You’ve finally made it! After all that work finding and buying your new home, you might think the hard part is over. But now comes one more important step: financial planning and budgeting for this major life change.
In this blog post by Powerhouse Insurance, we’ll talk about seven financial tips for your mortgage payment.
1. Make A Budget for Your Mortgage Payment
You need to develop a budget & stick to it. You need to find out how much money you have coming in each month and what your regular expenses are. Then you can start to develop a budget for your mortgage payment.
A mortgage payment, as well as any hikes in basic living expenses, homeowner’s association or condo fees, and maintenance or repairs, should be considered when planning a budget.
2. Consider A Shorter Loan Term
Short term loan saves you money on interest over the life of the loan. A 15-year mortgage is typically less expensive than a 30-year mortgage.
3. Make A Larger Down Payment
Larger down payments will lower your monthly payments and help you build equity in your home faster. If you have the liquid cash on hand, consider making a down payment of 20% or more.
4. Consider An Adjustable-Rate Mortgage
An adjustable-rate mortgage (ARM) may have a lower interest rate than a fixed-rate mortgage at first, but the rate can change over time. If interest rates go up in the market, the monthly payments will also go up.
5. Keep Your Credit Score High
The interest rate that is defined on your mortgage is based on your credit score. The higher your credit score goes, the lower your interest rate will be. So, it’s important to keep your credit score high. You can do this by paying your bills on time and not using all of your credit.
6. Get Pre-Approved
That helps you determine how much in terms of an estate you can afford & puts you in a stronger bargaining position with sellers. When you are ready to make an offer on a home, your offer will be more attractive to the seller if you have been pre-approved for a mortgage.
7. Mortgage Protection Life Insurance (Most Important)
Mortgage protection life insurance is a kind of coverage that pays off your mortgage if you die before the loan is completely repaid. This type of insurance is crucial because it ensures that your family will not be burdened with debt if something happens to you.
Mortgage protection life insurance also gives you peace of mind knowing that your family will not lose their home if an unfortunate event occurs. It’s an essential part of financial planning for any family with a mortgage.
The Powerhouse Insurance Company has been a market leader in mortgage protection life insurance in Leon Valley, TX. We want you to know that our mortgage protection life insurance will give your family peace of mind and help them save money and time on legal fees associated with mortgage foreclosures.
To discover more about our mortgage protection life insurance plans, contact us today!