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.

Foreclosures are abundant and so is the misinformation on them. It is critical for current and future home owners to understand the facts. This blog covers Burlington MA foreclosure facts and advice for property owners.

Common Misinformation About Foreclosure

You Can Not Get Help Until You Stop Paying

Home owners can apply for loan modification and other assistance programs before missing any monthly payments. These programs assess your financial condition to figure out eligibility.

There Are No AlternativesOptions After the Foreclosure Notice Is Issued

Lenders take a bigger loss on foreclosure. Even when foreclosure proceedings have begun, lenders can still work out a solution to prevent foreclosure. A short sale is one solution prior to a finalized foreclosure. Short sales consist of finding a buyer for your property and getting the lender to allow a price below the amount owed.

You Must Move Out Right After the Foreclosure Notice

The foreclosure notice is only the first step in a lengthy process and it typically is not issued until you have missed several payments. It may take an extended period of time for a lender to get through the necessary process to evict you from a residence. Although you do not need to immediately leave your property, you should plan for it.

I Can Never Buy Another Property

Although a foreclosure impacts future lenders and severely drop your credit profile, you may still be able to get approved for another mortgage in the future. It is important to demonstrate good credit practices to increase your score during that time. Creditors may charge you a higher mortgage rate and request a larger down payment to minimize the risk of lending to you.

The Lender Takes All of My Belongings

Furniture, clothes, and other personal belongings are still yours. Only items attached to the property must remain. This includes flooring, light fixtures, plumbing, etc. Consider what you would usually leave behind if you were selling the property and use that as a general guideline.

I Do Not Owe Anything After Foreclosure

After foreclosure, a residence may sell for less than what owed to the bank. You are legally responsible for that balance. There may be ways for the bank to “charge-off” the balance. Consult with a local attorney for detailed options.

Burlington MA Foreclosure Facts And Advice For Property Owners

There are many other myths and facets of foreclosure beyond what is covered above. Procedures may vary from state to state as well. This article on Burlington MA foreclosure facts and advice for property owners is only a general overview. Be sure to get legal guidance if you are in danger of foreclosure, and do so before you miss any payments.

The home buying process normally includes one or more earnest money deposits from buyers to assure sellers that they are proceeding in good faith. These deposits must be handled in a specific manner so as not to interfere with the underwriting approval process. This blog offers details on earnest money deposits for Burlington MA real estate transactions.

Origin of Funds

It is critical for buyers to use their own money for earnest money deposits. Many loans specifically require buyers to utilize personal funds for all costs related to the transaction. Buyers are normally asked to provide copies of bank statements demonstrating that the funds were already in their bank account and that earnest money deposits were withdrawn against that account. Bank accounts should also include sufficient funds for for funds payable at closing. Lenders will verify all of this information before approving a mortgage. Buyers not using their own funds may compromise their ability to obtain a home loan.

Receiving Money aGifts

Certain financing programs permit monetary gifts to home buyers from their family members. However, home buyers should not ask family members to make earnest money deposits for them. The proper process entails a gift form, copies of account statements from the gift giver showing where the funds came from, and then bank statements from the home buyer displaying acceptance of the funds. Staying with proper procedures can lead to fewer delays when underwriters evaluate the loan application.

Getting Ready for Earnest Money Deposits For Burlington MA Real Estate Transactions

Buyers preparing for a future property purchase should take a few steps to prevent issues with their mortgage approval. First, they can make sure all money needed for earnest money deposits, down payments, and closing fees are in their own accounts and can be documented. Have at least two months of bank statements on-hand. The statements should not display any strange activity (such as large cash deposits). Lastly, when making earnest money deposits for Burlington MA real estate transactions, buyers should utilize funds from documented accounts. If accepting money as a gift, ask your mortgage consultant for the necessary procedure before accepting the gift. These precautions may reduce problems and lead to quicker underwriting approval.

Pre-approvals will not always lead to eventual mortgage approval. Mortgage companies complete a underwriting evaluation before issuing an approval. This formal process does not typically start until after a property is identified as they must evaluate both the financial data of purchasers and details of the property being purchased. The following are a few mortgage approval considerations for Burlington MA lenders.

