American Mortgage Resource, Inc.

Providing the Best Financial Resources for Boston and Massachusetts

Tag: mortgage lender

How Do Fixed-Rate and Adjustable-Rate Mortgages Work?

When talking to a lender, there are two basic type of mortgages they will offer you. These are called fixed-rate and adjustable-rate mortgages. For most homeowners, fixed-rate loans are preferable if they plan to live in the home for an extended time. However, adjustable-rate mortgages are also offered for those who want lower interest rates with a shorter loan term. Keep reading to learn more about these two mortgage loans and see which one is right for you.

Fixed-Rate Mortgage

As this loan implies, the rate for the mortgage is fixed, meaning that it does not change for the life of the loan. Likewise, the monthly payment remains the same too. Repayment of a loan can range from 30 years to shorter lengths of 10-20 years. If you do choose a short loan term, understand that you will have larger monthly payments, but lower total interest costs over time. On the hand, a longer loan term with lower monthly payments is a more desirable option for committed buyers.

Adjustable-Rate Mortgage

If you plan to live in your home for a few years, then an adjustable-rate mortgage, or ARM, may be more suitable for you. Since the monthly payment is not set, it will change over the life of the loan. Rates for the loan will also fluctuate, although there is usually a limit on how much it will go up or down. “Lenders often offer lower interest rates for the first few years of an ARM, sometimes called a teaser rate, but rates can change after that– as often as once a year. The initial interest rate on an ARM tends to be significantly lower than that on a fixed-rate mortgage.”

Conclusion

Before making a big decision on a mortgage loan, make sure you are informed first. At American Mortgage Resource Inc., we offer the lowest competitive mortgage rates in Waltham, MA and surrounding areas. Let us help you choose the right home loan by contacting us at (617) 972-8588. You can also find more information on our website visitamr.com. Call today!

Condo vs. Townhouse

Condos and townhomes can offer many comforts and homely characteristics that traditional homes offer, if not more! Many families, couples, and individuals choose to buy and rent these types of homes for their appealing amenities accompanied by their smaller price tags. In this month’s blog, we break down the major differences and similarities between condos and townhomes so that you may discover which is the right choice for you!

Similarities

Both condos and townhomes are attached homes, meaning they share one or more walls with a neighbor. Despite ownership of the home, many of these communities are run by a home owners association (HOA) made up of other residents. HOAs almost always charge their residents a monthly fee to cover the upkeep of landscaping, pools, fitness centers, and common areas.

These homes typically have less square footage and outdoor space than detached single family homes do and can be anywhere from one to three stories tall. The resale value of these spaces largely depend upon how well the HOA manages the property as well as how well the owner upkeeps their individual home.

Notable Differences

There are several notable differences to consider when comparing condos and townhomes, most of them regarding their physical build. Townhomes are built on land that the owner purchases with the home whereas condos are more like apartments and no land ownership is involved.

When you purchase a condo, you personally own your individual unit and share joint ownership of the building with the other owner-tenants. That joint ownership includes not just the building structure itself, but its common areas, such as the gym, pool, and grounds, as well as the airspace. Some condos may resemble townhomes but unless the land is also owned by the homeowner it’s still technically a condo.

Final Thoughts

There are so many decisions to make when buying a home from location and price to size and available amenities. Regardless if you want a traditional detached home or a condo, it’s crucial to never buy more home than you can afford! This reason is often what makes condos and townhomes such great choices for first-time homebuyers or anybody shopping for a home on a smaller budget. Head to our website or contact our team directly at (617) 972-8588 for local brokerage and mortgage services you can count on every time!

The Massachusetts Housing Market in 2021

This year as Massachusetts slowly transitioned from winter to spring its housing market also experienced a noteworthy shift. Within the first quarter of 2021 the real estate market in The Bay State has made countless headlines, most deeming it as ‘white hot.’ Follow along this month as we provide unique insight about the market’s current climate, when to buy or sell, how to win a bidding war and where to go for financial help.

Supply vs Demand

At the moment Massachusetts is experiencing an unprecedented demand for homes in a market with what presently seems like has little to no supply to offer. These circumstances are making it increasingly difficult for bids from potential home buyers to be accepted. There are even reports of some homes being bought for as much as $100,000 over asking, and others that have received nearly a dozen offers within days of hitting the market.

Should You Buy or Sell?

The incredible demand for homes across the state have left many residents wondering whether or not it’s a good time to make their real estate move. While rising property values are tempting many homeowners to sell, the likelihood that their home will be bought swiftly is a very real possibility to consider. On the other hand, those hoping to purchase a home should to be prepared to act quickly, face hefty competition, and have a strategy for being successful in the likely event of a bidding war.

