A Quick Look at Your Home Budget
These days, most people are trying to control their expenses a little more tightly. Often they don’t realize how much they’re paying to live in their homes. So let’s take a look at that home budget and see if we can’t do a better job of staying on top of the costs.
- Your largest expense is probably your mortgage. These days, Austin mortgage rates are historically low, so you might be able to refinance and lower your monthly payment. Email Leaman Team (LeamanTeam@LoanPeople.com) or call (512) 710-1400 and we’d be happy to let you know if that makes sense.
- Another major expense is likely to be your homeowner’s insurance. Check in with your agent once a year to see if you’re getting the right coverage at the best price.
- Next, look at your real estate taxes. The higher the assessed value of your property, the higher your real estate taxes. So, the next time Austin, TX does a reassessment, don’t be afraid to ask for an abatement if you think they’ve given your home too high a value. Do your homework. Look up the assessments for similar homes in your neighborhood. The records are public and usually available at the tax assessor’s office.
- Recurring monthly expenses:
- If you pay for town water, town sewer or a homeowners’ association, those are probably fixed expenses you can’t cut.
- But if you pay for private trash collection, snow removal, lawn and gardening services, periodically look around for cheaper rates. Even if you’re happy with your current supplier, this information could help you get a better deal.
- Phone, internet and cable TV services should be reviewed at least once a year to see if competitors offer better prices.
- Energy costs. Oil companies should be reviewed once a year, before heating season begins. And if you think oil may be going up, pick a supplier who will lock in the price. In a growing number of areas, you can also find competing electric companies. Find out who has the best deal. If you heat and air condition with gas, ask your local gas company about special offers.
- Maintenance and repairs. It is always cheaper to fix a problem as soon as it comes up, rather than letting it go. It costs very little to re-caulk around a bathtub, but if you ignore it, you could wind up replacing a wall. Put aside $500 to $1,000 a year to take care of minor repairs and maintenance.
- Major improvements. If you have you heart set on updating a kitchen or bath, installing a deck, or even putting on a new addition, get a rough cost estimate and decide how many months from now you’d like to start. Divide the cost by the months and begin putting money away for it each month.
Your home is your biggest investment. But with a little effort you can make your home costs smaller.
Leaman Team wants to make sure your questions are answered. Please call Leaman Team today to discuss your home financing: (512) 710-1400 or email LeamanTeam@LoanPeople.com.