Shopping for Massachusetts Home Loans
Choosing the right Massachusetts home loan is the first step of the mortgage shopping process and one of the most important financial decisions you will make. Don’t fall into the trap of shopping for a mortgage based solely on the best rate – there’s a good chance that someone will sell you the rate you want, but you end up with the wrong type of mortgage which will cost you in the long run.
The primary factors you should consider when shopping for Massachusetts home loans are :
- How much money do you have available for a down payment?
- What is the maximum amount you can afford for your monthly mortgage payment?
- How long do you anticipate living in your home?
Your answers to these questions will help narrow down the best mortgage for you. Below you will find brief descriptions of the different Massachusetts home loans available.
Massachusetts First Time Home Buyer Programs
First time home buyer programs are more myth than reality. “First time home buyer” is a term used more for marketing purposes than representing actual home loan programs. Instead certain standard Massachusetts home loan programs tend to be more suited for first-time home buyers than others.
Massachusetts Fixed Rate Mortgages
Fixed rate loans are the most common type of mortgage. A fixed rate mortgage by definition has a fixed interest rate and fixed monthly mortgage payment. Terms for Massachusetts home loans with a fixed rate are in increments of 10, 15, 20, 25, 30 and 40 years.
Click to learn more about Massachusetts fixed rate mortgages.
Massachusetts Adjustable Rate Mortgages (ARMs)
Adjustable-rate mortgages, better known as “ARMs”, are Massachusetts home loans which exhibit features of both a fixed rate mortgage and a true adjustable rate mortgage. The interest rate and monthly mortgage payment for an adjustable-rate mortgage is fixed for a set number of years (typically 1, 3, 5, 7 or 10 years) and then adjusts annually thereafter according to a margin and index.
Click to learn more about Massachusetts adjustable rate mortgages.
Massachusetts Jumbo Mortgages
Jumbo mortgages are defined by their loan amount. Any Massachusetts home loan with a loan amount greater than the conforming loan limit (currently $417,000 for a single-family residence or condo) is known as a “jumbo mortgage”. Conforming loan limits for conventional mortgages are published annually by the Federal Housing Finance Agency. Massachusetts jumbo mortgages are considered non-conforming loans and not eligible for purchase by Fannie Mae and Freddie Mac.
Click here to learn more about Massachusetts jumbo mortgages.
Massachusetts Super Jumbo Mortgages
Super jumbo mortgages are simply very large jumbo mortgages which are generally defined by lenders as those with loan amounts $750,000 and greater. Similar to standard jumbo mortgages, Massachusetts super jumbo mortgages are not guaranteed by Fannie Mae or Freddie Mac which only purchase mortgages with loan amounts of $417,000 or less.
Click to learn more about Massachusetts super jumbo mortgages.
Massachusetts No Cost Refinance Home Loans
No Cost refinance home loans are exactly what the name implies…refinance loans that do not require the borrower to pay any closing fees. A true No Closing Cost refinance does not wrap the closing costs into the loan amount which some borrowers have reported unscrupulous mortgage companies try to do. Rather by accepting a slightly higher mortgage rate, the mortgage company itself agrees to pay the closing costs on your behalf to reduce your out of pocket expense.
Click here to learn more about Massachusetts No Cost refinance home loans.
Massachusetts FHA Loans
FHA loans are government loans insured by the Federal Housing Administration (FHA). FHA Massachusetts home loans are funded by FHA-approved lenders, not the FHA itself which only provides the mortgage insurance for these loans. FHA loans feature low down payments (3.5% of sales price), more lenient underwriting guidelines, often lower monthly mortgage insurance premiums (MIP) than conventional loans and generally do not penalize Massachusetts home loan borrowers for their credit score with higher mortgage rates.
Click here to learn more about Massachusetts FHA loans.
Massachusetts Home Affordable Refinance
The Home Affordable Refinance Program (HARP) is a temporary refinance program established in 2009 as part of the government’s Financial Stability plan under the Making Home Affordable initiative. HARP allows Massachusetts homeowners (including owners of second homes and investment properties) who are current on their Fannie Mae or Freddie Mac mortgage to refinance even if their property has fallen in value up to a 125% loan-to-value ratio.
Click here to learn more about a Home Affordable Refinance.
Massachusetts Renovation Loans
Renovations loans allow the costs for repairs and improvements to be included in the loan amount. Renovation loans offer the ability to rehabilitate a home that may be in need of repair that otherwise would not qualify for financing with other Massachusetts home loan programs.
Massachusetts USDA Rural Development Loans
USDA Rural Development loans are government loans guaranteed by the United States Department of Agriculture (USDA) to promote single-family home ownership in designated rural areas (which actually cover more towns and cities than you would think). USDA Rural Development loans allow for no down payment (100% financing) with no mortgage insurance! Income limits do apply though as this Massachusetts home loan program is meant to serve low to moderate income families.
Massachusetts VA Loans
VA loans are government loans guaranteed by the Veterans Administration for veterans and active duty service members . This type of Massachusetts home loan features 100% financing (no down payment required) and no mortgage insurance!
Massachusetts Reverse Mortgages
Reverse mortgages are a special type of Massachusetts home loan reserved for homeowners 62 years and older which allow equity in their home to be converted into tax-free cash. Homeowners with a reverse mortgage can continue living in their own home yet do not have to make a monthly mortgage payment. Reverse mortgages are aptly named because the lender makes a payment to the homeowner – the reverse of all other Massachusetts home loan programs where the homeowner is required to make a monthly mortgage payment to the lender.
Click here to learn more about a Massachusetts reverse mortgage.