Personal Information Considered

Income and Debts

Mortgage Companies will examine your assets, earnings and debts to determine whether you can afford the monthly payments. Good savings and a stable work history demonstrate financial health. The amount and types of debt you keep are also looked at. Mortgage companies estimate not just your current finances. They also try to gauge the long-term ability to pay bills.

Likelihood of Repaying the Loan

Mortgagees examine how likely you are to make payments over the life of the loan. This is where credit rating is important. Your past conduct is the best predictor of future behavior. A bad loan history may be detrimental to your likelihood of acquiring a mortgage or lead to increased payments.

Real Estate Matters

Appraised Worth

Lenders rely on appraisers to report important data on a property. The most important part of an appraisal is the price, which is provided in an exact amount. Mortgage Companies offer loans up to a specific percentage of the market price and the appraisal is utilized to justify that amount.

Lender Assurance

After a mortgage is given, lenders want assurances that their investment will be preserved. They typically expect title insurance. For loans with low down payments, mortgage insurance may also be charged. The cost of both title and mortgage insurance can vary depending on the mortgage type and can also affect the amount a buyer will be approved for.

More Mortgage Approval Considerations For Burlington MA Lenders

Mortgage companies may take a few weeks to review a loan application prior to issuing an approval, a denial, or requesting more data. Approval criteria can vary depending on the kind of mortgage and the situation of the buyer or real estate. The mortgage approval considerations for Burlington MA lenders above include merely a few general items to be cognizant of. Always consult with a mortgage consultant for advice on your home purchase.

When thinking about purchasing real estate, it is understandable to be very excited and want to start visiting properties right away. In that excitement, you may delay the vital step of requesting a mortgage pre-approval. A pre-approval is a basic review of your finances and credit worthiness to determine whether you are likely to be approved for financing. It is not a guarantee for a mortgage, but the best estimation prior to a full mortgage application. Having a pre-approval ready is important for many reasons. This article details reasons why buyers should obtain pre-approvals before seeing Burlington MA real estate.

Understand Your Price Range

Mortgage requirements and interest rates change frequently. A pre-approval will give you a clear understanding of the programs and alternatives available, what your up-front expenses will be, and more importantly, your price range. Without this, you may waste valuable time looking at homes that you can not finance or that are simply beyond your affordability. Knowing your price range also minimizes the emotional distress of viewing and wanting a home that you cannot purchase. This is one of the most important reasons why buyers should obtain pre-approvals before seeing Burlington MA real estate.

Strengthening Your Leverage

Burlington MA real estate with highly sought after amenities or the best price always move fast. A pre-approval gives you the power to make an offer on a hot listing. When you submit an offer, you usually must include a pre-approval letter. This illustrates to the seller that you are ready, willing, and able to purchase. It is unlikely that a seller would accept an offer and take the chance on a buyer without any verification that a buyer can even pay for the home. In multiple offer situations, a pre-approval is even more essential.

Time Savings

A pre-approval saves time during the offer process and when your loan is processed. Many sellers require a pre-approval with offers. Not having one ready will lead to delays in submitting your offer and may cause you to miss out on a property. Pre-approvals entail verification of income, assets, debts, etc. This may take some time depending on whether you have the information available. Errors in your credit reports can lead to additional delays. Starting and completing this step in advance will also save valuable time when processing your loan and achieving a quick closing.

Reasons Why Buyers Should Obtain Pre-approvals Before Seeing Burlington MA Real Estate

The details above on reasons why buyers should obtain pre-approvals before seeing Burlington MA real estate is something to remember when thinking of buying real estate. The real estate process can be complicated and stressful to begin with. Being diligent and prepared can minimize the stress and problems encountered along the way. For additional information, contact Peter DaMore at Law Offices of Peter T. DaMore Jr. by emailing pdamore@ptdlaw.com or calling 781-229-7900.

There are a variety of fees associated with buying a property an explanation of lender closing fees in Burlington MA.

