My Blog
Buying a Second Home? Assessing Your Finances to Ensure You Can Afford a Second Mortgage
The decision to buy a second home may be made for a number of reasons. For example, you may have a destination where you and your family love to spend free time in, and you may be ready to settle into your own space in this location. You may considering the tax benefits associated with a second home, and you may even have plans to live in the home as your primary residence after you retire.
While there may be numerous benefits associated with the purchase of your second home, you may be concerned about how affordable it will be for you to manage the additional expense of a second mortgage payment.
Consider All Of The New Expenses Related To The Purchase
A second mortgage payment may be a rather major expense to take on, but it is not the only expense related to buying the new property. In order to ensure that the mortgage payment is affordable, you need to ensure that all aspects of secondary home ownership are affordable for you.
For example, consider HOA dues, repairs and maintenance expenses, property taxes, insurance and cleaning or lawn care service since you will not be available to handle these chores on a regular basis. If you can comfortably take on all of these expenses, you may make your purchase with confidence.
Increase Your Emergency Savings Account Balance
While your current budget may easily accommodate the new mortgage payment and the related expenses, the unfortunate truth is that your income or expenses may not remain static in the future. You may suffer from unemployment or a serious illness that reduces your income. You may have extra expenses due to a car accident or severe damage to a home.
These are just a few of the many things that can happen, and it is important that you have an adequate cash reserve in your emergency savings account that allows you to pay for all of your expenses for at least several months. Because your expenses will increase substantially with your new mortgage payment, you may need to increase your emergency savings account balance.
While it can seem intimidating to take on a new mortgage payment and other related household expenses for a second home, you may be able to more comfortably take on this additional expense when you follow these tips. You may also speak with a mortgage professional to get a quote for your new mortgage payment and interest rate.
Related Articles:
- Did You Know?: 4 Factors That Can Delay Your Mortgage Approval (and How to Avoid Them!)
- Refinancing Your Mortgage? Know These Key Terms Before You Sign Your Paperwork
- First-time Home Buyers: Here’s a Quick and Easy Guide to Your First Mortgage
- Applying for a Mortgage? 3 Easy Ways to Make the Process Easier — and Reduce Your Stress
- 3 Ways That You Can Leverage Mortgage Financing to Build a Real Estate Investment Portfolio
Mark Taylor | Arizona Home Loans | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans | Real Estate Websites | Arizona HUD Homes | Ariona VA Loans | Fix My Broken Credit | Arizona Mortgage | Arizona Short Sale | Power Ranch Bank Owned Homes
Comments are closed.
by Mark Tayloron | Arizona Mortgage | The Mark Taylor Teamon |
Amerifirst Financial Inc. | By Mark Taylor © 2012 | Banker # BK0013635 | AZ NMLS ID 207897 | CA NMLS ID CA-DOC207897
Our Team | Arizona Mortgage | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans
| Arizona HUD Homes | Ariona VA Loans | Arizona Mortgage | AZ Short Sale Help | Power Ranch Bank Owned Homes | Find me on Google Earth | Arizona Mortgage Sitemap
AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ 85203 (NMLS # 145368). 1-877-276-1974. Copyright 2014. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. License Information: Click Here for Licensing
Mark Taylor | Certified Mortgage Planner | NMLS 207897 | AmeriFirst Financial, Inc. | NMLS 145368 | 14350 N. 87th Street, Suite 310, Scottsdale, AZ 85260 | Direct: 480.289.7644 | Mobile: 602.361.0707 | mtaylor@amerifirst.us | AFI Privacy Policy
Real Estate Websites & Realtors Websites & Realtor Websites by Char Bennett of YourSiteNeedsMe