Silencing Your Florida Home Mortgage Fears
We’ll come right out and quiet your concerns: buying your first home does NOT have to be that difficult. We know taking out a Florida home mortgage loan seems like a major expense - and it is.
But here are some tips/facts to help you realize how much easier the process may be than you previously realized:
Buying versus renting
Paying monthly Florida home mortgage fees isn’t fun - but these can be LOWER than the cost of paying rent. Moreover, unlike rental payments that almost always rise, you can request a fixed-rate mortgage to lock in your monthly payments for the life of the loan. You can also write off the interest you pay on your mortgage. (It’s tax deductible up to a limit of $1 million, though always consult a tax advisor about your situation.) And, finally, you’ll be increasing your net worth by building equity in your home.
Making a down payment
Lenders no longer expect all buyers to have a down payment of 20 percent in order to qualify for a mortgage. It’s not realistic in the current market. According to the National Association of Realtors, today most first-time home buyers put 10% or less down on their homes. There are also government-backed down-payment assistance programs available to help you if you’re having trouble coming up with sufficient funds.
Qualifying for a Florida home loan
Don’t assume you won’t be able to qualify for a mortgage just because you have a low credit score. If your score puts you in the category of a “risky borrower,” you may be required to pay for mortgage insurance. You may also incur a higher Florida mortgage rate. But once you’ve paid your mortgage down for a year or two, you should be able to cancel the insurance and renegotiate the Florida home loan at a better rate.
Meeting monthly payments
Trust us: If you can afford rent, you can meet your mortgage every month. Just be realistic. Make sure you have enough money left over to pay your other bills. Most lenders recommend that your total monthly debts, including your Florida mortgage, should not exceed 36 percent of your income before taxes. When you first take possession, you’ll also need to factor closing costs, plus moving, redecorating and maintenance into your budget and allow for increases in ongoing expenses such as utilities and taxes.
Subsidizing your mortgage
Still not sure your money will stretch as far as you need? Don’t throw in the home purchasing towel just yet. Consider getting a roommate to help meet the Florida mortgage payments or renting out the basement. If you’re self-employed, moving your office into your home may enable you to write off a portion of the expenses (check with a financial advisor).
