How to Own a Home for Less Than Average Area Rent

Here is how to OWN A HOME for LESS THAN AVERAGE AREA RENT

We love helping tenants become homeowners and we have three exciting closings scheduled for local, first-time home buyers within the next month!

Homeownership is a great investment; it will allow you to build equity in an asset, it will help you to improve your credit and it will give you countless (and sometimes endless) home improvement opportunities! Home ownership helps to improve the local economy too!

Using a very general mortgage calculator, we wanted to show you what monthly payments (INCLUDING INSURANCE AND TAXES) would look like for homes in the $100,000 range. Of course, this is an estimate; interest rates change, down payments may vary and buyers may qualify for different financing options.

Let’s see how these monthly payments break down. If you purchase a home for $100,000 with 0% down, as offered through USDA / RD loan program, with an interest rate of 3.75%, a Homeowner’s Insurance Policy of $600 / annually and estimated property taxes of $1,750 / annually; you could expect an approximate monthly payment of $659.00 (for a 30 year fixed rate mortgage)

The portion of this monthly payment would break down as follows:

$463.00 towards principal and interest

$146.00 towards property taxes

$50.00 towards homeowner’s insurance.

There are fees associated with purchasing a home and a loan, we call these “closing costs”. While you may qualify for a program that requires 0% down, there might be closing costs or APR (annual percentage rates) and your loan officer would be able to let you know what to expect that amount to be.

Want to see some houses? Here is a link to area homes that offer awesome value and would make great options for the first time home buyer!

Before you get your heart set on one of these properties, check in with a loan officer. Becky Mason issued our mortgage and I have since referred her many times to happy clients; she can be reached by clicking her name and visiting her website, or by calling / texting her cell: 207-890-3449.

Happy hunting and we look forward to helping you make this exciting transition!

~ Cassie

 

Posted on August 24, 2016 at 10:19 pm
Cassie Mason | Category: Buyer News, Financing, Greater Portland, Maine Real Estate, Market Trends, Mortgages, Real Estate

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