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What Are The Top Signs You Need To Refinance?

What Are The Top Signs You Need To Refinance?You might have heard that more people are refinancing these days. During the refinancing process, you essentially take your current home loan and replace it with a different one. You can reduce your mortgage payments, shorten the life of your loan, or withdraw cash you can use for other purposes. What are a few of the signs that indicate you should consider refinancing? 

You Can Secure A Lower Interest Rate

If you think you can secure a lower interest rate on your mortgage, it might be time to refinance. There are a number of reasons why you might be able to get a lower interest rate on your home loan. Your credit score may have improved, you may have paid off some of your other loans (which will improve your debt to income ratio), or the average home loan interest rate may have dropped. If you can get a lower interest rate on your home loan, you may want to refinance and save money. 

Your Income Has Increased Significantly

If your income has gone up significantly since you purchased your house, you might want to pay off your house more quickly. Therefore, you might want to refinance and use larger payments to pay down your home loan more quickly. The bank might also give you better terms if you are willing to make larger payments.

You Are Concerned About Your ARM Mortgage

If you have an adjustable-rate mortgage (ARM), you might be concerned that the interest rate on that mortgage could go up. Therefore, you can refinance your home and convert your ARM mortgage to a fixed-rate mortgage. If you can lock in an interest rate with a fixed-rate mortgage, you do not have to worry about your interest rate increasing in the future. This could save you thousands of dollars over the life of the loan. 

Consider Refinancing Your Home

These are just a few of the signs that you should consider refinancing your mortgage. Everyone is in a slightly different financial situation, so you should work with a professional who can figure out if this is right for you. That way, you can secure the best possible terms for your home loan. 

3 Reasons You Might Decide to Retire to a Tiny Home – and Why You’ll Love It!

3 Reasons You Might Decide to Retire to a Tiny Home - and Why You'll Love ItMany people romanticize the idea of paying off their home mortgage early so they can enjoy their home in retirement, but when it comes to the later years of life, a big house can actually be too much to handle. If you’ve started to consider a smaller home and are wondering why it might be a good decision for you and yours, here are a few things you may want to consider.

It’s Much Easier To Maintain

It is often the idea of the palatial estate with a pool that homeowners get excited about, but when it comes to reality, the larger the home, the harder it is going to be to take care of and maintain. If you don’t have a maid or a butler, a smaller home will enable you to spend a lot more of your free time doing things that you love instead of being bound to a house that is full of repairs and maintenance that needs to be completed.

Save On The Big Home Bills

One of the worries associated with getting older is having the ability to maintain your lifestyle in old age, and a smaller home can actually alleviate many of the high costs that go along with having an oversized home. A smaller home will not only minimize your insurance and taxes, it can also positively impact the amount you pay each month for heating and electricity, so you’ll notice the savings right off the bat.

The Freedom Of A Downsized Lifestyle

One of the best things about downsizing to a smaller home is the huge sense of responsibility that can be left in the dust. Instead of being held back by all of the stuff required to fill a big house, a small home means there is less to worry about. This may mean you’ll have the option to go on longer vacations or can even relocate to a hot climate for the summer months, and you’ll only need someone to come by and water the plants every once in a while!

There are plenty of people that decide to downsize later in life since it can actually be a great way to save money and have a lot more freedom. If you’re considering your smaller home options and are curious about what’s available on the market, you may want to contact one of our real estate professionals for more information.

Smart Ways To Create Equity Within Your Home

Smart Ways To Use The Equity In Your HomeHome equity is the difference between what your home can sell for and what you owe on it. Generally, the longer you own your home, the more equity you build.

This is money you can use before you sell your home through a home equity loan. Just keep in mind that a home equity loan is secured with your home. If you can’t make the payments, you can lose your home.

Use Your Home Equity In Smart Ways:

  1. Remodel Your Home – If you’ve wanted to add on a family room or modernize your kitchen, consider using your home’s equity to fund the project. Home improvements usually increase your home’s marketability and value.
  2. Make Needed Major Repairs – Your home’s equity can be a funding source for major repairs like plumbing problems and re-roofs. Once again, this is an improvement for your home that will help keep its value up.
  3. Buy Another Property – Real estate is still a safe investment. You can use your home equity to buy a second property when home values are down. When the market recovers, you can sell the investment property for a profit. This also works if you have to move out of town and are still trying to sell your home. If you can afford the payments, use your home’s equity to purchase your new home until the current one sells.
  4. Pay For Unexpected Medical Expenses Or Job Loss – You never know when a medical emergency or job loss will leave you in debt. A home equity loan can give you the money you need to get through this difficult time.

It’s easy to build equity in your home when you find the right deal. Let me help you find your perfect home and negotiate a great price and terms for you. Contact your mortgage professional today.

