Now is The Time...
To Invest In Your Child's Future
The FHA Lending Limit is currently $271,050 in the Albuquerque Metro. For less than $200,000, you could invest in Residential Real Estate for your Child's Future. If you have kids heading to college in the next 2 years, why not buy the house or condo and know your child is safe & you are controlling the property?
Jimmy or Susie can also get a roommate or roommates to offset the mortgage payment, and in 5 years, you can either turn the property over to your now graduated adult child, or they can sell it for the equity it has acquired (currently 6% appreciation on average, more in the UNM/NobHill/Ridgecrest/Downtown areas), or continue to use it as a rental property, providing monthly cash flow & income for your family.
Example: purchase a 3 bedroom 2 bathroom property for $200,000. The down payment is 3%, or $6000.00. The monthly mortgage payment would be based on a loan amount of $194,000 in this example, and let's estimate the interest rate would be 6.25%. The payment would be around $1250 a month, with taxes & insurance. Again, take into consideration your student would have 2 roommates paying each $500 a month, and now your student or you are responsible for paying $250 a month toward the mortgage along with the $1000 from the other roommates.
After 5 years, you will have paid down the mortgage about $10,000. The property would have appreciated using the minimum of 6% per year or $67,645, giving your property a new value of $267,645, and a mortgage balance of approximately $184,000, giving you a gross equity of $83,645!
What if you have multiple children going to school over the next few years? Think about having them live in the property you co-sign for definitely would be cheaper than renting.
So what if your student rented? Taking that same payment of $1250 a month, over a 4 year college degree term, that rent would add up to $60,000 - all down the drain and paying a landlord's mortgage payment instead of creating equity for you and your student. And let's say I'm wrong - let's take half that payment of $1250 or $625 a month, pretty reasonable rent that your student would pay, and again, that's a loss of $30,000 paying rent.
The Equity is a Savings Account for you and your student! You would also realize the following;
* Educating the next generation in Investing & Credit Usage
* Feel safe knowing your student is paying you, not a landlord the rent
* Roommates can offset monthly mortgage payment
* Security, Safety, Savings
For more information, call me today - Melinda Potcher, Mortgage Maven
Direct: (505) 259-5397
Email: Melinda@TrinityMTG.biz
website: www.HomeLoansAlbuquerque.com
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