Lender Closing Fees

Points

Points are a way for buyers to get a lower interest rate. It involves paying interest up-front to ensure lower payments for the life of the mortgage. This option can be useful for homeowners who need a smaller payment in order to qualify.

Origination Charge

Origination charges vary from lender to lender. It typically covers the mortgage company processing of the mortgage Lender Closing Fees

The lender closing fees provided above are only a few of the actual charges that may be billed by your mortgage company. For a complete list of potential expenses that you may be responsible for, or for assistance with other real estate or mortgage needs, contact Peter DaMore at Law Offices of Peter T. DaMore Jr. by calling 781-229-7900 or emailing pdamore@ptdlaw.com.

Your estate is made up of everything you own such as cars, property, cash, and stocks, bonds, and mutual funds. Estate planning allows you to ensure that your objectives are honored in the event of your illness or death. It is not just for the retired, rich, or sick. It should be considered by any one with any possessions or dependents. This blog offers an overview of estate planning for Burlington MA.

Overview Of Estate Planning For Burlington MA

Estate planning documents specific instructions for financial management and disposition of assets in the event that you become debilitated or die. It can include your valuables and financial obligations, name guardians for your dependents, outline specific dividing up of the estate to individual relatives, and can also include your religious or other preferences. Incapacitation or loss of life can take place suddenly. By planning beforehand, you can ensure important decisions are made while you are not under emotional duress. It may help safeguard your assets and your family.

Disadvantages of Not Having a Plan

Without an estate plan, your possessions will be handled in accordance with the local laws in the state where you live. If you have dependents, the court may decide on their inheritance and guardianship. Court decisions may conflict with your personal preferences. It can also be a drawn out process, leaving family members without support in the interim.

Getting Started with an Estate Plan

Estate plans can have several elements including a will, power of attorney, health care proxy, medical directives, and insurance plans. There can also be methods of reducing taxes and fees incurred by setting up your estate in a certain manner. Your plan will differ depending on your assets and family members. An experienced estate planning professional can help evaluate these decisions and compile a plan that best suits your circumstances and preferences. It is never too early to begin this process and it can provide the peace of mind of knowing that your family will be protected and cared for. This overview of estate planning for Burlington MA is offered for reference only. Contact Peter DaMore at Law Offices of Peter T. DaMore Jr. for professional guidance.

HARP is a loan refinance program through Making Home Affordable (MHA) by the Departments of the Treasury and Housing and Urban Development (HUD). It is designed to assist homeowners current on their mortgage but who are unable to refinance since the price of their property has dropped below the amount of their loan. Home Affordable Refinance Program (HARP) details for the Burlington MA area can be found in this article.

Home Affordable Refinance Program (HARP) Details For The Burlington MA Area

HARP is a critical alternative for homeowners who would have no other refinance option or who may otherwise experience foreclosure. It not only provides the ability to refinance at reduced interest rates but also to eliminate mortgage insurance. These two changes may dramatically lower monthly payments. There are closing fees involved which vary from one lender to the next. Most costs can be rolled into the loan to limit up-front cash needed to close. HARP is a great program that has already helped many homeowners.

HARP Qualification Criteria

Those interested in HARP must first meet several preliminary criteria. This is for informational purposes only and does not in any way imply approval for a loan.

• You must be current on your loan.
• You must have made payments on time over the last 12 months.
• Your loan must be guaranteed by Fannie Mae or Freddie Mac. Note that this is different from the company that services your mortgage.
• The loan must have been bought by Fannie Mae or Freddie Mac on or before May 31, 2009.
• The mortgage company performing the refinance must be approved by Fannie Mae or Freddie Mac.
• Your mortgage amount must be greater than 80% but less than 125% of the market price of the home.
• You must complete the process before December 31, 2013.

Getting Started with HARP

If you are unable to refinance with other methods and would like to consider the HARP alternative, there are a couple steps that you should take. You must first identify whether your existing loan is owned by either Fannie Mae or Freddie Mac and if so, whether it originated prior to the May 31, 2009 date. Call the company servicing your loan to get this information. Then locate a company approved by Fannie Mae or Freddie Mac for the refinance. Depending on your loan type, you may not need not use the current mortgage provider, although you have the option to do so if they are an approved company. You will be asked to fill out a formal mortgage application which includes an underwriting process. After the mortgage company reviews the your financial information, the details of the current loan, and the property details, they will let you know your approval status.

