Creating A Healthy Household Budget

Hello, my name is Jerome Silas. Welcome to my website about creating and following a healthy household budget. When I was in college, I tried to create a smart budget to save all the pennies I could after paying my bills. Unfortunately, I jumped in too fast and created a budget that was impossible to follow for the long term. Through the years, I have learned all about the methods that work best while creating and following a budget. I would like to share those methods with you all to help everyone create a healthy household budget. Thanks for your time.

Should You Get A Mortgage Even If You Have Cash?

Finance & Money Blog

Do you have cash that you could use to buy your next home? Whether it came from a prior house sale or your personal nest egg, using cash to buy a house outright often seems like an ideal situation. And it certainly limits your debt load. But when might it be better to opt for a mortgage loan anyway? Here are a few situations to consider. 

1. When It Leaves You Cash-Poor

If the amount you would spend on a new house represents the vast majority of your liquid cash, you may be ill-advised to tie it up. Once you buy real estate with that money, it becomes harder to access if there is an emergency or something changes in your life — possibly for up to 20 or 30 years. 

You may be able to pursue borrowing against home equity at that point, but you'll just end up with another loan anyway. Instead, consider planning for the unexpected by keeping at least some of that money liquid. 

2. When You Want to Build Credit

Paying cash for purchases feels good but it doesn't help you build or maintain your good credit. Credit scores are based on a long history of timely payments, a variety of credit used, and the amount others have authorized you to borrow.

A home loan is one of the biggest credit sources most Americans access, so they can represent a big chunk of your credit history. If you work to maintain credit now, you'll get access to the best rates for things like car loans, student loans, credit cards, and future real estate purchases. Your good credit can even help employers during background checks. 

3. When You Could Invest

Finally, consider the opportunity cost of tying up all your money in a home. Do you have sufficient other funds invested and returning a healthy rate for goals like retirement, emergency funds, and education? If not, could this money work harder for you by being invested?

If the rate of return on any pursuit — including buying a rental property, starting a business, or investing — is higher than the rate on a mortgage, it could be a better use of those funds. 

Where to Start

Want to know more about the pros and cons of using a mortgage loan to buy a home in any financial situation? Start by meeting with an experienced mortgage loan provider in your state. They will help you crunch the numbers and determine what size loan — if any — could help you keep a great balance in your financial life. Call today to make an appointment. 

For more information on mortgage loans, contact a professional near you.


15 November 2021