a wealth of opportunities. The community’s diverse housing options cater to a range of budgets and lifestyles, ensuring that there is something for everyone.
Celebrities that call it home
With the Mansion Tax adding fuel to the California exodus, many of the Golden State’s affluent residents started flocking to new luxury markets — with A-listers and famous individuals choosing to make Las Vegas their new primary residence.
Naturally, Summerlin emerged as a top choice.
Celebrities to have called Summerlin home include actor Mark Wahlberg (who sold his sprawling $55 million LA mansion to move here), Grammy Award-winning singer Celine Dion, who sold her freshly-built Summit Club house for a record $30 million, and several Golden Knights players.
NHL pro Max Pacioretty played only four seasons with the Vegas Golden Knights (2018-2022) but went all in when it came to making himself at home in Sin City. The Carolina Hurricanes left winger owned a 10,000+ sq. ft. home in The Ridges community, which he sold for top dollar last year.
Pacioretty’s spectacular estate “netted” a cool $11 million, a record for the high-end The Ridges community.
Rob Roy, the CEO, founder, and chairman of Switch Communications Group, also paid $33 million for 5 acres to build a luxury estate in the same Summerlin resort community.
And while Wahlberg recently sold one of his Summerlin homes for $16.6 million one year after buying it, he made it clear he loves living here and has no plans of leaving the Las Vegas community. He’s just waiting for his other mansion to be completed.
Top neighborhoods in Summerlin
Summerlin is home to a number of top-notch neighborhoods, each with its own unique charm and character. Here are some of the most sought-after areas in the community:
#1 The Ridges
Located at the base of the Red Rock Canyon, The Ridges is an exclusive gated community known for its luxurious homes and breathtaking views. With its private golf course and world-class amenities, it is one of the most coveted neighborhoods in Summerlin.
#2 Tournament Hills
Situated around the TPC at Summerlin Golf Course, Tournament Hills offers residents the opportunity to live near one of the best golf courses in Las Vegas. The neighborhood features a mix of custom-built homes and luxury estates, providing a premium living experience.
#3 The Gardens
Nestled among lush green landscapes and scenic walking trails, The Gardens is a peaceful and picturesque neighborhood in Summerlin. With its tree-lined streets and well-maintained parks, it offers residents a serene and idyllic setting.
Tranquility and natural beauty
One of the most remarkable aspects of Summerlin is its breathtaking natural beauty.
Nestled against the majestic Red Rock Canyon, the community offers stunning views of the surrounding desert landscape. The vibrant hues of red and orange against the clear blue sky create a picturesque backdrop that is hard to find elsewhere in Las Vegas.
Summerlin is a nature lover’s paradise, with over 150 parks and more than 150 miles of trails to explore. Whether you enjoy hiking, biking, or simply taking a leisurely stroll, there is a trail for every skill level. The community is also home to numerous lakes and ponds, perfect for fishing or enjoying a peaceful picnic by the water.
For those seeking a more tranquil experience, Summerlin offers an abundance of peaceful retreats. The community’s botanical gardens and meditation centers provide a serene environment for relaxation and introspection. Escape the hustle and bustle of city life and immerse yourself in the tranquility that this community has to offer.
Amenities and recreational activities
Summerlin is not just a place to live; it is a lifestyle.
The community offers an impressive array of amenities and recreational activities that cater to residents of all ages. From world-class golf courses to community centers and sports facilities, there is something for everyone.
Golf enthusiasts will be delighted by the exceptional courses that Summerlin has to offer.
The TPC at Summerlin is a championship golf course designed by renowned architect Bobby Weed. With its challenging fairways and breathtaking views, it is a favorite among golfers of all skill levels. The community is also home to the Red Rock Country Club, which features two Arnold Palmer-designed courses and a host of other amenities.
In addition to golf, Summerlin offers a wide range of recreational activities. The community’s numerous parks and trails provide ample opportunities for outdoor enthusiasts to stay active.
Tennis courts, basketball courts, and soccer fields are available for those who enjoy team sports. And for those who prefer indoor activities, the community’s state-of-the-art fitness centers and swimming pools provide plenty of options.
Schools and education options
Summerlin is not only known for its luxury homes and amenities; it is also home to some of the best schools in Las Vegas. The community offers a wide range of educational options, from top-rated public schools to prestigious private institutions.
The Clark County School District serves the majority of students in Summerlin, offering a comprehensive curriculum and a strong emphasis on academic excellence. The district’s schools consistently rank among the best in the state, providing students with a quality education that prepares them for future success.
For those seeking a private education, Summerlin is home to several esteemed institutions.
The Alexander Dawson School is a renowned independent school that offers a challenging and well-rounded education. The Meadows School, another prestigious private institution, is known for its rigorous academic program and strong college preparatory curriculum.
When it comes to shopping and dining, Summerlin has it all. The community is home to The Shops at Summerlin, a premier shopping destination that offers a wide range of retail and dining options.
From high-end fashion boutiques to popular chain stores, there is something for every shopper.
Food enthusiasts will also be delighted by the diverse culinary scene in Summerlin. The community boasts a wide range of restaurants, offering everything from casual dining to fine dining experiences. Whether you are craving sushi, steak, or Italian cuisine, you will find it all in Summerlin.
Summerlin’s proximity to the Las Vegas Strip
One of the unique aspects of living in Summerlin is its close proximity to the Las Vegas Strip. While the community offers a peaceful and serene environment, the bustling energy of the Strip is just a short drive away.
