An article about Home Prices Are Accelerating Across the U.S. was written by Dow Jones Business News on March 26, 2013. Great article. Housing is coming back!!

Excerpt of “Home Prices Are Accelerating Across The U.S.”

Home-price appreciation is accelerating in much of the U.S., offering the latest confirmation that the housing market is turning after the most severe property downturn since the Great Depression.

Prices rose by 8.1% in January from a year earlier, the largest such gain in 6 1/2 years, figures from the S&P/Case- Shiller index of home prices in 20 major metropolitan cities released Tuesday show. All 20 cities posted annual increases.

Read more: http://www.nasdaq.com/article/home-prices-are-accelerating-across-the-us-20130326-00947#ixzz2Ol4ilYEd

Click here to read the full article.

For additional information on this topic, contact Peter DaMore, Attorney at Law Offices of Peter T. DaMore Jr. at 781-229-7900 or pdamore@ptdlaw.com.

Single family and 2-family residential properties sold in the state of MA must be inspected by the fire department. They check for working smoke detectors and carbon monoxide detectors. They then issue a smoke certificate required for the closing. It is prudent for home owners to know the MA smoke detector rules and different kinds of smoke detectors in order to be in compliance (even if they are not planning to sell their home).

Different Kinds Of Smoke Detectors

Ionization and photoelectric at the two different types of smoke detectors. Each has different strengths and weaknesses relating to handling smoke versus flames.

Ionization Smoke Detectors

Ionization detectors contain two electrodes and current that runs between them. The presence of smoke interferes with this constant current and activates the alarm. This technology is better at detecting flaming fires but cannot differentiate between smoke and steam. Thus, they are likely to issue false alarms when placed near kitchens and bathrooms.

Photoelectric Detectors

Photoelectric smoke detectors use a beam of light. The presence of smoke or fire will scatter this beam and trigger the alarm. It is more effective at recognizing smoldering fire and is not as sensitive to false alarms from cooking or shower steam.

MA Smoke Detector Rules

MA laws dictate the kinds and placement of smoke detectors in single family and two-family buildings. The rules differ depending on when a property was constructed or significantly altered. The following is an overview of the installation of smoke detectors within a property.

Additional Information

More details on MA smoke detector rules can be viewed at http://www.mass.gov/eopss/agencies/dfs/dfs2/osfm/fire-prev/smoke-alarm-regulations.html. Note that this information is just an overview, must not be interpreted as legal advice and may change without notice. Additionally, cities can impose additional rules beyond state mandated ones. Contact your local fire department for full and up-to-date information for your home.

Calculating how much home you can afford in Burlington MA is an important starting point for any home buyers and should be considered prior to visiting homes. This preserves time and minimizes heartbreak. There are many financial figures to look at including loan payments, taxes, hazard insurance, fees, and ongoing maintenance.

Loan Expenses

Loan Expenses may be the same for the life of a mortgage or can alter at certain periods of time. This is determined by the type of mortgage you obtain. Normally, loan payments include money towards the principal balance and an interest charge. Thus, it is driven by your specific interest rate, which is not usually identified until you are under agreement to buy a home. Your mortgage consultant will produce an estimate based on the current interest rate and a particular value, but know that such calculations are not final since every property will have different figures.

Local Taxes

Most lenders will mandate that you contribute to an escrow account for the purpose of covering property insurance. The mortgage provider then sends the payments from that escrow account directly to the tax collector. This is their method of guaranteeing that you have sufficient funds to cover taxes due and that payments are not missed. Tax amounts differ based on the area and assessment values. Larger homes or homes with more land usually have more taxes. Property taxes can also increase on a yearly basis.

Property Insurance

Property insurance is another expense for which you might be requested to escrow funds. Premiums are due once a year and can be re-assessed by your provider. You have the option of switching your insurance provider, although certain amounts may be required by your lender.

Other Expenses

There are other recurring fees that you may need to think about. If your loan to value ratio is high, mortgage insurance may be required monthly until your mortgage reaches a certain percentage. Homes in subdivisions or condo complexes may include monthly or yearly fees. This will differ with each property, so be sure to ask your real estate professional about what applies to homes you are considering.

Repair Costs

Homeowners often forget to account for repair costs. Whether you are buying a condo or single family home, there will be both expected and unexpected repairs to be made. Always include an estimate for such items and estimate higher dollar amounts for older homes or those in areas where weather can play a role in property maintenance.

