Welcome to Cambridge Massachusetts , which is the home of Harvard University . Young people are flocking to Cambridge to get the best education this country has to offer and to settle down and raise a family in a close-knit community. How do you go about finding the right home in this marvelous city? It may not be nearly as difficult as you might think.
First, you need to decide what you are looking for in the city. Cambridge is one of the most intellectual cities in the United States. The city is home to the American Repertory Theater, as well as a wide array of museums to suit anyone. The Fogg Art Museum and the Harvard Museum of Natural History are both located at Harvard University. The Longfellow National History Museum, Arthur M. Sackler Museum, Busch-Reisinger Museum and the Old Burying Ground are also historical places of interest. With a population of 101,000 and growing, homeownership in Cambridge is relatively simple.
Mortgage interest rates are hitting rock bottom, which makes now an excellent time to lock into a mortgage with a very low interest rate. It doesn’t matter whether you have perfect credit or not; there is a mortgage that is right for you. Homebuyers that have A+ credit may be able to qualify for a conforming loan in which the terms are generally more favorable. A variable-rate mortgage is also a good one to consider, because if the national interest rate drops, so does yours. This means that you will not have the same exact payments each month. The opposite of the variable-rate is a fixed-rate mortgage. With this type of loan, you have a set interest rate for the entire life of the mortgage. If the rate goes up, you have the better deal, but if it goes down, you are stuck with the rate you have unless you refinance.
Refinancing means that you have the option to do away with the first mortgage and get a whole new mortgage for the remaining balance. For instance, if you have a rate of 6.2%, and the national rate drops to 5%, you may decide to refinance your balance into a new mortgage with that 5% interest rate. You don’t just have to focus on rates to refinance, though. Other types of refinancing include balloon and interest-only loans. Balloon loans come with some of the lowest interest rates on the market, but they have a short term, usually five to seven years. At the end of the term you will have to pay the principal, which is usually one big lump sum (balloon). With an interest-only loan, you won’t make any payments toward the principal for the first ten years, giving you a bit more take-home pay each month. You could also consider a cash-out refinance loan, which accesses the equity you’ve built in your home and converts it to cash.
If you like the idea of cashing out the equity you’ve built in your home, but the idea of refinancing isn’t appealing, home equity loans are also becoming popular with new homeowners. Home equity lines of credit are pretty much just like they sound: you use the equity in your home as a credit card. Interest rates on these types of loans tend to vary over time. The majority of home equity loans and lines of credit are used to remodel the home. You may also decide that you want to use the equity in your home to pay off student loans, or to finally get your car paid for, while others use their home equity to take a vacation. Keep in mind that with this type of loan your home is usually the collateral, so don’t spend the money on everything you want. In the event that you are unable to make the payments, the home may be seized and resold in order to repay the loan.
If you decide that Cambridge is the right place for you to live and raise a family, we can help you get started finding the perfect home. Please fill out the simple form below and one of our agents will contact you to discuss any questions, comments, or concerns you may have.
