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Sarah Burlingame
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Fall News: Mortgage rates, Riparian rights

Historically, jumbo loans (defined as mortgages over $625,500 in much of California and more than $417,000 even in places where homes are less expensive) have always come at a premium price.  However, the banking industry is now seeing a new phenomenon that is unprecedented: rates for jumbo loans nearly as good or even better than the rates for a standard loan. The improving economy has increased competition among lenders to make jumbo mortgages, which are too big to be backed by Freddie Mac or Fannie Mae. Jumbos, like all mortgages not backed with a government guarantee, nearly disappeared after the financial system hit its low. Rates jumped nearly two percentage points above those for Fannie and Freddie loans, compared with a usual spread of one-eighth to three-eighths of a percentage point higher. Lenders are now offering 30-year fixed-rate jumbo loans at the extreme low end of their normal range — an eighth of a percentage point or so above so-called conforming rates and loans actually made within the last few weeks showed average jumbo rates lower than those for the smaller conforming mortgages that can be sold to or guaranteed by Freddie and Fannie. The average contract rate for a conforming loan with a 20% down payment was 4.73% last week, compared with 4.71% for a similar jumbo loan.



Mortgage rate roller coaster:

According to Freddie Mac, mortgage rates are on the rise again, as the economy shows signs of a stronger economic recovery. The 30-year fixed-rate average rebounded to near its two-year high, rising to 4.57 percent with an average 0.7 point. The 15-year fixed-rate average also hovered near its two-year high, increasing to 3.59 percent with an average 0.7 point. Hybrid adjustable rate mortgages increased as well. The five-year ARM rose to 3.28 percent with an average 0.5 point. The one-year ARM jumped to 2.71 percent with an average 0.5 point. Interestingly, mortgage applications, which had been declining as interest rates rose, saw an uptick this past week, according to the Mortgage Bankers Association.



Legal News and Case Law:


Loss of property-including riparian property.


In the recent Michigan Court of Appeals case Sackett v Atyeo, the issues of acquiescence and prescriptive easement of property including riparian property were reviewed. The parties to the lawsuit owned adjoining parcels of lakefront property. The trial court had determined that the defendant failed to establish her claim for acquiescence (of the boundary line). The Court of Appeals held that the trial court erred as the evidence established that the parties treated the acquiescence line as the boundary line for longer than the 15-year statutory period. It found that there were undisputed facts showing that the parties treated the alleged acquiescence line (a line extending from an elevated metal pole in the seawall on the lake to a narrow point between their driveways at the road) as the boundary line. The parties or their respective agents mowed to the purported acquiescence line for 20 years, and Sackett never objected to this mowing. In addition, the Defendant’s deck and driveway which encroached on Sackett’s property, existed for at least 20 years without objection from Sackett.


Secondly, even though a prescriptive easement claim was not brought by the Defendant in the trial court, the appellate court concluded that the issue of the existence of a prescriptive easement for defendant’s placement of her seasonal dock was tried by the parties’ implied consent. The Defendant’s dock was placed outside her riparian property lines, and both parties’ surveyors concluded that it encroached on plaintiffs’ riparian property. In addition, the Defendant had not “changed the location or direction of the dock since buying the property in 1988, other than adding a platform that she later moved to the side of the dock away from plaintiffs’ property at their request.” Sackett did not object to Defendant’s placement of her dock from 1988 to 2008, therefore the plaintiff met all the aspects of a prescriptive easement: use of Sackett’s riparian land in a manner that was open, notorious, continuous and hostile (without permission) for a period in excess of 15 years.





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Sarah Burlingame


231-828-8463231-828-8463 main

Real Estate One, A Family of Companies

101 River PO Box 308 Elk Rapids, MI



Sarah was very easy to work with. She made it a friendly transaction, not a chore. She covered everything to make the deal as easy as possible. When it came down to crunch time and the bank was taking their time, she got on it and get the situation under... (more)


Sarah worked with our schedule and was always very flexible. She worked very hard for us and found us exacly what we were looking for. After finding our dream place, she advised us through the entire process which proved very beneficial. If you are looking... (more)


If your looking for a real estate professional, look no more. Sarah Burlingame is the very BEST! She is very knowledgable, professional, flexible, and will always get you the best possible deal. You will not be dissapointed. She had my house sold within... (more)

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