Mortgage Points to Ponder


No matter what condition the real estate market is in, many people are nervous about buying a home. It is a legitimate concern, because it is a huge decision, but it shouldn’t cause paralysis. You should realize it’s impossible to time any market perfectly. Unless you think you might have to move again in a short period of time, why not consider jumping in now?  You’ll be able to weather most market conditions as long as you’re reasonably sure you will not need to sell in the short term, say two to three years.

Here are a few important factors to consider:

It is easier to buy a house if you are a first-time home buyer. Low down payments are now offered if you fall into this category. Concurrently, as rent prices continue to increase at dramatic rates we encourage prospective home buyers to educate themselves on all of their options so that they can make the best decision possible.

While many forecast that interest rates may rise in the future, we remain in a historically low interest rate environment.

There is plenty of money available for qualified mortgage borrowers at traditional banks:  fixed rate and adjustable, as well as jumbo loans, in a variety of terms (years). You can trust these institutions and know from whom you’re borrowing. The bank can also provide counseling and will give it to you straight, telling you what you can afford and what you cannot. Don’t fret if you cannot afford to own a home yet. You won’t be getting into financial trouble and your bank can help.

If you are not quite ready for a home mortgage, your local bank can set up a savings plan to help you get there. Moreover, if you have less-than-perfect credit, your local bank can guide you through the process of improving your credit worthiness.

The threshold for what is considered a jumbo loan has been raised in most areas of the nation, for example it is now $517,500 in the metropolitan Boston area. Now, more consumers who live in high-cost housing areas will be able to receive lower interest rates. In addition to having money to lend to qualified borrowers, your local bank will in many cases keep your mortgage in its own portfolio or service the loan internally. If you have any questions or problems, you can come into the bank and speak to someone you know.