Learn Why a Condo Might Be a Great First Home

Taking Out a Mortgage for the First Time? Learn Why a Condo Might Be a Great First Home

Are you starting to tire of paying your monthly rent to someone and never building any equity? Renting

forever can be a significant pain, especially as you're contributing to someone else's financial well-being.

The good news is that there are affordable real estate options out there for those investing in their first

home. Below we will share a few excellent reasons why an apartment or condo might be the best choice

for a first-time home buyer.

A Manageable Monthly Payment

In most markets across the country, condos and apartments are available at a significantly lower cost

than a full-sized house. Buying a less-expensive home means that your monthly mortgage payments will,

in turn, be lower. If you are single or a young professional trying to start a family, that extra money can

be a massive boost to your monthly budget.

Note that while your monthly mortgage payment may be lower, you are still responsible for other

maintenance and upkeep fees. The most common is known as a homeowners' association fee, to which

all condo owners in the same development contribute. This funds upkeep of the building or property as

well as things like landscaping, a pool or gym and other amenities.

A Smaller Down Payment

In the same vein, buying a less-expensive home also means that you can put a smaller down payment

on it when you close the sale. In many cases you are required to place a certain percentage – typically

20 percent – down to avoid having to purchase private mortgage insurance. Having to commit less in

your down payment leaves more money in the bank for other purposes.

An Excellent Future Investment Property

Don't forget that when you are ready to upgrade and move into a larger house, you can keep a condo as

a rental or investment property. Once your mortgage is paid off, you are only responsible for the monthly

maintenance fees. So if you can rent the condo out to a tenant, you will have an excellent source of cash

flow that can help to pay for your new home or fund other activities.

The above are just a few of the many reasons why a condo can be a great starter home for first-time

buyers. To learn more about your mortgage options, contact us today. Our team is happy to help.