How to Win a Bidding War

In today’s climate home buyers need to be ahead of the competition to ensure their bid will be accepted first. The following tips and tricks will immensely help increase your chances of closing on the home of your dreams:

  • Provide a preapproval letter from a mortgage lender
  • Write a personal letter to the home owner
  • Skip the inspection
  • Drop any contingencies
  • Offer all cash

Final Thoughts

Stay ahead of the red hot housing market in Massachusetts this year will professional financial help from a local broker. For more than a decade the loan experts at American Mortgage Resource, Inc. have helped thousands of local residents acquire the loans they need to renovate, refinance, and purchase their dream homes. Contact our team Monday- Saturday at 617-972-8588 or anytime via email at info@visitamr.com.

Reasons Why Your Mortgage Application Could Get Declined

When you are trying to apply for a mortgage, you want to do everything by the book to be approved. However, there are instances where a mortgage lender will deny an application. From bad credit to an insufficient down payment, you don’t want to fall short with certain requirements by the lender. Learn more about why your mortgage application could get declined.

Low Credit Score

The higher your credit score, the better chance of securing the mortgage you want. On the other hand, if you have a lower credit score, you may not be approved. The minimum credit score depends on the lender and type of mortgage, so be aware this can range anywhere from 500 to upper 600’s. Yes, you can be approved with a low credit score, but the lender might ask you to make a bigger down payment.

High Debt-To-Income Ratio

How much of your monthly income goes to monthly debts? The lender will review the percentage of this ratio and determine if you are able to make loan payments too. Experian comments, “It may be harder to secure a loan if your housing payment is 28% or more of your gross monthly income (31% or more if you’re applying for an FHA loan).”

Small Down Payment

Applying for a mortgage loan is a big commitment, as you and the lender already know. That’s why putting more money down for the loan indicates that you are serious. It will also improve your chances of being approved. Tip by NerdWallet: “Putting at least 20% down on a home will increase your chances of getting approved for a mortgage at a decent rate, and will allow you to avoid mortgage insurance.”

Missing Application Information

It’s key to look over the information on your application before submitting it. If you are missing important details, then you can be denied approval. Review your application carefully by yourself or with another person you trust to ensure you have everything ready to go.

Final Thoughts

There can be a lot involved when applying for a mortgage loan. Luckily for you, American Mortgage Resource, Inc. does the heavy lifting for you. We have simplified the application process so you can fill out information online, at your own pace. If you have any questions about your app, please contact us today!

The Time to Buy a Home This Holiday Season is Now

In the United States as the winter months bring festive holidays like Thanksgiving and Christmas, many families are so busy and preoccupied that home sales will dip slightly. This makes now a good time to snag a great deal on a home this winter. Below are some factors to consider before biting the bullet on home ownership or moving to another home.

Less Competition as a Buyer

During this time of year it tends to get colder in many parts of the country. Not many people enjoy picking up their family and belongings and moving during these colder winter months, which creates less demand in the market for sellers. This increases the chances of getting a great deal as a buyer as less people are competing in the real estate market at this time.

Interest Rates Are at Record Lows

As the Coronavirus closed many businesses for extended periods of time, this year interest rates have seen record lows to spur the economy during this downturn. What that means for homes buyers is that borrowing money is nearly free thanks to these record low interest rates on mortgages. This is likely the lowest we will see rates for years to come and locking in a fixed rate mortgage is sure to save you thousands of dollars in interest in the future.

Buyers Want to Sell Quickly

Buyers in the market during this time are usually more likely to turn their property over as quickly as possible due to the time of year and other obligations this time of year brings. This means that you may have sellers that are more motivated to make a deal with you and help you secure your next home.

Final Thoughts

Though this year has brought many ups and downs, as we head into 2021 home buyers have unique opportunities to purchase and refinance homes at rates that are incredibly rare. Let American Mortgage Resource, Inc. be your one stop shop for all your mortgage and refinancing needs in the Waltham, MA community.

Home Equity Loans: The Answer You’ve Been Looking For

Qualifying for certain loans and credit cards can be a difficult and confusing process for many of us. Homeowners have a unique advantage when it comes to borrowing money in a pinch as they may be able to qualify for a home equity loan. Follow along below as we discuss home equity loans and their pros and cons.

What’s a Home Equity Loan?

A home equity loan is a fixed or adjustable form of credit secured by how much equity you have in your home and enables you to borrow against that equity. Essentially this type of loan is a second mortgage as you will have to continue paying your primary mortgage while simultaneously making payments on your new home equity loan.

Pros

Home equity loans can save the day when you need help repaying higher interest debt elsewhere or funding home renovations. A distinctive benefit these loans offer is that while their interest rates may be slightly higher, any interest paid on them is tax deductible.

Cons

Undoubtedly the biggest risk in taking out a home equity loan is that your lender may be able to force you to sell your home to resolve the loan if you are ever unable to make your payments. Additionally, your home will have to be appraised to establish its value and you will have to provide proof of sufficient credit and income.

