Luxury Homes: How to Find Affordable Mortgage Plans
Many Americans dream of living in a luxury home, but often diminish the goal as a dream. There are ways to afford luxury homes, whilst affording a fair mortgage plan. This is done via personal plans or manipulating the housing market.
Find The Right Time To Buy
There are peak times and off-peak times when it comes to the housing market. The winter season sees the demand for housing decreased, meaning there is less competition when it comes to buying a home. Less competition means sellers are more likely to accept lower offers, as they need to offload quickly and can’t wait.
This is also because many Americans want to sort out their finances before the new tax year, and don’t want a property they’re trying to sell to be on their books. Finding a motivated seller really helps with speeding up negotiations and agreements too. A seller who is struggling to sell, either because of misjudged prices or time of the year, means they will listen to you more keenly.
Use Effective Loans Like Jumbos
For properties that are over $500,000, it can be difficult to secure funds for both a down payment, and afford the following monthly payments. There are loans designed to work around this, benefiting both the buyer and the seller.
One such loan is a jumbo loan, you can borrow up to $2,000,000 from providers such as The Home Loan Expert, allowing for down payment amounts from 10%-15%. They have options in both purchasing and refinancing, depending on what you’re after.
These loans are easy to process, and can be used with competitive rates, without any PMI. You should consider all options available to you, and speak to anyone you’re planning to move in with about what you should do. It doesn’t help to speak to your bank or loan provider either, or even the realtor.
Look At Foreclosed Properties
There is a way of purchasing luxury properties at discounted prices. A foreclosed property is a home, usually an expensive one, which the previous owner couldn’t afford. When they can’t afford a property, the bank or lender will seize it, as they have the legal right.
These places then have to sell the properties, as they have no other interest with them. Due to the costs associated with them holding on, they want to be able to move it on quickly. Sometimes, this will be up to 15% below its market value. Whilst a decade ago foreclosures were only purchasable via whole cash, you can use finance to buy now.
You Can Use Your Retirement Account
If you really wanted, you could utilize your retirement account, as a last resort. It is not considered wise to dip into this fund, as it helps protect your future self. It is possible, however, to use your 401(k) plan to take out a specified cash amount, for a dream luxury home.
By Zoe Price
Images by Tierra Mallorca and Florian Schmidinger
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