Deborah Byrne - Berkshire Hathaway HomeServices Verani Realty Somerville
Accolades include: Government Certified, Performance Certified,Top 4% Sales Nationwide, Chairmans Circle, Presidents Circle, Relocation Director, Notary Public, Realtor®, CRS, CBR, CDPE, LMC, Energy Star Certification, Foreclosures MASS Certification, AHWD, CSP, SRES and RECS Top Producer in Massachusetts Awards
617-201-4730 | dbyrne2510@yahoo.com


Posted by Deborah Byrne on 7/17/2017

A house is a personal statement for many people. It lets neighbors, relatives and friends know what you value. Buy a house in a thriving community and you could convey to close associates and passersby that you're a positive thinker who is serious about her current and future success. But, getting the keys to a great house in a thriving community at low interest rates is not as simple as house hunting for days, weeks or months.

Bad credit is an early step toward home mortgage regret

Securing a quality mortgage on a house in a good community requires you to have more than a job, especially considering that many mortgage lenders continue to be watchful about borrowers' financial readiness. To get a good mortgage on a house in a thriving community, you need strong credit scores.

Low credit scores do more than hurt your chances to secure a mortgage at the best interest rates. Work your way to low credit scores and you may pay more for:

  • Furniture that you buy on credit - Even if you get furniture through a delayed payment plan, you could be denied credit if your credit scores are too low.
  • Utilities - It doesn't always come to mind, but credit scores can also impact utilities. If utilities remain high for a year or longer, low credit scores could cause you to pay hundreds more a year than you would have paid if your credit scores were higher.
  • Homeowners insurance - Like utilities,homeowners insurance is generally a charge that must be paid monthly. High monthly homeowners insurance premiums could limit your ability to meet your rent should you have an adjustable rate mortgage and your mortgage goes up after you move into your house.

It bears repeating that low credit scores can make the difference between whether or not reputable lenders award you a fixed or an adjustable mortgage. Let something go wrong at your property that requires the focus of a licensed contractor like a plumber or electrician and you could pay more for repairs. Clearly, low credit scores put a lot of weight on more than where you live and what type of house you live in.

Good and bad credit habits start early

As soon as you make your first credit purchase, the clock starts ticking on your credit score development. When you take on revolving financial responsibilities like heating, cooling, water and electricity services, you also start to determine your credit score.

Your financial decisions may not leave much of an impression on you during your high school or college years. But, they will when you decide to buy a house. Develop the habit of making bad financial decisions and you could generate a low credit score.

It could take six months or longer to raise your credit score high enough to secure a great fixed mortgage with low interest rates. A low credit score could also force you to give in and buy a house in a declining or developing neighborhood.




Categories: Uncategorized  


Posted by Deborah Byrne on 6/5/2017

Do you know the difference between adjustable-rate and fixed-rate mortgages? An adjustable-rate mortgage (ARM) includes an interest rate that will change periodically based on market conditions. In many cases, homebuyers prefer fixed-rate mortgages (FRMs), as these mortgages enable homebuyers to pay the same monthly mortgage payment for the life of their loan. Conversely, an ARM may start with lower monthly payments but could rise over an extended period of time. This means that an ARM is likely to result in mortgage payments that vary over the years. Although an ARM may seem like an inferior option to its fixed-rate counterpart, there are several scenarios in which a homebuyer may prefer an ARM, including: 1. A Homebuyer Is Purchasing a Residence for the First Time. A first-time homebuyer may enter the real estate market with lofty expectations. But upon realizing there are few housing options that meet his or her needs, this buyer may settle for a house that represents a short-term residence. In this scenario, a homebuyer may be better off selecting an ARM. With an ARM, a first-time homebuyer may be able to make lower monthly payments in the first few years of homeownership. And then, when a better homeownership opportunity becomes available, this buyer may be able to work toward upgrading from his or her starter residence. 2. A Homebuyer Expects His or Her Income to Rise. The economy may fluctuate at times, but those who are assured of a higher income over the next few years may be better equipped to handle an ARM. For example, a student who is enrolled in a medical residency program may be a few years away from becoming a doctor. At the same time, this student wants a nice place that he or she can call home and may consider an ARM because it offers lower monthly payments initially. After this student completes the residency program, he or she likely will see a jump in his or her annual income as well. Thus, this homebuyer may be best served with an ARM. 3. A Homebuyer Is Facing an Empty Nest. Will your children soon be moving out of the home in the next few years? If so, now may be a great time to consider an ARM if you'd like to move into a new residence. Parents who are facing an empty nest in the next few years may be better off living in a larger residence for now, then downsizing after their children leave the nest. Therefore, with an ARM, parents may be able to buy a nicer home with lower monthly payments. And after their kids move out, these parents always can look into downsizing accordingly. Deciding which type of mortgage is right for you can be challenging for even an experienced homebuyer. Fortunately, lenders are available to answer any concerns or questions you may have, and your real estate agent may be able to offer guidance and tips as well. Explore all of the mortgage options at your disposal before you purchase a new residence. By doing so, you'll be equipped with the necessary information to make an informed decision that will serve you well both now and in the future.





Posted by Deborah Byrne on 12/19/2016

Purchasing a home is a sign of new financial responsibility for many people. The leap into homeownership is a big and important step. Finding a home and securing a mortgage isn’t easy. Getting ready to take on a mortgage can require a lot of research and education on your part. Before you get too confused, you’ll need to learn the basics of a mortgage and what you should know before you apply. 


