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Rick Capobianco brings over 35 years of experience in real estate lending to MIT Federal Credit Union. He grew up in Medford and has been a long-time resident in Winchester, MA. His primary focus has been residential lending his entire career, having worked for Belmont Savings Bank as Vice President of Residential Lending. Rick has been involved in nearly 10,000 transactions throughout his career giving you a level of knowledge unsurpassed in the industry. Rick has worked with a variety of borrowers to assist them in finding the right program to ensure their dreams of homeownership become a reality, whether it’s a first home, a downsized home, or new construction.
Mortgages and Homebuying
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Mortgages and Homebuying
The interest rate is dependent on market trends. Locking in a rate protects you during the timeframe from your rate lock to the day that your lock period expires.
What is a Lock-In Agreement?
This agreement between the credit union and the member specifies the number of days your rate and points are guaranteed. If the rate increases during that time, you are still guaranteed the rate that you "locked" in at. If interest rates fall during that period, you will pay the higher rate you locked in at.
When Can I Lock?
Please reach out to the Mortgage team to discuss rate lock options and timing. We currently offer a variety of lock-in periods which may range from 15 to 90 days. This means your loan must close and disburse within this number of days from the day we confirm your lock.
An adjustable-rate mortgage, also referred to as an "ARM," is a loan that provides a lower initial interest rate than most fixed-rate loans. But the interest rate can change periodically, usually in relation to an index, and in line with the type of ARM, for example: a three-year can change every three years, a 5-year would potentially change every five years, etc. When the rate changes, the monthly payment will also change.
To learn more, visit our blog titled: "Adjustable Rate Mortgages - Your Questions Answered"
Each point is equal to one percent of the loan. If you buy points at your closing you will lower your monthly payments but pay more at the closing.
To determine whether buying points is the right choice for you, it helps to compare the cost of the points paid to the savings you receive on your monthly payments. You can do this by dividing the total cost of the points by the savings in each monthly payment. For example, if you pay $2,000 to buy a point and your monthly savings with buying a point is $200, then divide $2,000 by $200. This comes out to 10 months of payments. By the 11th month, you have already recouped the price you paid for the point. If you plan to stay in your house for any length of time, then buying points might be a good option.