Many of today's Boston
home-borrowers are attracted to shorter mortgage terms and lower interest
rates. This is especially attractive if you have retirement on the horizon in
the next 20 or so years. But, is this option right for financing
your Boston home?
Can you afford to pay off the mortgage in 15-20 years?
If you can afford the higher payments associated with the shorter-term mortgage,
why not take one? The rate is lower compared to a 30-year which means less
interest AND paying that interest in half as long. But, that 15-20-year
mortgage comes with a higher total monthly payment and this can cramp your ability
to set aside money for retirement, investments, or other necessities. You don't
want to max out on house payments and not be able to have emergency or fun
money either. If this is the case than a 15-20-year mortgage is not for you.
Are you looking to refinance?
Depending on how high your current 30-year rate is on your Boston
home you may be able to refinance into a 15 or 20-year mortgage and keep
your payments the same PLUS shorten your mortgage term. It may mean a
significantly lower interest rate, possibly as much as a full point.
Are you a first-time homebuyer?
A 30-year rate may be a better choice for you because it comes with
lower monthly payments. If you are first
time home-buyer in Boston trying to buy the most house you can, this lower
payment will be an attractive option.
There are several choices out there regarding mortgage terms, I'd be
happy to help and point you to a qualified professional who can discuss your
personal circumstances and which options would be best for you.
And if you are still searching
for that perfect Boston
Home, let a local expert help you out. Buying a home is an exciting
and complex adventure. It can also be a very time-consuming and costly one if
you're not familiar with all aspects of the process. Taking the time to learn
about the process and your options is critical to making the best-informed
choices in order to achieve your own particular goals.
Please feel free to contact
me, I look forward to hearing from you soon!
Lucas Garofalo
Keller Williams Realty
(617) 861-3631
Lucas@LucasBostonHomes.com
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