• Saratoga Springs Real Estate Agent

The American Dream

Jan 21st, 2011 | By | Category: Featured Articles
American Dream - Carbone Realty - Albany, NY

What is The American Dream?

The term the “American Dream” is used in a number of ways, but essentially the American Dream is an idea which suggests that all people can succeed through hard work, and that all people have the potential to live happy, successful lives.

For many people, this includes owning their own home. When making the decision to purchase your first home, there are many things to consider. This article covers some of the financial considerations.

For most homebuyers, the biggest hurdle is coming up with a down payment. In most cases, a down payment of 10% of the price of the home is sufficient. It is to your advantage to pay more than the 10% if possible to avoid having to pay private mortgage insurance (PMI). The cost of PMI will be added to your monthly mortgage payment. Private mortgage insurance protects the lending institution in case the home faces foreclosure. Typically, the payment of PMI is done away with if you put down 20% or more.

The next big consideration is closing costs. Closing costs are the fees you pay for services that must be performed to close your loan. They include such things as appraisals and inspections, lending institution fees, title searches, and other associated fees, such as taxes and escrow. The lending institutions must give you a fair estimate of closing costs called a Good Faith Estimate, it will be given to you upon requesting a loan for a home.

"The American Dream" Dusty Rhodes... not the one we are talking about.

"The American Dream" Dusty Rhodes... not the one we are talking about.

In many cases, the amount of property and school taxes can finally determine if you can afford a particular home. Remember to keep in mind to add the amount of taxes to your estimated mortgage payment. Principle, Interest and Taxes will comprise your total monthly payment.

People with a more skeptical view of the American Dream sometimes say that the American Dream represents the possibility of living better than your parents did, and a desire among parents for their children to lead happy lives.

In other words, don’t be afraid to borrow (or be gifted) money from your parents for a nice down payment on your piece of The American Dream.

(PHOTO CREDIT:http://www.aolcdn.com/ch_realestate/couple-house-320)

Comments are closed.