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Showing posts from September, 2019

Money You Saved for a Down Payment

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Occasionally, buyers who can qualify to purchase a home decide to "take a break" and wait to purchase a home.When the focus of buying a home is relaxed, other uses for the money that was going to be used for the home are considered. Maybe they think how much fun it would be to have a Sea Doo or a motorcycle or a new car.It is amazing how many people would like to buy a home but either don't have the down payment, the income or the good credit to make it possible.Instead of spending the money, consider investing the money for two years until the time is right to buy a home.Let's look at putting the money in a certificate of deposit that earns 2% or in the stock market that could average a 5% return.Assume you were purchasing a $295,000 home on a FHA loan with 3.5% down payment.The $10,325 would grow to $10,742 in the CD which isn't a big increase but at least it is safe and secure, and it will be available when you're ready.If the same amount were invested in …

Downsizing is an Alternative

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It is estimated that over 15% of the population in the U.S. are over 65 years of age.With one of the most common fears of seniors being their money will run out early, it is understandable that downsizing may be strategy to meet their goals.Once the kids are grown, have careers, relationships and get a place of their own, parents find they may not need their "big" home like they did before.In other situations, their lifestyle might have changed, and the house just doesn't "fit" anymore.The benefits of a smaller home can include the following:Easier to maintainLower utilitiesLower property taxes Lower insuranceMore convenient locationSingle levelPossibly more energy efficientPossibly lower maintenanceLike any other big change in life, it is recommended that a person should take their time to consider the possible alternatives and outcomes.Are they going to stay in the same area?What type of property would suit their needs for the future?The tax-free exclusion al…