Making Your Dream Home a Reality
Moving to an exotic location or having a vacation home is just about every American’s dream, or at least on their bucket list. Although it seems far-fetched, this dream is attainable and can come true.
The only thing standing in your way is the monetary obstacle or the finances you’ll need in order to purchase your vacation home.
The only thing standing in your way is the monetary obstacle or the finances you’ll need in order to purchase your vacation home.
Saving
Setting aside a set amount from your check each month and placing it into a savings account with a high APY will help you reach your goal. Compare different banks and select the bank with the best or highest APY.
Down Payments
A typical down payment for a home in the U.S. is about six percent of the cost of the house. For example, if you want to buy a $250,000 home, you would need to make a down payment of $15,000 to buy the house.
Some buyers can put a down payment on a home for as low as three percent of the cost of the house, but that option all depends on your income and credit score.
Tip: Putting a larger down payment on a home reduces private mortgage insurance (PMI) fees and lowers the amount of interest you’ll pay over time. Be sure to consider your financial situation and current debts before making a larger down payment.
Some buyers can put a down payment on a home for as low as three percent of the cost of the house, but that option all depends on your income and credit score.
Tip: Putting a larger down payment on a home reduces private mortgage insurance (PMI) fees and lowers the amount of interest you’ll pay over time. Be sure to consider your financial situation and current debts before making a larger down payment.
Loans
The process of taking out a loan can be grueling and the thought of it alone can be stressful, however, if you break it down, it’s a little less overwhelming.
Since you saved for the down payment, you can apply that to your dream home! Now, to calculate your mortgage loan. Below is a great example of what taking out a mortgage loan looks like;
If you take out a $250,000 loan, with a 30-year fixed rate, a 10 percent interest rate, and have an average credit score, you’ll be looking at a monthly payment of $2,000.
Since you saved for the down payment, you can apply that to your dream home! Now, to calculate your mortgage loan. Below is a great example of what taking out a mortgage loan looks like;
If you take out a $250,000 loan, with a 30-year fixed rate, a 10 percent interest rate, and have an average credit score, you’ll be looking at a monthly payment of $2,000.
Finding a Realtor
Buying a home can be overwhelming. Just the price tag alone can be overwhelming without even considering the location, mortgage payments, and all the terminology that seems like a foreign language.
Finding a realtor is easy, you just need to find one that is familiar with the area in which you want to buy a house in. Also, it’s important to select a real estate agent with experience and that works for a reputable company.
If you’re looking to buy a vacation home in Florida, let’s say, pinpoint the exact location you want to live or stay in, and search for a realtor. For example, Barefoot Beach realtor.
Finding a realtor is easy, you just need to find one that is familiar with the area in which you want to buy a house in. Also, it’s important to select a real estate agent with experience and that works for a reputable company.
If you’re looking to buy a vacation home in Florida, let’s say, pinpoint the exact location you want to live or stay in, and search for a realtor. For example, Barefoot Beach realtor.