Residents can easily access all the excitement that Las Vegas has to offer, from world-class entertainment and nightlife to renowned restaurants and shopping.
The convenience of being near the Strip allows residents of Summerlin to enjoy the best of both worlds. They can retreat to the tranquility of their luxurious homes after a night out on the town, providing the perfect balance between opulence and excitement.
Why Summerlin is the ideal place to live in Las Vegas
To sum things up, Summerlin is a community that embodies the perfect blend of luxury and tranquility. Its meticulously designed neighborhoods, breathtaking natural beauty, and array of exclusive amenities make it an ideal place to live in Las Vegas.
Whether you are seeking a luxurious retreat or a place to call home, Summerlin offers a lifestyle unlike any other. From world-class golf courses to award-winning schools and gourmet dining, every aspect of life in Summerlin is centered around providing the utmost comfort and convenience.
Escape the hustle and bustle of the Strip and immerse yourself in the beauty and serenity of Summerlin.
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Usher has been quietly living in Las Vegas since 2022
Home of the week: A palatial $25M estate in the heart of Las Vegas (with 10 interconnected buildings)
Burrell countersued earlier this month, arguing that he shouldn’t have to pay the bank back since it knew he was using the business credit for personal expenses.
The bank has asked an Aspen judge to let it foreclose on six of Burrell’s properties as collateral.
Public records show that the businessman owns two homes in Basalt, Colo. and a 190-acre ranch in New Mexico, valued at $21.1 million, which is currently up for auction.
However, per a report on luxury real estate listings site Mansion Global, only one of Burrell’s five children are still living at home, so Burrell and his wife, Nikola, have decided to downsize.
First Western reportedly wants to foreclose on Burrell’s home in Aspen and ranch near the affluent ski town, as well as a property in Nantucket and land in Vero Beach, Fla., according to The Denver Post.
In his countersuit, Burrell argued that if First Western forecloses on his properties, “Burrell, Burrell’s wife, and Burrell’s minor children are at risk of losing their primary residence and have incurred emotional distress,” according to the countersuit, The Denver Post reported.
In a bizarre twist, Burrell also argued that it was “improper” for the bank to give him business loans when it was well aware most of the funds would be spent on his personal life — such as his divorce payments, buying a yacht and building a house in Basalt, Colo.
“Additionally, First Western did not make a reasonable and good faith determination at or before consummation that Burrell had a reasonable ability to repay,” his countersuit states, per The Denver Post.
The bank also didn’t allow him to refinance, didn’t consistently provide him with paperwork for the loans and wrongly accepted his personal homes as collateral, Burrell alleged, the outlet reported.
Burrell’s counsel, attorneys Sarah Auchterlonie and Courtney Bartkus in the Denver office of Brownstein Hyatt Farber Schreck did not immediately respond to The Post’s request for comment.
The Post has also sought comment from First Western Bank.
First Western’s CEO Scott Wylie referred to “a client we’ve had since 2018” who is “facing a liquidity crunch and becoming delinquent on their payments,” during an earnings call in October.
He noted that the bank had to declare the loans in default in order to seek the collateral, but assured: “We think we’re going to have a full recovery.
The real estate collateral that we have is in some very desirable markets. It’s in Aspen, it’s in Nantucket, it’s in (Florida),” he said.
Though Wylie didn’t name the borrower, Burrell argued that analysts listening to the call were able to figure it out, according to The Denver Post.
Burrell said that one listener even called him to ask about his personal finances.
This has caused Burrell and his investment company “reputational harm and public disgrace,” he argued.
Last month, Burrell and his second wife opened an auction for an 8,400-square-foot estate located on Aspen’s Red Mountain — the Burrell family’s “primary home,” according to Mansion Global — and a nearby, 4,200-acre ranch in Carbondale as part of an $86.5 million package.
Two of his children from his first marriage with Australian jewelry magnate Katherine Jetter are in college, while his third child with Jetter is set to head off to college next year.
Burrell also has two kids with Nikola — one of which is at a boarding school in Boston, leaving just one at home, according to Mansion Global.
Sotheby’s Concierge Auctions led the bidding, and has since marked the ranch on its website as “sale pending,” while the Red Mountain home’s bid deadline has been extended to Feb. 15.
Burrell, the founder of investment firm The Burrell Group, claimed that First Western’s lawsuit violates federal lending laws as it interferes with the auction of his Red Mountain estate, a property valued at $38.5 million.
He is also seeking damages for what he claims was an invasion of privacy and public outing of his financial situation by First Western, The Denver Post reported.
Many people mistakenly believe they can’t afford to buy a home because they don’t really know what their options are. Fortunately, home loans are not one-size-fits-all. There are various mortgages available to suit your budget and preferences.
So, before you start visiting open houses, take some time to familiarize yourself with the different home loans that are available. Going into the home buying process informed could help you save a lot of money on your down payment, interest, and fees.
The 8 Types of Mortgage Loans Available
Understanding the different types of mortgage loans will help you choose the option that’s best suited for you. Let’s look at a brief overview of the eight types of mortgages available in 2024.
1. Conventional Loans
A conventional loan is a mortgage that’s not issued by the federal government. There are two different types of conventional mortgages you can choose from: conforming and non-conforming loans.
A conforming loan falls within the guidelines laid out by Fannie Mae and Freddie Mac. You’ll take out a conforming loan through a private lender like a bank, credit union, or mortgage company. Since the government doesn’t guarantee the loan, conventional mortgages typically come with more stringent lending requirements.
