Buy your dream home

Much of the American Dream centers around buying a home and becoming the king of your castle. If you are like most Americans, this purchase will likely be one of the largest and most important financial decisions of your lifetime. Even if you are looking at buying a small home, saving enough for a down payment is never easy, and in today’s competitive real estate market, every cent counts. One way to speed up this process is by selling a portion, or all, of your future payments.

Buying a home is more expensive than just the list price. Between closing costs, inspection fees, and even curtains, a lump sum of cash would be particularly useful. According to Realtor.com, average closing costs range between 2%-7% of the purchase price in addition to the down payment which means a lot more money than most anticipate throughout the buying process.

Another reason to sell your annuity is to help produce a larger down payment which results in a lower monthly mortgage. Considering mortgages are based entirely on interest, a lower monthly payment, or shorter pay period could save you thousands in the long run. In addition to the mortgage savings, you would not be required to pay for private mortgage insurance if more than 20% of the purchase price is put as a down payment.

In addition to down payments and hidden fees, a lump sum can also be useful in fixing up a home once it is purchased. Instead of working on a fixer-upper over time, selling your future payments could provide you the funds to make all of the repairs up front, allowing you to enjoy your home sooner. This same concept applies with interior design and furnishings.

Selling your payments to buy a car

Life doesn’t stop because your car stops. If you know you can’t rely on your vehicle to live the life you want to live – like getting to work on time and being able to spend time with family – then it’s probably time to get a new one instead of continually repairing a lemon.

Access to your annuity savings could provide the down payment you need for a new or used car. Buying a new car is the most expensive option — not only will the car itself cost more, but a new car will also lose around 22 percent of its value in just the first year. However, new cars will need fewer repairs than used and will last longer.

Buying a used car is a great way to get a safe, reliable vehicle for less money. Many car dealerships offer cars that are “certified pre-owned,” meaning the manufacturer has examined, refurbished and certified the vehicle