If you are planning on purchasing a home in the next couple of years, the one thing you may be concerned about is coming up with the down payment on your home. Although the down payment is only a percentage of the cost of the home you buy, it can still cost you thousands of dollars. Wondering where you are going to get that kind of money? Here are some easy ways to save for a down payment so you can finally have the home of your dreams.
Income Tax Refunds
One easy way that you can start saving up for a down payment on your home is to start saving the money from your income tax refunds. Simply fill out the right forms to have more taxes held out of your paycheck each year. You’ll never notice that this money is gone. Each year you’ll get a bigger tax refund and that money can be saved towards a nice down payment on a home.
Save Your Raise
Did you recently get a raise at work? If not, maybe you should ask for one. If you just had a raise or you are getting a raise, take that extra money and start saving it instead of pocketing it. You won’t really notice the difference, since you’ll still be living on the same amount you were getting before. If you can’t get a raise, try to work some overtime and save the money you make on the overtime hours. (more…)
FHA loans:
These loans have helped so many people since its inception. The federal housing administration insures the loans given by lenders to the borrowers. They do not issue the loans directly to the borrowers. These loans are popular because of the insurance provided. Moreover, the interest rate is very less compared to the conventional loans. They have been for a very long period. The down payments are also less for these loans. This is another advantage of the FHA loans. People might not be ready to make a bigger down payment so as to get a lowered interest rate. In such cases, these loans will be of immense use.
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The majority of the government grant programs that are available are specifically for small business, students, and community organizations. But what most people don’t realize is that there is a list of both government and private organizations that provide grant money to individuals for personal use. By searching an up-to-date grant database, these available funds can be found and applied for.
What are government grants?
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Lease swapping, lots of people are looking for deals these days. Many of those same people are looking to get out of the good deal they got into. A few years ago leasing was very easy to get into. You did not have to have a great credit score, you did not even need a good score. Most of the time when when your credit
was not good enough to buy a car or you could not come up with enough down payment. you more than likely qualified for a lease.
Car dealers took advantage of this because they needed the sale and the commission. The salesman would reason that it’s a good deal to lease, because it will help build better credit. At the end of the lease, if you made all your payments on time, you will have better credit and you can buy the car, or lust give it back. Either way you are driving a brand new car.
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I was born in 1942. I was born into a nation in which even the poor saved. I now live in a nation where even the rich cannot save. To understand what went wrong you must understand the past. To an amazing extent our financial ruin was caused by the creation of two debt instruments, the credit card and the 30 year mortgage.
Prior to the 1930s the only mortgage that existed was a 5 year mortgage with a 50% down payment. The usual mortgage interest rate it is interesting to note was 6% . And yes everyone put 50% down or they could forget about buying a home. When the 5 years were up you went down to the bank and kept rolling over the mortgage until you were able to pay it off. In those days Americans were ferocious savers. It was common for people to pay off their homes in 15 years or less.
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