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Start 2015 off Right...

The news last month that Fannie Mae and Freddie Mac were each going to begin backing mortgages with as little as 3% down certainly caused some controversy (http://www.bloomberg.com/news/2014-12-09/fannie-freddie-3-down-loan-seen-as-helping-too-few.html ). These low down payment loans are seen as a tool to help low income borrowers afford homes, and do come with requirements designed to limit risk (home ownership counseling and PMI or private mortgage insurance). However, these types of loans contributed to the financial meltdown of 2008, and there is concern that this could happen again, despite the enhanced regulatory environment and greater restrictions placed on eligibility.

Regardless of how one feels about these particular types of home loans, the fact is there are a variety of loan programs available to all types of consumers, each with their own guidelines and eligibility requirements.  We kick off 2015 with a brief overview to help you better understand some of these basic mortgage programs and terms.

Fixed Rate Mortgage: This is a mortgage loan that has the same interest rate for the entire repayment period.

Adjustable Rate (ARMS):  The mortgage interest rate will change or "adjust" after an initial fixed period at the start of the loan. For example, a loan described as a 5/1 ARM is a loan that will have a fixed interest rate for the first 5 years (this is the 5), after which the rate will adjust annually (this is the 1).

Conventional Loan: These are privately backed loans not insured or guaranteed by the federal government.  These loans may require a higher down payment, but allow a borrower who provides a 20% down payment to avoid PMI (private mortgage insurance). With a lower down payment, PMI may still cost less than insurance required by a government backed loan.

Government-Insured Loans: These loan programs are backed or insured by the federal government and include the following programs:

FHA (Federal Housing Authority): A mortgage program managed by the Department of Housing and Urban Development (HUD). Loans are available for a variety of borrowers, with down payments as low as 3%. These loans are insured by the government against default.  These loans do require mortgage insurance.

VA (US Department of Veterans Affairs): These are loans offered to military service members and their families and are also guaranteed by the government. These programs may include 100% financing for a home purchase, based on eligibility guidelines.

USDA/RHS: Loans offered to rural residents who meet certain income requirements.

PMI (Private Mortgage Insurance): This is insurance that the borrower obtains to ensure that the lender will be repaid the balance of a mortgage if the borrower cannot pay, or defaults. It is often required for loans with down payments of less than 20%.

Borrowers can combine types of mortgages listed above, for example, an FHA loan with a fixed interest rate, or a conventional with an adjustable rate.

And because you are probably curious...

Fannie Mae/Freddie Mac: These are government controlled corporations that are the largest source of home financing in the country. Essentially they purchase and sell mortgage backed securities. Their purpose is to attract investors to the mortgage market to generate lending opportunities by increasing the pool of money available to lend.

As always...

Individual circumstances differ, so it is best to consult with a qualified mortgage professional who clearly understands each product and can explain guidelines and eligibility requirements, answer questions, and make recommendations based on income, assets, credit scores and other qualifying information.

 

Questions, concerns or feedback, or a topic you would like to discuss? You can email me at mgalatis@fairwaymc.com

Mikegalatisweb

This information is not intended to be an indication of loan qualification, loan approval or a commitment to lend. Other limitations may apply. ©2015 Fairway Independent Mortgage Corporation NMLS ID 2289 (www.nmlsconsumeraccess.org) Equal Housing Lender Massachusetts Mortgage Lender License #17159 .

 

From Dust to Cash - Downpayment Money!

Short on down payment money and thinking about buying a house? Think outside the (jewelry) box! ringinbox

Do you have a 'retired' wedding or engagement ring? Or how about an old coin collection, motorcycle, boat, snowmobile or antique car? Forgotten gems and dusty toys may be considered assets provided they are saleable. A little effort can turn items like these into cash money, perfect for that new home that makes your heart go pitter-patter.

There are a few rules to keep in mind during the process because making a large cash deposit without a paper trail is a no-no and might not fly with the lenders.

