Reality Check: Longer-term Mortgages Make Sense
I have a friend who hates bills. Hates ’em! She can’t pay them fast enough so she doesn’t have to look at them. Hating bills isn’t necessarily a bad thing. In my friend’s case, her quick payments have yielded a stellar credit rating.
Imagine her surprise when I suggested that she opt for a 30-year mortgage rather than the 15 she was considering.
My friend has good job. She’s recently divorced and has two young children to support. A one-income homeowner with two dependents needs all the financial flexibility she can allow herself. While her income and excellent credit is enough to qualify her for a 15-year mortgage, it may tighten her budget enough to restrict her from paying for unexpected home repairs, a new car and even a much-needed vacation–for 15 years!
The fact is, we’re always paying for something when it comes to our homes. While it may seem like paying the mortgage quickly is a great goal, all we’re really doing is moving our money around differently. It’s easy enough to get the idea in your head that paying off the mortgage leaves you with nothing left to pay. Unfortunately, my bill-hating friend will never be free from paying property taxes, homeowners insurance, repairs and renovations.
A 30-year mortgage isn’t always right for everyone, but in many cases it makes the most sense. Focusing on paying more in a shorter period could make you put off paying for a roof leak that has, over the years, turned into a roof replacement.
There’s also your quality of life to consider. That trip to Europe you’ve always wanted to take. That car with the heated leather seats you dream about every winter. The opportunity for your children to attend the best schools. All of these things are compromised when your mortgage payment doesn’t leave you the financial flexibility to spend your money on the things that are most important to you. It’s great to own a home that you love, but your unnecessarily high mortgage payment should never prevent you or your children from living a fulfilling life.
Do you have a friend or relative in need of mortgage advice? Please contact me. I will be happy to help.
June’s Home Improver
Avoiding a Summer of Mosquito Bites
Question: What is the deadliest insect in the world? Most people think about swarms of killer bees or those horrible fire ants they always show on the National Geographic channel–so called because it feels like your skin is on fire after you’re bitten. Scary!
The deadliest insect, however, is the mosquito. While many of us see the mosquito as a nuisance more than anything else, these flying pests are notorious carriers of awful diseases, including West Nile Virus, dengue fever and malaria.
To avoid the stinging and scratching, remove any standing water around your home. Mosquitoes breed in water, so keeping things dry will force them to seek out breeding grounds elsewhere.
1. After it rains, dump out water that may have filled flower pots and watering cans. When possible, store them upside down when not in use to avoid water accumulation.
2. Keep gutters clear so that water can move through them. A clogged gutter is a common breeding place for mosquitoes.
3. Clean your birdbath. Regularly changing the water in your birdbath will wipe out any mosquito larvae before they hatch.
4. Folds in tarps and pool covers can create pockets of water that mosquitos love. Clean them out weekly and keep your tarp folded flat when not in use.
Remember to use insect repellent to keep yourself safe from mosquito bites. According to the Centers for Disease Control, you should choose a big repellent with one of the following active ingredients: DEET, picaridin, IR3535 or, for those seeking a natural remedy, the plant-based oil of lemon eucalyptus.