While many people are focusing on resolutions involving dieting, excercising, and media consumption - why not also throw in some homeowner resolutions? Not only will these resolutions make your life as a homeowner less stressful, but they can even save you some money in the long-run. Kick off the new year, right!
1. Increase your mortgage payments
While many people would not consider “spending more money” to be a New Year’s resolution, you should consider it for the long-term benefits. One of the benefits of increasing your monthly mortgage payments is being able to own your home. Increasing your monthly payments can take years off of your mortgage and the faster you pay it off, the less amount of time you will spend racking up interest on it. The new year is a great time to start reviewing your finances to see if there is room to make those extra mortgage payments. If you cannot continue to make increased payments, you can always drop back to your previous monthly payments. Why not try and own your home sooner?
2. Refinance your mortgage
One of the main reasons for a person refinancing a mortgage is to net a lower monthly payment. Even a difference of a single percentage or two can make quite an impact on your financial future and with lower monthly payments, you have the opportunity to pay more per month if you can afford it, and work on owning your home sooner. As time passes, your home value should start to build into what’s known as equity. Refinancing allows you to take advantage of that increased value and turn it into a reliable source of cash you can use however you see fit. You can pay off credit cards, renovate your home, buy an investment property, or start a business with your funds.
3. Help your credit score
With a new year here it’s a good idea to make sure that your credit score is manageable and will not hinder any future purchases you attempt to make this calendar year. When you view your credit score, you should do a full review of your credit report. Your credit report will allow you to discover and refute any inaccuracies in your history, such as fraudulent or inaccurate charges, fraudulent accounts, or incorrect billing. It will also allow you to determine what is bringing your score down and will help you find ways to improve it. Making sure to pay your monthly mortgage payments on-time will do great things for your credit score.
4. Check your homeowner’s insurance policy
Along with the new year comes new, unexpected events and challenges. We never know what is going to happen in the world around us, so it is wise to check your homeowners insurance policy. Be sure that you are fully aware of all the programs involving your household and determine what is and what is not covered by your homeowners insurance. Does your insurance also include liability? Should you look at getting other policies to protect your home, such as flood or earthquake? With many moving parts involved in owning a home, it is always smart to be conscious of the contents of your homeowners insurance policy.
5. PURGE (clean out and get rid of stuff around your house)
Spring cleaning is coming early this year! Use the motivation of the new year to clean out all of the junk in your house that you don’t need (yes that does include your garage, too). Over the year, clutter accumulates and is put off to the side as an “I’ll get to that later” task, but that “later” doesn’t always come. Set aside some time to purge your household and get rid of those unused or unnecessary items. You can box up things and donate them to a charity, hold a yard sale, or just toss it in the trash! It’s a good way to start the year out on a positive note and will give you a head start on keeping your house clutter-free throughout the year.
We hope that you will be able to accomplish at least a few of these resolutions we mentioned. As the year continues, rates change and refinancing can become a great option to start working towards these resolutions - this can lead to lower monthly payments, better credit scores, and sooner home-ownership! Have a great 2018, we'll help make sure it's a good one.
If you have any questions about what would be a good financial fit for you, contact us today