According to the CFPB, the maximum loan amount for a conventional loan is $484,350. However, it may be as high as $726,525 in counties with a high cost of living. You’ll have to take out private mortgage insurance (PMI) if you don’t have a 20% down payment.
Conventional loans are fixed-rate mortgages, which means your monthly mortgage payment remains the same throughout the entire life of the mortgage loan. The terms typically range from 10 to 30 years:
30-year fixed-rate mortgage
20-year fixed-rate mortgage
15-year fixed-rate mortgage
10-year fixed rate mortgage
Pros:
It can be used to purchase a primary home or an investment property
Tends to cost less than other types of loans
You can cancel your private mortgage insurance (PMI) once you reach 20% equity in your home
Cons:
Must have a minimum FICO score of 620 or higher
Harder to qualify for than government-backed loans
You’ll need to have a low debt-to-income ratio to qualify
2. Conventional 97 Mortgage
A conventional 97 mortgage is similar to a conventional loan in that it’s widely available to various borrowers. The main difference is that with this type of home loan, you only have to pay a 3% down payment.
The program is available for first-time and repeat home buyers. However, it must be your primary place of residence, and the maximum loan amount is $510,400.
Pros:
Widely available to most borrowers
Only requires a 3% down payment
Available for first-time and repeat homebuyers
Cons:
Cannot be used to purchase investment properties
The maximum loan amount is $510,400
Requires a minimum FICO score of 660 or higher
3. FHA Loans
FHA loans are backed by the Federal Housing Administration and are a popular option for first-time home buyers. To qualify, you need to have a 3.5% down payment and a minimum credit score of 580.
If you have a credit score of 500 or higher, you can qualify for an FHA loan with a 10% down payment. These flexible requirements make FHA loans a suitable option for borrowers with bad credit.
To qualify for an FHA home loan, you must have a debt-to-income ratio of 43% or less. These loans can’t be used to purchase investment properties, and your home must meet the FHA’s lending limits.
These limits vary by state, so you’ll need to check the FHA’s website to see what the guidelines are for your area.
Pros:
Loans come with low down payment options
A viable option for borrowers with bad credit
Available for first-time and repeat homeowners
Cons:
Loans can’t be taken out for investment properties
If your credit score is below 580, a 10% down payment is required
You must have a debt-to-income ratio below 43%
Mandatory mortgage insurance premiums
4. FHA 203(k) Rehab Loans
An FHA 203(k) rehab loan is sometimes referred to as a renovation loan. It allows home buyers to finance the purchase of their home and any necessary renovations with a single loan.
Many people purchase older homes to fix them up. Instead of taking out a mortgage and then applying for a home renovation loan, you can accomplish both within a single mortgage.
A rehab loan is similar to an FHA loan in that you’ll need a 3.5% down payment. However, the credit requirements are stricter, and you’ll need a minimum credit score of 640 to qualify.
Pros:
Allows you to buy a home and finance the remodel within one mortgage
Requires a minimum 3.5% down payment
Easier to qualify since the FHA backs your loan
Cons:
Credit requirements are more stringent than typical FHA loans
You must hire approved contractors and cannot DIY the renovations
The closing process takes longer than other types of mortgages
5. VA Loans
The Department of Veteran Affairs guarantees VA loans. These loans are designed to make it easier for veterans and service members to qualify for affordable mortgages.
One of the biggest advantages of taking out a VA loan is that it doesn’t require a down payment or mortgage insurance premium (MIP). And there are no listed credit requirements, though the lender can set their own minimum credit requirements. VA loans typically come with a lower interest rate than FHA and conventional loans.
To qualify for a VA loan, you must either be active duty military, a veteran or honorably discharged. You’ll need to apply for your mortgage through an approved VA lender.
Pros:
No down payment required
No PMI required
Flexible credit requirements
Cons:
Must be a veteran to qualify
Some sellers will not want to deal with a VA loan
6. USDA Loans
A USDA loan is a type of mortgage that’s available for rural and suburban home buyers. It’s a viable option for borrowers with lower credit scores that are having a hard time qualifying for a traditional mortgage.
USDA loans are backed by the U.S. Department of Agriculture, and they help low-income borrowers find housing in rural areas. USDA loans do not require a down payment, but you will need a minimum credit score of 640 to qualify.
You will need to meet the USDA’s eligibility requirements to qualify for the loan. But according to the department’s property eligibility map, over 95% of the U.S. is eligible.
Pros:
No down payment required
A practical option for low-income borrowers
Available to first-time and repeat home buyers
Cons:
A minimum credit score of 640 is required
Housing is limited to rural and suburban areas
7. Jumbo Loans
A jumbo loan is a mortgage that exceeds the financing guidelines laid out by the Federal Housing Finance Agency. These loans are unable to be purchased or guaranteed by Fannie Mae or Freddie Mac.
A jumbo mortgage is financing for luxury homes in competitive real estate markets, and the limits vary by state. In 2024, the FHFA raised the limits for a one-unit property to $766,550, increasing from $726,200 in 2023. In certain high-cost areas, the limits for jumbo loans vary, reaching up to $1,149,825. These jumbo loans are for mortgages that exceed the set limits in their respective counties.
If you’re hoping to buy a home that costs more than $1 million, you’ll need to take out a super jumbo loan. These loans provide up to $3 million to purchase your home. Both jumbo and super jumbo mortgages can be difficult to qualify for and require excellent credit.
