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Guide to Rhode Island Mortgages
Maybe you are buying your first home in Rhode Island, or perhaps you're relocating to Rhode Island from another state. Then again, you may be a long-time Rhode Island resident who is looking to either refinance your current mortgage or take out a home equity loan for home improvements. Regardless of your situation, it's important that you educate yourself on Rhode Island home loans before shopping for a home and/or mortgage. This article explains what you will need to know before seeking a home loan in Rhode Island:
The median price of a home in Rhode Island is $211,500. Recently, homes in Rhode Island have been appreciating at rates well above the national average. As a result, income levels in many parts of Rhode Island are too low to purchase a median-priced home with a conventional loan. Although average interest rates in Rhode Island are below the national average, Rhode Island has one of the lowest levels of home affordability in the nation.
In Rhode Island, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This document, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This document requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.
Rhode Island's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. Rhode Island law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.
In July of 2002, Rhode Island law enacted a set of anti-predatory lending laws in order to help protect Rhode Island homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.
If you're buying a home in the state of Rhode Island, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for Rhode Island FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for Rhode Island's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
In addition to FHA loans, the state of Rhode Island also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, Rhode Island's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the Rhode Island Housing Finance Agency.
Last Updated: Wednesday, September 17, 2008
Rhode Island Real Estate Market View
updated Wednesday, September 17, 2008
| Housing & Social Facts |
Rhode Island |
United States |
| Total housing units |
447,810 |
n/a |
| Owner-occupied housing units |
62.7% |
66.9% |
| Renter-occupied housing units |
37.3% |
33.1% |
| Vacant housing units |
9.3% |
10.8% |
| Average Home Value |
$281,300 |
$167,500 |
| Average Mortgage Payment |
$1,585.00 |
$1,295.00 |
| Average Rental Payment |
$519 .00 |
$388.00 |
| Total Population |
1,032,662 |
n/a |
| Percentage Male |
48.2% |
49.0% |
| Percentage Female |
51.8% |
51.0% |
| Median Age |
38.4 |
36.4 |
| Under 5 years |
6.2% |
7.0% |
| 18 years and over |
76.3% |
74.6% |
| 65 years and over |
13.6% |
12.1% |
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1 Year Market Value Change for Rhode Island |
| 1yr | 5yr | 10yr |
 |
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Popular Rhode Island Cities and Towns
| Location |
Population |
Median Family Income (2005) |
| Bristol |
22,469 |
$43,689 |
| Coventry |
33,668 |
$51,987 |
| Cranston |
79,269 |
$44,108 |
| Cumberland |
31,840 |
$54,656 |
| East Providence |
48,688 |
$39,108 |
| Johnston |
28,195 |
$43,514 |
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| Home Sales RI |
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Focus Real Estate Group, Inc. are full service Massachusetts & Rhode Island real estate brokers, offering buyers agent, listing agent, and investment property consulting through professional MA & RI real estate agents throughout Rhode Island and Southeastern Massachusetts. Through affiliated websites and partner companies, the group also offers mortgage-financing services in Rhode Island, Massachusetts, Connecticut and Florida. In an ever-changing world it is imperative that we embrace new technologies and challenge ourselves to continuously learn so we can apply this knowledge to improve our lives. We feel that we have been very fortunate in working with some outstanding individuals and entrepreneurs alike who both share and embrace our vision. We are an advocate of continuing education and embrace the opportunity to learn more so we can be better informed and make the best choices in both our professional and personal lives. We offer a wide array of mortgage options to make sure that there is a program that is suitable to the clients needs: Adjustable Rate Mortgages (ARM's), Fixed Rate Mortgages, Interest Only, Equity Loans,
Zero Down, Construction Loans, Commercial Loans, Bridge Loans and many more. Home Sales RI
PO Box 356
Portsmouth, RI 02871
401-293-0631- Phone Home Sales RI is a real estate broker licensed by the RI Dept of Real Estate License
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| The Rhode Island Mortgage Store Incorporated |
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Since 1991, The Rhode Island Mortgage Store, Inc. has been licensed as a mortgage broker in Rhode Island. Prior to that, our family held a Rhode Island Small Loan License since 1934 and operated as Reliable Finance Corporation. It has been our pleasure, over the years, to serve many of our former small loan customers under our current mortgage brokerage license. Fair and honest business dealings are our primary business consideration. We treat you the way we want to be treated; with respect and honesty. It is the only decent way to do business and that practice has sustained our family in Rhode Island since 1934. If you are sick and tired of the bait and switch and all the fast talkers, come try our service one time. We will bend over backwards to earn your business now and for any future transactions. If at any time you are not satisfied with our service, please let me know personally. We guarantee that we will be involved throughout the entire transaction process, to answer any questions or address any concerns. There are many loan programs to fit just about every persons financial and mortgage needs. Please give us a call and we will consult you on which program may be best suited for you particular situation: Fixed Rate Mortgages; 15 & 30 Year Fixed, Adjustable Rate Mortgages, Balloon Mortgages; 5 & 7 Years, First Time Buyer Programs and Stated Income Programs. Rhode Island Mortgage Store
960 Reservoir Avenue
Cranston, RI 02910
Phone: 401-946-3553
Fax: 401-946-3993 Rhode Island Licensed Mortgage Broker #91000253LB
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| Domestic Bank |
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Purchasing a home a deciding to refinance is big step and one of the biggest financial obligations in your life. You can trust us to find the loan program that is best for you. Buying a new home is a source of anxiety, frustration and a huge sense of accomplishment. You didn't pick the house that was best for someone else, you picked the one that's right for you! Trust our professionals to find the mortgage loan that best fits your needs, too. "Less paperwork and more personal attention" means you enter a frustration-free zone from application to decision. Getting the right mortgage loan is like getting the keys to your new house! We can help you get there. Refinancing your current mortgage is easy because it does not require mounds of paperwork to process. We make it easy and worry-free to reduce your interest rate and monthly payment. We can even help you pay down your balance more quickly for comparable monthly payment. Let our professionals guide you to the very best refinanced loan! Our mortgage professionals give you the personal attention you deserve and treat you with the respect due a valued customer. We understand you're making a commitment in buying a new home, refinancing and mortgage or cashing out your home equity. So we make a commitment to you. We will help you qualify, apply and be approved for the right mortgage loan for you. Domestic Bank
Phone: 800-562-6663 x 858
Fax: 678-302-4368
815 Reservoir Ave
Cranston, RI Domestic Bank is a real estate broker licensed by the RI Dept of Real Estate License
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