Buying a new home can represent big changes with the household budget. And financing improperly can lead to missed opportunity, financial waste, or unnecessary exposure to risk. If you set off on a 30 year plan with the slightest error in your trajectory, you can wind up quite a ways off from your target.
Even with the best planning, life isn’t always predictable. Most people experience life’s path shifting beneath their feet to some degree somewhere along the way. Similarly, economic cycles can cause changes to the market environment, introducing opportunities to get on a faster vehicle to your destination. Whether change comes from an internal or external event, a periodic evaluation of your financing is essential for effective long term financial well-being.
My process has two components: the first step is to attain the best result possible at the point of purchase. The second, is an open-ended monitoring and review of your financing relative to the markets. I watch for events that might open up opportunities to improve the financing structure, and bring them to the homeowner’s attention. I also touch base annually to conduct a brief review to determine if any life changes necessitate recalibration.
The overall approach is designed to periodically revisit the homeowner’s financing structure, and evaluate it relative to life’s evolving context, ensuring that peace of mind carries forward beyond the point of purchase.
