{"id":627,"date":"2020-03-30T09:54:25","date_gmt":"2020-03-30T09:54:25","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/the-benefits-for-financing-down-payments-and-renovations\/"},"modified":"2023-03-05T19:47:10","modified_gmt":"2023-03-05T19:47:10","slug":"the-benefits-for-financing-down-payments-and-renovations","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/the-benefits-for-financing-down-payments-and-renovations\/","title":{"rendered":"The Benefits for Financing Down Payments and Renovations"},"content":{"rendered":"

Whether you’re a professional property developer or a single homeowner, financing your property ambitions comes above all else. Even professional property developers with a proven system of acquiring and renovating homes<\/strong>, condominiums and business properties can run into financing issues.<\/p>\n

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We’ve examined the benefits of financing a higher down payment, purchasing renovations and the cash financing options available for those of you looking to buy and upgrade your home.<\/p>\n

Why Save For a Greater Down Payment?<\/strong> <\/p>\n

Banks and lenders<\/a> want low risk scenarios and that ultimately comes down to meeting the required down payment for your mortgage<\/a> deal, and they’ll give you a better deal if you offer<\/a> a lower risk scenario. Paying an increased down payment comes with a number of fantastic benefits for your financial future. Here’s a few key benefits, according to Investopedia;<\/p>\n

Reduced Mortgage Payments <\/strong>– Because you’ve put more cash up front, your monthly payments will be smaller and more manageable<\/p>\n

Lower Interest Rates <\/strong>– Lenders will give you a far improved rate since you’re deemed a lower risk. Expect interest rates to lower significantly upon 20% down payment.<\/p>\n

No Mortgage Insurance<\/a> Fees <\/strong>– If you can’t afford a significant deposit, most mortgage deals will require you to take out mortgage insurance, which will add another 0.5 – 1% interest on top of your existing deal.<\/p>\n

Ability to Ride Out Financial Crises <\/strong>– When it comes to a financial crisis, those in most danger of ruin are the ones who have taken out the maximum loan<\/a> available on the lowest down payment. They have a high interest rate deal and may even face foreclosure<\/a>.<\/p>\n

Why Save For Renovations?<\/strong><\/p>\n

Renovations and upgrades obviously provide that wonderful ability of allowing you to transform your new home into your own dream living space. But aside from that, they can also allow you to significantly improve your home’s resale value. Investopedia strongly advise making wise additions to your home that will ultimately boost your bottom line.<\/p>\n

According to US News Money, these are the renovations and replacements that will bring the greatest % return on investment;<\/p>\n

Renovations that bring the greatest percentage return on investment:<\/strong><\/p>\n