After you buy
Rebuilding Your Savings and Maintaining Financial Discipline
Buyers should take time to review and evaluate their finances after a home purchase. One important step to consider is setting up an automatic electronic payment with your mortgage lender which lets you avoid costly penalties associated with late payments.
Make a plan for gradually rebuilding your savings account which many buyers deplete in order to make their down payment and pay for moving costs. As a homeowner, it’s important to have a cash reserve set aside for unanticipated maintenance that your home may require. In fact, a general rule of thumb is that homeowners should expect to spend about 1-3% of the cost of their home per year on maintenance and repairs.
While your transaction is complete our work is not. In fact, Sage Real Estate maintains relationships with our clients long after closing. We are always glad to help you find a variety of service providers and tradesmen to perform work on your home.
As you’re getting settled into your new home, here are a few situations you may encounter in the coming months and years that are important to think about.
Refinancing
Keep an eye on interest rates even after you purchase your home. If rates go down you may be able to save money by refinancing which simply means you take out a new mortgage at a lower interest rate that will replace your original loan. Another common situation that calls for refinancing is the expiration of the initial fixed-rate period on an Adjustable Rate Mortgage (ARM). If prevailing fixed-rates are substantially lower than the rate your ARM will carry once it adjusts, then it might make sense to refinance into a fixed-rate loan.
Many lenders offer no-cost refinancing which means they take the costs and fees associated with refinancing and roll them into the interest rate. It’s a way for homeowners to lower their monthly payment.
While refinancing a mortgage has become much easier in recent years, it is still a major financial transaction with important implications which requires just as much diligence as securing the original mortgage. Your Sage Real Estate Agent will happily refer you to a mortgage professional to help you determine the right time to refinance.
Home Improvement
Whether it’s a fresh coat of paint, new hardwood floors, or a major kitchen remodel, most new homeowners have at least a few projects they want to undertake once they move in. Your Sage Real Estate agent can help you determine the market value of improvements you are considering making to your home.