Make copies of titles or proof of ownership first.

Always create a bill of sale.

Show proof of receiving the money for the item.

Deposit the full amount and keep the deposit slip from the bank.

Dust off your goods and get started!

We have a group of trusted lenders who are happy to answer all your financing questions. It can be complicated and we want you to fall in love with a new home and keep the process nice and sweet. Click here for our list of preferred lenders.

From Dust to Cash - Downpayment Money!

Short on down payment money and thinking about buying a house? Think outside the (jewelry) box! ringinbox

Do you have a 'retired' wedding or engagement ring? Or how about an old coin collection, motorcycle, boat, snowmobile or antique car? Forgotten gems and dusty toys may be considered assets provided they are saleable. A little effort can turn items like these into cash money, perfect for that new home that makes your heart go pitter-patter.

There are a few rules to keep in mind during the process because making a large cash deposit without a paper trail is a no-no and might not fly with the lenders.

Make copies of titles or proof of ownership first.

Always create a bill of sale.

Show proof of receiving the money for the item.

Deposit the full amount and keep the deposit slip from the bank.

Dust off your goods and get started!

We have a group of trusted lenders who are happy to answer all your financing questions. It can be complicated and we want you to fall in love with a new home and keep the process nice and sweet. Click here for our list of preferred lenders.

Boater's Dream - Waterfront Property North of Boston

newburybCalling All Boating Enthusiasts!

A Boater's dream with privately deeded dock and mooring ~ This custom built home on 101 River Rd, West Newbury is located along the banks of the Merrimack River with convenient access to the nearby Atlantic Ocean. The Merrimack has much to offer including a wide variety of recreational opportunities for boaters of all ages.  Enjoy access to local beaches, fishing boat expeditions into the ocean and surfcasting along the shore, windsurfing, ocean kayaking and bird watching are all great ways to enjoy the river and sea by boat. One of the river's major attractions is the historic city of Newburyport, situated 3 miles from the inlet on the southern bank and just minutes by boat from 101 River Rd.

Newburyport is a quintessential New England town rich in history and the arts offering boaters many opportunities for shopping, dining and cultural activities, and is a year round destination. You should have little problem finding a place to dock, even on busy summer weekends. If you only want to tie up for a few hours, consider the municipal docks along the Central Waterfront Boardwalk, which provides easy access to downtown Newburyport. Here you'll find narrow streets flanked by historic buildings, excellent restaurants, a beautiful waterfront and lots of interesting boutiques and shops. In fact, Newburyport could be considered a "trendy" place these days, and it welcomes boaters of all types. Better still, it's an easy place to get around on foot.

There are 4 premier marinas located along the Merrimac River in Newburyport including Newburyport Boat Basin, Windward Yacht Yard, Hiltons Marina & the Newburyport Harbor Marina, providing boaters with every service imaginable! Having easy access to the Merrimack River, lively Downtown Newburyport and the necessary products and services required by boaters, this home and location is perfect for any boating enthusiast!

Contact us for a private viewing 978-356-8922.

We've been busy selling real estate on the North Shore!

libertyListing and selling homes all across the North Shore is what we do best! Here's a list of MOST of the real estate transactions we've closed over the past 12 months! Thinking about changing your address? Give us a call! 978-356-8922

