Traditionally, the curriculum in elementary and secondary schools hasn’t included any kind of personal finance courses (or chapters, even). So, it’s no wonder that so many adults find themselves crushed by debt or living paycheck to paycheck. It’s time to nip that in the bud! Here are some basic budgeting tips that everyone needs to know.
Buying a home is one of the biggest decisions you’ll make with your money. But not everyone has the money to pay for a house in full at once. This is where a mortgage comes into play. Implemented after The Great Depression to help stimulate the economy, mortgages help just about anyone increase their wealth. Before mortgages, a buyer had to provide a 50% down payment with the remaining loan from the seller. Now, banks and other lenders ask for a cool 20% down payment and charge interest on your remaining balance. But what makes up a mortgage? Here’s everything you need to know about mortgages, mortgage rates, and what’s considered for you to get one.
The topics of creditworthiness and credit history are constantly at the forefront of people’s minds when applying for or renewing their mortgage. The world is full of people from different walks of life, so it goes without saying that we’re all in a different situation when it comes to debt. Some have very little debt, with different combinations of credit cards and few trade lines (like student loans). Some of us may have none, which isn’t always great. There are ways to use credit and debt strategically, and make it work in our favour!
Shopping around for a better mortgage rate is very common, and often encouraged. It’s obvious; people don’t want to pay a higher rate if there’s a lower one available! Getting the best mortgage rate can be a competitive feat – clients want to be sure they got the best mortgage rate possible.
However, it’s an irrelevant topic. Mortgage rates change often, and each client’s situation is different!