Renters, Stop Paying Your Landlord's House Payment

Are you aware of how much money you waste away every month you pay your landlord’s house payment?

As an example, let’s say you’re paying $1600 a month in rent. Those funds go directly to your landlord to pay the house payment. You are getting nothing out of this except a place to live. Plus, under normal circumstances, you are not allowed to do anything to that house without the landlords’ permission.

Now, if you were making a $1600 a month house payment, a very large portion of that payment would be interest on a loan and those funds are a tax deduction on your annual income tax, plus you would have property taxes, which are also tax deductable. You would have excellent tax write offs each and every year, and you are building a credit history.

Are you worried about funds necessary to buy a home? There are so many loan programs available to buyers that it is possible to purchase a home with no money down or a very small amount down.

There is also the possibility that a seller would be willing to pay some of your closing costs. With the amount of homes on the market today, many sellers are willing to help a buyer purchase their home. Your real estate agent can help you decide on just what you need to know to buy a house.

It can end up costing a buyer very little out-of-pocket money to purchase a home. Don’t be scared or afraid. The process of purchasing a home is not difficult. You will find that once you are a homeowner, many avenues open up to you.

When you own your own home, you will also be building equity in that house. Do you have children? Do they want to go to college? Building equity in your home can give you the ability to tap into that equity when necessary and use your extra funds to pay for college, home improvements and even debt consolidation.

When you use the equity in your house, and you get an equity line of credit or a 2nd trust deed, the interest payments on that loan is also tax deductable. So, you pay for whatever you need, like college, home improvements, etc, and the funds you borrowed are working for you because you have created another tax deduction.

If, when you purchased the house and you went with no money down, you already have a first and second trust deed.

Wait to tap into your equity until you have owned the house for a minimum of two years, as there is probably a prepayment penalty on the loans that will be over in two to three years. You can than refinance and get just a single loan or go for a new first trust deed and a home equity line of credit.

A home equity line of credit works like a credit card. You borrow just the amount of funds you need and pay only on the amount you borrowed. Say you get an equity line of credit for $100,000 and you borrow $25,000 for home improvements.

You will only pay back $25,000 and your payments are based on just that amount. Many of these types of loans can have a fixed payment amount for up to 10 years. Your loan officer will tell you exactly what your loan type will be.

If you were to get a 2nd trust deed, you will be given the full amount and you will make payments on the full amount. With a 2nd trust deed however, those loan payments can be fixed for the full term of the loan, usually 20 years. It’s really up to you and your situation.

You will be able to do whatever you want with the house. You can paint, put up paintings and pictures, change flooring, landscape, put in a pool; enjoy the home to your heart’s content.

If you don’t think you have good enough credit to buy a house, have a lender check it out for you. If you don’t have a lot of credit on a credit report, there are other ways to verify your credit, such a rent payment history, utility bills, etc. Don’t make it hard on yourself.Do some checking.

The idea of homeownership is most people’s American dream. Take that idea and make it your own.

About the author:
Patti Schopper has been in the real estate industry over 36 years. Patti has always been passionate about helping people with all their real estate and mortgage needs. Patti is a licensed real estate agent and senior loan officer. Visit Patti at www.realestatebyschopper.com