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When shopping for a mortgage loan in Massachusetts, there are several things you will need to know to find the mortgage loan that is right for you. It is very important to consider the type of loan you need to meet your current financial situation and consider your future needs.

There are various loans available in Massachusetts, from 10 or 30 year fixed or adjustable rate mortgages (ARM) to home equity loans of various lengths, home equity lines of credit (HELOC). In addition, there are various fees and interest rates, depending on the lender, type of loan and your credit score. Some of the mortgage loans available are:

Fixed Rate Mortgage

This is your parent's mortgage loan. Prior to the internet, when most people stayed at the same job until retirement and families weren't as mobile as today; this loan was the epitome of stability. In this loan, the interest rates and payments stay the same for the term of the loan.

The 5/5 & 5/1 Adjustable Rate Mortgage

This mortgage type offers a stable payment and interest rate for the first five years. In the sixth year the interest rates, and therefore the payments, are adjusted every five years for the 5/5 arm and every year for the 5/1 arm.

Mortgage Refinancing in Massachusetts

In some instances, refinancing your current mortgage loan can help you lower your mortgage payment. Borrowers can borrow against the equity built up in their home at a lower cost than they can from other sources. Like most mortgage interest, another benefit to mortgage refinancing is that if you pay off credit cards, the interest you pay will now be tax deductible.

Based on the most recent data, mortgage rates for thirty year fixed mortgages are at historic lows, and the amount of points charged varies per lender. The rates and points on each mortgage loan will vary. As with any major consideration, it is imperative to consider all of your options and utilize all of the resources available to make an educated financial decision. Loan.com is an excellent resource when your goal is to save money and minimize costly errors that could affect you now and in the future. With an assortment of free loan calculators, an in-depth explanation of the Borrower's Bill of Rights and even a Loan Analyzer tool, Loan.com is the first and last stop for the borrower that wants to be informed and up-to-date before choosing a loan. The Rate Directory on Loan.com allow consumers to search for mortgage rates while at the same time flagging those mortgage lenders that abide by the Borrower's Bill of Rights and are in good standing with the Better Business Bureau. You should also use RealEstateABC's ABC Values™ tool to check what the current home values are in Massachusetts.

Some final guidelines are:

  1. If you are refinancing, know your current interest rate so you can compare with any new loan interest rates offered.
  2. Shop for the best rates by visiting lenders and getting information on fees, points and other charges - in writing - so you can take them home and compare them. The internet and newspapers are also resources, however, getting to know a few local loan officers face to face can be extremely helpful.
  3. Do the math and make sure that if you get a lower interest rate than your current rate, you are actually saving money and not losing it due to hidden fees, points or other charges.
  4. Look into tax advantages and disadvantages and make sure you know about any pre-payment penalties on your current loan - these might cost you more than you will save on the new loan.
  5. If you plan to move within 2 to 3 years figure out if you will save enough to warrant a refinance loan.

For the most up to date loan rate, the U.S. Federal Reserve, Freddie Mac, and the Interest Rate Outlook from RealEstateABC.com are exceptional resources.

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