No. 10 of 10 Things to Consider Before you Buy Your First Home

Planning for the Future: Your priorities and financial situation may have shifted since you first bought your home, as well as your expenses too. Things like buying a car, paying for a child’s university education, planning a career change, or a major purchase such as a vacation property may call for spending money on things other than your home. You may be able to refinance your mortgage to access the equity in your home. Will you sell soon? If you are likely to sell soon, consider a shorter-term mortgage or one that has flexible terms so you’re not penalized if you sell your home before the mortgage comes due.  Are you thinking about a major renovation?  You know that projects such as a new kitchen or an addition can make your home more valuable, but the cost of having the work done can tie up a lot of money. Look at all your financing options, which may include getting an additional line of credit or keeping your monthly mortgage payments low so you have money on hand to finance the renovations.  When do you want to be “mortgage-free”?  If you’re planning extended time away from work or perhaps an early retirement, it may make sense to pay down your mortgage sooner rather than later. While increasing your payments will raise your monthly costs now, you’ll ultimately save on interest in the long term and can prepare for that fabulous mortgage-free lifestyle.