Homeowner Resources
Make the Most of the Home You Already Own
Owning a home isn’t just about making the monthly payment.
Over time, decisions about your mortgage, debt, credit, maintenance and improvements can affect both your finances and the value of one of your largest assets.
You don’t have to become a real estate or financial expert. But understanding a few basic principles can help you make more informed decisions about the home you already own.
Protect your investment. Build equity. Make informed decisions.
1. Can I Pay Off My Mortgage Faster?
For many homeowners, the mortgage is their largest monthly obligation and one of their biggest long-term expenses.
Even relatively small additional principal payments may reduce the amount of interest paid over the life of a mortgage and shorten the time it takes to pay off the loan.
But there isn’t one strategy that’s right for everyone.
Your interest rate, remaining loan balance, other debts, emergency savings and long-term financial goals all matter.
Before sending extra money to your mortgage company, understand how your particular loan works and make sure additional payments are being applied correctly to principal.
The goal isn’t necessarily to pay off your mortgage as quickly as humanly possible.
It’s to understand your options so you can decide what makes sense for your financial situation.
Future page: Strategies for Paying Down Your Mortgage Faster
2. Should I Pay Down Other Debt First?
Your mortgage isn’t the only debt competing for your money.
Credit cards, automobile loans, student loans and other obligations may carry very different interest rates and repayment terms.
That means putting every available extra dollar toward the mortgage isn’t automatically the best strategy.
For some homeowners, reducing higher-interest debt first may improve monthly cash flow and provide greater financial flexibility.
The important thing is to look at your debts together rather than treating each one in isolation.
Future page: Mortgage or Other Debt: Where Should Extra Money Go?
3. Why Does My Credit Still Matter After I Buy a Home?
t’s easy to think of a credit score as something you worry about only when applying for a mortgage.
It can continue to matter long after closing day.
Credit may affect your ability to refinance, purchase another property, finance a vehicle, obtain certain types of insurance or qualify for other borrowing.
Maintaining healthy credit generally means paying obligations on time, keeping revolving balances manageable, monitoring your credit reports and being thoughtful about taking on new debt.
You bought the house.
That doesn’t mean you should stop taking care of the financial foundation that helped you buy it.
Future page: Building and Protecting Your Credit as a Homeowner
4. Which Home Improvements Actually Add Value?
Not every home improvement is an investment.
Some projects may increase a home’s appeal or marketability. Others primarily improve your enjoyment of the property. And some expensive projects may return only a portion of their cost when the home is eventually sold.
That doesn’t make them bad projects.
A swimming pool you enjoy with your family for ten years doesn’t have to return every dollar at resale to have been worthwhile.
The important thing is understanding why you’re making the improvement.
Are you improving your quality of life?
Trying to reduce maintenance?
Improving energy efficiency?
Correcting a problem?
Or trying to increase eventual resale value?
Those are different objectives, and they may lead to very different decisions.
Future page: Home Improvements: Lifestyle, Maintenance or Resale?
5. How Do I Protect the Value of My Home?
Some of the least exciting homeowner projects may be among the most important.
Roofs, drainage, HVAC systems, plumbing, electrical systems, exterior maintenance and moisture control aren’t particularly glamorous.
But neglecting them can turn relatively manageable maintenance into expensive repairs.
Routine maintenance can also help preserve the condition buyers will eventually see when the property returns to the market.
You don’t need to constantly renovate your home.
You do need to take care of what you already have.
Future page: Home Maintenance That Helps Protect Your Investment
Your Home Is More Than a Monthly Payment
A home can provide shelter, stability and a place to build a life.
It can also become an important part of your financial picture.
Over time, mortgage principal may decline, equity may grow, the property may appreciate and improvements may change both the home’s usefulness and its value.
That makes homeownership an ongoing process rather than an event that ended at the closing table.
Understanding your options along the way can help you make better decisions about both your home and your money.
Have a Question About Your Home?
You don’t have to be buying or selling to have a real estate question.
Maybe you’re wondering whether an improvement makes sense. Maybe you’re curious about what homes in your neighborhood are selling for. Maybe you’re considering refinancing, moving in a few years or simply trying to understand how your home’s value has changed.
We’re happy to help you think through the real estate side of those questions and point you toward the appropriate professional when the question falls outside our expertise.
ASK THE HOOVERS
A note about these resources
Information provided here is intended for general educational purposes and should not be considered financial, lending, tax, legal, credit, investment, insurance or home-repair advice. Individual circumstances vary. Consult the appropriate qualified professionals before making financial, legal, lending, tax or significant property decisions.