Massachusetts Real Estate - Main Financing Page

Massachusetts Real Estate Financing Rates, Terms, and Tips

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Mortgage Center: Types of Mortgages

For your various mortgage questions, you may want to get in touch with Patrick O'Reilly at Chase Manhattan Bank. He's been one of the top Mortgage Professionals in Massachusetts for over a decade, and remains the only person I've allowed to advertise on our site thus far. You can ask questions, apply for a mortgage preapproval, or read more about the different options at his web page by clicking HERE.

Fixed Rate Mortgages
Features:: The interest rate on a fixed rate mortgage remains constant over the life of the loan.
Your monthly principal and interest payment will always remain the same through the term of the loan.

    Benefits:
Fixed rate mortgages are especially suited for those who expect to remain in their homes for a number of years.
With excellent credit, you can finance up to 100% of the purchase price.

    Advantages:
Your mortgage payment is unaffected if interest rates in the general market go up.
Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:
Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.; Your monthly principal and interest payment will always remain the same through the term of the loan.

    Benefits:
Fixed rate mortgages are especially suited for those who expect to remain in their homes for a number of years.
With excellent credit, you can finance up to 100% of the purchase price.

    Advantages:
Your mortgage payment is unaffected if interest rates in the general market go up.
Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:
Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Benefits:: Fixed rate mortgages are especially suited for those who expect to remain in their homes for a number of years.
With excellent credit, you can finance up to 100% of the purchase price.

    Advantages:
Your mortgage payment is unaffected if interest rates in the general market go up.
Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:
Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.; With excellent credit, you can finance up to 100% of the purchase price.

    Advantages:
Your mortgage payment is unaffected if interest rates in the general market go up.
Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:
Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Advantages:: Your mortgage payment is unaffected if interest rates in the general market go up.
Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:
Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.; Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:
Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Adjustable Rate Mortgages (ARMs)
Feature:: An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:
Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Benefit:: Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:
Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Advantages:: The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:
Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.; Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:
Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Balloon Mortgages
Feature:: Principal and interest payment remain constant for the term of a balloon mortgage which is usually 5-7 years, although principal and interest are amortized over 30 years.
Benefit:
At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Benefit:: At the end of the 5-7 years, you can pay off the mortgage or apply to refinance.
Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Advantages:: Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.; If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.

Conventional Mortgages
Conventional mortgages are mortgages that are not obtained under a government insured or guaranteed program such as FHA or VA. Some of these loans may also be defined as conventional conforming loans which means they are eligible for purchase by one of the two government chartered corporations created to support the secondary mortgage market. These corporations are the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) and the Federal National Mortgage Association (FNMA or Fannie Mae).

FHA Mortgages
A Federal Housing Administration (FHA) insured loan allows you to buy a home with a low down payment, ranging from 3% to 5% depending on the price of the home. This may provide you with more buying power.

VA Mortgages
If you are currently in the United States military, or if you have ever served in the U.S. armed forces, you may be eligible to get a loan guarantee by the Veterans Administration (VA). If you qualify, this special government benefit to veterans might be a good option for you as it allows you to purchase a home with a low down payment.

We've prepared some nice video's discussing different mortgage options. You can view them HERE.