3 Financial Tips Every Homeowner Can Follow

If youre in the market to buy a home, you need to know a few things that go beyond

whether it has a nice bathroom or a big enough kitchen or fireplace in the family room. Finding your dream home often goes hand in hand with what you can afford. And what you can afford goes hand in hand with how well youve handled your finances through the years.

Prospective homebuyers, as well as current homeowners, should not only plan well for the responsibility of handling a mortgage, along with all of the other financial obligations of a owning a house, but should also research items such as mortgage plans. Having such information will help you avoid foreclosure in Florida in the future.

3 Financial Tips to Follow:

Know your interest rates: Understand the difference between an ARM (adjustable rate mortgage) and a fixed-rate mortgage and how these affect you. Hint: An adjustable-rate mortgage is a mortgage loan with an interest rate that is periodically adjusted based on an index that reflects the cost to the lender of borrowing on the credit markets.Ask yourself truthfully: Could you handle an adjusting interest rate, if they were to go 2% higher than where they currently are?

Create conservative spending habits: Dont base house payments off a commission or unpredictable salary. We all go though lulls in life, so if for some reason commission is low for two months the mortgage payment could be skipped. Dont let your home turn into a foreclosure property, find a home that one persons salary can support in the event a member of the family is injured, be sure that the bills could be supported by one member of the family.

Prepare for the unknown: Disasters strike and accidents happen, thats a fact of life! Make sure you have at least six months of mortgage and bill payments saved up in case unexpected events change your income level. Spend less than you make and dont give in to temptation to spend money on things you dont need.

Most bankruptcies and financial struggles are due to unforeseen problems we face in our lives i.e. damages to our home from a disaster or a long- or short-term illness that arises some time during life. You can avoid foreclosure in Florida or for any state by creating spending habits that are healthy based on annual household income as well as preparing for the unknown and knowing exactly what you are paying for.

We live in a culture in which we prepare less and live more for the moment. While being spontaneous sometimes leads to lifes greatest memories, there are times when spontaneity isnt a virtue. Live your life with just the right mix of preventive measures and spontaneous moments and plan your financial future based on the notion that youll thank yourself for doing both at some point down the road.

by: Harris Symonds

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