Pros:
These loans make it possible to purchase large homes in expensive areas
Typically comes with flexible loan terms
Cons:
Jumbo loans and super jumbo loans come with higher interest rates
You’ll need a good credit history to qualify
8. Adjustable Rate Mortgages (ARMs)
Unlike a fixed-rate mortgage, where the interest rate is set for the life of the loan, an adjustable-rate mortgage (ARM) comes with interest rates that fluctuate. Your interest rate depends on the current market conditions.
When you first take out an ARM, you will typically start with a fixed rate for a set period of time. Once that introductory period is up, your interest rate will adjust on a monthly or annual basis.
An ARM can be a suitable option for some borrowers because your interest rate will likely be low for the first couple of years you own the home. But you need to be comfortable with a certain level of risk.
And if you choose to go this route, you should look for an ARM that caps the amount of interest you pay. That way, you won’t find yourself unable to afford your monthly payments when the interest rates reset.
4 Types of ARMs
There are 4 different types of adjustable-rate mortgages typically offered:
One Year ARM – The one-year adjustable-rate mortgage interest rate changes every year on the anniversary of the loan.
10/1 ARM – The 10/1 ARM has an initial fixed interest rate for the first ten years of the mortgage. After 10 years is up, the rate then adjusts each year for the remainder of the mortgage.
5/5 and 5/1 ARMs – ARMs that have an initial fixed rate for the first five years of the mortgage. After 5 years is up, for the 5/5 ARM, the interest rate changes every 5 years. For the 5/1 ARM, the interest changes every year.
3/3 and 3/1 ARMs – Similar to the 5/5 and 5/1 ARMs, except the initial fixed-rate changes after 3 years. For the 3/3 ARM, the interest rate changes every 3 years and for the 3/1 ARM, it changes every year.
Pros:
Interest rates will likely be low in the beginning.
If you pay the loan off quickly, you could pay a lot less money in interest.
Cons:
Your monthly mortgage payments will fluctuate.
Many borrowers have gotten into financial trouble after taking out an ARM.
Choosing the Right Home Loan
When it comes to choosing a home loan, you need to consider a few key factors. First, you’ll want to think about the type of loan that is best suited to your needs.
Fixed-rate mortgages offer stability and predictability, while adjustable-rate mortgages (ARMs) can be a viable option for those who expect their income to increase significantly over time. You’ll also want to consider your budget and how much you can afford to borrow, as well as the size of your down payment and the length of the loan term.
It’s also crucial to shop around and compare offers from multiple mortgage lenders. While it’s tempting to go with the first lender you find, it pays to do your homework and see what other options are available.
This can help you get a better rate and more favorable terms on your loan. It’s a good idea to get quotes from at least three different lenders, and to consider both traditional banks and online lenders.
Tips for Getting the Best Rates and Terms
One of the most effective strategies is to improve your credit score. Lenders look closely at credit scores when deciding whether to approve a loan. Those with higher scores are typically offered better terms. You can improve your credit score by paying your bills on time, reducing your debt, and correcting any errors on your credit report.
Another tip is to make a larger down payment, which can help you secure a lower interest rate and reduce the size of your monthly payments. Finally, consider working with a mortgage broker, who can help you shop around and find the best deal.
Bottom Line
As you can see, there are many home loans for you to choose from. The type of mortgage that’s best for you will depend on your current income and financial situation.
If you’re not sure where to start, consider working with a qualified loan officer. They can assess your situation and recommend the option that will be best for you.
In our latest real estate tech entrepreneur interview, we’re speaking with John Rowland from S2A Modular.
Who are you, and what do you do?
My name is John Rowland and I’m the president and co-founder of S2A Modular. I consider myself a visionary with a passion for designing homes, communities and real estate. My 20+ years of experience spans across land entitlement, land development and development feasibility analysis – but most recently, has shifted focus to engineering the most advanced, self-sufficient homes in the world.
After seeing a gap in the market, my partner Brian Kuzdas and I founded S2A Modular – the company to produce electrically self-sustaining, custom luxury homes. We’re changing the way the world understands residential buildings – creating a new standard in stylish design, construction speed, tailor-made features with high-end materials, “surplus energy income” and smart-connected living.
What problem does your product/service solve?
There’s a multitude of worldwide changes happening in the residential and commercial real estate industry that our #GreenLuxHomes address:
Energy bills are rising and there’s too much reliance on an energy grid that’s vulnerable and antiquated.
Property values are dipping
Commercial buildings are inefficient.
New houses haven’t caught up to advances in technology
Sustainability is changing worldwide
S2A Modular is truly creating a new category of custom homes that simply aren’t comparable to any traditional site-built, modular or other types of residences.An S2A home is immediately superior in long-term value, upon appraisal, to a traditional home – and for good reason. Simply put, a Green Lux Home saves money, time and energy, while reflecting the ultimate level of sustainability, luxurious design, high-end materials, full smart home ecosystem features and an overall better way of living. Our homes are constructed with high-end custom or predesigned models and superior performance materials, which provides self-sustaining power, using exclusive energy storage and solar technology that eliminates energy bills (and may even result in energy companies paying you for your contribution back to the grid). Our homes are fully connected smart homes with smart appliances, energy features and security features controlled with a single mobile app. Not to mention, all these exclusive features result in a higher home value than traditional homes.
What are you most excited about right now?
I’m most excited to be bringing our product to mass market. Over the past year, we’ve focused our efforts on fundraising, networking with key industry players, getting involved in major sectors of the market, showcasing how our product works and the impact we can make on the world. We’ve truly been focused on building a strong foundation that can help us take S2A Modular worldwide, even further than we could’ve ever imagined.
What’s next for you?
