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Financing in Cambridge : Real Estate Advice

  • All157
  • Local Info7
  • Home Buying43
  • Home Selling9
  • Market Conditions6

Activity 7
Tue Apr 14, 2015
James Daniel answered:
Hi Meghan,

That's a great question. There are some other different variables to consider in order to determine what is the best course of action for you.

First, if you put down 20% now will that empty your nest egg? The reason I ask is that suppose once you move into your new home something comes up that needs repairing. Will you have the money to get the work done? If not than it may be better to go with PMI. It might add $100 to your monthly payment but that way you won't be strapped for cash if something happens. Something to be aware of is that banks are supposed to remove PMI automatically once you have reached 22% equity in your home. You will have to pay close attention to that because banks rarely do this without some pushing by the owner,

The other thing to consider is that prices in the in Cambridge are going up. If you wait you will most likely be paying more for a home as well as higher interest rates. If you buy now and put 15% down you can always make extra payments to the principal of your loan without penalty. This way you will have money in case of an emergency and perhaps a little more peace of mind!

Hope this helps.

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Mon Mar 25, 2013
Thomas von Zabern answered:
Hi Mary

Most banks will ask for 5% to 10% down, but first time homebuyer programs exist through Mass Housing that allow you to buy with as little as 3% down. I'd be glad to discuss the details with you if you wish.


Tom von Zabern
RE/MAX Destiny
Cambridge, MA
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Fri Dec 28, 2012
Katie Malin answered:
Hi Yogiloan--
If you need a Portfolio Loan, (one which the bank does not sell to Fannie Mae or Freddie Mac), I may suggest Washington Trust in Burlington-- Matt Chabot has been wonderful helping my clients with these loans.

Burlington Home Loan Center
25 Mall Road, Suite 408
Burlington, MA 01803
Local 781-229-2004

If I can help at all, I live and work in Cambridge! Katie Malin 781 799 5981,
Good luck!
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Tue May 29, 2012
Heather O'Sullivan, Broker answered:
Hi Ma2fam,

Often there are things that change during the lending process (especially with investment properties) If you can afford the additional money down - then think of it this way, this just means you owe less money on the property and you actually own more of it.
If you are concerned that this is a bait and switch (I'm not sure that this is the correct term) I would ask to have the lender let you know, in writing, why the increase is required.
This could mean that the investors for the loan are not sure of the property and it's holding value.
It could mean that something changed on your credit/debt ratio and the lender would feel more secure with a little more money down. If after they answer your questions you still feel that things aren't right i would advice asking your realtor to speak with them (we often speak a different language and can help translate mortgage terms) or have your real estate attorney look things over. You shouldn't be penalized for delaying closing for a couple of days to make sure that you are still in good lending hands.
the up side is that having to bring more money for the down payment should also mean that you will have a lower monthly payment.
I will say that most likely this is not a con on the part of the lender and this is not something that happens all of the time, but it does happen.
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Wed May 11, 2011
Sarah Klamm answered:
Most re-finance deals require new title work. If you owe back taxes, you can assume that amount will be held out of your proceeds.
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Sat Dec 12, 2009
Kevin Santos answered:
This is a growing problem that I'm running into more and more as a Real Estate Agent. I would suggest contacting Michael Chaves at Wells Fargo Home Loans at 978-568-0039. I have found him to be very helpful over the past few years and if he is unable to assist you he may at least be able to point you in the right direction. I hope this helps.
K. L. Santos
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Tue Jan 29, 2008
Brecht Palombo answered:
Depends on the market. In a soft rental market seller writes the check, in landlord's market you write the check. I've written brokerage fee checks myself when I used to rent (Brighton, Somerville). Fees are ALWAYS negotiable. What I'd recommend if you have not already written the check is to say you want the place but the seller can pay the fee, if the agent objects and you feel you are in jeopardy of losing the place and you want it, tell him you will pay half - again it's all a negotiation, but to answer your questions, yes, it is standard practice. ... more
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