As a renter, you may be resigned to a life of renting, believing you’ll never qualify to be able to search Newport Beach real estate and homes for sale to buy your first property. 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) 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) Cut your monthly loan commitment by applying for a graduated payment mortgage.
4) Sign up for a balloon mortgage to cut your monthly expenses.
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) 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) 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.
By using the above options, you can slash your monthly loan obligations and increase your cash flow. But if you are serious about increasing your ability to purchase a better house, practice good money management and budget your monthly income and expenditures.
A great technique to help you evaluate where you spend the majority of your money is to list every monthly expense on a sheet of paper. While many renters dream of owning a home, they allocate most of their cash towards a new vehicle, expensive stereo’s, eating out, and other similar cost that won’t appreciate in value. If you’re willing to discipline yourself to stay on a feasible budget, you’ll make significant progress towards being able to search through Newport Beach real estate and homes for sale to buy your own house.