We’re working on something exciting for 2020, which we haven’t actually shared too much of yet. S2A Modular is currently developing housing solutions for the nation’s homelessness population by providing affordable, sustainable housing that can be built for 20 cents on the dollar compared to similar structures being purchased by the U.S. government. We plan to sell these homes nationwide for less than the cost of an average car, and they’ll be electrically self-sustaining to run completely off grid.
We’re also in the works of finalizing a licensing agreement, which will allow us to expand the S2A MegaFactory worldwide. We will be working with a few major industry partners to quickly and efficiently build and fulfill large orders of #GreenLuxHomes across the globe.
What’s a cause you’re passionate about and why?
There’s a huge human trafficking problem right now, and as a father, this cause is near and dear to my heart. I recently got involved in supporting the organization Operation Underground Railroad (O.U.R.), which works to rescue victims of human trafficking and sex trafficking, with a specific focus on children. Over the past five years, O.U.R. has rescued 2,603 victims and assisted in the arrests of more than 1,365 traffickers around the world. To support this organization, I took a little-known passion of mine in the design, engineering and manufacturing of sunglasses to donate 100 pairs of glasses that will be sold to help raise money to support the work of O.U.R. This is an incredible organization and it was an honor to be able to use my passion in sunglass design to support their efforts to help human trafficking victims.
Thanks to John for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
Prominent YouTube content creator Jimmy Donaldson — best known as MrBeast — took on the world of luxury real estate, and hundreds of millions of viewers tuned in to watch him tour upscale properties with some of his most famous friends (Justin Timberlake, Mark Cuban, and Miranda Cosgrove).
The YouTuber, who holds the title of the most-subscribed individual on the platform (and also has the second-most-subscribed channel overall), is famous for his viral videos centered around expensive stunts, challenges, and donations.
And he’s set quite a few records since launching his channel in 2013.
In 2017, he released his “counting to 100,000” video — which became his breakthrough viral video — and he has become increasingly popular ever since, with most of his videos gaining hundreds of millions of views.
By 2021, MrBeast was making headlines for breaking the record for the fastest non-music video to reach 100 million views, thanks to his Squid Game-themed video. That video now has over 500 million views.
He’s also known for his charitable endeavors, and for the fact that the more popular he gets, the more money he gives away.
While many have claimed that his monetary giveaways could be the primary reason why he accrues millions upon millions of video views, one of his most recent viral hits debunks this theory.
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On October 14, MrBeast released a new video titled $1 vs $100,000,000 House!, where the YouTuber — alongside his crew and several famous pals — tour homes of different price points, from a $1 shack to a $100 million mansion in Los Angeles (that’s actually worth $139 million).
The video garnered more than 100 million views in its first 10 days and shattered the previous record for the most views within 24 hours — a record that MrBeast himself had set with his “7 Days Stranded at Sea” video — proving to naysayers that giving money away is not the reason behind Donaldson’s success.
Now, since the content crossed the threshold into our turf — the world of luxury real estate — we wanted to provide some background info on the properties featured in MrBeast’s video — including specs, updated prices, photos and more.
And we also got some behind-the-scenes tidbits that the listing agents shared with us, including how long ago the property tours took place, and what type of response they saw after the video launched.
All the luxury homes featured in MrBeast’s “$1 vs $100,000,000 House!” video
While there’s not much to say about the $1 shack that kicked off the video (that one might even be best summarized as “what you see is what you get”), there’s lots to learn about the other striking homes that made the cut. We’ll also skip the $1 million house, as that price point doesn’t necessarily fall into luxury territory in many of the real estate markets we cover.
We talked to some of the agents in charge of the listings featured in the viral video, and they shared their excitement about being part of the project.
“It was a cool experience to be affiliated with Mr. Beast,” says Rachael Williams with Revel Real Estate, who holds the listing for the $15 million property featured in the video. “Apparently this video broke the world record for most views in 24 hours. So essentially being a part of history is pretty awesome! 😎“
Wondering whether it was MrBeast’s team that sourced the houses? We were thinking the same, and it turns out that “Mr. Beast’s team reached out to us to be featured,” Ben Bacal, Founder and real estate agent at Revel Real Estate tells us. “We were told our property might, or might not make the final cut, but it did! And we’re so happy that they included it. “
The agents also told us that filming — at least for some of the properties — took place back in August, despite the final cut being released in October.
Naturally, that also means that some of the prices have changed in the meantime.
The $45 million house was most recently listed for $29.888 million, while the art-filled Malibu home dropped its asking from $69 million to $59 million. And the $100 million house is actually far more expensive in real life. So let’s take them one at a time.
The $100 million house, LA FIN
The focal point of the video, the striking $100 million house MrBeast tours alongside celebrity guest Justin Timberlake is actually a $139 million mega-mansion in Bel Air, California.
Newly built in 2021, the spec mansion is dubbed LA FIN, and is touted as “the pinnacle of homes designed for entertaining at a scale comparable to the best hotels in the world.” And for good reason.
Featuring an impressive total of 12 bedrooms, 17 bathrooms, and a guest penthouse, the luxury abode has an entire array of amenities that you’d be hard-pressed to find anywhere else, including a 6,000-square-foot nightclub, a unique 6-car elevator that displays the car collection above the nightclub, and an ice-cold vodka-tasting room furnished with fur coats.
Other notable features include a cigar lounge, a cutting-edge gym equipped with Peloton equipment and a rock-climbing wall
The primary bedroom suite of the luxury Bel Air mansion is nestled in its private wing.
