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Home Purchases
Refinancing
Home Equity Loans
Mortgage Info:
-What Are Rate-Locks
-Fighting Assessments
-What
is PMI?
-Having
Parents Co-sign
-Cost of Owning a Home
-Homeowner Tax Breaks
-Housing
Markets
-Avoiding Foreclosure
-Compute
Fixed vs. ARMs
-Mortgage
Calculator
-Remodeling Your Home
-Mortgages in 2007!
-How
Much Can I Afford?
-Mortgage
Fees
-Mortgage
Scams
-Managing
Your Loan
Loan Types
Selling Your Home
Homeowner's Insurance
Auto Loans
Personal Loans
Debt Consolidation
Credit Reports
Credit Cards
Home
-Taxes
-Managing Money
-Credit Help
-Checking Accounts
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FINANCIAL RESPONSIBILITIES OF OWNING A HOME
Generally, a
home loan is usually the biggest debt a person has.
Selecting a mortgage is a difficult decision. You must take many
different factors into consideration when determining how much you
can afford.
One of the biggest mistakes home buyers, particularly
first-time
home buyers, make is misjudging the costs associated to
being a homeowner, i.e. repair and maintenance costs, homeowners
insurance,
PMI, property taxes, etc.. Not being able to pay your mortgage
and/or the costs of linked with homeownership can result in bad
credit issues. A good practice is to
learn how to budget your money.
The amount you pay in property taxes and
homeowners insurance is
directly related to the amount of money you borrow for your mortgage.
Meaning the more you borrow, the more you will be obligated to pay in
taxes and
insurance.
Buying a home can be stressful and scary. Don't let the above
scenario deter you in your dream of homeownership. Buying a home is
an investment. You will likely not lose money when you buy a home. In
fact, you will probably make money. Owning a home is also good for
your soul and well being and will ultimately result in you becoming a
more financially responsible person.
After evaluating all of the costs linked to your new home, in
addition to your further monthly cost obligations, you should be able
to approximate how
much you can afford as a monthly mortgage payment.
Don't forget to calculate
mortgage
fees. Also note that there are many
tax deductions associated with home ownership.
Mortgage rates are still low. Therefore, the sooner you
lock-in your
mortgage rate, the lower your mortgage payments will be, and the less
you will pay in mortgage interest over the entire life of your loan.
Learn more about
home purchase loans.
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