(As Featured on Waltham Patch)

If you have been following the news over the last few weeks, you will have no doubt heard that the Federal Reserve has decided to raise interest rates. The Federal Reserve announced that it is increasing the federal funds rate. These rates were nearly slashed nearly to zero in 2008 to help the economy ride face the financial crisis that turned the housing sector on its head. The federal funds rate determines how much interest financial institutions charge one another to borrow money. This rate has a direct effect on the interest consumers pay on credit cards, or when they take out a loan. Conversely, it also affects the interests consumers make on savings accounts and certificates of deposit.

This rate increase marks the end to historically low mortgage rates. However the impending rise in rates are expected to happen incrementally and take a bit of time. It could be even longer until there is a significant increase in 30 year mortgage interest rates.
However, it is important to keep an eye on these short-term rate increases, because if they continue to climb and inflation rises, prospective homebuyers will see mortgage rates rise significantly.

While this is no reason to go in to panic mode, there are a few things you do want to keep in mind.

Even with rates going up only fractions of a percent, it is still important to consider the long-term effect on a multiyear loan, it could end up being quite costly in the end.

Take the following example – A $300,000 loan with an interest rate of 4% over 30 years has a monthly payment of about $1,400. When you increase that rate to 6%, you will see an increase of $400 per month on your payment, up to $1,800. Over the lifetime of the loan this adds more than $130,000. Combined with the rising prices of homes it can quickly make purchasing a home more difficult, especially for first-time buyers.

If you are considering buying a house or refinancing, it is vital that you evaluate your financial health. Preparation is key to making sure you are well positioned to enter the market. Having a firm grip of your housing budget can save you thousands of dollars in interest.

Does this mean you shouldn't buy now? Absolutely not! It just requires careful planning and astute management of your finances.

Let's put it into historical perspective. For the purpose of illustration, we will say that in three years, the 30 year loan rate will average around six percent. In the 1970's, the average was around nine percent. In the 80's in jumped up to 13 percent and even hit just shy of 19 percent in 1981. In the 90's it was around nine percent. The 2000's have been pretty kind with rates between four and five percent. So all things compared, a six percent interest rate is actually not terrible.

Here are the two most important things you can do to help you on the path to homeownership in these changing times.

First – Know your score. Your credit score is key to securing the lowest rate possible. Make sure that you are reducing any debt and are making timely payments on your other accounts. Pull up your credit report to ensure that it is correct and that your credit has not been compromised.

Save, save save! While 5% to 20% down may be the average down payment in the area, there are programs such as VA for veterans and FHA that require anywhere from 0 down for VA loans to as little as 3.5% down for an FHA. However, any amount you can provide above and beyond the minimums can help reduce rates even further.

For first time homebuyers, probably the biggest impact will be on how much house they can buy. These new prospective homeowners may need to reevaluate how much house they can afford. Speak with your Realtor or loan professional to help determine how these new rates may affect your borrowing power.

On the bright side, the higher rates should help ease lending criteria. The extra security these higher rates bring will help offset the risk, therefore increasing the pool of qualified borrowers. It is conducive for lenders to make more loans. Also remember, if rates are rising it is because the economy is improving.

If you already own a home, should you refinance? For the last six years, we typically refinanced about every two years. This will probably slow down considerably now. If you have a fixed rate loan look at your current rate to see if it refinancing makes sense for you. However, if you have a have an adjustable-rate mortgage and plan to stay in your home for some time, you would definitely want to consider refinancing into a fixed-rate loan. Of course, you'll need to calculate fees and closing costs to have a sense of your overall costs.

Reading the writing on the wall, one thing is for certain. Rates are not going down any time for the foreseeable future. If you are looking to buy, now is the time to act.

(As Featured on Waltham Patch)

If you are buying or selling a home in a specific area, choosing to work with a local real estate agent can pay off big time. Local agents can help you secure a much better deal and can make your entire real estate transaction move more quickly. More specifically, working with an agent who is familiar with the local area can provide you with these three advantages:

Knowledge of the Area
Local agents will know the most about the area that you are planning to buy or sell in. With a local agent, you shouldn't have to wait for them to look up every single thing about the area. They should know their area inside and out, which can make everything move more quickly. A local agent will know the best neighborhoods, schools, and amenities close by if you are buying. They will also know the average market price and trends of the area if you are selling. A local agent will always have valuable information at their fingertips for their clients.

More Availability
If you are using a local agent to help sell your home, they will be able to physically meet up with you more often. This will also make it easier for your agent to assist you in presenting your home for sale. If you are buying, a local agent will be able to schedule showings for you and get you in to see homes more quickly. Meeting up with an agent rather than just exchanging phone calls and emails can make it easier to communicate what you need and can help avoid confusion.

Following Up
Local agents may be more likely to keep in touch with you after your transaction is complete. If you need anything more from the agent, they will be close by to assist you. Local agents may also provide closing gifts, or show some sort of client appreciation because they really care about the specific area that they are servicing. With a local agent, you won't have to worry about them vanishing the second that everything is finalized.