Final Thoughts

When considering applying for a home equity loan or any other type of loan, be sure to shop around to compare the varying plans offered by banks, credit unions, and mortgage companies in your area. At American Mortgage Resource, Inc. we have relationships with over 20 different lenders and strive to make the process as simple and smooth as possible. Contact us here to learn more about our affordable services.

Most Affordable Communities to Buy a Home in Waltham, MA

Just west of Boston lies Waltham, MA, a quaint and scenic small town centrally located in between 3 major highways. Through its southern end flows the Charles River and as you head north you’ll find that it’s also home to several colleges, parks, and even a music theatre.

Piety Corner Historic District

Piety Corner Historic District is a quiet area in town adorned with red brick buildings and parks. Most homes in this area are bungalow, colonial, and ranch style homes in addition to the common condo. This community is great for local hiking and outdoor recreation at parks like Prospect Hill Park. Piety Corner is also very kid-friendly, with schools for kids of all grade levels nearby.

The South Side

The South Side is a large yet quiet suburb style community filled with many single family homes and gorgeous condos. This part of town is separated from the rest of town by the Charles River, giving the South Side and its surrounding communities a private and secluded feel.

Banks Square

A popular and affordable neighborhood in Waltham is Banks Square. This community is known for its charming neighborhoods filled with condos, townhomes, and single family homes. Though this area is set back slightly further away from most schools, it is only blocks away from the town’s main street, which is a popular hub for shopping and dining.

Final Thoughts

Waltham, MA is a fantastic place for new and growing families due to its affordability and number of parks and private/ public schools. Just outside the desirable Piety Corner community lies your one stop shop for home loans, mortgages, and refinancing in Waltham. At American Mortgage Resource, Inc. you will receive personalized home buying support from highly skilled experts that are also members of the local community.

Private Mortgage Insurance (PMI)

When it comes to a mortgage, considering all of your options is crucial in finding the arrangement that best meets the continued needs of you and your family. Many private insurance companies will offer home buyers PMI, which is a deal typically established by the lender and paid for by the borrower, but can benefit both parties. Continue along with this month’s blog for more information about PMI and to find out if it’s right for you.

The Purpose of PMI

PMI is sometimes required of home buyers who have put down a deposit that’s less than twenty percent of their loans total value or who have taken out a conventional loan rather than a government assisted loan. Essentially PMI is insurance coverage for the lender to ensure they will be repaid the amount of the loan in full.

Pros of Having PMI

Agreeing to PMI can help home buyers who are struggling to qualify for a loan large enough to afford a home. It can also help them qualify for their desired loan much more quickly. As the prices of homes continue to soar every year, a prolonged plan to save for a larger deposit may not be the best option for some potential home buyers.

Cons of Having PMI

The biggest downside of PMI is that it’s an additional monthly expense or upfront cost that new home buyers are responsible for paying in addition to their mortgage. It’s also an expense for a service that doesn’t directly benefit those funding it. PMI will usually have to be paid until the borrower has compensated a predetermined minimum on their principle.

Conclusion

Private mortgage insurance can help countless families finally catch the break they need to afford a home. For more information on how to get approved for a loan, visit this article. For expert help through the loan and mortgage processes, contact our professionals here for guidance you can trust.

Why Your Credit Score is Important for the Loan Process

In order to get the best deals and rates on a home loan, you need to have a good credit score. Mortgage lenders are going to look to see if you are a responsible borrower and making your payments on time. Additionally, your credit score can provide the information a lender needs to determine your eligibility, including which rates they are going to offer and what type of loan you qualify for. Continue reading to understand how your credit score is important for the loan process!

Are You Credit Worthy?

Before you begin shopping for loans, have your credit score ready to go. Check online with an accredited website for the most accurate results. It’s important to mention that most lenders are going off of a FICO credit score, which ranges from 300-850. If your credit score falls under the category of “fair” or better, you’re in the average range for an American borrower.

Is Your Credit Enough for a Home Loan?

According to Meridian Banker, “the credit score needed to buy a house greatly depends on the type of home loan you apply for.” Some of the most common loans you are going to come across are conventional loans, FHA loans, and VA loans. These loans start at a minimum of 500-620 or higher. FHA loans are beneficial for borrowers with low credit scores, while conventional and VA loans are better if you’re in the “good” or “very good” range.

What about Rates?

The higher your credit score, the lower your rates are going to be. The amount you’re paying back on the loan is greatly affected by the rate at which it’s set. Essentially, a lower rate is going to save you more money over time. This is why having a good credit score can expand your loan options, while also giving you better rates in the long run.

Conclusion

For more information about the loan process and what it involves, the professionals at American Mortgage Resource, Inc. are here to answer your questions. We want you to be confident in your financial decisions, so call us at (617)-972-8588 or visit our website to send a message. We look forward to hearing from you!