Budgeting for Your Mortgage Commitment
A mortgage commitment should be treated seriously and responsibly. A mortgage is a primary debt obligation. Budgeting is essential in order to meet that mortgage commitment and obligation in a timely manner.
This can be achieved by: -
Assignment of salary or assignment of income;
Self-employed persons could deposit their income into the bank on a regular basis;
Assignment of proceeds of investments to repay mortgage loan;
Generally one’s mortgage obligation should not exceed thirty-five (35) per cent of the borrower’s total income. Some institutions vary this rule and may go as high as 40 percent of someone’s income. The standard is thirty-five (35) per cent of total income.
It is essential prioritize based repayment is a priority.
that prospective homeowners on needs, and not on wants. primary obligation and must be
learn to Mortgage given top
Consequences of Poor Management
A major consequence of poor management is that you can lose your home.
The main issues that financial institutions consider in the event of default on a mortgage loan are as follows: -