If you are thinking about buying a Boston home soon, chances
are, you’ve been keeping up with mortgage rates. Mortgage rates have remained
around four percent for over a month now, which historically, is an excellent
rate. The lower the rate, the less you pay in monthly mortgage payments!
However, as your Boston real estate agent, I’d like to point
out that the interest rate alone doesn’t determine the cost of a mortgage.
Sometimes, the lowest interest rate might not be the most affordable mortgage.
Other costs could be involved, including origination fees, lender’s attorney
fees, private mortgage insurance and more.
When working with a lender, it’s a good idea to ask about
the APR, or annual percentage rate, of a loan. Many of the additional costs of
mortgage loans are included in the loan’s APR, so this gives you a better
indication as to which loan to choose. However, there are still things to know
about APR.
If you don’t keep the loan for its full duration, because
you sell or refinance your Boston home, the cost will change. If you choose an
adjustable-rate mortgage, the APR can’t tell you what the cost will be in the
future, because no one knows when rates will rise or fall. There are still
additional costs and fees involved in a mortgage too, aside from what is added
to the APR.
When shopping around for a mortgage, as a Boston real estate agent, my advice is to research current mortgage rates, talk to multiple
lenders, ask for all of your options, ask for the APR for each option, and then
ask for a GFE, which is a good faith estimate. This will be an estimate of what
the mortgage loan will cost with all fees included.
If this all sounds confusing, don’t worry. That’s what
mortgage lenders are for! They will talk you through the process. Choose to
work with a mortgage lender that not only offers you a reasonable mortgage
rate, but also a lender that you feel comfortable working with. You don’t want
to make any decisions without feeling 100 percent sure and satisfied with it
afterward.
That is true when buying a Boston home, too! After you’re
pre-approved for a mortgage, contact me for help with the home-buying process.
As a professional and experienced Boston real estate agent, it’s my job to make
sure you feel fully comfortable and satisfied with the home you choose to buy
from the Boston real estate market.
I will answer any question and will take my time helping you
feel comfortable and confident with the home-buying process. When you’re ready
to get started, contact me!
Patti Fine
Phone: 617-642-7585
Email: pf@pattifine.com
Email: pf@pattifine.com
No comments:
Post a Comment