Cloaked in Italian oak, the bedroom’s centerpiece is a striking fireplace crafted from Portuguese marble, and has an adjoining bathroom reminiscent of a world-class spa with Calacatta gold marble, a sweeping 100-square-foot shower, and a bathtub sculpted from a singular marble block.
With so many unique features, we could talk about this property all day. But since pictures are worth a thousand words, why not take a closer look inside the ultra-luxurious Bel Air mansion instead (Swipe for more pics):
Price & property history: The $139 million mansion was first listed in February 2022, with Jon Grauman and Adam Rosenfeld (The Agency). And while it has retained its asking price, representation for the property has since changed, with Shawn Elliot or NestSeekers International.
The art-filled $69 million house
Joined by iCarly actress Miranda Cosgrove, MrBeast tours the second most expensive home, a Malibu architectural gem that bears the signature of lauded architect Ed Niles.
The art-filled glass-and-steel house — which we’ve covered in depth here following its recent price adjustment, that brought it from $69 million down to $59.5 million — is propped up on a hill just 75 feet away from water and pairs its excellent oceanfront location with a distinct architecture that makes it one of Malibu’s most impressive real estate offerings.
The avant-garde abode is defined by sharp geometric angles, varied shapes, and out-of-the-box materials like glass, steel, and concrete, all thoughtfully executed and flowing beautifully together.
Featuring 4 bedrooms and 6 bathrooms with a detached one-bed, one-bath guesthouse on 8,206 square feet, the glass-and-steel house incorporates many Feng Shui principles.
Price & property history: Originally listed in March 2023 with an ambitious $68.8 million price tag, the Ed Niles-designed home recently had its price re-adjusted to $59.5 million.
Madison Hildebrand and Jennifer Chrisman at Compass and Wendy Wong and Katherine Quach of Treelane Realty Group are spearheading the home sale.
The $45 million Brentwood house
Our favorite property on this list — though we might be a bit biased, as we’ve written extensively about this mansion before — is a newly built spec mansion in Los Angeles’ family-friendly Brentwood neighborhood.
Toured alongside billionaire Mark Cuban (who lives in an equally impressive luxury mansion), the spectacular property known as Allure is a 14,000-square-foot mansion that’s been carved into the mountainside — an arduous process that included the removal of approximately 680 truckloads of dirt to create over an acre of flat land.
First listed for $45 million (price later dropped to $29.888 million) ‘Allure’ is inspired by “The Greats” across various domains — including elite athletes, top Hollywood stars, influential C-suite executives, and international business tycoons.
And its long (and creative) list of amenities reflects that.
The 7-bedroom, 8-bath home has a movie theater with a Rolls Royce starlight ceiling, two striking living moss walls, a dedicated regulation-sized pickleball court, an NBA-sized half-court sporting a Michael Jordan design, a putting green, and a sanctuary spa with a fitness center and sauna.
The upscale Brentwood mansion was developed by Ramtin “Ray” Nosrati of Huntington Estates Properties, the mastermind behind some of LA’s most affluent homes.
Price & property history: The 14,000-square-foot house was first listed for $45 million. With a revised price of $29.888 million, Allure is listed with Sally Forster Jones and Nicole Plaxen of Sally Forster Jones Group at Compass, Santiago Arana at The Agency, Shauna Walters at Beverly Hills Estates, and Josh and Matt Altman of The Altman Brothers at Douglas Elliman.
Take a closer look inside: This $29.888 million Brentwood mansion is the Michael Jordan of homes
The $30 million mansion with an indoor water park
While most of the houses in MrBeast’s videos are located in California, the $30 million mansion takes us on a trip to Leverett, Massachusetts, to visit a highly unique property likened to “a candy store for adults.”
Known as the Juggler Meadow Estate, the $30 million Massachusetts property is the former home of late Yankee Candle founder Michael Kittredge II and is a local celebrity in its own right (which comes as little surprise after watching the video tour).
With an impressive 120,000 square feet of interior space — split between 8 structures — the compound features a 25,000-square-foot main residence, a 55,000-square-foot spa, an indoor water park, three tennis courts, a three-lane bowling alley, two grotto-like wine cellars, and a 10-seat movie theater, among many other amenities.
Price & property history: The former Yankee Candle founder’s house was listed in the second half of 2022 for $23 million. Popular listing websites like Zillow and Realtor.com still show the same $23 million asking price, while the official listing on the brokerage’s website (the house is repped by Johnny Hatem Jr with The Sarkis Team at Douglas Elliman) says the price is only available upon request.
The $15 million house
While the other luxury houses MrBeast visited strayed a bit from the price point shown in the video, the next property on our list is a true-to-story $15 million home in the Hollywood Hills — with a killer location and spectacular design.
Perched atop the famous Bird Streets (widely known as some of LA’s most desirable streets, (attracting celebrities like Leo DiCaprio, Tobey Maguire, or Jodie Foster), the 7,217-square-foot contemporary, Ameen Ayoub-designed residence was completed in 2021.
Packed with world-class amenities — including a chef’s kitchen with Miele appliances, an aquarium bar that looks into the infinite pool, a custom-built honeycomb quartz wine cellar, a decoupled home theatre, a subterranean garage, and a state-of-the-art fitness center with a sauna and steam shower — the 3-bed, 5-bath home is pure luxury.
It also has a jaw-dropping primary suite with a fireplace and private terrace, dual bathrooms, and a designer closet.
Price & property history: Listed for $14,900,000 with by Ben Bacal and Rachel Williams of Revel Real Estate, the $15 million was listed in mid-2023, and hasn’t had any price adjustments since.
