Explaining how mortgage money works is a great way to alleviate any stress a buyer might be feeling during the home-buying process.

Sticker shock is one of the biggest reasons why people are anxious when buying a home. However, once they know how mortgage money works, they likely realize that their buying power is stronger than they thought.

All because they’re using other people’s money.

Key takeaways

  • Trying to save to purchase a home with cash takes much longer
  • Mortgages free up cash for repairs and renovations
  • There is such a thing as good debt

Financing a Home Purchase with a Mortgage isn’t as Scary as you Think

When first-time homebuyers hear the word “mortgage,” they immediately think about the debt that comes with it. And since smart money says today’s first-time homebuyer is probably carrying substantial debt already (credit cards, student loans, car loan, etc.), adding more to the pile isn’t that appealing.

Naturally, purchasing a home outright with cash, or at least plunking down a huge down payment to avoid as much mortgage debt as possible, can seem like the best choice.

However, there’s a lot more to think about when deciding to purchase a home with cash versus a mortgage loan. And while it would feel really good to own the home outright, there are some long-term detriments to not seeking mortgage financing. Continue reading

Key takeaways

  • Separate what you need from what you want
  • Do your homework on what the market wants
  • Budget, budget, budget!

Boost Your Home’s Value with a Little Investment

Nice big tax return this year? Lucky you! If you have a nice, strong savings account, you might want to think about putting some of that tax return into your home.

And no. We’re not talking about installing an in-ground swimming pool or adding a new air hockey table in the basement. Investing in your home is about putting money toward what you need, not what you want. Not everybody likes air hockey, but everybody loves a roof that doesn’t leak!

The first step is getting online and checking out some real estate websites to see what’s hot. Nowadays, smart homes are the hot topic. But unless you’re pulling in buckets of money, stick with these tried and true renovations to add value to your home. Continue reading