Avoid Mortgage Mistakes

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The first step in home buying is getting a mortgage. Many home owners also find themselves in a maze when they start the refinance process. Navigating the mortgage process can be confusing. There is so much to know between rates, types of mortgages and payment schedules. Avoiding making a mistake in the mortgage process can save you a lot of money and headaches. Here is a list of the biggest mortgage mistakes that potential borrowers make.

1. No or Low Down Payment
Buying a home with no or a low down payment is not a good idea. A large down payment increases the amount of equity the borrower has in the home. It also reduces the bank’s liability on the home. Research has shown that borrowers that place down a large down payment are much more likely to make their mortgage payments. If they do not they will also lose money. Borrowers who put little to nothing down on their homes find themselves upside down on their mortgage and end up just walking away. They owe more money than the home is worth. The more a borrower owes, the more likely they are to walk away and be subject to credit damaging foreclosure.

2. Adjustable Rate Mortgages or ARMs
Adjustable rate mortgages or ARMs sound too good to be true and they can be. The loan starts off with a low interest rate for the first two to five years. This allows the borrower to buy a larger house than they can normally qualify for. After two to five years the low adjustable rate expires and the interest rate resets to a higher market rate. Now the borrowers can no longer make the higher payment not can they refinance to a lower rate because they often do not have the equity in the home to qualify for a refinance. Many borrowers end up with high mortgage payments that are two to three times their original payments.

3. No Documentation Loans
No documentation loans or sometimes called “liar loans” were very popular prior to the subprime meltdown. These loans requires little to no documentation. They do not require verification of the borrower’s income, assets and/or expenses.
Unfortunately borrowers have a tendency to inflate their income so that they can buy a larger house. The problems start once the mortgage payment is due. Because the borrower does not have the income they are unable to make mortgage payments and often end up face bankruptcy and foreclosure.

4. Reverse Mortgages
You have seen the commercials and even infomercials devoted to advocating reverse mortgages. A reverse mortgage is a loan available to borrowers age 62 and up. It uses the equity from the borrower’s home. The available equity is paid out in a steady stream of payments or in a lump sum like an annuity.
Reverse mortgage have can be dangerous and have many drawbacks. There are many fees associated with reverse mortgages. These includes origination fees, mortgage insurance, title insurance, appraisal fees, attorney fees and many other miscellaneous fees that can quickly eat at the home’s equity. Another drawback; the borrower loses full ownership of their home and the bank now owns the home

Avoiding the pitfalls of the mortgage maze will hopefully help you keep in good financial health as a home can be your best investment.

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What is My Lowell Home Actually Worth?

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It is common question that real estate professional get what is my home worth? Unfortunately, it is a question that does not have an exact answer. There are ways to determine about what your Lowell home is worth. You may find online estimates that say one thing but is that a true test of what the market will bear? So, how can you really determine what your property is worth?

1. Consider Solds-Look at other comparable homes in your area that have recently sold. This will give you a good idea what buyers are willing to pay.

2. Consider Under Agreements/Pendings-Although it is difficult to tell what a home has sold for before it closes you may be able to tell the demand in a price range. Look at the asking price of the home and how long it was on the market. If you see a trend of homes going under agreement quickly you may assume they are going closer to the asking price.

3. Consider Active Listings-Real estate is about competition just like any other commodity. It is important that your home be competitively positioned against other comparable listings. The asking price is a part of the marketing plan of the home.

4. Sell It-The only way to know a home’s true market value is to sell it. At the end of the day a home is only worth what a buyer is willing to pay.

Find Out What Your Lowell Home is Worth Click Here For Details

Condo – 200 Market Street Lowell, MA 01852 is now new to the market!

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Updated 2-story condo w/ open concept floor plan in the heart to Historic Downtown Lowell. Sunny side of Canal Place 1. Recently renovated kitchen boasts newer Stainless Steel appliances (all stay!). Second floor bonus room could be a perfect office/library. Washer/Dryer room on 2nd floor. Hot water heater and washer/dryer (it stays too!) recently replaced. This move-in ready condo is close to highways & w/n walking distance to public transportation, museums and restaurants. One-car prkg in fee.

This is a Townhouse/Mid-Rise style home and features 6 total rooms, 1 full bath, 1 half bath, 2 bedrooms

For More info Visit: www.lowellhomesonline.com

Shown by Appointment Call: Chris Tryon/ ERA Key Realty Services 978.265.7186

FREE Home Elvaluation

Condo – 88 Prescott St Lowell, MA 01852 now has a new price!

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This is one of the most unique condominiums to be built in the city. The variety of uses of this refurbished old bank safe is only limited by your imagination. You descend down a beautiful marble staircase which leads into your unit. The originality of this condo is one that is sure to impress all those who visit.

This is a Garden/Low-Rise/Loft style home and features 5 total rooms, 2 full baths, 2 bedrooms

For More Info Visit: www.lowellhomesonline.com

Shown by Appointment Only: 978.265.7186

Multi-Family – 27 E Aldea St Lowell, MA 01851 now has a new price

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This property is located on a dead end in the highlands with a nice fenced in yard. The two units are owner occupied. The roof,boilers and electrical system have been updated in the last 2 years

This property features 9 total rooms, 2 full baths, 5 bedrooms, 0.13 Acres

For more information

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Lowell Real Estate Median Price for Single Family Properties 2/25/13

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Median Price for Single Family Properties in LOWELL, MA.

The Market is on the Move

Find Out How Much Your House Is Worth In Today’s Market…

If you’re going to sell your house this spring, what you do right now to prepare for the sale could make a difference of thousands of dollars.

The first thing you’ll need to know is how much your house is worth compared to other homes in today’s market.

It’s easy to find out…

Now you can get a FREE Market Activity Report of homes for sale and sold in your neighborhood in the last 6 months—so you have a good idea of what homes like yours are selling for.

PLUS: Get a Free Report on which improvements and fix-ups will give you the best return on your investment as you prepare your house for sale.

To Find Out What Your Home is Worth in your area Click Here For Details and we’ll send it out right away.