Kate Hogan -Amherst, MA real estate, Hadley, MA real estate, Northampton, MA real estate
Kate Hogan - Amherst MA Realtor


Ready to buy a home? You'll likely need a mortgage to ensure you can afford your dream residence. Lucky for you, many banks and credit unions are happy to help you discover a mortgage that suits you perfectly.

Ultimately, meeting with a mortgage lender may seem stressful at first. But this meeting can serve as a valuable learning opportunity, one that allows you to select a mortgage that is easy to understand and matches your budget.

When you meet with a mortgage lender, here are three of the questions to ask so you can gain the insights you need to make an informed decision:

1. What mortgage options are available?

Most lenders offer a broad range of mortgage options. By doing so, these lenders can help you choose a mortgage that meets or exceeds your expectations.

Fixed-rate mortgages represent some of the most popular options for homebuyers, and perhaps it is easy to understand why. These mortgages lock-in an interest rate for a set period of time and ensure your mortgage payments will stay the same throughout the duration of your mortgage.

Meanwhile, adjustable-rate mortgages may prove to be great choices for many homebuyers as well. These mortgages may feature a lower initial interest rate that rises after several years. However, with an adjustable-rate mortgage, you'll know when your mortgage's interest rate will increase and can plan accordingly.

2. Do I need to get pre-approved for a mortgage?

Pre-approval for a mortgage usually is an excellent idea, and for good reason.

If you get pre-approved for a mortgage, you may be able to enter the homebuying market with a budget in mind. That way, you can pursue houses that fall within a set price range and avoid the risk of overspending on a home.

On the other hand, you don't need to be pre-approved for a mortgage to submit an offer on a home. But with a mortgage in hand, you may be able to gain an advantage over the competition, one that might even lead a home seller to select your offer over others.

3. How long will a mortgage last?

Many mortgages last 15- or 30-years – it all depends on the type of mortgage that you select.

A lender can explain the length associated with various mortgage options and highlight the pros and cons associated with these mortgages.

Moreover, you should ask a lender if there are any prepayment penalties if you pay off your mortgage early. This may help you determine whether a particular mortgage is right for you.

When it comes to finding a lender, don't forget to meet with several banks and credit unions. This will allow you to discover a lender that offers a mortgage with a low interest rate. Plus, it enables you to find a lender that makes you feel comfortable.

If you need assistance in your search for the right lender, be sure to reach out to a real estate agent. This housing market professional can provide details about local lenders and ensure you can accelerate your push to acquire your dream residence.



19 Depot St, Belchertown, MA 01007

Single-Family

$229,000
Price

6
Rooms
3
Beds
1
Baths
Cute as a Button! Completely Renovated! Showings start February 25th! Renovated gorgeous kitchen, new windows throughout, refinished wood floors, front porch, renovated bath with stone tile shower, 3 bedrooms, new heating system, deck, 2 car garage, basement for storage on .9 acre lot close to town and area amenities. Don't miss it! Move right in!
Open House
No scheduled Open Houses

Similar Properties



This Single-Family in Belchertown, MA recently sold for $164,500. This Colonial style home was sold by Kate Hogan - Sawicki Real Estate.


33 Depot Street, Belchertown, MA 01007

Single-Family

$163,000
Price
$164,500
Sale Price

8
Rooms
4
Beds
1/1
Full/Half Baths
Motivated Seller! Great Opportunity to own in town, walk to everything, close to area amenities and highway access. Hardwood floors throughout. Updated Kitchen and baths. This 4 bedroom, 2 bath home is a score in today's market. Well maintained. Front porch to relax on. Back deck to entertain. On the first floor is kitchen, pantry, half bath, bedroom, dining room, and living room. On the second level you will find full bath and 3 bedrooms. On the third floor is a loft perfect for an office or play room. The basement is partially finished. This is the one you've been waiting for! Affordable! Come see it today!

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44 Mount Warner Road, Hadley, MA 01035

Single-Family

$170,000
Price

5
Rooms
3
Beds
1
Baths
FARMHOUSE AND OUTBUILDINGS ON 1 ACRE LOT. LOW HADLEY TAXES. TOTAL REHAB! A PROJECT FOR INVESTORS!
Open House
No scheduled Open Houses




Buying a home is one of the biggest and most useful investments that you’ll make in your lifetime. One thing you should understand when you're making big improvements to a home or doing any kind of high return renovations is that of the Capital Gains Tax. This tax can take away from the return on your investment, especially under the right circumstances. Even with minimal improvements to a home, if an area has seen an upswing in popularity, you could end up paying the price when you go to sell. 


Taxpayer Relief Act


The Taxpayer Relief Act of 1997 can help many people to hang on to the returns they see from the sale of their home. 


Previously, homeowners could qualify for a one-time tax exemption of up to $125,000 on the sale of a home. They also could combine the earnings in on the purchase of another home. Currently, there are a few ways that you can save on the Capital Gains Tax thanks to the TRA. 


House Flippers And Homeowners Aren’t Equal


Not all home sales receive an equal tax treatment. If you are flipping houses, you’re out of luck when it comes to receiving profit-friendly tax breaks. You need to have lived in a home as your primary residence for two out of five years of owning a home in order to qualify for tax breaks. If this isn’t the case, you’ll end up paying a Capital Gains Tax on the sale of the property. If you’re a professional house flipper, your homes are considered inventory and taxed as income. The tax on this can vary from 15% to 20%, depending upon the tax bracket you fall into.



The Type Of Property Matters When It Comes To Taxes


Whether the property is a primary place of residence, a vacation home, or a rental property, the gains are all taxed differently. If you own a second home that you’re interested in selling, it’s not treated the same as a primary residence for tax purposes. You’ll be taxed based on the amount of time that you owned the property, or the amount of time that the property was used as a second home. The taxes are based on a prorated amount of time.


The Price Of The Home Doesn’t Matter


You may think that higher priced homes are taxed more heavily than less expensive homes. This would be the case when it comes to property taxes, but it isn’t so when we’re talking about Capital Gains Taxes. These taxes are based on how much profit is made from the sale of the home. If a loss was taken, or the homeowner “broke even,” they may not owe as many taxes. A smaller home that had significant improvements made could be taxed a bit more than a home that was sold at a higher price with fewer upgrades.




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