A home loan, otherwise known as a mortgage, qualifies you to buy a house without paying the full price out of pocket at the time of the purchase. As you’re searching for homes online or in your desired neighborhood, you might be eager to become a homeowner, but do you know how a mortgage impacts your finances?
For most financial freedom seekers, buying a house is one of the largest financial purchases on their journey. Before you pick paint colors, shop for furniture, or plan for potential renovations, learn all that you can about home loans and how they work.
Mortgage interest rates fluctuate daily.
Mortgage rates vary every day, and this means that the rate you see today might be different than the one you see when you’re approved for your loan.
Maintain a healthy credit score.
It’s important to keep your credit score financially fit to ensure you can receive the lowest rates possible. See where there’s opportunities to pay down any debt like car loans, student loans, or credit cards. Not only will paying down all your debt help you achieve financial freedom, this can help you boost your credit score before you apply for a mortgage.
Short-term financing can help you save thousands.
Choose a shorter-term mortgage, like 15 years, to lessen the amount of time you will pay for your home. Not only will you eliminate your mortgage faster, a 15-year term is another way to save on interest because the longer your term, the more interest you’ll need to pay back.
Your mortgage payments can be automated.
Once you have your mortgage, you’ll need to include these payments into your budget, and this will likely be one of your largest expenses. The easiest way to make payments on-time is automatically deducting your monthly mortgage payments from your FAIRWINDS Spending or Checking Account. This will help you manage these payments easier alongside your other bills than making a manual payment or sending a check through the mail.
Buying a home might be one of the largest expenses along your financial freedom journey, but being equipped with FAIRWINDS’ tool and resources is key to buying a home and saving as much as possible.
Ready to buy a house or have questions about FAIRWINDS’ affordable mortgage solutions? Make an appointment online.