When it comes to achieving your dream of homeownership, understanding the world of mortgages is crucial. Choosing the right mortgage can make all the difference in making your dream home a reality. In this blog post, we'll explore the various types of mortgages available and why it's essential for consumers to know their options before embarking on their home buying journey.
Exploring Mortgage Options
1. Fixed-Rate Mortgages
Fixed-rate mortgages are a popular and straightforward option. With this type of mortgage, your interest rate remains constant throughout the life of the loan. This predictability allows you to budget with confidence, as your monthly payments won't fluctuate.
Why It’s Important: Fixed-rate mortgages are ideal for those who prioritize stability and want to lock in a consistent monthly payment. They offer peace of mind, especially in a rising interest rate environment.
2. Adjustable-Rate Mortgages (ARMs)
Adjustable-rate mortgages have interest rates that fluctuate over time based on market conditions. Typically, ARMs start with a fixed-rate period (e.g., 5, 7, or 10 years) and then adjust periodically.
Why It's Important: ARMs can offer lower initial interest rates, which may be appealing for those planning to stay in their home for a shorter period. However, understanding how the interest rate can change and being prepared for potential fluctuations is essential.
3. FHA Loans
FHA (Federal Housing Administration) loans are government-backed loans designed to make homeownership more accessible. They often have lower down payment requirements and more lenient credit score criteria.
Why It's Important: FHA loans are an excellent option for first-time homebuyers or those with limited savings for a down payment. Knowing about these loans can open doors for those who may not qualify for conventional financing.
4. VA Loans
VA (Department of Veterans Affairs) loans are available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. They offer favorable terms, including no down payment requirement and competitive interest rates.
Why It's Important: For those who have served in the military, VA loans provide a unique opportunity to secure a home loan with exceptional benefits. It's crucial to understand these options and take advantage of the benefits they offer.
5. Jumbo Loans
Jumbo loans are designed for purchasing higher-priced homes that exceed the conforming loan limits set by the government-sponsored entities (GSEs). These loans typically require larger down payments and have stricter credit requirements.
Why It's Important: If you're in the market for a high-end property, knowing about jumbo loans and their requirements is essential for securing financing for your dream home.
Why Knowing Your Options Matters
These may be some of the more common loan types, but certainly not all the types available. Understanding the various types of mortgages available is essential for consumers for several reasons:
1. Tailoring to Your Needs: Knowing your options allows you to choose a mortgage that aligns with your financial goals, whether it's stability, lower initial payments, or unique benefits.
2. Financial Preparedness: Being informed about different mortgage types helps you prepare financially for homeownership. You can plan for down payments, closing costs, and monthly payments more effectively.
3. Avoiding Regret: With a better understanding of your options, you can make informed decisions and avoid potential regrets or surprises down the road.
4. Customized Financing: Different mortgage types can be tailored to your specific circumstances, ensuring that your mortgage aligns with your unique situation.
Your journey to homeownership should be exciting and well-informed. At E Z Home Search Real Estate, we're committed to helping you make the right decisions every step of the way. By exploring the mortgage options available and understanding their implications, you'll be better equipped to make the right choice for your dream home. Whether you're a first-time buyer, a veteran, or looking for a luxury property, knowing your mortgage options is the key to turning your homeownership dreams into reality. If you have any questions or need guidance on your home buying journey, don't hesitate to reach out. We also encourage to you get a free copy of our Home Buyer’s Guide to Real Estate. With no stone left unturned, this guide will help you every step of the way. Simply complete the form below to be instant directed to this must have home buyer resource.
We're here to help you unlock the doors to your dream home.
The Fall River MA Single Family Home Market Continues to be RED HOT!
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ABOUT CHRIS Chris is a real estate broker in Massachusetts and Rhode Island and CEO of E Z Home Search Real Estate. Real Estate is Chris's passion. He teaches agents at his company his alignment method sales and lead generation system. His mission is to teach agents question based selling, where client and customers are coached and not SOLD, resulting in them to achieving their goals.
The Federal Reserve's rate hikes may not yet have had an impact on the RED-HOT Fall River Multi-Family home market. Where it is having an impact is transaction volume!
Even with mortgage rates more than double the lows of 2021, the lack of inventory continues to support home values.
Year over year median sales price for multifamily homes on Fall River MA is up over 16 percent from May 2022.
Median days on market is up slightly to 22 days. While the list to sales price ratio was down slightly but still at 100%.
The place where the recent interest rate hikes have had an impact is transaction volume.
Listing volume is down over 15%. Units that went pending was down over 33% and units sold was also down over 33%. And possible insight into things to come, pending sales are down almost 40%.
Fewer homes, and fewer buyers that qualify at today's current prices results in fewer transactions. Or course, all real estate is local, so let us know if you would like to know more about what is happening in your neighborhood and if you like these updates, please like and subscribe so you can stay in the know.
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Investors still see opportunity in the Fall River multi-family home market pushing the year over year median sales price up more than 20% over the last year.
From March 2022 to March 2023 Fall River saw the median sales price of multi-family homes appreciate by 20.45%. This is on top of the 15% appreciation seen from 2021 to 2022.
To add fuel to the fire there were just 72 multi-family homes listed so far this year, down 27% from last year.
With the months of supply remained steady at .66 months.
Although higher mortgage rates have reduced the buyer traffic, the opportunities in Fall River continue to attract both owner-occupied multi family homeowners and investors.
Of course, all real estate is local, so let us know if you want to know more about what is happening in your neighborhood and if you like these updates, please subscribe so you can stay in the know.
