Smart Finance Corner: 4 Home Finance Tips Every Homeowner Should Know

Smart home finance tips can help you save money, build equity faster, and stay prepared for long-term homeownership success.

Whether you're a current homeowner or preparing to buy, making smart financial choices now can save you thousands later. Here's your August roundup of practical, proactive money moves to keep your real estate goals on track.

1. 🏦 Review Your Mortgage for Refinance Opportunities

If you bought your home when interest rates were higher, now’s the time to explore your options. Rates are still fluctuating, but even a small reduction could mean significant long-term savings—especially if you plan to stay put for a few years.

Pro Tip:

• Ask your lender for a rate review or get a second opinion.

• Compare the new monthly payment and the total cost over the life of the loan.

• Make sure the refinance costs (appraisal, origination, title fees) are worth the benefit.

2. 🧰 Budget for Quarterly Home Maintenance

Don’t let surprise repairs wreck your wallet. Set aside funds each quarter for home upkeep—think HVAC tune-ups, gutter cleanings, or sealing windows and doors. These small costs can prevent major expenses down the line.

Quarterly Maintenance Budget Goal:
Aim for 1–3% of your home’s value annually—divide that by 4 to get your quarterly goal. For example, a $400K home = $1,000–$3,000/year → about $250–$750/quarter.

3. 📈 Build Equity Faster with Small Extra Payments

Chipping in just a little more toward your mortgage principal each month can knock years off your loan and save you big in interest. No need to break the bank—just round up your payment or toss in an extra $50–$100 when possible.

Example:
Paying just $100 extra per month on a $350K loan at 6.5% could save you over $40,000 in interest and shave 4+ years off your mortgage.

4. 🏡 New Buyers: Don’t Sleep on Closing Costs

So many new buyers budget for the down payment but forget about the rest. Closing costs typically range from 2–5% of the purchase price—and they’re due at the finish line. That means for a $400K home, you could owe $8,000–$20,000 in fees on closing day.

What’s Included:

• Lender fees

• Appraisal and inspection

• Title insurance and transfer taxes

• Prepaid taxes and insurance

Plan Ahead:
Ask your lender for a Loan Estimate early so you’re not blindsided. And remember—I can help you negotiate credits or explore programs that reduce what you owe.

📌 Bottom Line: A little planning goes a long way. Whether you're building equity, protecting your property, or preparing for purchase—staying financially ready means fewer surprises and more control.

Have questions or want a custom game plan? I’m just a call or click away—no pressure, no obligation. Just guidance.

Shawanda 

202.553.6436