Calculating How Much Home You Can Afford In Burlington MA

Calculating how much home you can afford in Burlington MA is one of the most important steps in the home purchase process. Price sensitive consumers must remain up to date on moving interest rates and the influence that it will have on home affordability. Home buyers should also understand what recurring amounts will remain fixed versus those likely to change over the years. Some expenses, such as maintenance, can be somewhat difficult to predict but should nevertheless be included. Only by developing a thorough evaluation of all expenses involved in real estate purchase and ownership can buyers make an educated decision on what to buy.

The closing (also known as settlement) is typically the final step for a home buyer or seller. It is often a day of both nervousness and excitement. It is helpful to know what to expect and what can lead to delays. Below is an overview of Burlington MA real estate scheduling of closings for transactions requiring a mortgage.

Clearance to Close

A clear to close is granted by the mortgage company when all loan conditions have been approved. This may not be done until just before the expected transfer date. Sometimes a tentative date and time is determined, however, the clear to close must be received before an actual closing can take place. Loan consultants and real estate professionals will track the progress of this important milestone.

Closing Time

Beyond the clear to close, there are many other things that determine the scheduling of a closing. This includes paperwork delivery, release of funds, and recording hours. The settlement attorney must receive paperwork from the mortgage company and requires enough time to compile the final figures. The funds must also be wired to the settlement attorney (unless other arrangements are in place), so time zones can be important. After paperwork is signed, it must be submitted to the registry of deeds, which may have specific hours of operation. All of this, in addition to the schedules of the different people involved, can determine when a closing can occur.

What to Bring to Closing

To facilitate a successful closing, all parties must bring specific items. The first is legal identification for all individuals signing paperwork. Secondly, any funds owed must be certified (bank check, money order, or similar form of payment). Finally, it is a good idea to also bring a checkbook for any last minute adjustments to the closing figures. Other things may be required beyond the above, but these are the most common.

Burlington MA Real Estate Scheduling Of Closings

Property transfers can be complicated as you get ready to move and must also complete the requirements of the closing itself. Keep the above information in mind to make Burlington MA real estate scheduling of closings a little less confusing. Your real estate professional will also play an important role in keeping you apprised of important steps and guide you through the process.

There are many considerations when deciding on renting versus buying, and it could vary based on the real estate economy and your financial situation. The Advice On Renting Versus Buying Burlington MA Properties in this blog can help you make a well thought out decision on which option is beneficial to you.

Renting Versus Buying

Renting Burlington MA Properties

Renting is a great option if you do not plan to live in the region for an extended period of time, are uncertain about employment security, have bad credit standing, or basically do not want to maintain a property. Unless the real estate economy is good and/or is rapidly increasing, it normally takes several years to realize equity in a piece of real estate. If the market is on a downward trend or you are undecided on how long you plan to keep a property, renting may be the better option.Job stability is another consideration. If you rent, you can adjust to loss of employment by moving to a less expensive apartment and thereby minimizing recurring costs. A home mortgage is not as easily changed. If you have bad credit, that can result in higher mortgage payments, making home ownership a less affordable option to begin with. Lastly, managing a home takes time, energy, and financial resources. There are ongoing expenses related to home maintenance. You may conclude that taking on those tasks are not desirable or not realistic for your lifestyle.

Buying Burlington MA Properties

Purchasing has many benefits such as tax deductions for loan interest and real estate taxes, increasing of equity over time, and ability to control your living space. In most cases, purchasing home ownership costs similar to or less than renting. If you expect to live in the area for an extended period of time, properties also historically builds equity for a good return on investment. A down market is a good opportunity to purchase since prices are low and the possibility for improving values is higher. Lastly, purchasing a home enables you to add your personal touch to your living space. You can switch appliances, flooring, fixtures, and other features to create a unique space. These factors make home ownership very rewarding both personally and financially.

Advice On Renting Versus Buying Burlington MA Properties

Calculate the expense of renting versus buying (based on current real estate prices and mortgage rates). When market prices decrease, rental rates do not necessarily follow, so a declined real estate economy may be the perfect time to buy. The above advice on renting versus buying Burlington MA properties is intended as a general introduction. Before finalizing your plans, speak with a real estate broker for current information on the real estate prices and a mortgage professional on interest rates and possible payment amounts. Only with current data can you make an informed decision.

An article about Burlington Home Sales Up 28 Percent in 2012 was written by Burlington Patch on February 4, 2013. WOW!! Great news for the Burlington, MA housing Market……

Excerpt of “Burlington Home Sales Up 28 Percent In 2012”

Burlington saw a 40.13 percent increase in single-family home sales
in 2012, according to statistics gathered by the Warren Group, the
Boston-based real estate and banking information publishers for New
England.

Year-end numbers show Burlington at 213 single-family home sales,
compared to 152 sales in 2011.

In December, 18 single-family homes were sold in Burlington, a 28.5
percent increase over the number sold in December 2011.

