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Increased interest rates
ay sell more real estate
THE BATTALION
THURSDAY, MARCH 22, 1979
Page 5
3 Iftt % KAREN CORNELISON
y | VWH Battalion Reporter
With all the talk about tight money
I TA and inflationary home prices, the
^ v real estate business in Bryan-College
Statioi' is still booming. If the legal
^ mortgage loan interest rate in Texas
pt is raised from 10 percent to 12 per
cent, as some anticipate, increased
real estate activity may result.
tv Rouses, however, probably will cost
'wore in coming months,
w 'Mk Because of the relatively low
y S? , '*Mnterest rate ceiling in Texas (10 per
cent), savings and loan associations
are cutting home loans locally and
making additional loans in out-of-
state markets, where they can charge
a higher interest rate and get a better
return for their investors.
This causes money sources for
Texas home-buyers to dry up. Pres
ently, savings and loan associations
andjjlmortgage brokers must pay
pbout 10.4 percent interest for
money from national banking len
ders (where the money for loans
originates), while they can only
* ^ , charge 9.7 percent interest.
jV * 4 Nationally, the average price of a
new home jumped by $2,000 to
'$63,600 in the third quarter of 1978.
a bg. Locally, the average price in the
bills ps sanm period was $42,843 — an 11.6
ets. V :|)ercent increase from the previous
fi of V quarter and an 8.9 percent increase
ma from a year ago.
tions, the Texas Consumer Associa
tion and Gov. Bill Clements.
Supporters of the higher interest
rate feel it is necessary in order to
provide mortgage loans for home
buyers. They say they would rather
see higher rates than have all the
money going out of state.
duction in the price of homes.”
He said that raising the interest
rate would benefit home-buyers, al
though most of them don’t know it.
The selling price of a home usually is
increased to make up for the seller
having to pay points, he said, adding,
if points go down, prices could go
down also.
‘HOME LOANS THAT are made
are harder to get, especially for the
young and the old,” a local real estate
agent said. Lenders usually will only
approve a loan that is twice the bor
rower’s annual gross income, she
said. When money was not so tight,
lenders would approve a loan for
two-and-a-half times the annual in-
THE INCREASE IN Texas’
mortgage interest rate ceiling was
“Hardly any conventional loans
are being made right now,” said
Charlie Nichols of Investors Inc. “I
feel like activity will pick up (if the
interest rate is raised).”
Kay Playter, president of the
Bryan-College Station Board of
Realtors, says she is in favor of raising
the interest rate ceiling, although
she stressed that is was her own per
sonal opinion.
“It’s going to have to happen if
savings and loans are going to stay (in
this area),” she said. “I see no de
crease of activity in real estate. If the
interest rate isn’t raised, we ll have
fewer new houses, but savings and
loans are still making some mortgage
loans.”
clayed Feb. 12 when a bill which
LEa would raise the rate limit on home
TEXAS LENDERS USE another
£^gjmoitgage loans to 12 percent was
sentito a subcommittee for further
OCatiOP consideration.
gh andstj ‘The bill is straightforward, ” said a
R 1 batlilpokesman for Sen. Bill Meier,
’ close: p-T|rrant County, who introduced
ith plus|he bill. “It concerns loans for
single family dwellings, not to ex-
ney, ceed a four-plex. It’s designed to
ijygg benefit the individual home-buyer.”
j/au IfM
eier’s bill is not passed, there
are at least six other bills in various
_ _stages in the legislature concerning
raping the interest rate in Texas.
Those who oppose the bill and call
inflationary include labor organiza-
means to get a greater return on
loans — the point system. To justify
loans to Texas home-buyers, a
mortgage broker will charge the
buyer of a home one “point,” or 1
percent of the loan balance, at the
initial transaction. He usually can
charge the buyer only one point,
plus the 9.7 percent interest, to re
main below the legal interest rate of
10 percent. So he charges points to
the seller, sinply for the privelige of
selling his own home.
Nichols says he expects points to
go down if the interest rate ceiling is
raised.
“I don’t know how drastically,” he
said. “I would anticipate a small re
stays tight, it will go down a little.
The Multiple Listing Service
which most real estate companies
use to list all properties for sale,
boasts a current 1,100 listings. The
company prints a new book each
week wbich lists all houses and acre
age for sale by real estate companies.
HART HALL
AND
MclNNIS HALL
JOIN FORCES TO BRING YOU A
“I’VE TALKED WITH one buil
der who will lower his price. Not all
will,” he said.
The current rate quoted by Inves
tor’s Inc., a local branch of an Austin
mortgage broker, is one point
charged to the buyer and six to
eight-and-one-half points to the
seller for a 9.875 percent maximum
loan of $60,000. That means a person
selling his $50,000 home would only
receive about $46,000.
“It’s called ‘legal usury,”’ the local
real estate agent said, “but it’s a
necessary evil.” The lender makes
his return on the loan through “up
front costs,” she said, rather than
through higher monthly payments
from the borrower.
“Points can become questiona
ble,” the spokesman from Bill
Meier’s office said, “but that’s really
a secondary problem.”
Despite the interest rate dilemma
and inflationary building costs, the
real estate business seems to be
going as usual in the Bryan-College
Station area, although building per
mits issued are from the same period
last year.
Each listing gives a description of
the house or acreage, and the age
and approximate square footage if it
is a house. The book is for sole use of
real estate companies, and is not
available to the general public. So far
in 1979, MLS has 48 new residential
listings in Bryan, and 20 in College
Station. It lists 133 total sales for
1979. Seventy-one firms currently
are members of MLS, up from about
50 members a few months ago.
