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What Type Of Mortgage You Should Get
Monday, June 2, 2008
Unlike the last generation, there are a number of influences that can go into your mortgage payment. These different factors have contributed to some homeowners losing their property entirely. When some of these influences catch the homeowner unaware, they can translate into foreclosure
The biggest warning that financial investors give to homeowners now days is to avoid biting off more house than your financial future can swallow. After all, there is more in your future than just a mortgage payment. It’s time to plan wisely.
In the past generation, there was typically only one income supporting the bills and mortgage payment. When one spouse lost a job, the other one could quickly get a new job to help support the family. This generation, however, has built their mortgage payments on the idea of a two income family. Therefore, when one spouse loses their job, the family as a whole can quickly spiral into financial chaos and disaster. Planning for a more conservative mortgage payment at the closing can help to shield the family should a job loss happen.
How can you determine if you have too much house? Most financial advisors suggest that you make your mortgage payment no more than 28 percent of your total income. By following these rules, you are more likely to keep your home and be on time with your home payments.
In addition to keeping your home mortgage payments within 28 percent of your income, you will need to analyze the rest of your financial obligations in future years. For example, will you need to save for kids college funds? How much will you need for these financial requirements? What about your retirement? Are you building two retirement plans?
In addition, there are a number of hidden costs in home ownership. Things like home maintenance, repairs and Home Owners Association fees can add up, in addition to your usual costs like insurance and taxes. There are additional expenses that might come into play, affecting your home mortgage payment. For example, if you have an expensive hobby like traveling, you will want to free up more of your income for these expenses.
Your income or the income of your familys breadwinner can be a strong influence in how much of a house you should buy now. If you do not have a consistent income or see your income hitting a plateau or lowering in the future, this can be a significant influence for your mortgage payment.
Unlike the previous generation, the average workforce individual changes employers over the years. Through this fluctuation, income amounts can change, affecting your mortgage payments. Making your mortgage payments more conservative can help you save more money during the wealthier times and help you stay afloat during the leaner months.
If you do not have to worry about retirement or are completely debt free, rejoice. Few people fall into this category, but for those that do, the mortgage payment is a direct outcome. With less money paying the interest on credit card debts and car loans, the more money will be applied towards the home, building equity.
If you did buy a house with a large mortgage payment and are now finding that you can not afford the mortgage, maybe even needing to stop foreclosure
, then contact you local home buyer. Local home buyers are professional real estate investors who buy houses from people just like you. You can get a free, no obligation offer for any house with in 24 hours. If you are thinking how can I sell my house
fast, then you have nothing to loose.