Buying a home is often a lifelong financial responsibility; you’ll likely spend at least twenty years paying off the mortgage loan. But beyond mortgage repayments, you’ll also need to budget for the costs of property maintenance, potential repair needs, and eventual home improvements, not to mention the ongoing obligation to pay property taxes and utilities.
Because the costs of owning a home span far further than merely covering the mortgage repayments, homeowners need to find effective ways of protecting their finances.
So, we’ve rounded up some of the best ways you can safeguard your financial health as a homeowner.
A home warranty plan is a kind of service contract that will help you afford the costs of repairs and replacements to major home systems and even household appliances.
Even so, you’ll still need to choose the right home warranty plan. So, you’ll need to determine your needs, check warranty provider reviews, compare costs, and get in touch with customer service. It’s also wise to choose a warranty plan with a top-rated service provider. First American Home Shield is an excellent choice in this regard.
Home insurance is another excellent way to protect your pocket as a homeowner. This type of insurance is tailored for homeowners to payout for unpredictable events like fire, burglary, some kinds of natural disasters, and even vandalism.
With this, it’s important to also purchase flood insurance because most home insurance policies do not cover the financial impacts of flooding.
In addition to protective insurance policies and a home warranty, it’s also essential to keep up with home maintenance chores all year round.
Prioritizing home maintenance will ensure your property stays in excellent condition over the year, which upholds value. Moreover, you’ll also be avoiding impending costs of major repair and restoration needs because neglecting maintenance will lead to extensive property damage over time.
Some of the most critical home maintenance chores to prioritize are cleaning the gutters, servicing the heating and cooling system, and flushing out drain clogs regularly. Even so, all home maintenance chores are essential, so it’s wise to create an annual checklist that includes all relevant tasks.
From utility bills, mortgage repayments, and maintenance chores to insurance and out-of-pocket expenses, there are quite a few things you’ll need to pay for each month as a homeowner. Instead of assuming these costs will remain stable throughout the year, it’s crucial to create a detailed budget and revisit it each month to adjust expected costs.
A simple hack to save substantially on mortgage loan interest is to switch to biweekly repayments. Instead of paying your mortgage each month, divide the payments over two-week intervals.
Switching to this payment plan enables you to make 26 repayments each year, which is 13 monthly payments. As a result, you’ll be shaving off a substantial amount of interest and slicing a lot of time off of your repayment term as well.