Rossi Real Estate Services LLC, Rossi Real Estate Services LLCPhone: (518) 598-7711
Email: [email protected]
Email: [email protected]
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While your credit score will play a role what your mortgage interest rate will be, there are also various types of loans that can increase or lower your monthly mortgage payment. In general, there are two specific loan types, adjustable rate loans, known as an ARM and fixed rate. However, within these two categories, there are various options you should be aware of before shopping for a mortgage.
The fixed rate loan is exactly what it sounds like. This means your interest rate will remain stable throughout the life of your loan. Keep in mind, this does not mean your payment will remain the same — if your property taxes or insurance premiums increase and are part of your mortgage payment, the monthly payment will increase.
There are four categories of fixed rate loans that are available to borrowers. The shorter the term of the loan, the lower the interest rate. However, the shorter the term of the loan, the higher your monthly payment will be. The four categories are 10 years, 15 years, 20 years, and the most popular, the 30-year fixed rate mortgage.
Fixed rate mortgages can be as short as 10 years and as long as 30 years. Assuming you were able to secure a $100,000 30-year mortgage at a fixed rate of 3.92 percent, your total mortgage payments would be $172,000 over the life of the loan. If you were to secure a 20 year at a fixed rate of 3.5 percent, you would pay approximately $139,190 over the life of the loan. As you can see, a small decrease in rate, and decrease in time can make a significant difference.
If you are considering an adjustable rate mortgage, your lender may offer you different options. The most common types of ARMs are 3/1 ARMs, 7/1 ARMs and 10/1 ARMs. What this means is the first number (3, 7 and 10) means your rate will be fixed over that number of years. The second number (1) means your rate will change every year after the fixed rate period ends.
ARMs typically have what is known as a “cap” which means the amount your loan can increase cannot increase more than a specific amount. The caps may be defined as how much the monthly payment can increase over the life of your loan, over how much the rate can rise over the life of your loan, or how much the rate can increase from year to year. Before agreeing to accept an ARM, make sure you have a full understanding of the terms. It is also worth noting that many ARMs also have prepayment penalties associated with them. This means you may pay a fee to the lender if you sell your home, or you decide to refinance your mortgage.
Deciding whether a fixed rate or an adjustable rate mortgage is the right choice for you can be challenging. Some borrowers may opt for an adjustable rate, so they can meet other criteria such as debt to income ratios. Your real estate agent, and your mortgage lender can help you determine which loan is right for your needs based on the value of your home, how long you plan to own the home, and your current financial status.
Rossi Real Estate Services LLC is a boutique real estate brokerage firm that provides close personal attention to buyers and sellers in the Capital Region and surrounding areas. “Typical” is not a word that clients use to describe Rossi Real Estate's approach to home buying and selling. Building upon years of experience, Rossi Real Estate employs creative marketing approaches, combined with a vast network, to quickly sell homes. By creating home floor plans, professional photography, and online marketing videos, Rossi Real Estate is able to depict home layouts and professional marketing to potential buyers before stepping foot in your home; this saves the seller valuable time by attracting only those buyers who have greater interest in the home. Additionally, by employing targeted online marketing, Rossi Real Estate targets buyers searching for homes just like yours.
Joe Rossi, the Principal Broker at Rossi Real Estate, builds upon over 12 years real estate experience in every transaction. Joe zealously advocates for his clients by combining his diverse background in law, finance, complex negotiation, and management, with compassion and exemplary communication skills creates. He explains transaction details and guides his clients through every step of the buying and selling experience. Furthermore, Joe listens to his clients’ wants and needs. In a recent transaction, the buyer profusely thanked Joe, stating he was, “[T]he only one in the transaction that was capable of communicating with the sellers in a way that ensured we were able to close on our dream home”.
Our real estate practice includes leading professionals, all of which are NYS Licensed Real Estate Sales Associates: Joseph R. Rossi, Ryan Hart, & Dustin Cogswell. Their experience includes work at a fortune 100 company, military operations, and technical recruiting.
If you're looking for a real estate broker who goes above and beyond the industry, who genuinely cares about their clients, and who will drive results, contact Rossi Real Estate Services LLC today.
The Stuff our attorneys make us include...
In accordance with Real Property Law §442-H, Rossi Real Estate Services LLC implemented a Standardized Operating Procedure governing client engagement. As such, prior to any engagement, Broker:
1. Requires a buyer to produce identification if the identity of the buyer is not readily known through a personal relationship with the broker or licensed sales person;
2. Requires an exclusive agency agreement (i.e. exclusive broker agreement) prior to engagement with any buyer;
3. Does not require pre-approval for a mortgage loan; however, a pre-qualification letter for a mortgage loan or, for cash buyers, proof of funds is required.
Although Broker may not require certain information, a seller of real estate may require this information prior to showing the property and/or as part of any purchase offer.
