A mortgage is perhaps the biggest debt that a person will have to bear throughout his entire life, since buying a house is perhaps the costliest purchase one has to make. There are some people that, because of one way or another (a mistake perhaps), end up paying off two mortgages, which is a really heavy burden to carry. On top of that, they also pay off loans they got for their cars. Is it possible to balance all these payments – two mortgages and car loans?
While such a possibility exists, carrying such a heavy burden may prove to be too much to overcome for you. As such, it is not recommended for you to be carrying such a heavy financial load. However, let’s look at some ways to save on mortgages so that the burden, while it is still heavy, will be considerably less.
Searching for a home
In looking for a home that best suits you and your financial capabilities, you should take a look at various properties and ask as many detailed questions to the real estate experts and agents as much as you can. Inspect every part of the house as much as possible and check if there are any problems. Some houses can look good on the outside but may have problems with the plumbing, electrical connection, or others. More problems mean additional costs that you don’t want.
There are additional costs attached to owning a home, such as property taxes, homeowners insurance, maintenance costs, etc. Weigh everything considerably before making a definite move. Before getting that mortgage, make sure the home you’re planning to purchase is worth it and you can take all the costs.
Avoid mortgage mistakes
The number one mortgage mistake to avoid is not checking and fixing your credit rating. Usually, having a bad credit rating is a prerequisite to having your mortgage payments higher, or not getting approved at all. It is possible to check your credit online for free. Check it around six months before applying for the mortgage, in order for you to make necessary corrections and get your rating up if needed.
One way to have a good rating is making sure you pay loans and credit card bills on time. If you fail to do so, not only are you getting charged with interest, but have to pay off higher mortgages over a long period of time.
Avoiding multiple mortgages
If you have a lot of cash reserves, you might be able to carry two mortgages plus a car loan, but why risk it? If you can avoid having two mortgages, it is best to do so, so that your finances could go into something else.
Much like a home mortgage, try to get a car that has a good safety rating, good economical fuel consumption, and is known to be reliable. Search for one that best suits your needs. If you have a small family consisting of two or three persons, then it is more ideal to get a sedan rather than a larger vehicle such as an SUV. Also, do you really need a luxurious brand or go for practicality? Ask yourself these questions before making a decision.
A group of auto accident lawyers also advise driving safely and within the rules all the time, to avoid additional costs such as repairs, court fees, traffic ticket fees and more, which add more unwanted and unneeded costs.
Always check and maintain your car properly in order to keep it running efficiently, and to avoid possible accidents.