Are you tired of asking for your landlord’s permission every time you want to hang up a new picture on your wall? As a renter, your apartment might be where you live, but it never quite feels like home. Every month, you send your rent check, but when you move you don’t have anything to show for it. Whether you live in a place three months or three years, when it’s time to move out, you’ll have nothing to show for those monthly payments.
One of the benefits of owning a home is that your monthly payments, this time towards your mortgage instead of your landlord, help you build equity. What’s Equity? It means that you own some of the value in your home. When you sell, that equity is converted to cold hard cash.
The more equity you have in the home, the more cash you get when you sell. When you rent, you have no equity. But when you buy, you build equity with every mortgage payment. How awesome is that?
There’s nothing quite like the feeling you get living somewhere that you get to call your own. That’s one reason why the image of a home with a white picket fence is still a part of the American Dream. But buying a home is expensive, and before you tell your landlord that you’re moving out, you’ll have to find a way to cover those costs.
Down Payment’s & Closing Costs
When you buy a home, the cost is more than just the mortgage payment. When you signed your lease, you had to give you landlord a deposit. If you buy a home, you also need to have money up front for your down-payment. The amount you need for your down-payment depends on what type of mortgage you have. Some options require only a 3.5% deposit, while other mortgage plans may require a deposit of up to 20%.
If the home you’re buying is $200,000 dollars, that means you need between $7,000 to $40,000 or more for a down-payment. While this is a lot of cash, one thing to keep in mind is that every dollar you have for your down payment increases your equity. Not only does this mean more cash if you decide to sell sometime in the future, but it also allows you to take out a smaller mortgage. This results in a lower monthly payment and potentially thousands of dollars in savings thanks to the miracle of compounding interest.
In addition to your down payment, you’ll also need to have some cash for closing costs. These costs include a lot of expenses that pop up when buying a home, like the cost of running your credit report or charges for a full home inspection. These fees will vary depending on where you buy your home, but they can range between 2% to 5% of the purchase price.
So before you ever sign for a mortgage, you’ll need to come up with thousands of dollars. If you have a structured settlement, one of the ways to get the cash you need is by selling your future payments.
Use A Lump Sum for Your Down Payment
The money you get from your structured settlement is a steady, predictable stream. It’s great for covering everyday expenses, but if you want to buy something big, it can feel a bit like trying to fill a cup from a dripping faucet.
Saving up for a down payment can take months, or even years. That means putting off moving into your dream home and risking having someone else buy it before you save enough money.
Instead of waiting, you could sell your future payments to J.G. Wentworth and we’ll give you a lump sum of cash that you can apply towards your down payment and closing costs. Instead of having to spend another year or more paying rent on an apartment, we can help you get your dream home and start building equity in something you own.
Who doesn’t want to achieve their dreams faster?
If you want to start your journey as a homeowner and you have a structured settlement, contact us today to see how we can help. Getting the cash you need to get started might be easier than you think.
This blog post is intended for informational purposes only. J.G. Wentworth does not provide financial, legal, or tax advice. Please contact an appropriate advisor for such services.
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