In the United States of America, one in three homebuyers used a credit card to finance their real estate needs. According to a report by the National Association of Realtors (NAR), 31.5% of homebuyers used credit cards to help finance their purchase. The average amount of credit card debt was $17,844.<\/p>\n
Tight lending standards and rising house prices have made it harder for many potential buyers to qualify for a mortgage loan which has led more buyers to utilize credit cards to finance their home purchases.<\/p>\n
“Nearly one-in-three U.S. homebuyers used credit cards for all or part of their down payment last year \u2013 up from one-in-five in 2006,” said NAR chief economist Lawrence Yun in the report. “The number of people who purchased homes with credit card debt rose as the median down payment increased.”**<\/p>\n
In this article you will learn how to buy a house with credit cards. We are going to talk about “Paying with plastic” in more detail, and look at the reasons why people use their credit cards to buy a home.<\/p>\n
It doesn’t matter what credit card you have, or if you have no credit cards at all, as there are ways to acquire them if you need them. But before we go into that, here’s a bit of background on home buying.<\/p>\n
This is not the first time in history when consumers made large purchases through their credit cards. During the 1990s many consumers used their credit cards to finance big ticket items such as cars and even homes. This was before the internet became popular, so it wasn’t easy for people to get a loan from a bank or financial institution. The only alternative was using their credit card for these large purchases.<\/p>\n
In fact, according to some statistics, 31.5% of homebuyers use credit cards for financing their real estate needs. According to the National Association of Realtors, 14% of all home sales in 2007 were made using some type of credit card transaction.<\/p>\n
The mid-90s was also when mortgage lending became easier than ever before due to an increase in investor buying and<\/p>\n
The use of credit cards in real estate transactions is still a relatively new concept. A recent study conducted by the National Association of Realtors shows that about one third of homebuyers used their credit cards to finance their real estate needs.<\/p>\n
Besides being convenient, this type of financing has many other benefits for consumers. It is an easy way to save on the down payment, which can make all the difference in purchasing your dream home. It can also help you avoid using a loan from a bank or another lender, which could result in paying higher interest rates and fees.<\/p>\n
Because this is a relatively new concept, there are still some concerns that consumers have about its usefulness and safety. In order to address these concerns, here are some answers to the most frequently asked questions about using credit cards to finance real estate purchases:<\/p>\n
A new report from TransUnion shows that consumers are using credit cards to finance their home purchases. According to TransUnion, 31.5% of homebuyers in the third quarter of the year used their credit cards to make a down payment or for part of the closing costs. This is up from 29.7% in the first quarter and 26.9% in the second quarter.<\/p>\n
TU’s study also reveals that more and more consumers are opting to finance 100% of their home purchase with a loan, which is up from 15.1% in Q3 2008 to 17.2% in Q3 2009. Credit card debt is becoming an increasingly common way for consumers to pay for large ticket items such as cars and homes, and it can be a risky proposition if used inappropriately by those who are not financially responsible or do not have a steady income stream.*<\/p>\n
Source:*http:\/\/finance.yahoo.com\/news\/Transunion-31-5-homebuyers-use-credit-cards-150838983.html<\/p>\n
Interest Rates on Credit Cards vs. Mortgage Rates<\/p>\n
If you’re looking to buy a home, the credit cards in your wallet may be an option you haven’t considered yet. After all, many of us have them and use them on a regular basis. However, if you’re in the market for a new mortgage loan, it’s important to know how credit card interest rates compare to mortgage rates. Here’s how they stack up:<\/p>\n
Credit Card Interest Rates<\/p>\n
The average annual percentage rate (APR) for a credit card is about 16%, according to data compiled by the Federal Reserve Bank of St. Louis. This means that if you carry a balance on your card from month to month, you will be charged 16% interest on all of your purchases. This is the price you pay just for having the privilege of buying now and paying later.<\/p>\n
Mortgage Interest Rates<\/p>\n
Conventional mortgage rates have historically been much lower than credit card rates, averaging around 5% during this decade, according to Freddie Mac’s Primary Mortgage Market Survey. The average conventional 30-year fixed-rate mortgage during the first quarter of 2006 was 5.44%. If homebuyers can secure this rate or one close to it, they could reduce their monthly payments and save thousands of dollars<\/p>\n
The “white wall” effect can occur in any space that needs a new coat of paint. The white walls can trick the eye into seeing the flaws in the room’s overall design, rather than the flaws in just a single wall.<\/p>\n
Treat your entire home to an updated look by painting your walls a rich and deep color. By changing the color of your walls, you can change the entire look of your home. Painting your home a new color will rejuvenate even the most dated rooms of your residence.<\/p>\n
The easiest way to create a new look is by covering everything but one wall with fresh paint. This allows you to focus on the one wall that needs updating while hiding any other potential problems within the room’s design. After you’ve decided which wall is going to be painted, take out everything from the room that isn’t nailed down or attached to the floor.<\/p>\n
This gives you full access to the bare surface of the wall and will allow you to paint over any previous damage or flaws that may have been made during installation. Once you’ve prepped for painting, grab a measuring tape and make sure that you are within code for things like electrical outlets and fireplaces before you begin painting.*<\/p>\n
If you’re looking to transform your home’s interior but don’t<\/p>\n
Whether it’s an actual renovation or just a change in the way you decorate, you’ll want to add something new to your walls. You’ve been looking for a piece of art that you can finally hang up and now you’re ready for it! Whether you’re thinking about buying original art or reproductions, there are several different kinds of art to choose from.<\/p>\n
Tapestries One of the most popular choices is wall tapestries. They come in many different patterns and colors and varying sizes, so you’ll be able to find one to suit your needs. If you want to freshen up a room with some color, try hanging some brightly colored tapestries on the walls in neutral colors like white, brown or black. Choose something with a pattern that will go well with your furniture, carpets, rugs and other decorations.<\/p>\n
If you have pieces of art that are already framed, but they aren’t quite what you’re looking for, consider having them framed in a new style. The frame can make all the difference in the way that a piece of art is displayed. You may also want to consider putting together a collage by framing various smaller pieces of art together. This can be an interesting alternative if you have several small prints that each have<\/p>\n","protected":false},"excerpt":{"rendered":"
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