After being featured in MrBeast’s $1 vs $100,000,000 House! video, the property’s agents share that the Hollywood Hills mansion already received an offer — for a one-year lease. And more will likely follow, as the viral video keeps accruing millions of views.
Which property did you love the most?
*Featured image credit: Fidias, CC BY 3.0, via Wikimedia Commons, Nils Timm / Nils Timm Visuals & Simon Berlyn courtesy of Compass
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It’s time to check out “Toll Brothers Mortgage,” which is a subsidiary of home builder Toll Brothers.
Toll Brothers is one of the largest home builders in the United States, priding itself on being a luxury home builder.
Instead of relying on third-party lenders to provide financing to their customers, they have a built-in financing division.
This allows them to oversee the process firsthand and navigate the complexities of new construction financing.
They say they’ve got a proven track record of smooth closings, and if they can offer you a mortgage rate the other guys can’t, they could be worth looking into.
Toll Brothers Mortgage Fast Facts
Direct-to-consumer retail mortgage lender
Provides new construction lending and home purchase loans
Parent company is nation’s 5th largest home builder
Founded in 1967, headquartered in Fort Washington, PA
Licensed to do business in 24 states nationwide and D.C.
Funded nearly $2 billion in home loans last year
Most active in California, Pennsylvania, and Texas
Offers mortgage rate specials to Toll Brothers customers
Also operates a full-service title and insurance company
As noted, Toll Brothers is a major home builder, the fifth largest at last glance, behind only D.R. Horton, Lennar, Pulte, and NVR.
They are a publicly-traded company (NYSE:TOL) and are currently valued at around $9 billion.
The company was founded in 1967 and refers to itself as the nation’s leading builder of luxury homes.
This includes both new construction homes and quick move-in homes. The company’s dedicated mortgage division is known as Toll Brothers Mortgage Company, or TBI Mortgage for short.
They exist solely to serve Toll Brothers customers who need to finance their new home purchases, and have about 77 loan officers on staff, per the NMLS.
In 2022, the company funded a healthy $2 billion in home loans, with 20% of volume coming from the states of California and Texas, and another 9% from Pennsylvania.
The company also did a lot of business in Arizona, Colorado, Florida, Idaho, Nevada, and Virginia.
They are licensed to lend in Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington.
Those purchasing a Toll Brothers home can also take advantage of in-house title, escrow, and insurance services via Toll Brothers Insurance Agency.
How to Get Started
To begin, you can visit a new home sales office or simply check out their website.
If you go online, they have a contact form and a loan officer directory that lists individual employees by state.
They can provide loan pricing and answer mortgage questions you might have about the loan process.
If you’re ready to proceed, they’ll ask you to complete a mortgage pre-qualification questionnaire and create a secure Toll Brothers account.
Within 14 days of signing a home purchase agreement, you’ll be asked to submit the loan application and upload required documents.
Their digital loan application is powered by ICE (formerly Ellie Mae). It allows borrowers to start the process from any device and complete most tasks electronically.
This includes linking accounts like pay stubs, tax returns, bank statements, along with eSigning necessary disclosures.
If approved, they’ll provide you with a loan commitment, as well as conditions needed to fund your loan.
Importantly, the loan approvals are valid through the completion of your home. And are integrated with Toll Brothers to sync with the builder process.
Since building a new construction home can take up to 12 months, their loan process may have longer timelines than a typical existing home purchase.
But they also offer quick move-in properties, in which case the process will likely only be 30 to 45 days.
Loan Programs Offered
Home purchase loans
Conventional loans backed by Fannie Mae and Freddie Mac
FHA loans
VA loans
Fixed-rate mortgages: terms ranging from 10 to 30 years
Adjustable-rate mortgages: initial fixed terms of 3, 5, 7, 10, or 15 years
Available on primary residences, second homes, and investment properties
While Toll Brothers Mortgage only offers home purchase loans (no mortgage refinances), they have a decent loan menu.
This includes all the usual offerings such as conforming loans backed by Fannie/Freddie, jumbo loans, FHA loans, and VA loans.
The only loan programs they appear to be missing are USDA loans and second mortgages, though these aren’t widely used by home buyers these days.
They’ve got a good selection of both fixed-rate mortgages and adjustable-rate mortgages, including a 10-year fixed and 15-year fixed.
With regard to the adjustable-rate loans, they’ve got the 5/6 ARM, 7/6 ARM, and even an ARM with an initial fixed term of 15 years.
And you can get an ARM if taking out an FHA loan or VA loan, which is less common.
So there’s no shortage of loan programs, and they finance primary residences, second homes and investment properties.
Toll Brothers Mortgage Rates and Fees
Like other mortgage lenders, they do not have a page dedicated to mortgage rates, nor are they publicized elsewhere.
Instead, they simply say they offer “competitive rates,” which obviously doesn’t give us a lot to go on.
However, they offer personalized financing packages and there’s a good chance they’ve got some special financing offers unique to home builders.
If you browse the Toll Brothers main website, you might see specials for certain communities.
I came across an exclusive offer of 5.99% on a 30-year fixed while rates are closer to 7.5% at the moment.
Lately, the captive mortgage lenders of home builders have been hard to beat, thanks to their big temporary and permanent mortgage rate buydowns.
Many are offering rates well below market if you buy certain homes by a specific date.
But always take the time to compare their rates and fees to outside lenders as well. You’ll never know what else is out there if you don’t put in the time to look.
LockSolid Rate Protection program
Since the home building process can take time, Toll Brothers Mortgage offers a special mortgage rate program called “LockSolid Rate Protection.”
