#MoneyMasterClass Recap–Week 21
Buying a Home–Starter vs. Once-and-Forever
After spending a couple weeks focused more on renting, Gail’s focus was on purchasing a house this week. The conversation started with the difference between buying a starter home or a once-and-forever home.
Paying Off Your Mortgage
Gail shared some advice on how to pay off your mortgage faster and save yourself a load of money!
Are You Willing?
As with everything, accelerating your mortgage payments comes with a choice. It could mean letting go of some indulgences in order to pay off your mortgage faster. As Gail puts it, you can choose consumption or financial security.
Time To Do Some Math
Since I’m a renter, these are all hypothetical numbers for me. It is truly eye opening to see how a seemingly small sum of money can make such a huge difference over the length of a mortgage. The conversation has really driven home the point for me that I should make sure my mortgage is truly within my means and not something I’m stretching to make work.
Home Inspections
The last topic of this week was the importance of getting a home inspection and how this can help you negotiate your buying price.
Many participants spoke about their experiences with home inspectors and stressed the importance of getting a good recommendation for an inspector you can trust.
Other advice included:
– taking pictures of everything so you have evidence if you need to dispute something
– take advantage of the opportunity to learn more about your home and how it is run
– check behind the appliances (stove, fridge, etc) to get insight into the homeowners
Have you accelerated your mortgage payments? How have you made this work for you?
If you’re a renter like I am, what did you learn this week? Was any of Gail’s advice helpful for your current situation?
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Start here with the Money Master Class Intro and Week One Recap
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Money Rules
Debt Free Forever
CEO of Everything
Money Smart Kids
4 Comments
A in Texas
I’ve owned 4 homes in the past with my former spouse. I always paid more than just the regular payment so when we moved & sold, we’d have more equity coming back. We did make the mistake of listening to the lender’s words that we could afford “X” amount of a loan instead of doing the numbers ourselves. And of course, I never figured maintenance into our budget so it was always an emergency expense. I didn’t know who Gail was or her teachings then . I rent now. This week’s lessons helped me realize: 1) I should always be doing the math for any money decisions, 2) Giving up little splurges and using that money more wisely does indeed add up over time– whether it be for a purchase, a trip, or a down payment on a house., or just long term savings.
A Sustainably Simple Life
Having experienced both renting and buying, would you want to buy again?
I love your takeaways/realizations from this week. I often need to remind myself how those little splurges add up. It’s amazing how fast they can. Always feels so much slower when saving it though than it does when spending.
glowsteady
Very interesting seeing the difference when you run the numbers yourself. I’m not currently a home owner but the small savings amounts really do add up quickly if you’re strict with yourself.
Sophie
A Sustainably Simple Life
It’s so true! I was doing the math recently and it only takes $2.74 per day to save $1000 in a year. It makes saving feel so much more attainable once I see the numbers.
– Alison