May 8th, 2015 3:13 PM by Leonard Silvestri
It use to be that home buying and mortgage rates didn't become topics of conversation until reaching the early 30s. But with government efforts to decrease mortgage rates into the 3-percent range, Millennials in their late 20s have opted out of rent and into mortgages. Call it rent and roommate frustration or investment smarts. Whatever your reason for buying a home, managing your first mortgage is a bit undaunting. Fret not young one; for there are many ways you can manage your mortgage without giving up the lifestyle you're accustom to.
Successfully managing your mortgage starts before you even begin. The goal is to qualify for the lowest mortgage possible. That means re-evaluating your income, debts, credit score, down payment, cash and budget. Having steady finances from the start acts as a witness on your behalf and betters the chance of being approved for a lower mortgage.
We shouldn't even have to mention this one, but sadly we do. You would be surprised by the number of people who fall behind on one mortgage and let it build and build into foreclosure. Keep up with your payments and things should move pretty smoothly. If you manage to become a mortgage paying all-star, it's common practice to up your game by splitting your mortgage in half and making bi-weekly payments. Not only will you take years off your mortgage, but help automate payments as well.
A huge benefit to single Millennials is the ability to fill empty rooms with rent-paying roommates. Not only do roommates alleviate the stress of a mortgage but may even put a nice buffer of cash in your pocket.
Owning a home comes with monumental tax benefits. Whether you use it as a tax credit or a tax deduction, you can save thousands from in property tax, home office deductions, home equity, upgrades and much more.