According to a Warren Group press release, 2012 Massachusetts home
sales were the highest in six years, increasing 18 percent in 2012.
In all of 2012, the total number of homes sold statewide were
46,887, an increase from 39,594 home sales in 2011.

In addition to sales, median prices for single family homes in
Burlington also saw a rise in 2012, increasing from $358,500 in
2011 to $385,000 in 2012, or a 7.4 percent jump.

Statewide, median price for homes sold January through December was
up to $300,000, a 12 percent increase from $267,250 the prior year.

Condominiums sales in Burlington were on the decline in 2012. At
the end of 2012, 40 condos had been sold in town, compared to 42 in
2011, a 4.7 percent decrease.

The median condo price also dropped 12.82 percent from $410,000 to
$357,450.

Click here to read the full article.

{

For questions on this topic, contact Peter DaMore, Attorney at Law Offices of Peter T. DaMore Jr. at 781-229-7900 or pdamore@ptdlaw.com.

Veterans have the option of obtaining VA home loans granted by individual mortgage companies but guaranteed by the federal government. The guarantee protects lenders against loss up to a specific dollar amount should a borrower go into foreclosure. With this guarantee, mortgage companies are able to extend veterans options not readily available with other financing. Below is an introduction to the benefits of VA home loans in Burlington MA.

Benefits Of VA Home Loans In Burlington MA

The most well-known features of VA home loans are the options for no down payment and no mortgage insurance. Buyers can borrow up to the entire purchase price, if the appraisal supports the price and the individual lender does not require otherwise. VA mortgages also allow veterans to buy a home by eliminating the additional monthly expense of mortgage insurance, which is normally included in mortgages with low down payments. Other important advantages are…

• Similar closing costs to other loan programs.
• VA loans are assumable.
• No pre-payment penalty.
• Ability to roll in or lower the VA funding fee for the mortgage.

Qualifying for VA Home Loans

To obtain a VA loan, buyers must fit two sets requirements. The first set pertains to their actual service – when time was served, nature of service, and amount of time served. The second set involves the normal credit report and financial analysis by lenders. Veterans can contact any bank offering VA loans to determine eligibility and obtain a pre-approval.

With a pre-approval completed, buyers can then start viewing properties within their price range. Once a property is identified, an offer will be made contingent upon VA financing approval. With a contract to purchase, veterans will then formally apply for a loan and lock in an interest rate. Once the application is approved, a closing can take place. After closing, the loan is reported to the VA. Veterans are only allowed one active VA loan at a time.

This blog is simply a brief overview of the benefits of VA home loans in Burlington MA. For a list of lenders providing VA home loans, contact Peter DaMore at Law Offices of Peter T. DaMore Jr. at 781-229-7900 or pdamore@ptdlaw.com.

Closing costs traditionally refer to fees charged by mortgage companies and third parties. Pre-paid expenses and escrows are also included in closing settlement statements and are sometimes mistakened as closing costs, but they are technically a separate category. Details of pre-paid expenses and escrows for Burlington MA loan closings is provided in this article.

Pre-paid Expenses

Pre-paid expenses are items that must be paid at closing but technically cover a future period of time. Common pre-paid charges are insurance and interest. Homeowners insurance consists of a yearly premium that must be paid up-front. Some buyers submit payment for the amount directly to the insurance provider prior to the closing, while some do so at the closing. Interest is another pre-paid expense. Mortgage payments are usually paid in arrears, meaning that they cover a past month. For instance, if you closed on a home January 15th, your first mortgage payment would not be due until March 1st, and it applies to the February time frame. So there is no payment to cover January 15th-31st. The interest for that period of time is charged at the closing as pre-paid interest.

Escrows for Home Purchases

Escrows are payments held in a holding account, known as an escrow account, and disbursed when needed. They are used to cover recurring fees such as private mortgage insurance (PMI), real estate taxes, and homeowners insurance. Each month, as part of the monthly mortgage payment, a certain amount is directed into the escrow account. When PMI, taxes, or insurance payments are due, the appropriate amount is taken from the escrow account. This accomplishes two goals. First, it removes the difficulty of home buyers having to save for the large fees. Secondly, the mortgagor ensures that the payments are made, which preserves their interest in the property. Escrows are not required by all lenders, but it is typical for mortgages with small down payments.

Details Of Pre-paid Expenses And Escrows For Burlington MA Loan Closings

The amount of pre-paid expenses and escrows will differ depending on the season or time of month. Closing near the end of a month will minimize pre-paid interest. Pre-paid taxes and escrows will depend on the community and when tax bills are due. If minimizing funds required for closing is critical, discuss the time lines with your real estate agent and mortgage advisor. For additional resources or assistance on the above “Details Of Pre-paid Expenses And Escrows For Burlington MA Loan Closings”, you may reach Peter DaMore at Law Offices of Peter T. DaMore Jr. via phone at 781-229-7900 or email at pdamore@ptdlaw.com.

