MORTGAGE

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This page is dedicated towards Mortgages & Loans. I will start plugging here some of the most valuable blog posts that provides informational insights related to Home Mortgages and Auto Loans.

As I work towards building this page to bring some of the most valuable and practical information related to this topic, here are few things I want to highlight for you to get the thought going:

Home Mortgage

 Don’t stretch yourself too much with a mortgage. Buy within your means… it’s not worth the sleepless nights. - Sarah Beeny 

  • As you start planning to buy your home, make sure you keep a very close eye on your credit scores too, because the better the scores are, the better are your chances to get the best deals! I managed to get deals not once, but twice of over 2-3% less in mortgage interest rates. It’s a significant savings and makes a lot of difference in the long run. It is for sure a smart saving approach!
  • Avoid going for the second mortgage option (Private Mortgage Insurance – PMI) as that would drain most of your earnings and leave almost no room for savings. You would end up on a very tight budget.
  • Make your best attempt to put as much down as possible. Keeping in mind you need enough for the next six months or so in the bank for your mortgage payment plus for your other expenses.

Auto Loan & Buying

I have learnt to seek my happiness in limiting my desires, rather than attempting to satisfy them. - John Stuart Mill

  • It is very easy to get carried away when going for a car purchase. It’s something that we are going to drive daily and we want it to be something that we enjoy having and love driving. I might love driving a Hummer or a Beamer, but be very practical in making your purchase decision based on how much you can afford to pay. I would recommend that one should keep the auto loan below or around 5% of their monthly earnings.
  • Do your homework well online by researching the type of car you are interested in before you land at a dealership. I highly encourage visiting multiple dealerships, because at times, you might find an even better deal by just taking the ride around after your research.
  • Never hesitate to bargain. I know at times “bargain” is looked upon as a foreign word but bargaining “always” works at dealerships. It can be in any form, like 0% financing for x months, a direct discount on the total, added features or upgrades, service discounts and more!
  • For auto loans, try out different dealers to see who is offering the best options, including the 0% interest rate options. They can be tricky and inflate the price without much room for bargaining.
  • If you are planning to buy a used car, make sure to do the extra due diligence to ensure you don’t incur high maintenance cost within a short time of the purchase.

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