Options for Homebuyers Affected by Increasing Mortgage Rates

Mortgage rates soared to 4.61% this week catching Boston homebuyers and refinancers by surprise. With interest rates at their highest point in two years, many would-be buyers are concerned that their chances at owning a slice of the American dream have gone out the window. Comparatively, those who were in the process of refinancing their mortgages are now wondering if it’s worth the time or trouble to follow through. So, what is a homebuyer to do in this type of situation? There are a few options to explore that I would like to advise buyers to look into before pulling the plug on their Boston home search.

Choose an Adjustable Rate Mortgage

Boston homebuyers who were expecting to pay close to 3.5% on a 30-year fixed mortgage were surprised and discouraged to learn their monthly payments would be considerably pricier than they anticipated. Because of this, many have opted for a 10-year ARM to keep their payments closer to their expectations.

Ask your lender about a float-down option

Not all lenders offer a float-down option, but it’s worth inquiring about. With a float-down, the borrower has a right to have his or her mortgage rate reduced if rates happen to fall. This option can be attached to any type of loan, and the terms are at the discretion of each individual lender.

Wait for the market to calm

As always, Boston homebuyers have the option to wait it out for a week or so and see where mortgage rates go from here. There’s a chance they may drop slightly, but there’s no guarantee. If they appear to hold steady, it might be a good idea to lock in now rather than risk falling victim to another increase down the road.

While the hike in the 30-year fixed mortgage rate has affected affordability for some Boston homebuyers, home prices are still below historical peaks. According to an article by USA Today, “At today's house prices and income levels, mortgage rates would have to be nearly 7% before the U.S. median-priced home would be unaffordable to a family making the median income in most parts of the country.” With that said, I also understand that there are some hopeful homebuyers that were pushed beyond their limits of what they can afford as a result of the mortgage rate increase. The good news is that your dream of homeownership is still attainable!

If you’re planning to buy a home in Boston, please contact me. I’d be happy to go over all of your options with you and recommend a lender or two. Despite this hiccup in your plans, the important thing to remember is that both home prices and mortgage rates are still quite low by historical standards. With a Boston real estate agent by your side, you can rest assured you’ll be empowered to make informed decisions throughout the entire home buying process. I look forward to assisting you in your journey!

Lucas Garofalo

Keller Williams Realty

(617) 861-3631

Lucas@LucasBostonHomes.com

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Explore Boston's Beautiful Beaches!

One of the best parts about living in Boston is our close proximity to the water. The refreshing ocean breeze, fishing, sailing, and water sports just touch on the numerous ways to enjoy life by the harbor this summer. Because Boston is an urban area, many newcomers aren’t aware of how simple it is to escape to nature for a day. Even those who don’t own a car can easily get away to a local beach for the afternoon. Here are a few recommendations for the best beaches to visit in Boston this summer.

Spectacle Island 

Forget driving or parking. Spectacle Island is easily accessible by a ferry, which conveniently runs every half hour. Located just a 15 minute ride from the Boston waterfront, the beaches of this pristine oasis are littered with gorgeous sea glass and seashells. A short hike grants visitors a spectacular view of the Boston skyline. Finally, settle down for the afternoon with a picnic lunch and you have yourself a picture perfect day.

Castle Island Beach 

You get a little bit of everything when you visit Castle Island in South Boston. The relaxation of the beach meets the enjoyment of people watching all while savoring an ice cream cone from Sullivan’s. This is the place to go if you want to escape the hustle and bustle of the city without actually going too far. Castle Island is just a quick train ride from downtown, and parking is plentiful, too!

Winthrop Beach 

While tourists tend to flock to Revere Beach, Boston locals know where to escape to tranquility just minutes from downtown Boston. This no-frills beach is quite small and lacks the shopping and amenities that tend to attract out-of-towners. Winthrop Beach is much less crowded than your other options in the Boston area, and there is always plenty of free parking available. If you want to pack a lunch and enjoy a relaxing afternoon away from the city crowds, Winthrop Beach is for you!

In addition to the beaches I have listed above, there are numerous other spots you can visit this summer. Once you buy a home in Boston and get acquainted with your neighborhood, you’ll find all of the hidden gems that the locals rave about and return to year after year.

Summer is a fantastic time to buy a home in Boston. All of your new neighbors come out of hibernation and are outdoors, making it easy to develop new friendships. If you’d like a personal guide to help show you around the city, please contact me! As your Boston real estate agent, it’s my pleasure to show newcomers what a great place Boston is to settle down.

I look forward to hearing from you when the time is right!

