If you’re like most renters, you’ve probably given up hope of owning any real estate. But before you throw in the towel, take some time to evaluate your rent expenses versus a home loan payment after all tax deductions. After thoroughly evaluating both alternatives, you still feel a mortgage loan is beyond the reach of your monthly income, don’t give up complete hope. You have many other creative alternatives to help you conquer a devastating loan payment.
If you set things up right, you could make up for most of your monthly loan payment and a large portion of the utilities. When you factor in the tax savings and increased net worth, you have the potential to net a respectable profit. Plus after you pay off the mortgage, you own and asset without any liens and encumbrances. Many renters, single or married, have benefited from home ownership after taking the necessary steps to enter the real estate market. Here are some other alternatives to check out:
1) Construct a guest unit you can rent out for income.
2) Slash your high monthly mortgage expense by signing up for an adjustable-rate mortgage. However, with the ongoing disaster surrounding home loans, it’s prudent to get the opinion of a competent loan representative or real estate attorney before you sign up for this option.
3) Lower your monthly loan payments with a graduated payment mortgage.
4) Use a balloon mortgage to lower your payments.
5) Consider purchasing a duplex, triplex, or some other income producing home to help you cover the cost of the mortgage.
6) Inquire with a local mortgage agent to see if a mortgage credit certificate program (MCC) exists in your area. Under this program, the government offers you mortgage aid up to $2000 each year.
7) Seek out a part time job to increase your monthly income.
Talk to your employer about increasing your salary or offering you housing assistance.
9) Explore the option of buying a property together with a family member or close friend.
10) Look into an interest rate by down.
11) Look into the option of assuming a low interest FHA or VA loan.
12) Take over a low-equity rate buy down.
By implementing these techniques, you can effectively reduce your monthly loan expenses and free up more cash. If you have a goal to purchase a home in a nice neighborhood, you’ll need to re-evaluate your monthly budget to squeeze as much savings as possible.
One eye opening exercise is to list down on your normal monthly expenses and determine where you devote most of your money. Even though most renters value owning a home, they spend most of their income on things such as new cars, electronics, entertainment, and other non-appreciating items. If you can prioritize your budget and eliminate wasteful expenses, you can save more money towards owning a home.
Looking for the best Orange County home? Then check out these Anaheim Hills homes for sale and use a local Anaheim Hills Realtors .
Tags: building, Buying, Condominiums, credit, estate, finance, Foreclosure/Repossession, foreclosures, FSBO, Homes, investing, moving, real, relocating, selling