46 High Street, Ipswich, MA
18 Kimball Road, Methuen, MA
1 Democracy Drive, Amesbury, MA
20 Alvanos Drive, Haverhill, MA
4 Grant Court, Ipswich, MA
204 High Street, Ipswich, MA
36 Avery Street, Ipswich, MA
36 Downfall Road, Newbury, MA
3 James Road, Ipswich, MA
21 Middle Street, Ipswich, MA
17 Spring Hill Road, Byfield, MA
4 Circle Street, Middleton, MA
24 Francis Avenue, Groveland, MA
27 Elmira Avenue, Newburyport, MA
23 Allen Lane, Ipswich, MA
399 Linebrook Road, Ipswich, MA
24 School Street, Georgetown, MA
1 Atkinson Street, Newburyport, MA
4 Dix Road, Ipswich, MA
52 East Street, Ipswich, MA
8 Crestwood Lane, Ipswich, MA
21 Mason Lane, Salsibury, MA
18 Congress Street, Ipswich, MA
5 Maple Avenue, Ipswich, MA
299 Linebrook Road, Ipswich, MA
856 Haverhill Street, Rowley, MA
4 Bush Hill Road, Ipswich, MA
44 Avery Street, Ipswich, MA
37 Leslie Road, Ipswich, MA
85 Main Street, Rowley, MA
156 Topsfield Road, Ipswich, MA
250 Dodge Road, Rowley, MA
130 Central Street, Topsfield, MA
251 High Street, Ipswich, MA
23 Hodgkins Drive, Ipswich, MA
6 Allen Lane, Ipswich, MA
8 Beechwood Road, Ipswich, MA
4 Bayberry Road, Newburyport, MA
540 Jubilee Drive, Peabody, MA
3 Hemlock Drive, Ipswich, MA
143 Highland, Hamilton, MA
156 Ipswich Road, Topsfield, MA
851 Haverhill Street, Rowley, MA
119 Highland Street, Hamilton, MA
19 Norman Road, Hamilton, MA
56 Argilla Road, Ipswich, MA
6 Christa Drive, Rowley, MA
15 Hillside Road, Ipswich, MA
28 Turnpike Road, Ipswich, MA
4 Cullivan Lane, Hamilton, MA
321 High Street, Ipswich, MA
78 East Street, Ipswich, MA
19 Island Park Road, Ipswich, MA
6 Herrick Drive, Ipswich, MA
2 Kingfisher Road, Ipswich, MA
1 Kennedy, Ipswich, MA
11 Burnham Road, Wenham, MA
68 Argilla Road, Ipswich, MA
31 Mayflower Drive, Wenham, MA
10 Newbury Road, Ipswich, MA
191 Asbury Street, Ipswich, MA
24 Hilltop Road, Ipswich, MA
14 Liberty Street, Ipswich, MA
25 Howe Street, Ipswich, MA
138 Fenno Drive, Rowley, MA
139 Jewett Street, Georgetown, MA
14 Jills Way, Peabody, MA
79 Spencer Knowles Rd, Rowley, MA
29 Crooked Pond Drive, Boxford, MA
27 Mulholland Drive, Ipswich, MA
12 High Street, Ipswich, MA
25 Oakledge Circle, Rowley, MA
3 Oceanside Drive, Beverly, MA
21 Ocean Drive, Ipswich, MA
66 Town Farm Road, Ipswich, MA
39 Kent Street, Newburyport, MA
2 Harris Way, Georgetown, MA
100 Ortins Road, Hamilton, MA
6 Merrimack River Road, Groveland, MA
3 Jutland Way, Ipswich, MA
46 Skytop Road, Ipswich, MA
28 North Ridge Road, Ipswich, MA
75 Summer Street #6, Salem, MA
102 Lilac Meadows Way, Ipswich, MA
410 Old Country Road, Wenham, MA
400-67 Colonial Drive, Ipswich, MA
500-213 Colonial Drive, Ipswich, MA
38 Kimball Avenue #5, Ipswich, MA
6 Karelitz Road, Peabody, MA
6 Safford Street #4, Ipswich, MA
1 Mayfair Court, Ipswich, MA
401-13 Colonial Drive, Ipswich, MA
36 High Street #2, Ipswich, MA
7 Holly Gate Circle, Middleton, MA
28 County Street #2, Ipswich, MA
1 Riverview Heights, Amesbury, MA
62 Washington Street, Ipswich, MA
21 Topsfield Road, Ipswich, MA
2&4 Broadway Avenue, Ipswich, MA
6 Old Essex Road #1, Ipswich, MA
6 Old Essex Road #2, Ipswich, MA