Working from Home? Learn How to Create the Perfect Office with Any Spare Room

Working from Home? Learn How to Create the Perfect Office with Any Spare Room

With the increasing flexibility of the modern workplace, there are many more businesses offering their employees the opportunity to work from home. While this shift in the job market has created many new options for freelance workers, it can also be a good reason to turn a spare room into a spanking new office. If you’re working from home, here are some tips for a stylish transition.

Prime It With Paint

Outside of lighting, the color and upkeep of the walls is going to have a huge impact on the way your spare office will look. Before even considering placing furniture or putting up pictures, decide on the perfect shade of paint that will keep you inspired and will go with the rest of your house. This will easily brighten the room, and prep it for its future purpose.

Start With Good Lighting

There are few things that will change the ambiance of a room like light, so make sure the room your changing up has a great set of windows or the kind of fixture that will provide effective illumination. Since many people have a hard time focusing in the orange or bright light that can come in certain work settings, a well-lit place may make all of your work seem a little bit easier.

Decide On A Desk

Many people put any old clunker of a desk in their spare office since it will do the trick, but if you’re making the decision to renovate your spare room for work, it will be worth it to choose a desk you’ll want to work at. Before going desk shopping, measure out the length and width of your spare room so you can make a desk purchase that will work for your new office.

What’s On The Wall?

Beyond the supply of pens, paper and a computer, it might seem like the extras of your office situation can be kept out of the equation, but a few pictures can add a lot. While you may want to add some photos of family and friends, it might also be helpful for your work-time diligence to put up a picture that adds a shot of color and will inspire your best work.

There are a lot of great options for a spare room, but if you work from home an office can be the ideal renovation. If you happen to be sprucing up your spare room to sell your home, you may want to contact one of your local real estate agents for more information.

Settling Into Your New City After a Move

Image via UnsplashBy Natalie Jones

Packing up and moving to a new city is a grand adventure. A new town means new things to do, new people to meet, and new sights to see. However, settling into a new city is also a little scary. When everything around you is unfamiliar, it can be tough to find your footing. You’re not alone navigating this big change in your life. Countless people have packed up, moved cities, and thrived doing it. These are some of the best tips for making your new city feel like home.

Updating Your Car Insurance

If you’re moving to a new state, you’ll need to switch your car insurance as soon as possible. Every state is different in terms of laws and regulations, so it’s important to research what they are in your state before shopping for insurance. Then, you can start searching for the plans that are available in your zip code, which is an important factor in determining your plan’s rates. From there, you can decide which coverage you really need and how to save the most money by obtaining multiple quotes. Getting your car insurance taken care of early will give you peace of mind as you settle into your new city.

Finding Work

If you moved before lining up a job, you have a challenge ahead of you. On one hand, you need to generate income quickly to gain financial stability in your new home. On the other, accepting the first full-time job that comes along could threaten your ability to find work that matches your interests and qualifications.

Consider entering the gig economy to make ends meet while you look for work in your field. Gig economy jobs have a lot of flexibility, which means you’ll still have time to send out resumes and attend interviews for full-time jobs. Dog sitting is one great option when you’re new to town, because you effectively get paid to meet your neighbors! Even if you’re a stay-at-home parent looking for side work, a side gig dog sitting is a great way to get to know your community.

Don’t Forget Fido

Speaking of dogs, there are steps you should take to help your best four-legged friend adapt to your new city as well. First, be sure to keep your pet’s belongings and set them up in your new space. A familiar bed and favorite toy can go a long way in making Fido less anxious about the move. Then, before you head out to explore nearby dog parks, make sure he’s caught up on his vaccines and that he knows basic commands like sit and stay.

Learning the Lay of the Land

You’re going to get lost a lot during the first weeks in a new place. However, that doesn’t mean you should stay in! Accept the adventure and spend time exploring the streets of your new neighborhood. Go on walks, try local restaurants, coffee shops, bars, and supermarkets to find your favorites, and drop into community events that pique your interest. You’ll not only learn your way around, but you’ll also get a feel for the local flavor.

Settling Into Your Home

If you’re not comfortable in your house, it will be hard to feel comfortable in your community. In addition to logistical tasks like cleaning, organizing bills, and updating your home’s safety features, you’ll want to decorate so your new place feels warm and familiar. However, that doesn’t mean replicating the interior design of your last home. To adapt your décor to the new house, factor in the home’s color scheme, floor plan, and traffic flow.

Before making any design changes to the exterior of your home, follow Trulia’s advice and check with your homeowner association. An HOA can be your friend or foe, and the last thing you want is to start off on the wrong foot.

Making Friends

Finding friends is one of the toughest parts of moving to a new city. When everyone around you has established social networks, it’s hard to break in and form meaningful relationships. However, that doesn’t mean it’s impossible! As Realtor.com points out, the best way to meet new people is by joining groups that align with your interests. Whether that’s a parents’ group, a hobby-focused meetup, a faith community, or a community garden, you’ll meet like-minded people who, in time, could become lifelong friends.

