With home prices so high right now, people who are looking to purchase a home are looking for ways to lower their monthly payment. So let me share with you four ideas of how you can lower your monthly payment. These are things that we’ve gotten from clients, and things from ourselves. Here they go:
#1 Adjustable-rate mortgage
First one is an adjustable-rate mortgage. That’s a thirty year loan. The rate’s fixed for the first five years, and it adjusts every six months after that. Definitely something worth looking at if you’re thinking a little more short term with the place that you’re looking at.
#2 Accessory dwelling
Number two, an accessory dwelling like a basement. Finish the basement and have an accessory dwelling rented out. That could be a $1500 increase to your monthly income.
#3 Multi-unit property
Third one is kind of similar, but a multi-unit property, like a duplex or triplex. A lot of people don’t know FHA does a three and a half percent down payment on duplexes if you can qualify. So that’s definitely something to look at. Then you would have another unit in the home you bought that can help lower your net out of pocket for that property every month.
#4 Combine households
Fourth is combining households. So you have one household here, one household there, and maybe there’s a rambler with an upstairs and a basement. You buy it together, and you have a lower monthly payment.
We’ve seen all of those work for clients and they may just work for you. Feel free to reach out to us, we’d love to see how we can help you do the same!
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