There are so many perks of owning your own home, but it’s not always easy or even possible to make it happen with a traditional mortgage. Luckily, there are still ways to get on the path toward home ownership without a traditional mortgage and sizeable down payment. Should you consider lease-to-own instead of a mortgage?
What is Lease to Own?
In a lease-to-own agreement, you effectively agree to a standard lease agreement with the chance to opt in to purchasing the home before the end of the leasing term. It’s a great option for those who would prefer to own a home someday but would be better off renting for the time being, especially if you want to purchase a home in the same area as your rental space.
Benefits of Least to Own
No Down Payment
Since the arrangement starts out as a standard lease, no down payment is required up front. This gives you ample time to start saving money for one if you end up deciding to purchase the home.
Build Equity
Before you even purchase the home, a portion of your monthly payment will actually be contributing toward the cost of the home. This allows renters to build equity before they even commit to purchasing.
Capitalize on Mortgage Rates
In the midst of all the turmoil of 2020, interest rates have actually never been better! If you lease-to-own now, your future purchase will be based on today’s interest rates. This could end up saving you thousands of dollars down the line if interest rates begin to rise once more.
Try an Area Before Committing
If you are considering moving to a new area, leasing to own will allow you to fully experience the area before committing to living there for an extended period of time. With lease-to-own, you can be sure that your future home purchase is in the perfect neighborhood for you and your loved ones.
Is Lease to Own Best for You? Make an Informed Decision with Clearview Realty
Clearview Realty helps home buyers in Colorado, Florida and California understand the different types of purchasing options that are available and provides loans to help people achieve the dream of homeownership. Since the specifics of which purchasing method to choose is dependent on a variety of factors, we encourage you to call us for more information and find out which is right for you. Our number is (720) 217-5731, or you can send us a message.