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The Importance of Managing Your Mortgage

If you thought buying your home was expensive, wait until you start living in it! From monthly mortgage payments to property taxes, homeowner’s insurance, home maintenance and upkeep, owning a home is a major expense.

Even before you moved into your new home, costs were steep. You had to save money for the down payment before you could apply for a mortgage. Then you had to save more to cover the costs of closing. If you thought the hard part was over, think again.

Once you become a homeowner, guess what? You and anyone listed on the mortgage papers become the primary caregivers for that home. If you rented before owning, all you had to do was call the landlord whenever there was a problem with your rental. If you lived at home, all you had to do was call your parents. But guess what? It’s not like that anymore! There’s no one to call except the repairman and there’s no one else to pay the bill except you. As a homeowner, home repairs and upkeep are your responsibility and so is paying the associated costs.

You can expect larger homes to cost more for maintenance and upkeep, but smaller homes are costly too, especially if they’re older. Even newly constructed homes require maintenance and upkeep. And this means you need to be financially prepared to cover both the expected monthly costs as well as any unexpected ones. If you can’t, you’ll quickly find yourself in a financial bind.

If you get to the point where you can’t make your monthly payments and/or pay for routine or emergency care, you could end up in bankruptcy and your home in foreclosure. So don’t let this happen. Now that you’re a homeowner, it’s more important than ever to have a well-funded emergency fund. Start planning and budgeting now to avoid problems in your future.