Of course the caveat to that is, you need to have a down payment and you should work with a mortgage broker to find out what your options are. However, paying money towards your mortgage, towards owning your home outright, is a far better investment than paying your landlord’s mortgage every month. So is it time to become a first-time home buyer?
Going back to an article I recently shared, rents in Boston and the surrounding areas have dipped ever so slightly this spring. That doesn’t amount to much savings when you’re talking about $2,600 for a two bedroom unit going in your landlord’s pocket each month. Especially when you’re still waiting for that leaky faucet to be fixed.
What can you buy that’s less per month than a two-bedroom apartment in Boston? Let’s take a look, but first we need to break down exactly what is included in a mortgage payment.
This is the amount that pays down the original loan amount.
This amount is determined by the interest rate on your mortgage. The interest rate is either fixed or variable, and is determined by a lot of different factors. Banks will take into account your credit score, the home price & location, your down payment and the loan amount and type you choose. The Federal Funds Rate, the Consumer Price Index, jobs reports, even the yield for a 10-year Treasury bond also affect the interest rate of a mortgage.
Private Mortgage Insurance (PMI)-
If the amount of your loan is high, 80% or more of your home’s value, your lender may require you to pay private mortgage insurance, as this type of loan carries a higher risk to the lender.
This is the part of your monthly payment that goes towards property taxes and insurance.
The only way to know what your mortgage payment will really be is to work with a mortgage broker to find out what they can get you given your personal circumstances. However, here are some great examples of homes from Madeira Real Estate that won’t break the bank each month.
8 rooms/ 5 bedrooms/ 3 baths
I bet your apartment doesn’t come with these views! This home includes a downstairs in-law suite with private entrance, a master bed with an ensuite bathroom and a balcony in the treetops. It has a big beautiful yard, and water views that can be seen from the kitchen, loft, and master bedroom. Three levels of living; master suite, loft and a bar area up top, a bright kitchen open to a spacious living room on the second floor with additional bedrooms, and on the lower floor a private bed, bath and living area. Plenty of space to add a kitchenette for your in-laws. To schedule a showing call me at (508) 317-0201, or email me at firstname.lastname@example.org.
6 rooms/ 3 bedrooms/ 2 baths
Excellent price to get into a great neighborhood in Freetown, MA. This home has a lovely farmer’s porch and a private yard that is surrounded by trees. It has solar panels, a garage, new roof and a new water filtration system. It is ready for your family to move in! To schedule a showing call Madeira Real Estate at 508-617-7748.
9 rooms/ 4 bedrooms/ 2 baths
This is a great house for a growing family. A raised ranch with a lot of space both inside and out, it has been well-maintained. It is situated on 1.61 acres, close to Poquoy Brook Golf Club! The price has just recently dropped on this lovely home, so it won’t last long. To schedule a showing call Madeira Real Estate at 508-617-7748.