Homeowners should consider refinancing while interest rates are low. Refinancing involves some up-front expenses but can lead to dramatic savings on monthly expenses. It can take place with the current mortgage company that owns a loan or a entirely different bank. Below you will find Burlington MA mortgage refinance advice including the expenses and advantages of refinancing.

Determining When to Refinance a Home

Real Estate Market Conditions

The real estate market can determine your refinancing options. If property values dropped from when you originally closed on your mortgage, this may make refinancing more difficult. Banks ordinarily lend up to a specific percentage of the value of a home, which is determined by an appraisal. If your mortgage balance is higher than that percentage, you may have to bring down your balance in order to refinance. FHA loan holders have the benefit of a streamline refinance that does not require an appraisal. There are also special alternatives for home owners who are under water due to declining real estate values. A local mortgage professional can help you assess these different options.

Interest Rate Change

The traditional guideline is to refinance when the interest rate is at least one percent lower than your current rate. The monthly decrease in payment over the life of the mortgage would make it worthwhile. Also, some mortgage companies will not approve a refinance unless the savings exceeds a specific percentage.

Expenses and Other Considerations

There are fees that come with refinancing a home loan. These include closing costs, lender fees, pre-paid interest, and PMI, just to name a few. The cost can vary depending on the mortgage company and loan product. Request a estimate before refinancing and analyze it against the monthly savings. Also know that you will have a delay between when your current mortgage is paid off and the next one is due, so those funds can go towards your closing costs.

About Burlington MA Mortgage Refinance Advice

On top of the Burlington MA mortgage refinance advice detailed above, also think about how long you are likely to live in a home since the savings is typically realized when summed up over many years. Interest terms are also influenced by your personal finances and credit rating, so get information from a local mortgage professional for calculations on your specific situation. The guidance above is general and may not include everything involved with your home or personal finances.

There are typically many typical tax advantages for buying a property through use of tax deductions. Deductions lower your taxable income and therefore lead to lower taxes. It is useful to understand the tax impact before buying or when evaluating renting versus buying. This blog post offers information on Burlington MA typical tax advantages for buying a property.

Tax Deduction Criteria

Not everybody can use tax deductions. When preparing your taxes, you can opt for the standard deduction or itemized deductions, whichever results in less taxes. If you own an inexpensive home, the deductible costs may not total higher than the standard deduction. Other personal variables may come into play as well. Only a tax advisor can offer a true evaluation of the tax advantages of buying a home taking into account your personal finances.

Deductible Home Expenses

Mortgage Interest

Only the interest portion of your mortgage payments are tax deductible. In the early stages of owning a property, you pay more towards interest than principal. Therefore, the amount of deductible interest is significant when you first own a property than in later years. Your mortgage company will send you a statement every year outlining the mortgage interest paid on your home.

Real Estate Taxes

Real estate property taxes can also be tax deductible. Real estate taxes are an annual amount but are commonly invoiced in quarterly statements. These taxes are sometimes included in your mortgage monthly payment, but hold on to copies of the property tax bills mailed directly to you. The amount in mortgage statements may not detail the full calendar year.

Mortgage Insurance

If you bought your property within a designated time frame and if you are part of a specified income bracket, you can possibly deduct MI fees. MI is invoiced on a monthly basis for loans more than 80% of the market price and remains until the loan balance drops below the 80% mark.

Points and Other Fees

Consider keeping a copy of your closing settlement statement. Certain charges such as points, adjusted real estate taxes, and pre-paid interest may be deductible. Furnish the paperwork to your accountant.

The above is information on Burlington MA typical tax advantages for buying a property and is relevant to primary residences. If you purchased investment real estate, the variety deductions may be different. This information is meant strictly as a general overview. Always consult with a tax professional for solid information tailored to your personal profile or to your type of residence.