Homestead protection is provided to MA property owners and shelters them from unsecured creditors. This is a vital law for any homeowner. The MA homestead law details below addresses the most important components of this law.

Why Property Owners Need This Protection

Property owners gain equity in a home over time. This equity may not be much initially, but can grow to a larger value over time. There are scenarios where creditors or other parties will target that equity to fulfill a financial obligation of an individual. Shielding it can be critical.

Imagine you are in a car accident and the other party sues you and wins, and the damages are beyond the dollar value of your insurance. Your assets, such as real estate, may be used to cover your financial obligation. This is merely one example of many different situations where homestead protection could save you from losing equity.

MA Homestead Law Details

Massachusetts homeowners get an automatic protection of one-hundred and twenty-five thousand dollars (125,000) without filing any forms. A Declaration of Homestead may be filed at the registry of deeds in the county where your primary residence is located to extend the dollar value up to five hundred thousand dollars (500,000). The filing involves a specific form and payment of a filing fee, which differs from county to county but is typically less than one-hundred (100) dollars. If you are purchasing a new home, your closing attorney will provide the information to you.

Other Details

Homestead protection strictly applies to a primary residence. There are special provisions for individuals over the age of sixty-two (62) and disabled persons. The Homestead Law will not cover all creditors or lawsuits. Exceptions do apply, such as municipal tax assessments, mortgages on the home, and probate court decisions, just to list a few. For complete details on this law, visit the Secretary of State website. The information in this blog is provided as an overview using facts available at the given time. It is subject to change without notice (as changes may apply to the Homestead law). Please always visit the website link included above for current facts.

MassHousing is a not for profit public agency in Massachusetts that provides financing. They do not use taxpayer dollars and are a self-supporting agency. Home buyers should consider a MassHousing loan as it may be more economical than an FHA loan. It may be applied towards a purchase or refinance of a single family, condo, or multi-family (2, 3, or 4 family) that a buyer intends to use as a primary residence. Below is more information on MassHousing programs for Burlington MA home buyers.

MassHousing Loan Amounts and Limits

Under MassHousing, loan amounts up to 97% of the purchase price are allowed on single family homes and condos, and up to 95% on multi-family properties. FannieMae loan limits also apply and can be reviewed at the Fannie Mae website. For single family and condo purchases, no buyer contribution is needed. This means that borrowers can obtain the funds for the closing as a gift from a family member or via credits from a party in the transaction (i.e. the seller). Multi-family properties require home buyers to contribute 3% of their personal money, confirmed through bank statements or other financial paperwork. The remainder of the the down payment and closing costs can be covered by gifts or credits. Lastly, there are income limits which differ by city and property type.

Mortgage Insurance Amounts

Mortgage Insurance Introduction

Mortgage insurance is normally required on loans for more than 80% of the purchase price. It is often charged as a large up-front premium paid at closing and monthly payments (based on a percentage of the loan). When this blog was published, the FHA mortgage insurance premium was 1.15% of the mortgage. On a $200,000 home with 3% down payment, the cost would be $1,930 up-front and $186/month.

MassHousing Option with NO Mortgage Insurance

Interest rates on MassHousing loans are traditionally a little bit higher than FHA, however, the mortgage insurance amounts are less. MassHousing actually offers mortgage options with or without mortgage insurance. The program with mortgage insurance has no up-front fee and a lower monthly rate. When this article was prepared, the premium was 0.60%. For the same $200,000 home mentioned above, the monthly amount would be $97 (as opposed to $186 through FHA). A person using MassHousing would save money over FHA even with a slightly higher interest rate. The savings are even greater with the MassHousing no mortgage insurance option.

Benefits of MassHousing Programs For Burlington MA Home Buyers

MassHousing programs are an economical alternative for real estate buyers in Massachusetts who qualify. Similar to FHA, it accommodates low down payments but with lower mortgage insurance premiums. It can be used on single family, condo, and multi-family real estate (with up to 4 units). Interest rates remain the same for a 30-year repayment period, ensuring unchanging mortgage payments for home buyers. The MassHousing Programs For Burlington MA Home Buyers above is provided as an introduction and is based on facts available at the time this article was written. Terms and other details may be adjusted by MassHousing at any time. For a list of reputable providers of for Burlington MA home buyers, contact Peter DaMore with Law Offices of Peter T. DaMore Jr., at 781-229-7900 or pdamore@ptdlaw.com.