Time and term come up in conversation every day in the mortgage business. When a family purchases a home, the term of the loan can be a 30, 25, 20, 15 or 10-year term. The most frequent term chosen is a 30 Year Fixed Rate-Term. Time means the same, and sometimes the thought of a 30-year fixed mortgage is daunting.
In most cases, this term is chosen because it is the least amount owed monthly when you amortize a payment over 30 years. Time is not infinite or impossible, and dreams do not have expiration dates. This is a reminder for our first-time homebuyers as they become familiar with the qualification process. In mortgage terms and in life, time evolves and changes. We must make the best decision for our family at that moment. It is healthy to look ahead, however as it relates to a home, the best decision is determining a solution for the next 3-5 years, not 30 years, because that’s overwhelming. Overwhelming leads to fear, and fear freezes decision-making.
My mom, Flower Mound resident Jana Schriever, recently celebrated her 83rd Birthday. With the help of the Cross Timbers Rotary, we did a Birthday card campaign, 83 cards in 2023. She owns her home, but this home wasn’t purchased until she was in her early 60s. What if she had said, I am too old (which is against the law, we can’t discriminate based on age) to purchase a home? We cannot judge the length of life. Think about how much equity she has built in that time. Equity, investment and time go hand and hand, but time is not infinite!
When it comes to relationships and real estate, how many Springs do you have left? What Birthdays will you celebrate? Where will you celebrate them?