East Hampton, NY has long been a favorite destination for families and individuals who seek an escape from the summer heat of the city. Owning a vacation home in this upscale vacation spot certainly has its perks. If you’re considering buying your own piece of East Hampton, here are a few things you should know.
There is plenty to see and do.
East Hampton provides a wealth of fun without losing its quiet, relaxing atmosphere. With beautiful Main Beach beckoning, inviting gardens, top rated golf courses, and an array of shopping and dining opportunities nearby, it’s no wonder East Hampton has become known as a “playground for the rich.”
But you don’t necessarily have to be a millionaire to enjoy the spoils of this region. Art lovers can bask in the area’s reputation as an art colony, thanks to Jackson Pollack’s historic house and studio in nearby Springs, NY. History buffs will appreciate the many stories and events that took place here during the American Revolution. Best of all, there are homes available in a variety of price ranges, so dropping $1 million on a second home here isn’t a requirement.
Home prices are high, but not as high as you may think.
While real estate prices in the area are far from cheap, there are some surprisingly reasonable (“reasonable” as in less than $1 million) home listings to be found. However, luxury estates in the multi-million dollar range are quite common in East Hampton, with the median home value for the area recorded at $2,907,500 in August. Those looking for less pricey options may consider Montauk or Southampton, which are nearby and just as lovely.
Here are a few recent listings we found on Zillow.com to give you an idea of the current market. As you can see, there are homes anywhere from the mid $500s to more than $32 million.
15 Sherwood Lane
1,200 square feet
81 Sycamore Drive
1,570 square feet
15 Wagon Lane
4,500 square feet
38 Two Mile Hollow Road
8,242 square feet
You may need a jumbo mortgage.
In most parts of the United States, the conforming loan limit is $417,000. That means that is the most money Fannie Mae and Freddie Mac will insure for a mortgage. Homes that are priced beyond that amount may need a special type of mortgage called a jumbo loan. Jumbo loans allow home buyers to borrow beyond the conforming loan limit.
In Suffolk County, NY, the conforming loan limit for a one-unit home is actually at $625,500. This higher limit is due to the fact that the government allows higher loan limits for homes in areas considered “high cost.” Because Suffolk County has a largely affluent population and high home prices, nearly everyone in East Hampton would need a jumbo mortgage if they kept the limit at $417,000. The increase allows more borrowers to use conventional financing or even FHA-backed loans, which are typically less expensive than jumbo loans.
If you’re currently searching for a mortgage lender in East Hampton, Luxury Mortgage has an office conveniently located at 78 Park Place, Suite 203. Feel free to call our East Hampton office today to learn more about our jumbo mortgage products. Even if you don’t need jumbo financing, we provide a large assortment of home loans, including condo loans, 30 year fixed rate mortgages, FHA loans and loans for investment property.
Contact us today for more information and a free rate quote.
Call us today: (888) 379-0303
Four Landmark Sq. Suite 300
Stamford, CT 06901