Guide to Refinance, Mortgage,
& Home Equity Loans in
Boston, Massachusetts (MA)

Boston, MA was founded in the 1600a, making it one of the oldest cities in the United States. The town is full of colleges and universities, leading to a city full of young professionals. Technology, biotechnology, and finance are all industries that are thriving in Boston, MA, and it is also a printing and publishing center in the United States. The suburbs of Boston, MA are also booming, with a great job outlook for those with a higher education. Overall, Boston, MA is a wonderful place to live and to raise a family.

If you are considering calling Boston, MA home, you may need a mortgage in order to make the dream of home ownership a reality. If you already own a home in Boston, MA, you can refinance your first mortgage or look at home equity loans in order to make the most of your financial real estate assets. Either way, you need to be aware of the closing costs associated with the mortgage world in Boston, MA.

It is important for you to ask for a Good Faith Estimate before you apply for a mortgage. The Good Faith Estimate includes not only the approximate interest rate you will receive for your mortgage if you qualify, but also closing cost information. Remember, you will need to pay closing costs for refinance situations and home equity loan as well, so make sure you ask about them before signing a contract. Closing costs that you will be asked to pay include the following:

• Document Preparation: Before computers, every document had to be typed to specifications. Usually, a lender hired another company to do this. Now, document preparation companies are extinct, and most of the time, lenders can do it in a few minutes by using a word processing program and template. However, document preparation will usually cost around $200.

• Underwriting: Lenders spend a lot of time deciding if they are going to give you a mortgage, refinance, or home equity loan. An underwriter can help them figure this out. Underwriting looks at all the information you have provided, including income statements, credit history, and bank information, and determines how much of a risk you will be for the amount of money you wish to borrow. Based on that, your lender will or will not qualify you for a mortgage, a refinance on your old mortgage, or home equity loan. You will be expected to pay the cost of the underwriter.

• Points: You can pay points in order to lower your interest rate. Each point is worth 1% of the interest rate and costs a certain amount of money. This is typically used for first mortgage situations, but can be applicable in refinance and home equity loans as well. Normally, paying points is beneficial if you plan to stay in the home and you have the extra money to do so.

• Wire Transfer: The money to pay your seller for your new Boston, MA home has to transfer between hands some way. Before wire transfer was available, this was done by writing checks, but now the money can be transferred into and out of bank accounts using the wire transfer system, which is faster but includes a cost.

You will also have to pay for an appraisal, title work, credit checks, insurance, and a variety of other things associated with a first mortgage or with home equity loans and refinance situations. Again, make sure you ask for this information to be itemized so that you are aware of each service that you receive. If you have any questions regarding closing costs, contact us today by filling out the form below and we will talk to you about your opportunities in the real estate world.