Since It allows home buyers to lock in a mortgage rate for up to 345 days, with no cost until loan closing.
The up-front lock deposit is advanced by Toll Brothers, giving buyers peace of mind in an uncertain mortgage rate environment.
Additionally, a float down option is available on many programs. So if rates happen to fall below the rate you locked in within 30 – 45 days of closing, they can re-lock your loan at a better price.
The program is available on both fixed- and adjustable-rate mortgages offered by the company.
Just keep in mind that it doesn’t always make sense to lock in a rate well ahead of time. If you have an extended time horizon, floating your mortgage rate can provide more opportunities.
It’s also generally cheaper to lock in a rate with a shorter lock period.
Toll Brothers Mortgage Reviews
There aren’t a ton of reviews for Toll Brothers Mortgage specifically, though I did come across some.
Over at Zillow, they have a pretty poor 1.36/5-star rating from about a dozen reviews. Not a big sample size, but not glowing reviews either.
Similarly, they have a 1.8/5 from another dozen mortgage reviews on Google for their Fort Washington, PA headquarters.
They have a 5-star rating on Redfin, but it’s only from three reviews. Meanwhile, their parent company has a 1.12/5 rating on the Better Business Bureau (BBB) website from 85 reviews.
However, the company maintains an ‘A+’ rating based on customer complaint history, so they appear to handle issues that come up appropriately.
Take the time to read the customer reviews and complaints to see what the common issues are, and how you might be able to avoid them.
At the end of the day, using the builder’s lender can make sense if they offer a below-market mortgage rate.
There’s also the perception that they’re in better sync with the builder as the companies operate under the same parent.
But based on the complaints, this isn’t always the case. So be sure to shop around and get quotes from other mortgage companies and some independent mortgage brokers too.
Even if you do decide to use Toll Brothers Mortgage, you can use those other quotes to negotiate a better deal.
Toll Brothers Mortgage Pros and Cons
The Good Stuff
Can apply for a home loan online
Offer a digital, mostly paperless application powered by ICE
Loan approvals good through completion of your home
May offer special financing incentives to Toll Brothers customers
Lots of loan programs to choose from including ARMs
LockSolid Rate Protection program
A+ BBB rating
Mortgage glossary and mortgage calculator online
The Maybe Not
Only licensed in a handful of states where they build homes
While high mortgage rates are keeping everyday working Americans out of the housing market, wealthy buyers with the means to buy multi-million dollar homes in cash are doing just fine.
In fact, luxury home prices, sales and inventory are all outpacing the regular real estate market, a reversal from last year when high-end buyers pulled back.
That’s according to a new report from Redfin, which shows the median price of luxury U.S. homes rose 9% year over year to $1.1 million in the third quarter, while the median price of non-luxury homes climbed only 3.3% to $340,000. Both hit their highest level of any third quarter on record.
The Redfin analysis defines luxury homes as those estimated to be in the top 5% of their respective metro area based on market value, and non-luxury homes were defined as those estimated to be in the 35th to 65th percentile based on market value.
The luxury housing market’s resilience in today’s chilled real estate environment is likely due to wealthy home buyers’ ability to buy with cash and avoid today’s 7% to 8% interest rates.
Almost 43% of luxury homes that sold in the third quarter were purchased in cash, up from nearly 35% a year earlier, according to Redfin. Contrast that with just 28% of all-cash purchases of non-luxury homes, which remains essentially unchanged from the third quarter of 2022.
“Wealthy home buyers have more tools to weather the storm of high mortgage rates,” said Jason Aleem, senior vice president of real estate operations for Redfin. “Many of them can afford to pay in cash, meaning they’re escaping high mortgage rates altogether.”
Aleem said other buyers are choosing to take on a higher rate and refinance down the road — “an expensive option that isn’t feasible for a lot of lower-income consumers.”
“Affluent Americans are still spending big, in large part because of pandemic savings and resilient housing and stock values,” he added.
The trend, however, may not last, according to Redfin chief economist Daryl Fairweather.
“While many luxury buyers have the resources to forge ahead even when mortgage rates are elevated, stubbornly high rates and home prices will likely push some affluent house hunters to the sidelines in the coming months,” he said. “High costs, along with the uptick in the number of high-end homes for sale, could cause luxury price growth to cool.”
For now, though, luxury inventory is holding up well compared to other segments of the housing market. The total supply of luxury homes for sale grew almost 3% from a year earlier compared with a record 20.8% decline in the supply of non luxury homes, Redfin reported. New luxury listings rose 0.3% while new non-luxury listings fell 22%
Luxury home sales are sluggish compared to last year, but they’re not as down compared to other homes. Luxury sales dropped 10.6% year over year compared to a 17% drop in non-luxury sales, according to Redfin.
Where luxury home sales jumped the most
In Tampa, Florida — home to many cash buyers — luxury home sales surged by almost 36% year over year, according to Redfin, the biggest increase in the country. Luxury new listings also rose almost 14% year over year in the third quarter, the biggest increase in every metro other than New York.
Next came Las Vegas (33.4%), Austin, Texas (14.5%), Sacramento, California, (10.1%) and San Francisco (9.6%).
“It’s an opportune time to be a cash buyer, and there are a lot of cash buyers in Florida,” said Eric Auciello, Redfin Tampa sales manager. “We’re still seeing many affluent house hunters move in from the Northeast and West Coast because they want lower taxes, different politics and/or to be closer to family. Tampa also has a ton of new construction, a lot of which is high-end condos.”