Choosing the right home loan
Current homeowners and potential homeowners have important decisions to commit to when choosing the best mortgage that serves them. The process of choosing a home can be full of important considerations. The location of the home, the preferred school system, the proximity to the workplace and place of worship are benchmarks that we use to determine where we live. A mortgage choice uses different criteria. I suggest approaching a mortgage choice with three time frames in mind.

The beginning of the term is when you first purchase the home. The excitement of home ownership is in the air and it is important to start off on the right foot. The discipline that you employed to purchase a home needs to be maintained. Saving money becomes more important now because your overall financial plan now has a ten, fifteen, twenty or thirty year commitment to debt that is equal to almost thirty percent of your gross income. It is tempting to succumb to "peer pressure" to buy things that your neighbors have. Maintain three months of income in reserves as a rainy day fund and build on it. This need to be in addition to any other savings program you may have.

The second stage I call the growth stage. Many new homeowners' families grow after they obtain their first home. This growth takes place in different ways, children are born, children grow and mature and family members move in and that brand new bundle of joy represents often times a lost of income and new expenses. Ask others what expenses come with a new child and plan accordingly. As children grow and mature, bills such as child care expenses may no longer be an issue, or the expense is reduced. The preadolescent and teenagers are more likely than not to have activities that cost money that need to be accounted for in your family budget. Ballet, baseball, soccer, football, Girl Scouts, Boy Scouts, piano lesson and the church choir all require a commitment of your time and money to your children. We are a nation of families and many of us have had to take in family members or know someone who opened their home for a family member in need. Unexpected family members will probably add to you expenses and require that you devote time, discussion and resources to address those issues.

The last stage is my favorite. It is called the end. Your goal should be getting out of debt. It is possible to pay a mortgage off. Many homeowners manage to address many of life's challenges and retire with their home free and clear of debt. Decisions we make, small and large, should be made in the context of it's affect on my overall financial goal. All good plans begin with the end in mind. With these life stages in mind, your team of professionals and you should be able to arrive at a decision as to what mortgage is right for you.