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The number of homes listing in February jumped 138% from the previous February.
There were 31 single family homes listed for sale in February compared to just 13 last February. That’s a 138% increase from the previous year. This is good news for our inventory staved market. And more inventory means more options for buyers.
Months of supply jumped 195%. But even with that large jump there is still only 1.18 months of supply on the market. Well below a healthy real estate market.
Days to an offer was only up slightly, going from 21 days last February to 24 days this February.
And, even with the higher interest rates side lining many buyers the median sales price was up 2.33 % to $375,000.
Of course, all real estate is local, so let me know if you want to know more about what is happening in your neighborhood and if you like these updates, please like and subscribe so you can stay in the know.
Inventory, or should I say lack of inventory continues to plague the single-family housing market in Fall River MA. Last year there were 27 new homes listed in January, this year 25, both years being well below the normal inventory levels. The median list price in January 2022 was $399,900, this year it was $429,900, up a little over 7% with days on market doubling to 60 days.
Pending Data
The median list price for pending sales was $374,000, in line with last January’s numbers, however the year over year days to an offer doubled to 38 days.
The number of units closed in January was down 26.7%, with a median sales price of $380,000, up just 1.9% from the previous January with days on market being just 23 days. What is interesting to note that the list price to sells price ratio that was 100% in January 2022 has dropped to 96.7% in January 2023.
Of course, all real estate is local, and this data is for all of Fall River, so let me know if you want to know more about what is happening in your neighborhood and if you like these updates, please like, and subscribe so you can stay in the know.
I’m Christopher Terry with EZ Home Search Real Estate and RememberYes, you can buy.Yes, you can sell.Yes, I can help.
*All information referenced shows median data from MLS PIN area market reports.
Update: If you saw this post from earlier in the month and have an interest in what has been going on with the local real estate market then you might find this latest graphic update interesting:
What a difference 3 weeks can make!
Inventory has fallen off by another 1000 homes in the state in only 3 weeks! Below is my post from earlier this month. Take a look and if you have thought about selling your home check out the seller section of our site for great information on how to prepare your home for sale, or just give me a call. I'll walk you though the process, from start to finish, all with no obligation!
I've been thinking about how to best convey what is happening in the real estate market here in Massachusetts and on the South Coast without sounding like I'm begging you to sell your home. So, I thought I'd start with a few graphics.
What a Difference a Year Makes!
Today, there are only 4361 single family homes on the market in all of Massachusetts! 5 years ago, at this time, we had over 11,200. And inventory is down over 50% from this time last year. In addition, this data tool includes homes that are in a "contingency" status when calculating on market inventory. So, when you factor in that a percentage of the listed inventory is "continent" then far last than 4361 homes are actually available. Until last week, inventory in Massachusetts had not fallen below 5,000 homes since records started being kept.
"That's interesting but what's happening locally?" Well, I'm glad you asked! Let's see.
It's not any better for home buyer's looking throughout Bristol County with inventory down over 57% from last year.
"What about Fall River?" Thanks for asking! Let's see...
You have to feel for these families trying to find a place to call home when in the entire city there are only 37 homes to consider. That's homes, some of which are "contingent", at all prices points! Challenging to say the least, especially when you are on a budget!
"Is there any good news if you are a home buyer?" Yes, yes there is! 30 year mortgage interest rates hit a new record low last week! When borrowing money at these incredibly low rates, even when factoring in the home price increases, it's still can be cheaper to buy a home this year than it was a year ago!
So, I'm not begging you to list your home for sale. But the market is starving for inventory, so if you have a property that you have considered selling I can't imagine a better market than now!
Check out the seller section of our site for great information on how to prepare your home for sale, or just give me a call. I'll walk you though the process, from start to finish, all with no obligation!
Christopher Terry EZ Home Search Real Estate www.ezhomesearch.net chris@ezhomesearch.net 508-646-4777
P.S. I know there is a tendency to set this aside, but don't wait! The unique market conditions that we are seeing won't last forever! Call 508-646-4777 or email me today!
What is the number 1 question both buyers and sellers are asking right now? I bet you know what it is...
With Covid-19 running rampant, work stoppage and skyrocketing unemployment, and with mortgage lending getting tighter and tighter everyone wants to know what is going to happen to the real estate market. But what they are really asking is what will happen to the price of homes.
I wish I could answer that question, but I can tell you that based on the amount of available inventory I would say that I don't believe it will go down, at least not in any significant way. Take a look at this chart of Inventory of Single Family Homes in Bristol County spanning the last 5 years:
Notice the number of listing units. One of the biggest issues we have had over the last few years is lack of inventory. Now look at the inventory level for 2020. It is down 25% from this time last year and down 45% from 5 years ago.
Now look at the months of supply. A stable market, a market in balance (equal number of buyers and sellers) is usually indicated when there is a 6 month supply of homes available. We are currently at 1.7 months of supply.
Now, let's take a look at this chart for Multi-Family homes in Bristol County:
See a trend here? Very similar statistics as the single family chart. Now let's look at condominiums:
Again, similar story.
There is no doubt that the effects of the corona virus will have a chilling effect on the economy and the number of home buyers in the market place but with so little inventory the likelihood of any long term and significant downward pressure on pricing is low.
However, if there is one constant in real estate it's change! I do expect that once we are on the other side of this, and businesses are able to re-open and we all start to become more accustom to this new normal that there will be a flood of homes hitting the market. So when that happens we will have to see how the market responds.
Stay Safe,
Christopher Terry EZ Home Search Real Estate 508-646-4777 chris@ezhomesearch.net