A home is easily one of the biggest purchases someone makes in their lifetime, along with extensive home renovations. The following cost-cutting tips for your home, however, can help you cut down on these costs:
If you’re purchasing a home, you may need a certain amount of money to put down in order to take out a home loan. However, going beyond the minimum requirement and putting down at least 20 percent can help you eliminate PMI (Private Mortgage Insurance), which will usually add between 0.3 to 1.5 percent of the entire loan amount on a yearly basis. It’s also important to shop around for different mortgage rates, and if possible, wait until your credit score is high enough to allow you to qualify for the lowest rate possible.
Whether you’re remodeling your current home or purchasing a fixer-upper, the cost of renovations can add up quickly, especially if you’re doing a complete remodel. While you should save the complex work for a professional contractor, there are a lot of tasks and cost-cutting tips for your home that you may be able to easily accomplish yourself that can help cut down on your overall expenses. This can include doing a lot of the prep work yourself. For instance, if you’re replacing the carpeting, you may want to consider removing the old carpeting on your own.
Even if you plan on financing the purchase of a home, you may need a down payment ranging from 10 to 20 percent in order to qualify for a mortgage. This will vary based on different factors, such as the type of home loan you’re applying for, credit history, and so on. Regardless, the larger your down payment is, the lower your mortgage payments will be because you’d be borrowing less. However, coming up with the money for a down payment isn’t always easy. For some, this is what stands in their way of homeownership.
Home renovations can also be very expensive, and getting the cash needed to cover these costs can be challenging. Personal loans are sometimes an option, but in the end, borrowers usually pay more due to interest.
If you’re receiving structured settlement or annuity payments, there may be. At DRB Capital, we may be able to purchase all or a portion of your future payments, and provide you with your money sooner in a lump sum. That money can be used to renovate a current home, or as a down payment toward the purchase of a new home. Learn more by contacting us today!