The eastern United States is rich with history and Massachusetts is no exception. One city in Massachusetts is Weymouth . Weymouth was once a sister city to Plymouth . It was also the home to Abigail Adams, wife to President John Adams. Plymouth has over 54,000 residents to date. Finding a home in Weymouth is easy and you will have modern homes to choose from or perhaps a lovely historic home. You will be able to decide what is right for you and your family.
Along with needing a new home when you move you will need a mortgage. Below are some mortgage terms you should be familiar with if you are considering purchasing a home:
Mortgage: a lien on a property.
Interest Rate: the percent a lender with charge you for the loan.
Term of the Loan: the length or years you will have the loan.
Fixed Rate Mortgage: a loan with a set interest rate for the life of the loan.
Adjustable Rate Mortgage (ARM): a loan with a variable interest rate for the term of the loan.
Option: the type of adjustable rate mortgage you will choose.
Clause: the statement in an adjustable rate mortgage that will not allow the interest rate to fall below the start rate and determines the amount of times a lender can change you interest rate.
Refinance: to pay off your existing loan with a new loan.
Home Equity Loan: a loan that allows you to obtain the equity from your home. This is often termed a second mortgage.
Equity: the value you have in your home.
A fixed rate mortgage is ideal for those who can obtain a low interest rate for the life of their loan. This loan typically has a term of 15- 40 years. The most common loan is the 30- year mortgage. This usually gives the best interest rate and monthly payments. It is important when deciding on a loan that you know your budget and stay with in that budget. A mortgage professional will help you determine what you can afford and keep you with in your means. He or she will also look at your credit history, credit score, debt ratio, and the current interest rates available when determining the loan they can provide.
The Adjustable rate mortgage is a little more complicated. The interest rate is usually below 2% when you first acquire the loan, however the interest rate will change over the life of the loan. The term of the loan is generally 3, 5, 7, or 10 years, much shorter than the fixed rate mortgage. This in turn means your monthly payment is usually more than a fixed rate mortgage would be. This is why you have options on the type of loan. There are three common options, interest only, interest and principal, and reducing your payment to what you can afford. The first option will only pay interest and nothing towards the balance of the loan. Typically individuals who chose this option will refinance in six months or sell the house. The second option has you paying towards both the balance and interest. This is the option you will want when choosing an adjustable rate mortgage if you plan on keeping the loan for an extended period of time. The last option is for those who might have bad credit and cannot afford a better loan. This will help those individuals establish better credit by making their monthly payments on time and affordable. Refinancing is important when your interest rate exceeds what you can afford or when you see a better interest rate than your current mortgage.
A home equity loan is usually used when repairs are needed on a home or the individuals need a little cash. The equity is determined by the value of your home minus the amount owed on the existing loan.
Speak with a mortgage professional today about your options by filling out the form below.
