Smart Money Moves for Homeowners
Smart Money Moves
Making smart decisions with your money will help you build a solid financial foundation for you and your family. As a home owner, you have a responsibility to protect your financial investment.
Consider adding these 3 smart money moves to your financial plan, if you haven’t already done so:
1. Save for a Rainy Day
Unexpected things are going to happen. When you own a home, it’s not only smart, but necessary to give yourself a financial cushion for when your household income changes.
Having a “Rainy Day” savings will allow you adapt and move forward when big life changes happen. Major career changes, the loss of a family member, or another type of big life event shouldn’t mean that you will also be losing your home.
You should have enough rainy day savings to pay 3-6 months of your monthly bills or payments. Read more about creating a “monthly budget plan” or “why you should save for a rainy day” in our previous blog articles.
2. Plan for Up Keep Costs
Your home will come with maintenance costs. Roofs and HVAC systems will need replacing, leaks will need to be addressed, the foundation will settle and shift, and time will require other “wear and tear” expenses.
It is a smart money move to anticipate these inevitable costs and plan ahead. Proactively keeping your home in working order will help to prevent unexpected hits to your finances. While your homeowner’s insurance or home warranty policy will help with some unexpected costs, not all emergency expenses are covered.
Use the “Spring Cleaning Checklist” to keep an eye on the condition of your home and plan to make repairs and home improvements as needed.
3. Refinance to Save Money
With time there can be some great reasons to refinance your mortgage. You can potentially save thousands of dollars by refinancing. Using the equity in you home may also be a smart money move as a home owner.
These are a few of the top reasons to consider refinancing your mortgage:
- Lower Interest Rate
- Faster Payoff Term
- Lower Monthly Mortgage Payment
- Dropping Mortgage Insurance
- Access Your Home Equity
By changing the amount of interest you will pay during the term of the loan, eliminating the cost of mortgage insurance, or adjusting the term of your mortgage you can save money. Looking for the opportunity for better mortgage terms by refinancing is a smart money move for home owners.
Read more about these “5 Ways Refinancing Your Mortgage Can Save You Money” in our previous article.
These 3 smart money moves will help strengthen your financial foundation as a home owner. We would love to be the mortgage experts on you team. Reach out to us if you would like to look at your mortgage options for refinancing or buying a home.