American Mortgage Resource, Inc.

Providing the Best Financial Resources for Boston and Massachusetts

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Condo vs. Townhouse

Condos and townhomes can offer many comforts and homely characteristics that traditional homes offer, if not more! Many families, couples, and individuals choose to buy and rent these types of homes for their appealing amenities accompanied by their smaller price tags. In this month’s blog, we break down the major differences and similarities between condos and townhomes so that you may discover which is the right choice for you!

Similarities

Both condos and townhomes are attached homes, meaning they share one or more walls with a neighbor. Despite ownership of the home, many of these communities are run by a home owners association (HOA) made up of other residents. HOAs almost always charge their residents a monthly fee to cover the upkeep of landscaping, pools, fitness centers, and common areas.

These homes typically have less square footage and outdoor space than detached single family homes do and can be anywhere from one to three stories tall. The resale value of these spaces largely depend upon how well the HOA manages the property as well as how well the owner upkeeps their individual home.

Notable Differences

There are several notable differences to consider when comparing condos and townhomes, most of them regarding their physical build. Townhomes are built on land that the owner purchases with the home whereas condos are more like apartments and no land ownership is involved.

When you purchase a condo, you personally own your individual unit and share joint ownership of the building with the other owner-tenants. That joint ownership includes not just the building structure itself, but its common areas, such as the gym, pool, and grounds, as well as the airspace. Some condos may resemble townhomes but unless the land is also owned by the homeowner it’s still technically a condo.

Final Thoughts

There are so many decisions to make when buying a home from location and price to size and available amenities. Regardless if you want a traditional detached home or a condo, it’s crucial to never buy more home than you can afford! This reason is often what makes condos and townhomes such great choices for first-time homebuyers or anybody shopping for a home on a smaller budget. Head to our website or contact our team directly at (617) 972-8588 for local brokerage and mortgage services you can count on every time!

What Questions Can a Mortgage Calculator Answer for Me?

When you are in the market to buy a new home or decide you want to refinance, it is best to prepared and informed before making any big decisions. Your funds are going to be an important part of the buying process, so by using a financial tool such as a mortgage calculator, you can plan ahead. Similarly, managing your monthly payments for the mortgage can also be accurately shown on a calculator. Learn more about how a mortgage calculator answer your financial questions!

How Long Until I Pay Off My Loan?

In order to strategize your payment plan, you need to look closely at the loan term. With a short term, there are typically higher payments in a shorter amount of time. However, you won’t be paying as high of an interest. On the other side, a long term allows you to have lower payments, but you will be paying more interest over time. Finding a balance of affordability and less interest can help you make the most of your payments towards a home loan.

Can I Afford This House?

One of the main questions to ask yourself is “Am I able to afford this house?” Before settling on that beautiful house you’ve been dreaming of, first determine how much you can afford. A mortgage calculator can give you an accurate estimate of the amount you will need for monthly payments, as well as a down payment. The goal is not to overspend on your house and set realistic goals while considering your financial situation.

How Much Should I Put On The Down Payment?

The higher the down payment, the lower your monthly payments will be. However, you should only put in what you can manage to pay for. Do not put all of your savings and emergency funds into your down payment. Instead, you can use a calculator to figure out a practical down payment. First-time buyers can especially benefit from a calculation, as they will not have extra funds from a previous property.

Conclusion

If you need to calculate your mortgage payments, American Mortgage Resource, Inc. has a free calculator online. You can navigate our website and click on “calculator” to enter your information. For help with the loan process or other mortgage services, contact our team today!