Great Network 
Local Agents know the other agents in town that they may feel more comfortable working with if you have an offer on their listing. Local agents also know great local contractors and other good contacts that could help you with your home during and after the sales process.

 Buying or selling a home is much more than just a real estate transaction. Before you choose who you want to represent you, make sure that you are considering all of your options. Look up local real estate agents that specialize in the area that you want to buy or sell in. A local agent may be your best bet when it comes to your home buying or selling experience.

For more information, contact us today!

(As Featured on Waltham Patch)

If you're looking for a new home, or your first home, you may feel overwhelmed by all of the options and decisions. So, you've found a great listing online that looks like your dream home, but now what? Before you head to that open house, remind yourself to look for these five things that can help you decide the value of a home.

Exterior 
As a potential homebuyer, you may be eager to rush into an open house and compare it to the listing that you saw online. However, before you step inside, you might want to take a look at the perimeter of the home. Gutters, roof shingles, and exterior paint can all show signs of neglected maintenance, which may lead to larger issues down the road.

Layout & Flow 
As you walk through an open house, be sure to pay close attention to the layout of each room and how they flow together. As the kitchen is usually the heart of most homes, notice which rooms and areas flow from that central space. Is there a dining area off of the kitchen for family or guests? How about a large enough living room for leisure or entertaining?

Storage 
Don't just look for extra space when you're viewing an open house, look for smart storage space. Today, it isn't enough to just have a garage to throw your extra clutter in. Look for deep closets with shelves, and hidden, built in space in bedrooms and bathrooms. Clever storage spaces that are out of sight keep a home clean and organized.

Light & Air 
Be sure to take note of the number of windows and if they allow natural light inside. A good amount of windows in the right places can make a huge difference in a home. Lots of natural sun and air can also mean less of a chance of mildew and mold in the home as well.

Neighborhood 
As you leave an open house, take a look around the neighborhood and get a feel for the area. Notice how close neighbors are and if there are any amenities close by. If there are minor issues in a home you are thinking of buying, but it is in a great neighborhood, it may be worth it. You can always save up and have things fixed or take on some do-it-yourself projects.

As a potential homebuyer, you have many important decisions that you need to make. Hopefully these tips help you narrow down your search and get you steps closer to buying your perfect home! 

(As Featured on Realty Times)

When dealing with tenants, there are many things you can do to create good landlord-tenant relationships that are mutually beneficial to one another. Here are a few points that will help you understand what rights each of you have and how to be a successful landlord.

First of all, thoroughly screen all potential tenants. Let's ensure we start off on the right foot by only renting to tenants with a good track record. Make sure you are doing your due diligence by running credit checks, screening their employee references and looking for prior bankruptcies. A track record of evictions, late or non-payments with former landlords. Bad credit and gaps in their rental history and suspect landlord references are all red flags.

You've done a great job screening and have found great tenants for your property. So what's the next step? Well, like any relationship you want to establish boundaries right off the bat. Make sure they clearly understand your expectations and that you understand theirs. Communication is always key. Your tenants must have a reliable way to get hold of you. However, you may set guidelines as to when is the best time to contact you for routine issues.

Make sure you have a good lease. Ensure the lease you are using is legal and comprehensive. Retain a lawyer who specializes in landlord-tenant law reviews it. Make sure it clearly spells out each party's obligation in detail. A good understanding of what is expected at the outset will save many headaches down the road.

I've already got the tenant from hell and I am about to lose my mind. What can I do? Basically there are three broad areas for eviction. They are ‘eviction for non-payment',' eviction for cause' and a ‘no-fault eviction'.

• Eviction for non-payment – to evict a tenant for non-payment you must send your tenant a statutory 14 day "notice to quit" before starting the eviction process. The 14 day notice to quit should be drafted carefully, and served by a constable or sheriff to ensure proof of delivery.
• Eviction for cause - This covers the range of violations of lease provisions by the tenant. These may include, but are not limited to illegal activity, drug use, excessive noise, uncleanliness, harassment of other residents, and non-approved residents. As is the case in all other evictions, you must issue a notice to quit to the tenant stating the specifics of the offenses. Evicting for cause can take up quite a bit of your time since you have to offer live testimony of your tenant's violations and getting any police officers to show up in court to corroborate for you can prove difficult. In the case of drugs and other illegal activity, there is a special expedited eviction process.
• No-fault eviction – Landlords must give their tenants a '30 day notice to quit' before serving the eviction. At a minimum it needs to have an eviction date and a reason for eviction. These must be drafted with care and according to Massachusetts Tenancy law or it will never make it through any court proceeding.

When seeking to become a landlord, nothing will beat preparation, knowledge and diligence. Make sure you have the law on your side and that you fully understand your rights and responsibilities and that is clearly communicated to your tenant. As with anything an ounce of prevention is worth a pound of cure.