comes to selling your home, knowing its value can help you gauge how to price
it effectively on the market. Comparative Market Analysis (CMA) reports can
help with this by allowing you to compare your property to other properties
recently sold within the area. Comparables have similar square footage, age,
conditions, upgrades, and locations. A CMA can be generated with the help of a
real estate agent and can act as an informal appraisal before you make things
official. Interested in getting a CMA for your property? Continue reading to
learn more about the data generated in a CMA and how to understand it.
Data found in a CMA
can vary in length and complexity depending on the market and the real estate
agent’s business practices. Generally, the type of data found in a CMA
Active listings – Homes that are currently for sale.
Pending listings – Formerly active listings that have not closed yet and are in a pending sale.
Sold Listings – Homes that have been sold within the past 3 months. These are your comparable sales that will be used when appraising your home’s value. If there are not enough sales within the past 3 months, then comps within the past 6 months can be used.
Expired Listings – Properties that were not sold. This can be due to a number of reasons such as being unreasonably priced, not being marketed, or it was in need of repairs.
Withdrawn/Cancelled Listings – Properties that were taken off of the market for a variety of reasons. These were also most likely too expensive. In general, expired and withdrawn listings have the highest median prices which made them undesirable along with other potential factors.
Understanding the CMA Report
Now that you
understand the type of data found in a CMA report, it’s time to understand how
to use the actual report to your benefit. Once your real estate agent has
generated it, look at each comparable and see how it matches to your property.
Each comparable listing will include a description, floor plan, number of rooms
and bathrooms, square footage, sales price, any dollar adjustments, and the
fair market value.
be at least 3 to 5 comparables to analyze and this will help you appraise the
value of your home. However, a consideration to be aware of is that there may be
a difference in value if there were any upgrades or amenities involved. For
example, a comp may be very similar to your property but if their property was
completely renovated rather than fixed-up, then the value will be much higher
than yours. Another consideration would be the property location which can also
play a major role in its value.
Overall, a CMA
will allow you to set a competitive listing based on the average price the
comps were sold at. American Mortgage Resource, Inc. is the premier choice when
it comes to loans and mortgage advice. Visit our website to learn more or call (617) 972-8588
to speak with an expert.
comes to buying a home, it’s important to be prepared for all the costs that
may come up and making sure that you are able to afford it. Most future
homeowners tend to focus on acquiring enough money to cover the down payment
but are then taken back by the closing costs that they need to cover at the
end. It’s critical to be aware of how much money you’ll need to fully close the
deal on your new future home. In this month’s blog, we will discuss the
difference between down payments and closing costs to help better prepare you
for the home buying process.
payment is the portion of the money you must pay upfront when you begin the
process of purchasing a home. It is the minimum amount that you need to put
towards the total cost, while the remaining amount is funded by your mortgage
loan. This is basically your first investment into your future home and the
price may vary depending on what type of loan you have. Another important thing
to remember is that your down payment will be due at closing, which is the
final step for buyers when the sale is finalized.
costs occur when the title of the property is transferred to the buyer and the
total amount will depend based on the location of the property and its value. The
amounts associated with your closing costs consist of an assortment of taxes
and fees from entities and services handling your loan. All of your closing
cost fees will be listed on your loan estimate. These costs are completely
separate from your down payment and are paid at closing. They can also be paid
on the same check as your down payment.
costs can be incurred by both the seller and the buyer and the fees can be
split depending on the negotiation and contract. A mortgage lender can help decrease
these costs by negotiating the sales contract.
process of buying a house as a first time homeowner can be tedious and
stressful. There are many fees associated with it and the terms can be
confusing. That’s why at American Mortgage Resource, Inc., we dedicate
ourselves to helping homeowners while providing worry-free solutions that best
fits their needs. To consult with an expert, please contact us at (617)
972-8588 or visit our website for more information about our
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Are you planning to refinance your mortgage? Do you want to
take advantage of lower interest rates or perhaps lower your monthly payments?
When you start to shop around for the best offers, it’s important to understand
which loans you can get approved for. There are some refinance loans that may
be better suited for your financial needs. Follow along in our blog to learn
more about the general refinance loans you can apply for.
If you’re looking to save money on monthly payments or
switch your loan from an adjustable rate to a fixed rate, then this loan can help
with that financial goal. It can change the interest rate, loan term, or even
both, without changing the actual amount of the loan. Experian
comments that “if your original mortgage has an adjustable rate, moving to a
loan with a fixed rate can help you avoid market fluctuations.”
Need quick cash for a home improvement project? Then a
cash-out refinance loan may be right for you. When you apply for this type of
loan, you are essentially taking out a portion of your home’s equity in order
to get a large amount of cash. However, be cautious that this will most likely
increase your loan amount, as well as result in higher monthly payments.
