Archive for September, 2011

691 Massachusetts Avenue

Tuesday, September 27th, 2011

This is just to inform you of a gorgeous new development in the South End at 691 Mass Ave! The finishes are stylish and very high end and the prices are very affordable! There are 1, 1+ and 2 bedroom homes available. Indoor and outdoor parking is also available for purchase. More details can be found at 691MassAve.com. You can also read up on Boston Home’s article about it here.

Saving for a Down Payment

Friday, September 9th, 2011

Piggy backing on the most recent post, I would like to discuss with you the first step to buying, when you do decide that the time is right for you. If you are like most people, you won’t have 10-20% of the price of a home sitting in cash in your savings account, especially when you are a first time home buyer without any substantial equity. So, how do you do it? Of course with an FHA loan, it is possible to only put 3.5% down, but that means that your monthly mortgage payment is substantially higher. In an ideal situation, you have enough saved in order to be able to put 20% down, and then your mortgage payments with a 30-year fixed loan are manageable.

Sounds great, right? It’s certainly easier said than done. So, how do you do it? ZillowBlog has some clear steps and here they are:

1. Figure out how much you need to save

Many websites have calculators that will allow you to figure out how to achieve your ideal monthly payments, how much you need down, what the interest rate would be, and how the money would be broken down. Using a calculator like that, or talking to a finance agent who can walk you through your situation.

2. Seek Expert Advice

Especially if you have a poor credit history, or have had problems in the past with credit or spending problems, seeking the advice of a financial planner is highly recommended.

3. Set up a separate savings account

It’s far too easy, with the advent of online banking, to transfer funds from a savings account to a checking account when they are linked. Setting up a separate savings account that you can transfer money into, but not out of easily, you won’t spend it as much.

4. Set up an allotment or automatic transfer from one account to the other monthly

When the amount going into your account, even when you spend down to zero, is less then you will spend less. When the money is out of sight, it is out of mind.

(Source)

Good luck savers!

Thinking of Buying?

Tuesday, September 6th, 2011

September 1st is a BIG day in the Boston rental market. Everyone is moving out and in and the streets are crowded with moving trucks. If you resigned you lease and you are going to be paying rent on the same unit for another year, you might be thinking to yourself right now that maybe it’s time to actually buy something. What is the advantage to owning your own home? Of course there are many of them, but some to bare in mind from an article on Realty Times are:

1. It might be more upfront, but it will save you money. Long-term home ownership can save you a lot of money in the scope of your life.

2. Budgeting. What we have seen a lot of this season in Boston, is rent increase from year to year. If you want to be sure that you are spending the same amount on housing for an extended period of time, one good way is a fixed-rate mortgage!

3. It’s yours! The security and freedom that associated with owing your own property means that your get to paint, remodel, improve and reap the benefits yourself for as long as you would like. Additionally, “Most homeowners are in neighborhoods with other homeowners, meaning more time to build relationships and friendships. Recent studies have also shown that homeowners rank themselves as healthier than their renter counterparts.”

4. “Tax Breaks: They’re not on the chopping block just yet. Many homeowners are still able to take the mortgage interest deduction (MID) each year, along with great rebates and credits associated with upgrades made to your home.

5. Equity: When you pay a landlord, it’s money down the drain. When you pay on a mortgage, you are paying towards owning a piece of something. You may still owe $100,000, but perhaps the home is worth $200,000. This means you have $100,000 worth of equity you’ve built up over time.” (Source).

Buying homes is more doable now than it has been in recent times. Prices and interest rates are low, and sellers are desperate to sell. If you are thinking about it, you can use this interactive calculator to see if it makes sense for you.