Here are 3 expenses that new homeowners oftentimes face which easily can be eliminated or reduced with some wise choices.
Costly home furnishings
Oftentimes, one’s first home is a lot bigger than the places they have lived in before. This will leave one with lots of empty space and the tendency includes filling that area with fresh furnishings. Most homeowners follow day one inside a new home with a day at their area furniture store, oftentimes purchasing more new furniture than they’re able to afford. If you are considering brand new furnishings, give it a little time first. Purchase low-end things if you actually want to fill up the space then slowly replace them when your savings allows. Do not fill your credit card up with costs from the furniture store in your area.
PMI (Private Mortgage Insurance)
Most first-time homebuyers become saddled with this awful expense which derives from purchasing a house without a 20% down payment. Oftentimes, that will add $100 or more to the month-to-month mortgage payment without anything in return. Eliminate that as soon as possible. The ideal time to make some additional mortgage payments is within the initial couple of years of the mortgage. You won’t just eliminate that private mortgage insurance early, you also will vastly decrease the lifetime interest paid on the mortgage.
Most new homeowners are provided a “deal” upon appliance insurance, where they’ll pay some insurance provider a specific amount every month to “insure” the appliances against failure. Why is that a bad deal? It is more expensive than simply saving that exact same quantity in a savings account. Instead of purchasing an insurance policy that is unnecessary, just place an amount that is equal to the month-to-month premium inside a savings account. Within one year, that savings account is going to cover any required appliance replacements.