5 Ways to Get Free Money When Buying A Home
Buying a home can be expensive. You have a down payment, interest for 30 years, and more! So we have come up a few ways to get money for free! Some are easy, some are timing, and some you just have to ask for.
Grants
Talk about free money! There are programs out there that will give you money when you buy a house. Would you like $20,000 towards your house for buying? Why not? Most of these programs are easy and almost any one can qualify. Some require simple things like doing an online class or just by buying a home in certain areas get you free money.
There are a bunch out there to help. A lot are better that a tax credit that will have to be paid back a few years later. These are truly money in your pocket or toward the house. To get more info let us know what you want in a home and we will contact you and find properties that qualify.
Loan Type
Did you know there are loan types that don’t require any down payment? There are some that don’t have any mortgage insurance (what you usually pay if you don’t put down at least 20%). This is where a good lender is key. These programs are changing all the time and a good lender is up to date and can come up with the best loan to save you the most money and sometimes even get you that free money everyone wants.
These change so much it is best to just ask a lender about them.
Interest Rates
What you get on your interest rate can end up saving you thousands of dollars. Lets say you buy a house and have to borrow $200,000. If you are able to get a 5% interest rate and pay your exact payment on time every month. You would spend $386,511.57 over the 30 years you have the loan. Now lets say you use the same loan amount, same diligence on paying the exact amount on time, but you get a 4% interest rate you would pay $42,7772.56 less!
Did you know that interest rates are on the rise? Experts say they should go up at least 1% this year. The key is to not wait because rates are lower than almost ever and they are only going to go higher.
Down Payment
So this may be one of those take money to make money type for free money. If you bought a home for $200,000 and didn’t have any to put down your would end up paying just like in the interest rate example above. If you had $10k to put down you could get a $210,000 home for the same payments as the $200,000 payment.
If you were to put down 5% on a $200,000 home ($10k) at a 5% interest rate you would save $19,325.58. That almost doubles your money just by putting a down payment of 5%!
Closing Costs
As real estate agents we can get you this. It is all about asking. A good realtor can wrap the closing costs (like fees for lenders, title, and even some HOA fees) right into the purchase of your home. Most home purchases can take up to 3% of cost just to close, $6,000 if you buy a $200,000 home! So it is import to work well with us to help cover those costs by just negotiating with the sellers.
via Utah County Real Estate :: Red Sign Team http://ift.tt/N4IhWe
Salt Lake City Realtors 