mortgages - any alternative ways of buying a house?

i've just been having a quick look at how much i could borrow to buy a house. most mortgages work out that i'd be paying back 3 x what i borrowed!! that's such a rip off. are there other ways to fund a house purchase? i'd be a first time buyer so wouldn't have anything to secure a personal loan on to get a loan that big.

please don't suggest part-buy, part-rent schemes, i'm already looking at this but still need to fund the half i'm buying.

9 Answers

  • 1 decade ago
    Favorite Answer

    It's not a rip off because you take so long to pay it back. Mortgage is the best way to fund a purchase. The only better way is raise some money by saving to be able to offer a bigger deposit.

  • 1 decade ago

    Start with the fact that the odds are against getting an unsecured loan for a purchase as big as a house. Second, unsecured loans have higher interest rates then do mortgages, so even if you could find an unsecured loan, you would be paying even more in interest than on a mortgage.

    This leaves cash for the house (no interest) or shorter mortgages (higher payments, but more goes toward the principle, thus reducing interest).

    As for the part-rent, part buy (rent-to-own), you would most likely still be paying for 90-95% of the house after a;ll is said and done. Only a portion of the rent goes into an escrow account (For example, let's say you were going to rent to own a $100,000 house - if you paid $1400 in rent, probably $400 a month would go into escrow, which means at the end of the year, you would have $4800 to put toward the house - only about 5% of the purchase price).

  • 1 decade ago

    Four methods to own a house:

    1. You find a briefcase full of cash somewhere.

    2. Save for a bigger deposit thus reducing the interest you pay back on the mortgage.

    3. rent some bedrooms in the house to help you pay the mortgage.

    4. Don't buy a one!

    Option four is the best option. It's far cheaper to build a house than to buy one because when you build, you're only paying for the materials, which don't change much in price

    However when you buy a house, you will almost always end up paying way more than it cost the builder to build the thing in the first place.

  • Anonymous
    1 decade ago

    I can see where you think it’s a rip-off, but you’re asking a company to loan you hundreds of thousands of dollars for the next 30 years. Would you extend that kind of loan to someone without expecting a return on your money?

    The other way to buy a home is to pay cash – just most of us can’t do that. Thus, we get mortgages.

    I don’t really see it as a rip-off. I’m paying for the use of someone else’s money. If I’m smart and buy at a low price and sell at a higher one a few years from now, I can pay back my lender and still get a profit for myself. It’s win/win in my book.

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  • Anonymous
    1 decade ago

    The only real way out of not paying back all that interest is to put more down on the house. You either have the money, or you have to borrow it.

    Source(s): real estate agent
  • D
    Lv 7
    1 decade ago

    Try I still don't think its a good time to purchase a house. Prices are and will come down even more. Some estate agents can hardly sell one house a week at the moment.

  • 1 decade ago

    You could always buy it outright?

    If you save £800 a month for 15 years... you would be able to buy a property worth £144000... and with the house market these days - you never know what you could get?!

    Or you could ask a few family members - grandparents, parents to give you/lend you a % of the money.

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    4 years ago

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  • 1 decade ago

    no, I don't think there are any other ways, best to save up a Deposit as deals are getting less generous all the time.

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