Be Prepared


This is probably the best advice for any first time homebuyer. Find some good lenders in your area. You can sit down with a lender and talk about your goals. The bank will be able to explain all of the costs and fees associated with buying a home ahead of time. This way, you’ll know exactly what to expect when you head into a purchase contract without any surprises. 


What’s Involved In A Loan? 


Each mortgage is a different situation. This is why meeting with a lender ahead of time is a good idea. Your real estate agent can suggest a mortgage lender if you don’t have one in mind. No one will be happier for you than your real estate agent if you have a smooth real estate transaction. You’ll be able to walk through the mortgage process step by step with a loan officer and understand the specifics of your own scenario.


What You’ll Need For A Mortgage


There’s a few things that you’ll need to have ready before you can even begin searching for a home. 


Cash For A Down Payment


You’ll need to save up a bit of cash before you know that you’re ready to buy a home. It’s recommended that you have at least 20 percent of the purchase price of a home to put down towards your loan initially.   



A Good Working Knowledge Of Personal Finances


You should have an understanding of your own finances in order to buy a home. Not only will this help you save, but it will help you to ensure that you’re not going to overextend yourself financially after you secure the mortgage. To get your finances in order, honestly record all of your monthly expenses and spending habits, so you know exactly what you can afford.   


The Price Range Of Homes You’re Interested In 


If you have an idea of what kind of home you’d like, it will make your entire house shopping experience a lot easier. You’ll be able to see exactly what you can afford and how much you need to save. When your wish list equates to half-million dollar homes, and you find that you can only afford around $300,000, you don’t need to go into shock! It’s good to have an idea of how much house you can afford and what it will get you. When you do a little homework, you’ll discover that buying a home isn’t such a hard process when you’re prepared!





Posted by Deborah Byrne on 5/9/2016

Trying to decide what type of mortgage is right for you can be tricky business. So you may be wondering what is an adjustable rate mortgage? An adjustable rate mortgage or ARM, has an interest rate that is linked to an economic index. This means the interest rate, and your payments, adjust up or down as the index changes. There are three things to know about adjustable rate mortgages: index, margin and adjustment period. What is the index? The index is a guide that lenders use to measure interest rate changes. Common indexes used by lenders include the activity of one, three, and five-year Treasury securities. Each adjustable rate mortgage is linked to a specific index. The margin is the lender's cost of doing business plus the profit they will make on the loan. The margin is added to the index rate to determine your total interest rate. The adjustment period is the period between potential interest rate adjustments. For example, you may see a loan described as a 5-1. The first figure (5) refers to the initial period of the loan, or how long the rate will stay the same. The second number (1) is the adjustment period. This is how often adjustments can be made to the rate after the initial period has ended. In this case, one year or annually. An adjustable rate mortgage might be a good choice if you are looking to qualify for a larger loan. The rate of an ARM is typically lower than a fixed rate mortgage. Remember, when the adjustment period is up the rate and payment can increase. Another reason to consider an ARM is if you are planning to sell the home within a few years. If this is the case you may end up selling before the adjustment period is up. Federal law provides that all lenders provide a federal Truth in Lending Disclosure Statement before consummating a consumer credit transaction. This will be given to you in writing. It is designed to help you compare and select a mortgage.





Posted by Deborah Byrne on 4/25/2016

Owning a house gives you a sense of fulfillment, and helps boost your self-esteem. It is a long term investment and should not be taken lightly. The present state of your finances is possibly the single most important factor when contemplating home ownership.  Before you start shopping for a house, take into consideration the following factors. Have you set aside enough money for the down payment?  The amount you need varies based on the price of the home and percentage required by your lender.  Zero down mortgages are possible, however the interest rate is typically very high increasing the amount paid out over the life of the loan. Private Mortgage Insurance (PMI) is typically required for this type of loan, again increasing your monthly payment. How high of a mortgage payment can you afford to make ?  If you opt for a fixed rate, your payment would remain consistent throughout the period of the loan. This type of loan is favorable for future financial planning.   Adjustable rate mortgages make it a bit trickier to predict your monthly payments based on the fluctuating interest rate throughout the duration of the loan.  This type of loan could be risky if interest rates rise and your payments increase significantly higher than anticipated. The security of your financial future is paramount when acquiring a mortgage loan.  You would not want to enter into this long term investment without stable employment and a definite career path.  Most banks and lending companies require a borrower to have been with the same employer for at least 2 years before considering a loan of this nature. Secure financial footing is key when applying for a mortgage loan. When determining your readiness to purchase a home, your credit score is as important as your finances. If you have a low credit score, you’ll attract a higher lending rate. This implies an increase in the amount paid back to the lender over the duration of the loan. An excellent credit score of 720 or above attracts the best interest rates and repayment terms. If your credit score is too low, improve it by:

  • Becoming Debt Free
  • Removing all inaccuracies from your credit report
  • Making all monthly payments in a timely manner -- eliminating late payments
  • Avoid applying for new loans and opening credit accounts
The commitment of home ownership comes with financial responsibilities beyond the monthly mortgage payment. Be certain to consider additional expenses such as property tax, utility bills, and home maintenance costs when calculating your budget.  Carefully weigh out all the factors to ensure you will be comfortable with your monthly payments allowing you to enjoy your new home for years to come.







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