When you start shopping for a car, you might be more concerned with additional features and specialty paint jobs than you are about the monthly bill. Unfortunately, the wrong financing can cost you dearly. Compound interest never sleeps, which means that you might be paying much more than you should if you work with the wrong lender. I want to help you to make great financial decisions, which is why I created this website. However, if you can remember a few tricks and keep those payments to a minimum, you can drive away with the car of your dreams without breaking the bank.
When someone loses their spouse, the sudden transition can be very challenging. And if you weren't the primary money manager within your relationship, things may be much harder. If you find yourself in this position, dealing with something like the mortgage on your home should be carefully considered. To help you make the best choices about your home mortgage, here are a few key tips to remember.
1. Don't Rush to Pay It Off
Many widows and widowers who find themselves left with significant assets immediately consider paying off their primary home loan. This can be a good move as it simplifies your monthly bills, reduces expenses, and guarantees housing. However, it may not be the best move if most of your assets would now be locked up in your home or if you have other bills to which that money would have been better directed.
Paying off your home mortgage is a decision you may want to put off for months or even a year after losing a loved one. This gives you time to assess your finances, consider alternatives, and make an unemotional choice.
2. Consider Refinancing
Refinancing a home loan can be a great way to reduce your expenses but still keep access to your liquid cash for monthly needs or emergencies.
You might refinance to save money by simply getting a lower interest rate on the remaining balance. Or you could pay off other expenses and shore up your individual finances by taking cash out of your new loan. Or you might consider reducing the remaining years in the loan so you pay it off faster — such as before your own retirement date.
3. Prepare to Qualify Alone
Many people in your situation find that they want to move closer to family or loved ones, or they may desire to downsize since they're on their own. Whether you're sure about moving or you're just thinking about it, start by learning how to prepare for a home loan on your own.
If you haven't already done so, learn how to check your credit score and what the various elements mean. Spend time improving these for the highest number possible. Then, reduce your debts if possible. You'll have to quality using just your own earnings and credit history so it is wise to start early in order to have the most time to make any needed adjustments.
Want More Suggestions?
If you want to know more about how to approach your home loan as a newly single individual? Start by consulting with a home loan provider like FCCU - First Community Credit Union. They can answer your questions and help you learn what you need to know.Share