House payment can easily take the top spot when you start to look at your long list of financial obligations. From student loans to car loans and even credit card debt, your mortgage or even rent can easily be the biggest one you have to make every month. This is one of the reasons why you need to be consistent with the payment.
If you are renting, you need to make sure that you are in good standing with your landlord and that you send the payments every month. This is true especially if you are living in a part of town where a lot of people are trying to get in. They might not be too lenient with late payments and quickly give you the notice to vacate if you start missing payments.
If your house payment is for a mortgage loan, the same concept applies between you and your lender. You have to stay current with your lender and make sure that payments are sent in on time. Not to mention that you also have to be on top of your taxes and insurance if it is not already included in your mortgage payment every month.
In all this, it highlights the importance of keeping a close eye on mortgage or rent payment. It stresses the fact that it is one of the most basic needs you have to figure out as you go through life. It was provided for you when you were still with your parents but as you grow up and create a life of your own, you need to start focusing on it on your own.
A mortgage is one of your biggest debt obligations
One of the top reasons why you have to be consistent with your house payment is that it could be your biggest debt obligation. Even if you are renting, that monthly payment can be bigger than your utilities or food expenses. If you are paying for a mortgage loan, your monthly payments could be a lot higher when you start to consider everything.
If you are paying for your own house, you need to pay for your own taxes and insurance. This could go up year on year especially if your area is being developed at a rapid pace. You also need to include the amount you will spend on the upkeep and maintenance of your home. It is important to accept the fact that over time, you will have to make repairs at home.
Reduced risk of losing the house
Now that you understand how big of an investment your home is, it is natural that you do everything so you do not lose it. FDIC shares that 1 in every 200 homes could be foreclosed. Making sure you send out your house payment every month is one of the biggest factors to help you ensure that lenders do not start to exercise that lien they have over your hard-earned investment.
It might be tough to try and remember that payment every month but something as big as that might be a little difficult to overlook. One thing that can help you stay on top of your payments is to set an alarm for it. You can use a simple calendar app on your smartphone to remind you about making that monthly payment.
The easier it is to send the payment, the faster you can be over and done with it. If you plan to go to your bank every month, line up and make the payment, you might experience days when you are not up to it. Look for ways to send that payment online so you do not have to go out and be able to pay even if you are at the office.
One of the often-overlooked benefits of prioritizing house payment is when you find yourself in the middle of a financial emergency. Normally, you would have an emergency fund for these specific situations. Your emergency fund should be able to tide you through unforeseen circumstances which can range from small house repairs to finding yourself out of a job.
There are even people who would have an emergency fund and a separate rainy day fund. This helps them distinguish small emergencies from life-changing events. The rainy day fund is normally for the smaller ones and the emergency fund takes care of the big expenses. However, there might be instances when you were not able to save for emergencies or you are just coming off one and another emergency is right in front of you.
If this happens, you can use your equity in the house to get some much-needed funds. In the simplest of terms, it is where you borrow back the money you have paid on the house. The longer you have been paying the house down, the bigger you can borrow back. Of course, you need to talk to your lender to start the process but this can be a great way to raise some funds for big emergencies.
You preserve the memories in the house
House payment needs to be a priority because if you have been in the same house for decades now, there is a good chance that you have already built up a lot of memories on that home. Every corner of your home has a story to tell and each part of your house has a memory to share. This makes it all the more important to make sure that you do not lose the house.
There are times that these memories keep you grounded as well that is why you will always feel that sense of peace and comfort whenever you are at home. It cannot be helped that over time, there will be areas of the house that would break down from time to time and even those will have their own stories to tell.
One part of the garage that needed fixing could be a great bonding moment between you and your children. That fence that needed a fresh coat of paint can be a project you and your spouse can take up. Every time you look at the fence or the garage or any areas you had to fix up, you will remember those memories you shared with the people you love.
Make sure you make house improvements as you go along
This can range from small DIY projects to contract jobs just to maintain the house. Much like how your body ages over time where you need to have a proper diet and exercise to make sure you are healthy, your house pretty much operate the same way. Over time, it will grow old and will need some much-needed repairs and even improvement to maintain the house. Homeadvisor shares that average home improvements can be over $7500 a year.
The roof would need some work overtime as it is the part of your house that is exposed to the most to the elements. The sun, rain, wind, and debris are kept out by your roof so regular maintenance is needed to make sure it continues to do its job. Walls could use resealing, plumbing checked and even door and window hinges need replacement from time to time. The idea in all these is maintenance and being a step ahead of potential huge repairs.
House payment should be a top priority for you because the consequences of falling behind can be as severe as losing your house.