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There’s no clear advantage of one option over the other, which is why you should get to know the ins and outs of condominiums and townhouses before you settle on your perfect home. Townhouses and condos both refer to a type of ownership, meaning you won’t have to pay rent to a landlord. So, if the roof leaks, the HOA replaces it.
It costs an average of $35 per month for every $100,000 of your home'svalue. Don't forget about those small repairs that you won't be calling your landlord about anymore. Sure, that monthly mortgage payment seems affordable, but don't forget to take homeowners association (HOA) fees into account. Maintenance and repairs.
Think of equity as the amount of money your home is worth after what you owe is deducted. When your homevalue goes up and you start paying off the loan's principal balance, that builds equity. Make Predictable Monthly Payments When you're a renter, you're at the mercy of a landlord.
Build Equity Your home will have a value assigned to it, and you'll be making mortgage payments. The difference between the home'svalue and what is left in your mortgage is the equity. In other words, if your home is worth $100,000 and you have $60,000 remaining in your mortgage, you have $40,000 worth of equity.
Hold a buyer strategy session Many homeowners feel stuck in their current home even though theyd love to upgrade to something bigger or sometimes something smaller. This is usually because they dont know their homesvalue and how to go about selling in order to tap that equity. Once you do, you just may have a client for life.
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