While not as common as other loan alternatives, cash-in
refinance loans are still an option for homeowners. Instead of taking out cash,
you’re putting money into the loan to reduce the new mortgage balance. Consider
this loan if you’re interested in qualifying for a lower interest rates, underwater
on your mortgage or want to get rid of private mortgage insurance
Have any questions about the loan process? Get in contact
with a representative from American Mortgage Resource, Inc. We can help guide
you to make the right financial decision. Call or visit our website for more information. We look forward
to speaking with you soon!
If you are new to the world of loans and home buying/owning, we are here to help you better understand! In this months blog we will be going over what exactly you need to know about a jumbo loan. Continue reading if you’re ready to learn!
A jumbo loan is essentially just what it sounds like. When it comes to buying the home of your dreams, sometime the price is just too high. A simply loan wont cut it and you don’t have enough in your bank account. A jumbo loan is here to help! When the price of your dream home is high, so is a jumbo loan. What makes a jumbo loan so special is that it goes outside of the normal restrictions of what size a loan you can get from the bank. They are classified as non-conforming loans since they don’t follow the typical guidelines. They will differ per area you are looking to buy in, so it’s important to properly research jumbo loans in each area. You wouldn’t want to find your dream home in a spot that has limitations that will restrict your loan.
Another concept you need to keep in mind when considering jumbo loans is that you might see it’s difficult the find someone willing to give you a loan of that size. Jumbo loans, which can be incredibly beneficial in the end, are also extremely risky. As mentioned before, they don’t work within the typical loan guidelines, which make the risk large should you not be able to pay everything off in the end. With all that being said, the specific qualifiers are often hard to hit. After a thorough analysis, it must be provable that you have high income and a great credit score. Those are the two main qualifiers that you need to focus on.
Ultimately, jumbo loans are a great way to get the home of your dreams. If you believe you will qualify and are looking for an expert to walk you through all the necessary steps, be sure to check out American Mortgage Resource, Inc.
Refinancing can seem enticing; however it is important to know when the most optimal time to refinance your mortgage is. If you’re ever wondering when the right time is, continue reading along with this month’s blog!
The only way you will be able to refinance your mortgage is if you are approved for the loan. If you aren’t approved, you will not be able to reap the benefits of refinancing. However, this is usually the last step in your process. When it comes to refinancing, you should always anticipate that you would be approved. If you know for a fact that you are going to qualify, this is the first step in deciding! Knowing that you will qualify and be approved will save you time in the long run.
When considering the option to refinance your mortgage, you should anticipate living in your home for at least five more years. If you’re already considering a move or wondering how soon you can leave, refinancing might not be the best option for you. However, if you’re interested in investing time in your home, refinancing is perfectly acceptable!
Last but certainly not least; you should only consider refinancing your mortgage if the current interest rates are lower than your existing rate. We suggest ensuring that the interest rate is at the very least 1% lower. Otherwise, there is no true reason for refinancing your mortgage as you are already reaping as many benefits as possible. If you are still interested in eventually refinancing, continue to check with the current rates. When you finally see a drop that is satisfying, then you can jump on board with starting to refinance your mortgage.
If you are interested in refinancing your existing mortgage, be sure to check that now is the right time. If you are confident and ready to get stared, be sure to check out American Mortgage Resource, Inc. to learn more!
Every single day people all across the globe make small financial decisions in hopes they will add up to big savings and more money in their wallets. However, a dollar saved here and there will only make a ripple in the wave pool of your financial life. Deciding to lower the interest rate on your mortgage is a brilliant financial decision that will help you save huge amounts of money every single month.
Improve Your Credit Score
Putting in the effort and taking the necessary steps to improve your credit score will benefit your financial future in countless ways. Proving to your lender that you are an increasingly financially responsible person will show them that you may deserve a lower interest rate on your mortgage. Some simple steps that will help improve your credit score are to pay all of your bills on time, pay off as much debt as possible, keep credit card balances low, and try to limit the number of hard inquiries on your credit report.
Find the Best Rate
When it comes to your interest rate, just as with anything else, it can pay off to shop around rather than settling on the first option that comes your way. Don’t be afraid to venture outside of the banks and credit unions you are most familiar with in order to land a lower interest rate on your mortgage. Applying and inquiring with multiple lenders is the best way to compare and contrast your best options.
Refinancing your mortgage ultimately means replacing your current home loan with a new one. There are many benefits to refinancing your home, but achieving a lower interest rate is a big one. The current market conditions and your credit score will play a big part in the interest rate you’re granted. Refinancing to a shorter term loan will also help save you money on interest in the long run.
When all is said and done, you should have power over how your money is being spent and invested. It pays off to educate yourself on how mortgages work, how they can be adjusted and why you don’t have to be forever tied to your current interest rate. Call on the experts at American Mortgage Resource Inc. when you are shopping for a lower interest rate or need help refinancing your mortgage.