Be a Responsible Homeowner by Following These 6 Tips

Having three to six months’ worth of living expenses in the bank is a safe and smart financial strategy.

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I know I usually talk about what to do when preparing to buy a home, but today I’d like to talk about six things to do after you’ve already made your home purchase.

1. Pay a little extra each month. Take your monthly payment and divide it by 12. Then, add this amount on top of your monthly payment. On average, this will save you about seven years on the life of your loan. This will help you with the next tip.
   
2. Get rid of your private mortgage insurance. If you don't put down 20%, you will likely have to pay something called “private mortgage insurance” or PMI. This PMI constitutes a significant portion of your monthly payment. Once you’ve got a 20% equity stake in your house, you can refinance out of that PMI.
   
3. Replenish your savings and build an emergency fund. A good rule of thumb for this is to keep three to six months’ worth of living expenses in the bank in case of unforeseen hardship. This is a safe and smart financial strategy.
   
4. Consult with a real estate lawyer. Take some time to speak with this lawyer about updating your will and testament even if you don’t have an estate in place. This will protect your loved ones after you’ve passed.
   
5. Reconsider your life insurance policy. Make sure your policy is enough to cover your mortgage. That way, your loved ones will be able to handle this cost in the event of your passing.
   
6. Install locks and deadbolts. In this day and age, you don’t know how many people could have a key to your home. The previous owner or one of your neighbors may have access to your home without your knowledge. So, make sure your locks are truly secure. You may even want to consider installing a security system.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.