Getting healthy is one of the most popular New Year’s resolutions.
Reassess Your Mortgage to Reach Your Financial Goals
So this year, why don’t you focus on your financial health? The early days of the New Year is a right time to look into your personal finance habits, minimize your debt, save for retirement and organize your finances. Have you set up your financial goals? If not, set now!
Set goals that you want to achieve, because it can give you a plan to follow and a reason to stay motivated. But which financial goals are crucial for reaching in life. While planning your financial list, consider including some financial aspirations such as living within your means, aiming for excellent credit, be ready for financial emergencies, etc. If you are planning to apply for a mortgage, shortlist and evaluate Massachusetts mortgage companies to understand the benefits and programs. These are some of the aspects that you should consider. We are here for you and we try to help you reach your financial goals in the future. All you have to do is schedule a mortgage check-up with an expert and discuss your present situation as well as your goals.
There are many questions to be asked to know whether it is the right time for you to purchase a new home or refinance your current mortgage. You should start reassessing your mortgage.
Start with Real-Estate Goals
Just think about what are your real estate goals for the next 5-10 years. Are you looking to buy your first home, or you want to purchase a vacation home? Also identify whether you are likely to change job or income over the next 5-10 years because this could affect what you can afford. Also, check whether you are anticipating any life-changing events over the years to come.
Some of the life-changing events can be:
- Children start going to college
- Marriage or divorce
- Promotion or retirement
- Growing old parents
- Surgery or prolonged illness
- Home renovation or looking for a smaller/larger home
- Birth of a baby or adoption
- Starting or closing a business
- Investing in property, second home or new car
Evaluating the Current Situation
Next, start looking at the current state of your home and mortgage and how that will affect your future plans. Consider the approximate value of your home and how long you plan to live in that home. If you hold a second mortgage, then take that amount into consideration also. Once you determine all those factors, start discussing your personal goals as well as your goals for your mortgage.
Let’s have a look at some of the personal goals you may have:
- Achieving financial freedom
- Clearing your mortgage by the time you retire
- Achieving liquidity
- Buying larger home
- Increasing current and future tax deductions
- Saving money for sending your children to college
Let’s have a look at some of the mortgage goals you may have:
- Reducing your monthly payment
- Clearing other debt (credit cards, student loans, etc.)
- Availing equity to grow cash reserve or for investment purposes
- Increasing tax benefits
- Clearing your loan
All you have to do is find an expert and get scheduled a time to evaluate your current situation and discuss your future plans.
While planning your financial goals, don’t forget to look at where each of these priorities fit the slot. Go and have a good conversation with your financial advisor about how you can go about making these goals a reality.
For meeting your financial goals, you should start monitoring your budget and stick to your savings and retirement plans. However, ensure you have the things you love in life and get rid of the expenses that don’t add value. In this way, you’ll put more toward your goals. In simple terms, achieving your financial goals means spending your money on what’s crucial to you.