The 15 Financial Benefits Of Rent To Own
If you are new to the Rent to Own phenomenon that being increasing in popularity
over the last few years, no worries , you haven't missed the boat. There are so many benefits of rent to own that I had to spilt them into two different articles. This one will outline the financial benefits and my next one will outline the personal benefits.1. Rent Money is working Toward the Purchase of the Home: Every month a portion of your rent payment (typically $200-$600, depending on the program) is credited towards your down payment.
2. Down Payment Towards the Purchase of the Home: When you sign a Rent to Own contract, you will pay the seller an option deposit (down Payment). This money is your vested interest in the home and will be fully (100%) credited to you when you buy the home.
3. Minimum Cash Out of Pocket: When you purchase a home conventionally, you must pay at least 5% down plus closing costs. When you buy with a Lease to Purchase, you pay first and last month's rent and a small option deposit.
4. Profits from Appreciation: Since the sales price is locked in before closing (as specified in your agreement), any increase in property value will mean that your equity (what you owe minus what it's worth) is increasing in the home.
5. Credit Problems are Okay: Qualification restrictions simply do not exist. You will be approved at the sole discretion of the seller.
6. Clean up your credit issues: By re-establish your credit with our mortgage specialist will allow you to attain the lowest interest rate at the end of the term.
7. No Lengthy Mortgage Approvals: Your approval will be based solely at the discretion of the seller instead of a lender who can take up to a month (or longer) to render a decision.
8. No Taxes, Less Liability: Since you do not own the home (yet), you will not have to pay property taxes and your liability exposure will be dramatically reduced.
9. Maximum Leverage: You are spending very little money to control a very expensive, and very profitable, piece of real estate.
10. Customized Terms: You get to select the payment amount that you're comfortable with and purchase the home anytime during your agreed upon term.
11. Know your Purchase Price: Knowing what your purchase price is provides transparency and a benchmark for all of your credit needs to successfully secure a mortgage on your home.
12. Fixed Monthly Payments: This helps you budget your finances on a month to month basis.
13. No rent increases for 3 years: Did you ever receive a letter from your landlord? If you are a renter, your landlord usually raises the rent each year. The rise in rental amount can be anywhere from $25 to hundreds of dollars, depending on your area.
14. Save enough Down Payment: Insufficient down payment is not an issue with a rent to own property. Our program will ensure that you have enough saved at the end of your term in order to purchase the home that you're in.
15. Forced savings: The Rent to Own program allows you to save money from a portion of your rent while you sleep in your home. This planning makes saving for your home possible and easy to do.
by: Darlene Hibbert An Intimate Affair: Wedding Packages For Small Ceremonies Lg Optimus One : The Amazing Handset Of Lg Family Finding Dream Deals On Long Beach Foreclosures International Recruitment Agency Same Day Decision Loans - Five Important Steps One Should Know If You Are Going To Contend In Trade, You Need Desktop Management Dating Beautiful Women - It's Easier Than You Think! Summer style Protect Yourself from Home Based Business Scams Trade In Miami Same Day Unsecured Loans: Quick Money Help Without Collateral LeadNetPro System - An Online Review Periodontists Gum Treatment Options For Gum Recession