November 03, 2021

San Diego realtor Jeremy McHone gives you 3 tips on how you can get a lower monthly mortgage payments.

Ways to Lower Your Mortgage Payment

I'm Jeremy Mchone with the Whissel Realty Group. And I want to share with you my three tips on how to save on your monthly payment when you're buying a home.

Extra Bedrooms

The first tip on how to save on your monthly payment when you buy a home is to buy a home with some extra bedrooms that you could rent out to some trustworthy roommates. I've helped a lot of clients buy homes and those clients knew going in that they're buying more bedrooms than they needed because they had somebody in mind that they could rent their room to, to help offset some of that monthly payment.

MultiFamily Home

Tip number two for helping reduce your monthly payment when it comes to buying a home is to buy a multifamily home. That's two to four units. And the cool thing about that is you can live in one of the units and rent out the other one, two or three units to other people. And a lot of times still have your own space. And because it's two to four units it’s considered residential, not a commercial property. You can still buy it with your standard mortgage with a minimum down payment, as little as three, three, and a half percent, or even 0% down if you're doing a VA loan.

That's a great way you can minimize not just your cash out of pocket to buy the home, but also your monthly payment by having tenants in place to help offset some of that mortgage payment. In addition, there are certain circumstances where you can actually use some of the tenant’s rent that they're paying as part of your income to qualify for the loan on that home.

Value Adds

The third tip I have for how to reduce your monthly payment, when you buy a home, is going to be to look for a property that you can do what we call a value-add. And value-add is exactly what it sounds like. Adding value to the property. Whether it's a property that needs some updating that's really dated, or maybe it's a property where it has a garage, that's not going to be used that you can convert to an ADU and rent that out. And the trick to that is you to have some creativity and you have to be able to see in a property, some of the possibilities that other buyers aren't seeing.

And that's how you can score a great deal on the property and then add value to it through some sweat equity and some hard work. I'm Jeremy Mchone with a Whissel Realty Group. If you have questions about how you can make owning a home more affordable, drop a comment below, shoot me a DM, or go ahead and just give me a call or text the number listed below.

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