The Truth About Down Payments (Shhh... You don't need 20%)You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid,
Home Buying Myths
Home Buying Myths
Myths: Fact or Fiction?
Frank Sinatra, very easily the most iconic of crooners was born in 1915 and died in 1998 after posting hit after hit both on stage and on screen. He was also considered the king of the original “Rat Pack,” featuring Dean Martin, Sammy Davis Jr, Peter Lawford and Joey Bishop. They ruled Las Vegas in the 1950s and 1960s and as you might expect, their popularity and mystery spawned a lot of myths.
Some true and some not so. There was a myth that Sinatra was indeed a “bad boy” as a result of a mug shot taken of him when he was arrested. But he was no such bad boy and actually he lived a relatively tame life.
It was also rumored that the girls who screamed at the top of their lungs each time Sinatra sang actually auditioned to be in the audience and whoever screamed the loudest not only got paid but got front row seats. Myths are hard to filter through sometimes and home buying is no different. Here are a few home buying myths:
Sorry, but buying is not always better than renting. Renting provides advantages to those who move frequently. Financing a home requires closing costs as well as monthly maintenance and upkeep. When renting, maintenance and upkeep are the responsibility of the landlord.
Real estate isn’t always a solid investment. Values can and do change over time and even the most savvy of real estate investors make mistakes timing the market. Owning a home and watching equity increase over time is a good thing, but buying a home just for appreciation may not be the best of moves.
Regarding financing? It’s not always the best idea to take the most popular loan- the 30 year fixed rate mortgage. Even though the monthly payments will be lower with a 30 year compared to say a 20 year loan, the amount of long term interest is much greater. Speak with a loan officer to run different scenarios.
Finally, you do in fact need an agent when looking for a home. Agents don’t cost buyers anything because it’s the seller of the property who actually pays the commission, not the buyers. Buying a home without an agent might be one of the biggest mistakes buyers can make when they don’t need to.
Dr. Ryan Weston has a doctorate in saxophone performance from UCLA. Ryan was attracted to mortgage and real estate because he is a detail-oriented people person. CalBRE #01944672....
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