Buy Single Family Homes As Foreclosures And Enjoy Savings For Years To Come
As their name suggests, single family homes are designed for use by a single family. Most homebuyers seeking residential properties are looking for single family, detached homes. If you are such a homebuyer, you should consider the far-reaching financial implications of your decision. If you do so, you will find that buying foreclosed single family homes can help secure your financial future much more effectively than buying a full-priced home.
Since foreclosed single family houses have been repossessed, they are usually priced below market value. This means several things. First, it means that the overall price you will pay on the property will be smaller, so you will save money up front. Secondly, it means that you will spend less money in interest on the mortgage, since you are paying interest on a smaller amount. This will save you money on financing. Thirdly, it means that you will be paying less per month on a home loan than if you paid more for the house. This means that you will have more money left over every month to spend as you wish.
In addition to up front savings, however, a foreclosed single family house has a positive impact on your finances over the long term due to equity. Since you pay less than the single family home is worth, you generally enjoy instant equity. For example, if the home is worth $200 000 and the asking price you pay is $150 000, then your equity in the property is $50 000. Equity is crucial for your overall financial health. If you have equity in the property, you may be able to negotiate for better mortgage rates and terms, so that you pay less for financing. If you buy single family homes with equity in them, you can borrow against this equity in an emergency. As well, having equity in single family homes can boost your credit rating, which can mean you qualify for better rates on all your financing.
by: Joseph SmithAbout the Author:Joseph B. Smith has been educating buyers on the finer points of single family foreclosures at ForeclosureDeals.com for over ten years. Contact Joseph B. Smith through ForeclosureDeals.com if you need help finding information about single family foreclosures.