Buying a home is one of the biggest investments you’ll make in your life, and while it can be exciting it can also be a bit daunting. It doesn’t have to be though. With a bit of financial planning and discipline, you can maximize your homeownership experience to make sure it’s an enjoyable and rewarding journey. Here are some tips to help you get started.
First, make sure that you create an emergency fund for unexpected bills or expenses that come up during your homeownership journey. This will help prevent any financial surprises from derailing your plans and give you peace of mind should something unexpected come up. Aim to save at least 3-6 months of living expenses in savings, so that if something does come up you have the money available to handle it without having to dip into other savings or take out a loan.
Second, look into refinancing your mortgage at regular intervals. Refinancing your mortgage can help you save thousands on interest payments over the course of ownership, so it pays to look into it every few years or when interest rates change significantly. For example, if you have a 30-year mortgage at 4%, refinancing after 10 years could lower your rate by 1%, saving around $1400 per year on interest payments alone! That’s money that could go towards improving or maintaining your home instead of being wasted on interest payments.
Third, start budgeting for all of your homeownership costs—including repairs and maintenance—so that nothing catches you by surprise. Homeownership isn’t just about paying down the principal and interest on your loan; there are also taxes, insurance, repairs/maintenance, utilities and more that need to be taken into consideration when budgeting for homeownership costs. Set aside some money each month for these expenses so that when they come up (and they will) you won’t be caught off guard and scrambling for cash.
Finally, think about making energy efficient improvements to increase the value of your home over time while also reducing monthly energy bills in the process. Making simple improvements like adding insulation or replacing windows with energy efficient models can go a long way in lowering monthly utility bills while also increasing the curb appeal (and value) of your home over time—saving even more money in the long run!
By following these tips and making smart financial decisions as a homeowner, you can maximize your homeownership experience while also saving thousands over time!