Shrewsbury MA homes for sale - financing tips

Finance Information

How much home can you afford? Use our finance center to learn about your loan options below. There are several loan programs available, and depending on your credit history, there is bound to be one that is perfect for you. Here are a few examples of the most popular programs offered today:

Fixed-Rate Loans on Shrewsbury real estate

The fixed-rate mortgage is the most popular mortgage program in the Shrewsbury area today. Fixed-rate loans offer the borrow a fixed interest rate for the life of the loan, typically 15 to 30 years.  Shrewsbury home purchasers have peace of mind knowing that their monthly payment will not change over time. Conventional fixed-rate mortgages have underwriting requirements established by Freddie Mac and Fannie Mae, as well as other Shrewsbury lenders, and require certain down-payment and debt-to-equity ratios to qualify. Fixed-rate loans are especially attractive to buyers who plan to stay in their home for more than a few years.

Adjustable Rate Loans on Shrewsbury MA homes for sale

With an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, and payments up or down accordingly. These are less common in Shrewsbury Massachusetts than in other areas of the nation, likely do to the affordability of Shrewsbury properties.  Rates are tied to an index that reflects the cost of money at any given point in time. Generally speaking, lenders charge a lower initial interest rate for the ARM than for the fixed rate mortgage. If you are expecting interest rates to decrease in the future, or if you are trying to maximize your purchase power today knowing your income will rise in the future, then this loan may be right for you. Adjustable rate loans are attractive for buyers who expect to be in the home for a short period of time.

FHA and VA Loans

The Federal Housing Administration (FHA), offers loans for low-to-moderate-income home buyers, and have become more popular in Shrewsbury Massachusetts over recent years as the loan amount for Shrewsbury property has increased. FHA loans have lower down payments, and have relatively easier requirements than conventional fixed-rate mortgages. FHA mortgages have no income restrictions and even those with lower credit scores may be considered. Past bankruptcy does not necessarily disqualify borrowers from using this program!

In addition, the Department of Veterans Affairs (VA) offers a zero-down mortgage program. To take advantage of this program, borrowers need to be among those listed as veterans and service personnel in the U.S. military. One of the biggest benefits of this program is that it eliminates the need for private mortgage insurance!

Local Homebuying Program

There are often many state and local programs available for Shrewsbury Massachusetts residents. These programs offer down-payment assistance and programs for local home ownership. Learn more about these local programs, recommended lenders, and other finance options by contacting us today!

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