Seeking shelter may be an instinct, but paying for a home is a long-term financial commitment. Figuring out how much you can afford to spend and selecting the right type of mortgage and a reliable mortgage lender are just the beginning. Meeting your monthly payments, paying for insurance and upkeep, and making unexpected repairs all add up. Buying a home may well be the biggest expense of your life, so making some smart decisions early on can save you a lot of money later on.
If your property continues to go up in value, your equity, or ownership, in your home increases, creating a valuable asset. You can borrow against the value of your house and think of selling it as a source of retirement income. But real estate values can also decline, and you might get caught in a bind if you have to sell your home for less than you paid and still have the mortgage to pay off. And if you can’t make your payments, the mortgage lender may foreclose, leaving you without a home and a loss on your investment.
Owning a home may be your dream, and with the right type of financing, it can become a dream come true. But a lot of things can go wrong, and if you don’t plan for them your dream can become a nightmare.
Featured Articles for Home Finance:
- Home Equity Borrowing
If you need to borrow, a home equity loan may offer the best rates, plus the advantage of tax savings.
- Insuring Your Home
Insurance protects your investment in your home. It can also protect you if you are sued for damages or injury you’re accused of causing.
- Qualifying for a Mortgage
Being able to buy a home usually depends on being able to find financing.
- To Buy or Not to Buy?
That may be the question. The answer is both personal and financial.
Suggested Books for Home Finance:
Credit & Borrowing
Welcome to Your Financial Life