Mortgages - Fixed and Adjustable
Whether you want a fixed rate or an adjustable rate Massachusetts mortgage, we're here to make sure your mortgage process is handled quickly, efficiently, and with attention to every detail.
Getting the right mortgage can be tough, and BFCU has several programs to help Boston-area first responders get the loan they need.
As soon as you know you want to buy a home, contact the mortgage specialists at BFCU for help understanding your options and how your mortgage amount affects your monthly house payment.
- ZERO points
- LOW closing costs
- Payroll deduction for both your regular monthly payments AND your real estate taxes
Borrow up to $750,000. We finance loans on single family homes, 2-3 family homes, condos, or townhouses. The property must be owner occupied, or a vacation home.
Did You Know?
You can enjoy a stress-free retirement with no mortgage! Learn more about our Retirement Mortgage today.
How Does It Work?
When you are ready to go shopping for a home, contact a BFCU loan officer to start the pre-qualification process. With pre-qualification, you'll know how much money you can spend.
If you know which neighborhood or area you prefer, a local real estate agent can help you find a house that meets your needs and negotiate a great price.
When you find a home that you’d like to make an offer on, your pre-qualification letter will serve as proof that you qualify for the mortgage you need to finance the home. This is an important part of the process of purchasing a home, especially in a competitive market where homes sell quickly and there may be multiple offers coming in at the same time.
After you come to an agreement with the seller about the price of the home, you can move forward with the formal process of mortgage underwriting. Your BFCU loan officer will be with you every step of the way, from pre-qualification to closing.
What's included with a Massachusetts mortgage?
There are several parts to a mortgage. The principal is the total amount of money you pay for the house. The interest on your mortgage is the amount of money you pay the lender. Boston property taxes aren't negotiable, but with a BFCU mortgage, your tax amount (also called escrow) is included in your monthly mortgage payment. Homeowners insurance is required by your lender, but at BFCU that amount is not included in your monthly payment.
Many homeowners pay private mortgage insurance (PMI) when they purchase a home with a down payment of less than 20%. BFCU has the following three mortgages where PMI is eliminated, even if you don’t have 20%.
As you explore your options for a mortgage, consider whether a fixed-rate mortgage or an adjustable rate mortgage meets your needs.
Fixed-Rate Mortgage in Massachusetts
A fixed-rate mortgage's interest rate won't change throughout the life of the loan. Even if interest rates rise and fall over time, your rate stays the same. A fixed-rate mortgage helps you keep your monthly mortgage payments from fluctuating. Of course, as your property taxes change, this amount will affect your monthly mortgage payment.
Adjustable-Rate Mortgage in Massachusetts
An adjustable-rate mortgage (ARM) has an interest rate that may go up or down over time, according to market prices. During the first phase of your loan, the interest rate won't change. It may be lower than the market rate. When the loan adjusts, your interest rate and monthly payment may increase. Adjustable-rate mortgages may work well for people who plan to sell the home before the mortgage rate adjusts.
First Responder Mortgages
BFCU is the only credit union specializing in helping first responders in the Boston area get home loans.
When you work as a Boston first responder, finding an affordable home and qualifying for a mortgage can be challenging. For many first responders, monthly payments are high, and down payment requirements are unaffordable. EMTs, police officers and firefighters may also have a tough time finding the right mortgage in Boston.
As a first responder in Boston, you are subject to a residency requirement that dictates you live in the city. Living in the city presents affordability challenges for first responders when its time to get a approved for a mortgage. Housing costs are on the rise and with that comes higher down payment requirements. Also, as a newer first responder, the salary necessary to afford a mortgage on paper may not be where it needs to be yet. At BFCU we have a few mortgage options that can help you become a homeowner in the city you need to live in at an affordable cost.
Living in the city presents affordability challenges for first responders when it's time to get a mortgage. Housing costs are on the rise, but there are a few mortgage options in addition to grants that can help reduce your costs when it's time to buy a house in Boston.
Mortgages for First-time Homebuyers in Massachusetts
As a resident of the Boston area, you may be eligible to take advantage of a number of first-time homebuyer (FTHB) programs that could make owning a house more affordable. A first-time homebuyer is anyone who has never owned a principal residence or hasn't owned a home for at least three years prior to the day they buy their new house.
Talk with a BFCU loan officer to learn about how your status as a first-time homebuyer may help you afford the home you want in Boston.
Federal Housing Administration (FHA) Loans
With an FHA loan, you may be able to qualify for a mortgage with relaxed standards. If your credit score is between 500 and 580, you must have a 10% down payment. However, if your credit score is higher than 580, you may be able to qualify for an FHA loan with just 3.5% down.