Zero Down: No Cash out Required

2007-03-08 10:33:40

( Financial )



GREATER PURCHASING POWER

It is so easy to make purchases these days. Not only can you buy most things on an installment or credit basis, but also do it on a zero down or no cash out plan. Zero down can be the solution for those who need to buy something but is having problems with cash flow.

Zero down loan programs are particularly gaining popularity in the lending industry. Some banks and lending companies are coming up with mortgage packages that have zero down payment terms. Under these zero down mortgage plans, you now have the chance to purchase your own home without having to concern yourself with the prohibitive cost of down payment.

These zero down loans are especially appealing to those individuals who are gainfully employed and have decent incomes but otherwise cannot apply for mortgages because they have not saved enough for the required down payment. Zero down plans will definitely attract young executives who want to invest early in properties.

IF THE PRICE IS RIGHT

Zero down payment plans also frees your down payment money so that you can use it for other viable investment opportunities or for other personal needs. The money that would have otherwise been used as down payment can be earmarked for more productive ends.

Of course it stands to reason that zero down loans will cost you more in terms of monthly bills, interest rates, and processing fees. Moreover, zero down plans have very stringent requirements for approval. To qualify for zero down loans, your monthly income must be more than enough to meet the regular mortgage payments and your other regular expenses. In other words, your monthly cash flow must be enough to cover all your spending and be able to leave some for your savings as well.

Zero down loans make major purchases more accessible and easier to obtain. But however which way you choose to buy something, there is always a price to pay.


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