Don’t forget about the kids! Helping your children make friends goes a long way to easing their apprehension about moving. Encourage kids to spend time playing outside so they can meet other neighborhood kids. When you talk to neighbors, ask them if they know of families with children the same age as your own. Enrolling kids in extracurricular activities is another way to help them make fast friends who enjoy the same hobbies.

Finally, be patient with yourself! It takes time for a new city to truly feel like home. You might feel a little out of place for the first few months or even the first year. As long as you’re getting out, meeting people, and engaging with your community, you’re heading in the right direction.

When Should You Refinance a Mortgage Loan?

When Should You Refinance a Mortgage Loan?

Rates . Home Value . Credit
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By Karla Lopez

Refinancing a mortgage means you are replacing your existing mortgage or mortgages with a new one that has different, and hopefully, better terms. This new mortgage will pay off your old mortgage loan, and then you become responsible for paying it off. But the question is, when exactly should you do it?

The straightforward answer is whenever you can save money on your current mortgage through refinancing; it’s worth exploring all year-round. Although the old rule of thumb says refinancing is useful if you can get at least one or two percent reduction on the interest rate you’re paying. But, it’s no longer the case now.

Here are the situations when refinancing makes sense.

Mortgage Rates are Going Down

A mortgage is subject to fluctuation because it can be affected by a variety of factors such as market movements, Debt statistics, inflation, U.S. Federal Reserve monetary policy, the economy, and global factors.

Once the mortgage rates nosedive, you’ll be able to save by securing an interest rate that’s lower than what your current loan has. This maneuver is called rate-and-term refinancing wherein you refinance your mortgage for one that usually has the same remaining term but with a lower interest rate.

Again, the traditional rule has it that it’s best to refinance if your rate is one or two percent lower than your existing rate. But in reality, every borrower has different needs and financial goals. A one percent interest rate less may help you save on a $2 million mortgage. However, it’s not going to do much for a $200,000 mortgage.

There are other costs that come with refinancing that are crucial whenever you decide to go its route.

Another situation wherein refinancing can be a good option is when interest rates are anticipated to fall continuously, and you have a fixed-rate mortgage. In such a case, you might consider turning to ARM (Adjustable-Rate Mortgage.)

With an ARM, the interest rate will change over time, typically in relation to an index, which makes it possible for your payments to go up and down. It will make more sense to convert to an ARM if you plan to move in a few years. It owes to the fact that you’re going to forgo the safety of a fixed-rate loan.

Take note also that your ARM will go up too if interest rates increase. Additionally, the initial rate you acquire with an ARM will be effective for a limited period which could range from one month up to five years or more.

The Value of Your Home Increases

Refinancing could be your lifeline if your home’s value has gone up, particularly if you’re still paying off other high-interest debts.

When you refinance, you get to take a new loan that’s bigger than your previous one. You will use this new mortgage to settle the first loan, then you’ll get the difference in cash. This system makes it an excellent alternative to a home equity loan.

For example, you took a $160,000 mortgage five years ago for a house worth $200,000 house. You also put a $40,000 down payment. After a series of regular payments, your debt on a mortgage has now reduced to $100,000. When the property market skyrockets, so do your home whose value now amounts to $250,000.

Since your home is more valuable, you can now refinance for more than $100,000, which is the current balance of your mortgage. If you can refinance for, say, $150,000, you can take home the $50,000 in cash and use it to pay your other debts or other expenditures like home improvement and so on.

It’s vital in every refinancing option to make sure that you will use the money wisely and not get into unsustainable debt. Take heed that it’s part of a loan, so need to repay it and the rest of your mortgage loan.

Further, be sure that you will not end up paying more in mortgage interest than the interest you will pay on any debt.

Your Credit Has Improved

Your credit score is an essential factor in calculating your mortgage rate. Rules have it that you’ll get a lower interest rate if you have a good to excellent credit score.

For instance, if your FICO credit score lies within 660 up to 679 range and you have a 30-year fixed-rate mortgage of $150,000, you’ll pay 3.998% APR as per the myFICO Loan Savings Calculator (interest rate as of August 2019).

With this interest rate, you’ll pay $716 per month and $107,742 for the total interest to be paid for 30 years.

Now if your credit score is playing somewhere between 700 to 759 range, your estimated monthly payment will drop to $683. You could save $12,021 in interest over the life of the loan.

You Have an Adjustable-Rate Mortgage and Mortgage Rates Rise

If you currently have an ARM and If mortgage rates are increasing, you might want to convert to a fixed-rate mortgage or better yet, consider refinancing.

With an ARM, your rate will increase more than what you will pay with a fixed-rate mortgage. If you’re conscious about possible interest rate hikes in the future, converting to a fixed-rate mortgage or turning to refinance can give you some peace of mind.

Takeaway

Refinancing a mortgage will depend on several factors such as the current interest rates, the length of time you plan to live in your home, how long it will take for you to recuperate your closing costs, to name a few. Further, refinancing can be a wise decision if you do it when the situations mentioned above are at your disposal.

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