Lauren Brooks | Newton Real Estate, Needham Real Estate, Brookline Real Estate


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Finding financing for a home could be as simple as applying for a conforming FHA loan or it could be as difficult as having to locate a portfolio loan or even a combo loan. What you need depends on the real estate you are buying. Most people buying a primary residence get a conforming loan, whether it is conventional or government-backed.

Conforming vs. Non-Conforming

The first thing to determine is whether your loan is going to be conforming or not. A conforming loan for a single-family unit must be under $510,400 in most areas and $765,600 in other areas. The Federal Housing Finance Agency sets the rates. If you have to borrow more, you will need a jumbo loan or a piggyback loan. A common piggyback loan is where you pay 15 percent of the price, then take out two mortgages: one for 80 percent of the purchase price, then a second mortgage for 5 percent of the purchase price. You can work the percentages however you need them based on the purchase price. The piggyback loan keeps you from going into jumbo loan territory and possibly paying higher interest rates.

Conforming Loans

Conforming loans are conventional or government-backed loans. A conventional loan usually has a higher interest rate because it’s riskier to the lender. A government-backed loan, such as a VA or FHA loan is guaranteed by the federal government, thus it is less risky to lenders. Because of the lower risk, you get a better interest rate as long as your credit is good.

Adjustable vs. Fixed-Rate Loans

If interest rates are low and are projected to stay low, you can get an adjustable-rate loan to save a bit on the interest rate. As interest rates change, so does your mortgage payment. Adjustable rates are based on a certain index. For example, if your base interest rate is 4 percent, which means your interest rate will never go lower than that, and the Libor London rate is 1 percent, your rate is 5 percent. If the Libor London increases by a half percentage point, so will your loan. However, if it decreases by a point, your interest rate also lowers by a point.

Adjustable-rate loans are risky for the buyer because you don’t know if the rate will significantly increase over the life of the loan. If you plan on refinancing or selling the home after a few years, an adjustable-rate might be beneficial.

A fixed-rate loan means that your interest rate does not change over the life of the loan.

Portfolio Loans

You might have a hard time finding a loan because you are self-employed, your credit isn’t the best, or you are buying a property that doesn’t conform to most lenders’ standards. A lender doesn’t sell the loan on the secondary market, but instead holds it in the bank’s portfolio. These loans are riskier for the lender and will often have a higher interest rate.



50 Rich Valley Rd, Wayland, MA 01778

Single-Family

$975,000
Price

10
Rooms
4
Beds
3
Baths
Welcome home to this bright 4 bedroom 3 full bath split level on cul de sac complete with gracious yard and direct access to the Wayland rail trail. All 4 bedrooms are good sized. The spacious master with ensuite bathroom has a jacuzzi and separate shower. Plenty of living space with skylights and tons of light from the many windows and sliders. Lower level has beautiful natural light and stays plenty warm by radiant floor heat. Entertainers will enjoy the large deck and additional lower deck with hot tub. Oversized garage and loads of storage complete the full package. Upgrades include: Roof 2015 and all 5 skylights replaced, Select windows replaced 2015, Central air conditioning 2016, bathroom gut remodel 2018, lower level deck and hot tub 2019 and generator hook up 2019 (generator included). Offers if any due Monday at 2pm.
Open House
Saturday
May 01 at 11:00 AM to 1:00 PM
Don't miss this one...Beautiful 4 bed 3 full bath with tons of light, space and charm. Perfect place to call home!
More Open Houses
Cannot make the Open Houses?
Location: 50 Rich Valley Rd, Wayland, MA 01778    Get Directions

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50 Rich Valley Rd, Wayland, MA 01778

Single-Family

$975,000
Price

10
Rooms
4
Beds
3
Baths
Welcome home to this bright 4 bedroom 3 full bath split level on cul de sac complete with gracious yard and direct access to the Wayland rail trail. All 4 bedrooms are good sized. The spacious master with ensuite bathroom has a jacuzzi and separate shower. Plenty of living space with skylights and tons of light from the many windows and sliders. Lower level has beautiful natural light and stays plenty warm by radiant floor heat. Entertainers will enjoy the large deck and additional lower deck with hot tub. Oversized garage and loads of storage complete the full package. Upgrades include: Roof 2015 and all 5 skylights replaced, Select windows replaced 2015, Central air conditioning 2016, bathroom gut remodel 2018, lower level deck and hot tub 2019 and generator hook up 2019 (generator included). Offers if any due Monday at 2pm.
Open House
Saturday
May 01 at 11:00 AM to 1:00 PM
Don't miss this one...Beautiful 4 bed 3 full bath with tons of light, space and charm. Perfect place to call home!
More Open Houses
Cannot make the Open Houses?
Location: 50 Rich Valley Rd, Wayland, MA 01778    Get Directions

Similar Properties




50 Rich Valley Rd, Wayland, MA 01778

Single-Family

$975,000
Price

10
Rooms
4
Beds
3
Baths
Welcome home to this bright 4 bedroom 3 full bath split level on cul de sac complete with gracious yard and direct access to the Wayland rail trail. All 4 bedrooms are good sized. The spacious master with ensuite bathroom has a jacuzzi and separate shower. Plenty of living space with skylights and tons of light from the many windows and sliders. Lower level has beautiful natural light and stays plenty warm by radiant floor heat. Entertainers will enjoy the large deck and additional lower deck with hot tub. Oversized garage and loads of storage complete the full package. Upgrades include: Roof 2015 and all 5 skylights replaced, Select windows replaced 2015, Central air conditioning 2016, bathroom gut remodel 2018, lower level deck and hot tub 2019 and generator hook up 2019 (generator included). Offers if any due Monday at 2pm.
Open House
Saturday
May 01 at 11:00 AM to 1:00 PM
Don't miss this one...Beautiful 4 bed 3 full bath with tons of light, space and charm. Perfect place to call home!
More Open Houses
Cannot make the Open Houses?
Location: 50 Rich Valley Rd, Wayland, MA 01778    Get Directions

Similar Properties




170 Tremont St, Boston, MA 02111

Midtown

Condo

$2,500,000
Price

6
Rooms
3
Beds
3
Baths
Stunning panoramic city views of the Boston Common and beyond from this elegant 3 bedroom 3 bathroom home on the 9th floor. Enjoy unobstructed sunsets, fireworks and magnificent views from every window. Custom designer kitchen complete with Subzero fridge and Miele stainless appliances. Engineered to maximize every inch of space impeccably for both beauty and function. Choice of ensuite bedrooms. Master includes custom walk in closet and luxurious double vanity. 2nd bedroom suite/den has a recently upgraded balcony for private outdoor access. Additional features include: 2 Deeded garage parking spots, Wired for surround sound throughout, in unit washer and dryer, newer AC, and newer balcony doors. Residents enjoy 24 hour concierge service complete with doorman and valet garage parking. The Parkside Residence is a gorgeous building complete with access to 2 roof decks and exercise room. Steps to the theatre district, Equinox spa with pool and fabulous restaurants/shopping.
Open House
Saturday
May 01 at 2:30 PM to 4:00 PM
Open house by appointment please call / text Lauren 617-416-2609 to schedule. Thank you!
Cannot make the Open Houses?
Location: 170 Tremont St, Boston, MA 02111    Get Directions

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