5 Things You Should Consider When Starting A Family On A Mortgage
Welcoming a new child is an important and exciting milestone! However, to most young families, it also brings financial changes especially when you already have mortgage obligations. Proper planning helps position your family for success. Here are 5 key considerations when adding to your family while on a mortgage:
Strategic Mortgage Management:
Review your mortgage with a broker to ensure it aligns with your evolving situation. Adjusting your payment schedule or refinancing to a lower rate can free up monthly cash flow. Use any extra funds to build savings or pay down principal faster.
Emergency Savings:
Babies can bring unexpected expenses or disruptions to your normal work life. Establish an emergency fund covering 3-6 months of living costs. This protects you from missing mortgage payments if you face surprise costs or income disruption.
Future Home Upsizing:
Will your current home accommodate a larger family long-term? If you'll need more space eventually, start planning and budgeting now for a future move. If you have a future ideal home in mind, your mortgage broker can advise you on how you can position yourself on your income and liabilities to be able to afford that higher price tag.
Budgeting for Home Maintenance:
With a baby in the home, even if you are not planning on upsizing just yet, ongoing changes around the home and maintenance might still be required.
Make sure your budget allocates funds for repairs and improvements to avoid deferred issues becoming major expenses.
Long-Term Financial Planning:
Look beyond the mortgage to other impacts like life insurance needs, college savings, and retiring your mortgage faster. Develop a comprehensive financial plan accounting for child-related goals.
Having a baby is a joyful chapter of life. Careful preparation and mortgage management helps ensure you can financially support your growing family. The team at Investors Mortgage helps families plan for success during all of life’s milestones. Contact us today find your tailored solutions!
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