If you've been renting for a long time, you may be so comfortable, you've given up on the thought of home ownership. But before you write off the option of home ownership, be sure to compare your rent versus mortgage payments on an after-tax basis. After comparing these two options, if the mortgage payment still appears too high, don't just throw in the towel. There are several creative options to overcome what seems like a monstrous monthly 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) Building a guest unit by converting a garage, then, or attic.
2) Lower your monthly payments by taking advantage of an adjustable rate mortgage. However with the current disaster in the mortgage industry, it's wise to seek the counsel of the reputable loan agent or real estate attorney before committing yourself to this type of loan.
3) Lower your monthly loan payments with a graduated payment mortgage.
4) Use a balloon mortgage to lower your payments.
5) Ask your Realtor about the option of purchasing income producing property such as a duplex, triplex, or other similar property to help lower your monthly mortgage costs.
6) Check with a reputable loan representative to see if your region offers a mortgage credit certificate program (MCC). This federal program is set up to assist homeowners with their monthly mortgage up to $2,000 per year.
7) Consider the option of obtaining a part time job to increase your monthly income. This will alleviate any financial pressures to make your monthly mortgage payment, especially if your existing income barely covers your monthly expenses.
8) Speak with your boss about raising your income or offering some sort of allowance for housing.
9) Consider co-ownership with another friend or family member.
10) Speak to a mortgage agent about the alternative of an interest rate buy down.
11) Consider taking over a low interest FAA or VA loan.
12) Assume a lower equity adjustable rate loan.
Most of the time, the above strategies help lower your monthly payments or increase your available cash. However if you really want to leverage your ability to buy a better home, trying to prioritize and budget your income and expenses.
One exercise to help you prioritize your budget is to write down all your regular monthly expenses to see where you spend the majority of your income. Although most renters long to own a property, they expend the majority of their monthly income towards non-appreciating costs such as the latest automobiles, hi-definition TV's, and concerts. By simply spending time re-evaluating your monthly budget and cutting out unnecessary expenses, you'll increase the odds of buying a house sooner.
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) Building a guest unit by converting a garage, then, or attic.
2) Lower your monthly payments by taking advantage of an adjustable rate mortgage. However with the current disaster in the mortgage industry, it's wise to seek the counsel of the reputable loan agent or real estate attorney before committing yourself to this type of loan.
3) Lower your monthly loan payments with a graduated payment mortgage.
4) Use a balloon mortgage to lower your payments.
5) Ask your Realtor about the option of purchasing income producing property such as a duplex, triplex, or other similar property to help lower your monthly mortgage costs.
6) Check with a reputable loan representative to see if your region offers a mortgage credit certificate program (MCC). This federal program is set up to assist homeowners with their monthly mortgage up to $2,000 per year.
7) Consider the option of obtaining a part time job to increase your monthly income. This will alleviate any financial pressures to make your monthly mortgage payment, especially if your existing income barely covers your monthly expenses.
8) Speak with your boss about raising your income or offering some sort of allowance for housing.
9) Consider co-ownership with another friend or family member.
10) Speak to a mortgage agent about the alternative of an interest rate buy down.
11) Consider taking over a low interest FAA or VA loan.
12) Assume a lower equity adjustable rate loan.
Most of the time, the above strategies help lower your monthly payments or increase your available cash. However if you really want to leverage your ability to buy a better home, trying to prioritize and budget your income and expenses.
One exercise to help you prioritize your budget is to write down all your regular monthly expenses to see where you spend the majority of your income. Although most renters long to own a property, they expend the majority of their monthly income towards non-appreciating costs such as the latest automobiles, hi-definition TV's, and concerts. By simply spending time re-evaluating your monthly budget and cutting out unnecessary expenses, you'll increase the odds of buying a house sooner.
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Are you searching for the best Carmel homes for sale? See what these Carmel Realtors can do to help you find your dream home.
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