Can you really Rent To Own Home ?
You must have seen those little ads in your local paper that say Rent to Own Home or Rent to Own House. But where do you find the
dream house you want to rent with an option to buy? What’s involved
in a rent-to-own agreement? How does it work? And more importantly
how can you rent to buy homes without being cheated?
Rent to Own is also known as lease purchase, lease to buy, rent with
option to buy, lease to own, and lease with option to buy. These are
all different terms for rental agreements with an option to buy the
same property at pre-negotiated terms.
But Are You Still Wasting Your Time and Money?
Buying a home can be a tough decision especially when you have to
support a family or start a life. Owning a home is certainly better
than renting. If you desire to own your own home but are unable to
obtain a bank loan today, leasing a home with an option to buy may
sound like a good option.
A lease purchase can make your rent money work for you instead of
making your landlord rich. When you make such an arrangement, you
still rent your home, and your landlord is still the owner of the
house. But part of your monthly rent goes toward your down payment.
At the end of a specified period, you obtain a mortgage loan and buy
the home you have been renting.
Let’s explain by the numbers. Say, you sign a rental agreement with
your landlord, and you pay him $1,000 every month. In your contract
you agree that your rent will be $800, and the remaining $200 will
go toward the down payment of the home. That way, at the end of
three years you save $7,200 ($200 per month x 12 months x 3 years)
for down payment. Remember, your landlord still owns the house you
are living in. At the end of a specified period, which is three
years in this example, you find a mortgage loan for the rest of the
money, and buy the house.
But the point is you are still paying a large amount of rent, a
total of $28,800 ($800 x 12 months x 3 years) in the above example.
So, isn’t it wiser to own a home now than later? It sure is. Now
with the internet, lenders have worked out solutions for people with
bad credit or who can’t afford a large down payment. If you desire
to own your home, you can get mortgage loan quotes online to meet
your special needs and goals. Feel free to use the links below to
ask for quotes. You can realize your dreams sooner than you think.
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