What is amortisation and how much is amortisation going to cost me?
Do those terms make you want to run for the hills?
Are you completely overwhelmed by the terms, numbers. and just the whole process?
Sometimes I think that you need an encyclopedia just to follow the home finance conversation.
Do people know what an encyclopedia is anymore? Click To Tweet
But what if figuring out the mortgage was not so complicated?
That would make it easier to have the real conversations that you need to have when considering buying a home.
- Can I afford this mortgage?
- Can I afford the downpayment?
- What are the other costs involved with purchasing a home?
- What are the other costs involved with owning a home?
- Will the busy work of owning a home be too much for me?
- Do I really love this house?
- Does this house need fixing?
- Where is renovation project money coming from?
Okay, obviously I can come up with a ton of questions. I have been in this rodeo before.
As you can see many questions revolve around home finance. That is because it is IMPORTANT!!!
Do you know how many people buy homes that they cannot afford?
According to a Consumer Affairs study, 7 out of ten households are feeling the financial hit of having little to no savings left after paying their basic housing bills. Further, 73% of respondents are reporting additional financial difficulties and 78% of millennial homeowners report feeling house poor.
This term might sound cute but it is not!
Do your due diligence and figure out if you can afford the mortgage before it is too late.
Money worries are stressful. Your #home should not be. Click To Tweet
Being aware of your finances before purchasing a new home is key. Do not make the mistake of buying more home than you can afford.
36 thoughts on “The Confusing World of Home Finance”
Financial literacy is what everyone wants to achieve and great tips you provided.
Financial Literacy is what we’ll lead to being financially stable.
There’s so much in this that I wish we had known or even considered before buyng our home. Don’t get me wrong, I love this wee house, but there is alot I don’t love about it either that we’re now paying for.
That happens to the best of us. Hindsight makes us all brilliant. The more w share with others the more helpful we are at helping them to avoid similar mistakes.
Hidden costs are an important one for sure. It seems like no matter how much research you do, there’s always something that either you didn’t think of, or your realtor did not mention!
Sadly, that can definitely be the case. There are many costs that one may not think of unless they are experienced home buyers.
Those are really important questions to ask, thanks for the advice!
You are quite welcome. I am happy that you found help here.
Home ownership can be so stressful, and it is good to have finances in place. Thanks for sharing this information. It is good to have a handle on finances.
It can be quite stressful. The more that we are aware of the less likely to have too much stress.
I live in Florida. I want to buy but I cannot even afford the cheapest house right now. My sister-in-law paid 140 K for a gorgeous 2/2 about 10 years ago. She just had a valuated and it’s 400 K. Prices have gone up out of my teaching salary and we are stuck in an apartment. Like you said though, it’s better than getting into a house and then not being able to afford it
You are frustrated that you did not buy when your sister did but the timing was also not right for you.
Thank you for sharing this information! This topic is something very confusing for me.
It is very confusing for many people. It is good to try and clear some of the confusion.
Yyyyoooo…I felt that….”money worries are stressful, your home shouldn’t be”! I am always scared at looking at anything called “mortgage”. But you have helped demystify it.
That particular M word can be very, very scary. It is a big commitment. It is best to consider all aspects before making a decision.
I agree, we should be careful of how much to spend on a house.
Going over budget, when buying a house, can cause a lifetime of issues. Is it important to avoid this mistake.
There are quite a few costs involved when buying a home. We need to be prepared and know what we are doing.
You are so very welcome. Thank you for the feedback.I am excited to hear how things progress.
Great tips. I remember when we first purchased our home.. It was a lot and it was all so confusing.
The finance world is super confusing without proper guidance and research.
Buying a house is definitely a big decision and it requires you to think a lot before settling with your final decision.. you really have to think of your finances to see if you can really afford it. It’s a long term financial engagement afterall.. so better plan it ahead carefully
That planning will offer much in the future years. When we just jump in without planning we can cause ourselves many issues.
Buying your first home should always align with your goals and financial state.
Yes, but so many push themselves past their financial state.
I love your quote. Money can be stressful but Our home should not bring us stress.
Thank you. I strongly believe that the home should be a place of peace.
Buying a house can be a big step in the life of many people. There are so many things to consider
Yes, there are many things to consider and each thing is quite important.
Buying a new home can be an exciting process that leaves most people feeling good or bad about their life. Make no mistakes
Let us hope that they will not get to a place of feeling bad. Ask the questions, do not over spend and get the advice and info that is needed.
Definitely a great post that is worth reading and everybody must consider. Home finance is totally a stressful thing in this life so let’s consider and answer all the questions here before getting one.
Taking the time to think about all questions that may come up is important. It is always best to be informed.
Buying anything should be really well-planed. I need to know if my finances would be enough when buying something and if it is really a need or just want. Buying a home and considering such mortgages should be studied first.
You understand the importance of knowing thee thing and can avoid costly mistakes with that knowledge.