SPRING PARTY
SAT. MARCH 25, 8-1
ALL GIRLS FREE!
WRIGHT SAID THE total
number of licensed real estate
agents in the area is up, too — 365
licensed salespersons, compared to
192 in May 1978.
“That number is misleading,”
Wright said. “There are a lot of
licensed sellers who are not cur
rently in the business.”
* SPIRITS
* DANCING
* FOOD
AT THE
ELK’S LODGE
NON-RESIDENT
MALES $3.50
With so many licensed realtors in
the area, real estate is extremely
competitive. But it is a “friendly
competitiveness,” Playter said. The
Board of Realtors is designed to
create friendly feelings between
realtors, she said.
IN THE LAST quarter, an aver
age of 86 houses per month was sold
in the area, said Dr. Arthur Wright
of the Texas A&M Real Estate Re
search Center. That is 34 percent
below the number sold in the third
quarter, he said, but normal if sea
sonal differences are taken into ac
count. The number of homes sold in
the first three quarters of 1978 were
58, 110, and 131, respectively.
There were 693 new homes built in
the area in the first 11 months of
1978, 2 percent below the same
period in 1977.
“There is a slight slowdown in ac
tivity from 1978,” he said. “If money
“We’re in a fortunate area here,”
she said, “because we re still grow
ing. People are moving here from
the north, and A&M is continuing to
grow.” Playter also said the oil ac
tivity in the area has affected its
whole growth. “The future looks
very bright,” she said. “We re cen
trally located, and the quality of life
here is super. That puts a real good
light on real estate.”
Hey Cheese Lovers!
Dairy Science
Club
Jalepeno Cheese
Sale is
in Progress
Kleberg Center
845-4424
riace
iX v** :Vm
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Mi. : ' 4
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^ x§
66
No Hassle
Hairstyles
Permanent Waves
Sculptured Nails
and much more.
693-6933
Our Place is That Place
VARIETYmeans
more to us
than hold the pickles.
VARIETY
IS
45:
different and delicious
100% pure beef hamburgers
HAfllBUItGCIW
Our food contains the same premium quality ingredients and
generous portions that we began serving years ago. We assure you
that the same standards prevail and that we will continue to serve
only 100% PURE U.S. INSPECTED BEEF. Our 1/4 POUND PATTIES
(precooked weight) are ground daily especially for us and
char-broiled for your enjoyment.
1/4 POUND HAMBURGERS
1. Our own Hickory Smoke Sauce hamburger
2. Jalapefto Hamburger with the best salad sauce,
shredded lettuce, grated swiss cheese and
freshly ground jalapehos
3. Your choice of sauce hamburger with tomatoes
and shredded lettuce, with hickory smoke
sauce or mustard or mayonnaise or salad sauce
4. Old Fashioned Hamburger with salad sauce,
shredded lettuce, tomatoes, mustard and pickles
5. Ourgood chili and grated Cheddar cheese hamburger
6. Chili and grated Cheddar cheese hamburger
plus hickory smoke sauce and salad sauce
7. The Works: a great combination of #4 and #6
8. Half pound of knackwurst and hamburger with hickory
smoke sauce, chili and grated Cheddar cheese
9. The Beefeater: Half pound hamburger with salad
sauce, shredded lettuce and tomatoes
10. Our famous bacon and Cheddar cheese hamburger
has salad sauce, grated Cheddar cheese,
shredded lettuce, and smoked bacon strips
11. Our famous bacon and crumbled blue cheese
hamburger with salad sauce and shredded lettuce ...
12. Gourmet Hamburger: Our really special "secret”
homemade mayonnaise sauce came from the
old Muehlebach Hotel in Kansas City. Generous
amounts of this sauce with shredded
lettuce make this hamburger a favorite
13. Fishburger with salad sauce, shredded lettuce
and tomatoes
14. Chargrilled 1/4 pound Knackwurst with chili and
grated Cheddar cheese
15. Schnitzelburger: breaded and deep fried ground
beef cutlet with special sauce, marinated cucumbers
and onions, shredded lettuce and grated swiss cheese
16. Chili con Queso Hamburger: a spicy combination of
guacamole, sour cream, salsa piquante, shredded
lettuce and grated swiss with freshly ground jalapehos
HBG IPCCIAIS
DIET PLATE
Two 1/4 pound char-broiled beef patties with
choice of sauce, cottage cheese on bed at
lettuce, tomato wedges, hard boiled egg ...
LARGE CHEF SALAD
To go charge on certain items
EKTItA*
French Fries
Onion Rings (our own)
TacoPeha
Large Baked Potato with
sour cream, Cheddar cheese and bacon
ONIONS ON REQUEST
Additional Meat Patty
To add any cheese ..
BEVERAGES
Itr Upper , Root Beer, Diet Sprite
Coffee
Iced Tea, large
Milk
Hot Chocolate*
Lemonade*
*in season
Beer — Pilsner Glass
— Pitcher
DESSERTS
Our special desserts
We want to always serve our customers the very best food in
a convenient, attractive atmosphere. Please bring any sug
gestions or criticism to our attention, (we also appreciate your
compliments.)
PLEASE BE PATIENT
WE DO NOT PRE-COOK YOUR FOOD
GRAND
OPENING
919 Harvey Road
In Woodstone Center