As a renter, you may be resigned to a life of renting, believing you’ll never qualify to look at Anaheim Hills real estate or homes for sale. 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) Add an income producing guest quarters to your home.
2) Reduce your monthly loan payment by switching to a low adjustable rate loan. In light of the recent melt down in the mortgage business, you should consult with an experienced mortgage agent or real estate lawyer prior to locking yourself into 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) Consider purchasing a duplex, triplex, or some other income producing home to help you cover the cost of the mortgage.
6) Check to see if your area offers a mortgage credit certificate (MCC) program. With a MCC, the Federal government gives you a mortgage subsidy up to $2000 per year.
7) Add a part time job to bring additional income to supplement your payments.
Ask your boss for a raise or housing aid.
9) Look into the alternative of buying a property together with a family member or friend in the same financial circumstances.
10) Consider the option of buying down the interest rate.
11) Look into the option of assuming a low interest FHA or VA loan.
12) Take over a low-equity rate buy down.
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 being able to search Anaheim Hills homes for sale to buy your own piece of real estate.