Lucas Garofalo

Keller Williams Realty

(617) 861-3631

Lucas@LucasBostonHomes.com

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How to Choose a Boston Real Estate Agent

Whether you’ve accepted a job offer in another city or have decided to relocate to the suburbs, circumstances have arisen that require you to sell your home in Boston. Luckily, 2013 has been kind to home sellers. Limited inventory has home prices on the rise and buyers all but throwing money at sellers’ feet for a chance to buy a home in Boston. While the housing market has clearly swung in the favor of sellers, it doesn’t make the home selling process any less complicated.

As a Boston real estate agent, I understand the logic behind a seller’s decision to sell his or her home “For Sale By Owner.” If the sale is successful and the homeowner sells for a fair price, thousands of dollars can be saved on a real estate agent’s commission fee. However, entering the Bostonreal estate market without the knowledge and negotiation skills of a professional is a task very few are prepared for once they realize what they’re up against.

Most homebuyers will enlist the help of a buyer’s agent to negotiate and represent their best interests. While it is possible to face an army of homebuyers and their agents on your own, I always advise sellers to at least consult a professional before deciding to take full responsibility for a successful sale. More often than not, hiring a Boston real estate agent with a deep knowledge of the local market actually saves homeowners time, money, and a major headache when all is said and done after the closing process.

If you have ultimately decided that hiring a Boston realestate agent is the right move for you, there are certain things you’ll want to look for before you sign a listing agreement. First, ask your family, friends, colleagues, and neighbors if they can recommend a Boston real estate agent. Your circle of influence will be honest with you and steer you in the right direction. You should also make sure your agent of choice has certifications and designations for certain sales skills depending on your unique situation.

Something that has become increasingly more important in our hyper-connected society is a tech-savvy REALTOR®. Today’s top agents are constantly connected on the go whether they’re reachable by smartphone, tablet, Facebook or Twitter. When considering a Boston real estate agent to sell your home, make sure you select a professional who embraces the latest technologies. He or she will be more likely to be quick in responding to your needs and answering important questions at a moment’s notice.

Choosing the right professional to represent you in the Boston real estate market is no simple feat. While specialized designations and constant connectivity are important in today’s market, the fundamentals still apply. Be sure the Boston real estate agent you choose to work with is someone you can get along with -- and even laugh with! Selling a home can be stressful and tumultuous, but having an agent with strong interpersonal skills will make the process enjoyable.

If you need any assistance with selling your home, please contact me! My proven home selling strategy has helped countless Boston homeowners achieve successful sales, and I would love the opportunity to do the same for you.

Lucas Garofalo

Keller Williams Realty

(617) 861-3631

Lucas@LucasBostonHomes.com

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Activities for a Rainy Day in Boston

If you’re like most folks, you’ve been anticipating your weekend plans since Monday. On a typical June weekend, your schedule is probably packed with outdoor parties, activities, and commitments. Unfortunately, the rain doesn’t show any signs of stopping over the next couple of days. However, just because the weather is dreary doesn’t mean your weekend has to be a wash. It’s time for Plan B! There are plenty of fun things to do indoors all over the city. Whether you’re a lifelong resident or are just visiting to begin your Boston home search, here are my suggestions for rainy day fun.

Visit a museum in Boston

Boston is home to dozens of museums that cater to all interests and age groups. The Boston Children’s Museum and New England Aquarium are perfect for family outings, while the Museum of Science and Museum of Fine Arts are both wonderful educational experiences for a more mature crowd.

Tackle a DIY project at home

You know that list of to-do’s you’ve been saving for a rainy day? Yes, you’ve guessed it. That day is here! It’s time to bust out the toolbox and make progress on those pesky home repairs before they worsen and end up costing you more than you bargained for. This is even more imperative if you’re planning to sell your home in Boston this season!

Bowling and burgers at Kings

You’ll forget all about the rain and thunder outside when you’re dominating the lanes at one of Boston’s bowling alleys. Kings in Boston’s Back Bay neighborhood boasts 16 lanes, three premium bars and a full service restaurant serving up American favorites and comfort food. Nothing sounds better on a rainy day in Boston!

Scavenge for a deal on home décor

Our city is loaded with interesting history. Browse through one of the area’s antique shops this weekend with a goal of adding a conversation piece to your Boston home décor. The Cambridge Antique Market hosts over 150 dealers on five floors offering budget finds on furniture, lighting, artwork, collectibles, and more. You never know what you may find, so it’s worth a look!

Whether your goal is to be productive, have fun, or put the finishing touches on your Boston home, you’re bound to stay busy all weekend long. Alternatively, if you’ve been thinking about selling your home in Boston and are ready to take the next step, please contact me today. Through years of experience, I have perfected my home selling strategy and would love to help you get top dollar for your property.
I look forward to helping you navigate the Boston realestate market!

Lucas Garofalo

Keller Williams Realty

(617) 861-3631

Lucas@LucasBostonHomes.com

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