February 2009
Real Service... Real Results
In This Issue
Real Estate Trends
When to refiance?
102A Palm Point 
Laura Cole & Tana Gaskill
(561)             (561)
776-4429      776-4444
Illustrated Properties
2725 PGA Blvd.
Palm Beach Gardens

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Please contact us if you would like a confidential comparative market analysis on your home.  We will be happy to meet with you to discuss your property's current value in relationship to current sales, market trends and standing inventory.


This month our newsletter includes information about Real Estate in BallenIsles and a featured property that will be held open this Sunday.  We love meeting you at Open Houses so do stop by.
We frequently get asked questions about refinancing so we asked our good friend, Tom Day, to write an article highlighting some of the key points of when it make sense to consider a new mortgage.  Tom heads Illustrated Properties Mortgage, a joint venture with Wells Fargo. 
Best wishes for a happy Valentine's Day.
Laura & Tana
2-4 PM
37 St George Place                  
127 Emerald Key Lane
Real Estate Trends
BallenIsles Sales
102A Palm Point
BallenIsles had a sluggish month for sales with only 2 properties closing in January.  Inventory continues to creep up with 133 homes currently for sale. Most Realtors feel the market has just about bottomed out and hope to see a revival of interest in 2009.  Our personal experience with showings and Open House activity has been that there is plenty of interest, just a reluctance to commit.*
BallenIsles - February Sales
ADDRESS                     BR            BA       SALE PRICE
120C Palm Point Circle   3               2.5          370,000
108 Island Cove Way     3               4             500,000
*This representation is based in whole or in part on data supplied by the Realtors Association of the PalmBeaches or its Multiple Listing Services thru 02/03/09.  
To learn more about current Real Estate trends in BallenIsles, click on the links below.
Featured Property
127 Emerald Key Lane
102A Palm Point 
Awesome sunsets and water views from this 3 bedroom, 3 bath home.  Features include crown molding, diamond brite pool and spa, summer kitchen, new a/c and water heater, built-in bar and 14ft. ceilings.  OPEN SUNDAY, FEB. 15th, 2-4 pm.

When to refinance?
by Tom Day
When to refinance....that is the question of the day.
Much has been written about this subject and my opinions relate to Palm Beach County properties as closing costs can vary greatly from state to state.  Based on a loan amount of $250,000 (for illustrative purposes), closing costs would approximate $3,800 as closing costs on a refinance are very similar to a purchase.  A simple test would be to divide your monthly interest savings into $3,800 to determine how many months it will take to recoup the $3,800.  I would suggest 24-36 months or less would be a realistic target for you to consider. Cash flow (lowering your monthly outflow) may be another consideration.  The closing costs may be paid at closing or added back into your new loan!
Another factor is the differential between the rate on the current mortgage and the prevailing rate for a new mortgage.  The range is 1% to 2.5%....The reason for the big range depends on the loan size as many closing costs are the same regardless of the loan amount.  If a $50,000 loan has closing costs of $2,604 a 1% rate difference is $41.67 monthly (using interest only), therefore it would take 62.49 months to recapture the closing costs.  If a $400,000 loan has closing costs of $4,529 a 1% rate difference is $333.33 monthly (using interest only), therefore it would take 13.58 months to recapture the closing costs.  The bottom line is that smaller loan amounts require a substantial rate difference to be economically feasible!!!
For a confidential assessment, call Tom Day at 561-625-2677 extension 103.