Three Common Mistakes People Do With Their Home Loans
Mortgage, if you heard this word, probably, you have mixed emotions about it but, dominantly, you feel something heavy on your chest, who does not? This is because mortgage is simply a debt that most of us carry, and even some of us consider this as a burden for the rest of their lives.
That is why it is extremely important for us to avoid the mistakes that may cost us a lot of money that we have to pay for a long period of time. Do not be afraid of being too unfamiliar and get overwhelmed of the complex side of mortgages because there are a lot of way to learn its aspects step by step.
You should always remember that we are capable of creating good and bad choices and we are well aware that we can choose between the two with freedom because we can determine our own budget and see what we can afford, as well as in getting home loans where we can choose between high-interest rates, monthly fees, as well as other aspects.
However, there are still a lot of people that commit mistakes that are easy to avoid but most of us do not know how to define that mistakes which oftentimes become the reason why we add more burden to our mortgages. In this article, let us discuss the common mistakes that a lot of us make when it comes to our mortgages so stay on this page and read the entire article.
If you successfuly avoid these mortgage mistakes, it will help you making home ownership living with harmony and free from unnecessary burdens.
- TREATING YOURSELF HOUSE-POOR- Having to commit a lot in your monthly income to the costs mostly related to your housing means that you end up having an empty wallet for your other spending. This means, that you do not have money for future investments such as buying a car, saving for retirement, or securing your children with an educational insurance, and worst this could lead you to bankruptcy if this problem is not addressed right away. The most ideal rule for this is to follow the fundamental rule that only 28-percent of your pretax income should be for the housing first.
· IGNORING THE COST OF OWNERSHIP- If you own a house, it comes with expenses that a lot of first-time homeowners never encounter in their lives. The most common expenses that you have to deal with is the house’s maintenance. More likely, ten per cent of your annual income goes to house maintenance and most of these materials that you find as part for the maintenance are often the most useless things. There are years that the budget does not match the previous year’s budget so setting a decent amount of money aside for it is ideal. This cost would likely get larger if your house is old and relatively large.
· NOT SHOPPING AROUND FOR IDEAL LOANS- A lot of people ignore the idea of shopping around for the best loans available because they are often being convinced by the real estate agent that they made the right decision already when in fact, they only settled in when they just even started shopping for the best loans out there. It is pretty important to make comparisons between loan offers and the interest rates that come along with your house loan mortgage.