Zero Down Payment

2008-10-06 14:38:46

( Financial )



Whatever major purchase you're planning, options are available for zero down payment. Zero money down deals are available for car loans and sometimes even when purchasing real estate. Of course this will depend on your credit rating.

There are advantages and disadvantages in using zero down payment loans. You may have to pass strict credit inspections before you can avail of a zero down payment loan. Another disadvantage of using zero down payment is that you will have to pay higher monthly payments. This will add up in the long run and you will almost surely end up paying higher than if you choose to pay a down payment.

It also might also affect your lifestyle significantly if you choose to pay higher monthly payments. Choosing a zero down payment loan would mean you will have to give up some luxuries if your income is not sufficient to cover those. However, if you truly want something, you will have to be prepared to make some sacrifices.

On the other hand, there are advantages in using zero down loans too. If you're qualified, you can easily enjoy the benefits of the purchase sooner than if you wait until you have enough funds for a down payment. This is the most attractive feature of the zero down loan, a virtually instant gratification.

Zero down loans can also be used to one's advantage when the demand for rental space is high. You can purchase a property without an initial cash lay out and use the rent for the monthly loan payments. This method has been used by savvy investors to earn money without spending a single dime.

Just remember that this will require experience and the skill in timing the market. Timing the market is crucial to realize profits using zero down loans.


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