Now you’ve closed on your mortgage and the home is yours.
Owning a home is exciting. And your home is also a large investment. Here’s how to protect that investment.
- Stay on top of payments
- Keep up with ongoing costs
- Determine if you need flood insurance
- Understand Home Equity Lines of Credit (HELOCs) and refinancing
Act fast if you get behind on your payments
If you fall behind on your mortgage, the company that accepts payments on your mortgage contacts you. This company is your mortgage servicer. Your servicer is required to let you know what options are available to avoid foreclosure.
Keep up with ongoing costs
Your mortgage payments are just one part of what it costs to live in your new home. In addition to your monthly mortgage payment, you will need to set aside funds for taxes and homeowner’s insurance. If there is no escrow account established for these expenses, you will need to pay them separately. Maintenance and repair costs also add up over time, so make sure you have a budget and are saving regularly for these expenses.
Understand HELOCs and refinancing
Homeowners sometimes decide they want to borrow against the value of their home to help remodel or pay for other large expenses. One way to do this is with a Home Equity Line of Credit (HELOC).