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Cape Cod Real Estate, Properties for Sale, Rentals:
Finance
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Financing your First Home
- Determine what you can afford – Income, credit score, monthly expenses, and current interest rates will all be calculated when calculating how much you can afford.
- Figure out your funding - determine how much you have for a down payment, do you have enough money in savings for closing and escrow?
- Research different loan programs – which loan meets your needs? How long will you be staying in your home?
Tips on paying off your mortgage faster
- Make payments on a bi-weekly schedule rather than monthly
- Pay a lump sum amount
- Shorten the term of your loan
- Add more to your monthly payments
- Refinance to a lower interest rate loan therefore lowering your payments that are due, but continue to pay the higher payment amount
Avoiding Foreclosure
Fixed Rate vs. Adjustable Rate Mortgages
- Fixed Rate Mortgages (FRM): the interest rate will remain the same for the term of the loan.
- Adjustable Rate Mortgages (ARM): the interest rate has the ability to fluctuate either higher or lower, therefore increasing or decreasing your payment for the term of your loan
- FRMs offer the security of your payment staying at the same interest rate throughout your entire loan. ARMs are more risky but could result in a lower payment depending on the current interest rate.
Useful Financial Calculators
- Affordability Calculator – Determine how much you can afford to borrow for your new home using the affordability calculator. This calculator will only give you an idea of what you can borrow. It is important to speak with a mortgage lender to determine a more accurate amount.
http://www.century21.com/learn/calculators/affordability.aspx
- Estimate Monthly Payments – Figure out the approximate amount for monthly payments based on the sale price, down payment, mortgage rate, and term of the loan. Real estate taxes and insurance premiums are also included. http://www.century21.com/learn/calculators/mortgage.aspx
- Amortization Table – The Amortization Table shows how making one additional payment on your mortgage can save you money in the long term. http://www.century21.com/learn/calculators/amortization.aspx
- Refinance Calculator – As a homeowner you have the ability to refinance your home. Refinancing may be an option in order to reduce interest rates or extend the repayment time to lower the monthly payment of the loan. You can also refinance to use the available equity that has accrued over time and turn it into cash available for other expenses (i.e. paying off credit card debt, remodeling your home, or education expenses). http://www.century21.com/learn/calculators/refinancing.aspx
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Proudly doing business in the following Cape Cod, Massachusetts towns and villages: Barnstable, Bourne, Brewster, Buzzards Bay, Centerville,
Chatham, Cotuit, Dennis, Eastham, Falmouth, Harwich, Hyannis, Marstons Mills, Mashpee, Orleans, Osterville, Provincetown,
Sandwich, Truro, Wellfleet, Woods Hole and Yarmouth.
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Equal Housing
