Protecting Your Mortgage
When you bought your home, you mortgaged it for a certain number of years. Like everything else in your home, your mortgage is important and must be protected.
Whether you are a first time home buyer, or have bought and sold several homes over the years, one of the most important things you can do for you and your home is to protect your mortgage. If you have ever rented a home or apartment, you know what it is like to get used to sharing certain things such as laundry and yards, and to have someone else handle the up keep on the exterior and interior of the home or apartment.
When you buy a home, all the responsibility falls on you. The home is yours, and you are now responsible for all its up keep and everything that comes with it. That is why protecting your mortgage is essential to owning a home for a long period of time.
When you first buy a home, you have to decide how long you want to pay on it. Most people choose the 30 year option, which enables them to pay it off over a period of 30 years, with the option to pay it off sooner if possible. Most people stick to the 30 year plan, and often sell it long before it is paid off. Still, in order to see any kind of return on your investment, it is advisable to keep ownership of your home for at least five years whether you live in it or someone else resides there.
Unfortunately, though, your mortgage can prove to be an incredible liability. Consider your mortgage. You bought your home at a specific price, and now make monthly payments on it. Add to that the interest and home owners insurance payments, and that monthly payment can increase significantly. Figure that up over time, and you are actually paying a lot more on your home over that 30 years than you originally planned. Something you must take into consideration is how you would pay that mortgage if something happened to your income. When you rent, you still have this concern, but you aren't as tethered to the home in which you live. Sure, getting out of your lease could prove to be expensive, but not nearly as expensive as getting out of making those monthly mortgage payments. When you own a home it's really yours, and you are expected to pay for it.
Homes are, however, a good investment, and over time, you will be happy you decided to buy instead of rent.
Insurance is a good way to protect your mortgage. While your home owners insurance will help protect your home, other types of insurance can help protect your mortgage. For example, if you have a will, you have undoubtedly left your home to someone, most likely your children or other family members. By purchasing life insurance, you not only provide your family with money for your burial and other related expenses, but if the policy is big enough, provide them with enough money and time to make a decision on what to do with your home.
There are other types o insurance you can purchase that may help in less extreme events, but it is important to keep in mind that your home is truly an investment. Like all your other investments, it must be cared for accordingly. While you don't plan for disasters to occur, you should plan for the possibility that they might, and be as prepared as possible in case they do.
Whether you are a first time home buyer, or have bought and sold several homes over the years, one of the most important things you can do for you and your home is to protect your mortgage. If you have ever rented a home or apartment, you know what it is like to get used to sharing certain things such as laundry and yards, and to have someone else handle the up keep on the exterior and interior of the home or apartment.
When you buy a home, all the responsibility falls on you. The home is yours, and you are now responsible for all its up keep and everything that comes with it. That is why protecting your mortgage is essential to owning a home for a long period of time.
When you first buy a home, you have to decide how long you want to pay on it. Most people choose the 30 year option, which enables them to pay it off over a period of 30 years, with the option to pay it off sooner if possible. Most people stick to the 30 year plan, and often sell it long before it is paid off. Still, in order to see any kind of return on your investment, it is advisable to keep ownership of your home for at least five years whether you live in it or someone else resides there.
Unfortunately, though, your mortgage can prove to be an incredible liability. Consider your mortgage. You bought your home at a specific price, and now make monthly payments on it. Add to that the interest and home owners insurance payments, and that monthly payment can increase significantly. Figure that up over time, and you are actually paying a lot more on your home over that 30 years than you originally planned. Something you must take into consideration is how you would pay that mortgage if something happened to your income. When you rent, you still have this concern, but you aren't as tethered to the home in which you live. Sure, getting out of your lease could prove to be expensive, but not nearly as expensive as getting out of making those monthly mortgage payments. When you own a home it's really yours, and you are expected to pay for it.
Homes are, however, a good investment, and over time, you will be happy you decided to buy instead of rent.
Insurance is a good way to protect your mortgage. While your home owners insurance will help protect your home, other types of insurance can help protect your mortgage. For example, if you have a will, you have undoubtedly left your home to someone, most likely your children or other family members. By purchasing life insurance, you not only provide your family with money for your burial and other related expenses, but if the policy is big enough, provide them with enough money and time to make a decision on what to do with your home.
There are other types o insurance you can purchase that may help in less extreme events, but it is important to keep in mind that your home is truly an investment. Like all your other investments, it must be cared for accordingly. While you don't plan for disasters to occur, you should plan for the possibility that they might, and be as prepared as possible in case they do.
posted by Kumar Regmi @ 9:50 PM
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