Our Real Estate Blog
Multiple options are available when it comes to real estate loans. Figuring out which one you need can be disconcerting, to say the least. So, if you’re new to the game, here’s a quick guide to help you along.
- Conventional – Loans that fall within the FNMA/FHLMC (Fannie Mae/Freddie Mac) guidelines where the Federal government is not insuring the payment through the VA or FHA loan process are known as conventional loans. A conventional loan has either a fixed or an adjustable interest rate, and typically requires ten to twenty percent downpayment.
- Conforming – When a loan conforms to guidelines set by FNMA/FHLMC (Fannie Mae/Freddie Mac) where either Fannie Mae or Freddie Mac could later purchase the loan, it is said to be conforming. A non-conforming loan would be any loan that does not fit the guidelines, so a Jumbo Loan, for example, would be outside the scope of FNMA/FHLMC because of its size.
- FHA Insured – Loans that are insured by the Federal Housing Administration (FHA) are made to borrowers meeting specific criteria and often require lower down payments.
- VA – American military personnel and veterans may obtain a mortgage through the U.S. Department of Veteran Affairs (VA) as typically preferred interest rates and/or no or lower down payments.
- Reverse Annuity – This particular mortgage is for seniors on a fixed income and is used to generate monthly revenue from the equity in their home. They continue to live in the house as they like, but ownership reverts to their lender once they move from the home or pass away.
- Wrap around – Sometimes, a homeowner needs to sell, but chooses to keep a preferential mortgage on the home, so the buyer pays a mortgage payment that covers both the original mortgage and the amortized difference between the existing mortgage and the selling price. The seller is considered to have loaned the “wrap around” amount to the buyer.
- Balloon – A balloon mortgage is a loan with a short (three years, perhaps) term that has a fixed principal and interest monthly payment that typically is not fully amortized. At the end of the term, the rest of the mortgage is due in a single (balloon) payment at which time buyers typically refinance. These loans are useful for buyers that intend to sell within the balloon period at an appreciation value (such as for a longer fixer-upper), or who could not qualify for a conventional loan at the time but expect that situation to change during the length of the mortgage.
- Graduated Payment – Sometimes a loan is structured so that earlier payments are lower than later payments and the payments increase on a scheduled basis.
- Refinance – A refinance is a mortgage taken out to replace an existing mortgage. Homeowners sometimes add more money from the home's equity onto the loan to complete home improvements.
Short-Term Home Loans:
In addition to full mortgages, there are several short-term loans that homeowners may take in special situations. These include bridge loans (between buying and selling on contingency), construction loans, non-recourse loans (rare, and when the buyer has no responsibility for payment), and home equity loans or lines of credit based on the value difference between the amount owed on the home and its current fair market value.
If you’re wondering what type loan is right for you, speak to a mortgage professional about your situation and get pre-approved.
10 Horseshoe Lane, Marshfield, MA 02050
There are many reasons to renovate your house. If you plan on selling, renovating your old house will increase the face value dramatically. Also, it makes you more comfortable while you get the satisfaction of living in a place of which you are proud.
Some cheap renovation ideas that will not hurt your wallet but translate into a more attractive sale are:
Add Energy Efficient Windows
More than any time in history, we have so much awareness about going green. It is a good idea as it not only saves the environment but also saves money. Hence, replacing old windows with new ones that are energy efficient will reward you with tremendous returns. Immediate benefits come as a drastic reduction in your electricity bills.
Make a Deck
One of the things home buyers look for is a deck. Adding a deck is a terrific idea because it provides a fantastic spot for relaxation. While adding a deck to your house is cost incentive, think of the improvement it will have on the face value of your property. Also, if you want to sell your home, it is a sweet selling spot to get better deals.
Use Energy Efficient Insulation
Your heating and cooling system will be difficult to maintain if you use a door that allows a lot of hot and cold air to enter your house. Your entries, windows, switches, and attics are parts of the house that needs insulation. Replace old water heaters with new tanks that are energy efficient – they save energy and ultimately reduce your bills.
Ensure a Basic Maintenance Routine
A buyer will love to know the house is in good shape before investing in it. When you spend on basic maintenance, your home becomes pretty much appealing to prospective buyers. Basic maintenance routine doesn't have to burn a hole in your pocket. Hence, be sure to take care of leaky roofs, seal cracks, replace rotten woods and fix plumbing leaks. You also need to make certain that your house is clean.
Make Your Exterior Appealing
There are many renovation ideas you can do inside the house. You, however, have to bear in mind that it is the exterior of your home that will attract prospective buyers. With this in mind, you have to try to make your exterior as appealing as possible. Invest in good paint, make sure your roof complements the siding or brick, change your garage door, and anything else that will make your home look amazing at first sight.
House renovation is a great project that will yield tremendous returns with time. Be sure to invest in worthy projects that will make your house more appealing to buyers.
465 Spring St, Marshfield, MA 02050