Mortgage Loans, Rates, Home Buying, Selling, Foreclosures » own http://www.ourbroker.com Consumer Real Estate Information Since 1996 Tue, 07 Sep 2010 09:01:23 +0000 http://wordpress.org/?v=2.8 en hourly 1 Is It Better To Own Or Lease A Car? http://www.ourbroker.com/library/is-it-better-to-own-or-lease-a-car/ http://www.ourbroker.com/library/is-it-better-to-own-or-lease-a-car/#comments Sun, 31 Aug 2008 00:06:45 +0000 Peter G. Miller http://www.lacompworks.com/ourbroker/?p=1176 Is It Better To Own Or Lease A Car? is a post from: Refinance, Home Mortgage Loans & Rates, Home Equity Loan

]]> Having title to a car means you have an asset, an addition to your net worth once all financing is paid. Having a lease means having a debt that must be considered when a lender looks at your financial ability.

Lenders must also consider what is likely to happen when the lease is up. The borrower will either buy the car (which means a lump sum payment or a new loan), buy another car (again, think of a new loan and payments), or enter into another lease (still more monthly payments) — three situations which mean additional costs to the borrower.

Alternatively, if you expect to give up the car when the lease ends, be certain to tell the lender and explain why. For instance, at your new location, only one car will be needed in the household, you will be able to commute by public transportation, etc.

Lastly, many loan programs allow lenders to ignore monthly auto payments if only 6 to ten payments remain. The thinking is that the payments will be made, and the vehicle will be retained for some time. This consideration applies only to auto loans for a car being purchased and not a lease.

Is It Better To Own Or Lease A Car? is a post from: Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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