Mortgage
rates in Boston, MA are up this week and possibly may rise
higher. The current 30 year mortgage is hovering just under 4 at
3.95%. With the continual uptick 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 Boston,
MA 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,
MA home search.
Choose
an Adjustable Rate Mortgage
If you
would like to lower your interest rate for a set period of time, you
could opt for a 10 or 5-year ARM to keep the payments down. Just
keep in mind that in 10 years that rate may go up quite a bit as it's
hard to predict the market in 5-10 years.
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,
MA 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.
If you’re planning to buy a home in Boston, MA, please contact a Boston, MA real estate agent. I’d be happy to go over all of your options with you and recommend a lender or two. Despite the higher rates, the important thing to remember is that mortgage rates are still quite low by historical standards. I look forward to assisting you in your journey!
If you’re planning to buy a home in Boston, MA, please contact a Boston, MA real estate agent. I’d be happy to go over all of your options with you and recommend a lender or two. Despite the higher rates, the important thing to remember is that mortgage rates are still quite low by historical standards. I look forward to assisting you in your journey!
Lucas
Garofalo
Keller
Williams Realty
(617)
861-3631
Lucas@LucasBostonHomes.com
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