Interested in a larger or better house? This is a great time to buy when prices are low and interest rates are reasonable.
House Buying Tips – Tampa Bay FL: If you’ve considered downsizing to reduce your mortgage payments every month, you might have chosen a great time to do so. In fact, this is such a good time to lower your mortgage payments that you may even end up with a bigger or better house in addition to lower payments. How can this be?
It’s simple, really. Let’s say your current house is a 3 bedroom 1 bath and you owe $158k on the mortgage. The current market value is $175k so you can most likely sell it and pay off your mortgage.
It’s simple, really. Let’s say your current house is a 3 bedroom 1 bath and you owe $158k on the mortgage. The current market value is $175k so you can most likely sell it and pay off your mortgage. In the meantime, you can start looking at what you can afford to buy for just a little more and end up with 4 bedrooms and 2 baths with a larger yard and a 2 car garage. Since you kept up your mortgage payments and have a down payment to work with, you’ll get a decent interest rate. That in itself will reduce the payments you will pay each month.
Having a good track record when it comes to paying off a mortgage and other lenders is a good way to increase your credit score and be offered a better interest rate. You become a less risky borrower when you can show a reliability factor and have some decent money for the down payment. Borrowing $200k at 6% interest is far more expensive by the month and in the end than it is to borrow $200k at 4%. You’ll pay less per month with a better interest rate and you’ll pay less for the house in the long run the less interest you must pay on the loan.
- Borrowing $200k at 6% interest is far more expensive by the month and in the end than it is to borrow $200k at 4%.
- If others are interested you will have to put some earnest money down or the actual down payment to secure it.
- That’s where a real estate investor may come in handy.
If you find a house at a great price and with all the features you think you want, you may want to move on it quickly. If others are interested you will have to put some earnest money down or the actual down payment to secure it. Then you’ll want to sell your current home quickly so you don’t end up with two house payments at two sets of bills at once. That’s where a real estate investor may come in handy. They buy houses quickly and for cash in many cases. If you have no complications in your real estate you might be able to get the house sold and cash in hand within a hand in some cases.
