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Two Numbers Guide First-Time Costa Mesa Homebuyers

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Real Estate Broker/Owner with Weichman Real Estate, A Trusted Name In Orange County Real Estate #00573423

When it comes to figuring out how to begin up the path to homeownership, Costa Mesa renters are left pretty much to their own devices. For the majority of first-time buyers who will use home loan financing to get there, getting started is simple enough: you begin by knowing two basic numbers. The first is the amount of money you will be comfortable spending for housing each month. This is a figure that will cover your mortgage payment, upkeep, insurance, and property taxes—everything your Costa Mesa house will cost on a month-to-month basis. But you don’t have to worry about calculating those elements in advance; to start, you only need to know that single total. Estimating it is easier than you might think. Renters already know what they pay in rent each month. That’s usually their total housing budget—so they can simply expand on that already-known number. It’s a question of being realistic about how much more could be devoted to the category without causing undue stress and strain. There are two wrinkles that can boost the figure: a) Savings. For all but interest-only home loans, monthly mortgage payments include a pay-down of the principal—the remainder owed. Owning your Costa Mesa home means building equity in it. If you are already a regular saver, it’s realistic to consider that a portion of what you regularly put aside can now be considered a home equity-building form of saving. You can realistically add that amount to your housing budget. b) The tax bonus. Income tax rules govern how much of the interest portion of monthly mortgage payments is deductible at tax time. For mortgage amounts up to $750,000, it’s 100%! The reduction in tax dollars spent can be added to your housing budget figure. The second number is the amount of cash you can make available for a down payment. For most first-time buyers, even thinking about this figure can halt the whole project—particularly for those who have been led to believe that home loan down payments require a minimum of 15% to 20%. The amount available may go further than you’d think—especially considering that last year’s average down payment for the majority of first-time homebuyers was zero to 6%! In that department, we can help point clients to resources and special programs available for many of today’s home buyers. Give us a call once you have calculated your two basic figures—we’ll see how far they will carry you in today’s Costa Mesa market!

 

We are built on a philosophy of Heritage & Hustle L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, L3 has grown to a full staff of 20 serving over 300 clients a year. L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact L3 today at 714-444-4663 or email us at info@thel3.com

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