Already ready to buy a house?
In this module you learned that a house is not an investment, but rather an extra piggy bank. You have also learned that it is important to buy a house at some point because that way you save extra and therefore become extra fit. Don't do this until you know you want to live in the same place for the next five years, have a stable job, and have accumulated enough savings. You also learned about mortgages. This assignment is about mortgages.
Assignment
Using all the data you found in the previous modules and through the Fin Fit Tool, you will determine what kind of mortgage is a good fit for you and what your maximum mortgage amount is based on your income and debts.
- Using this tool from Independer, you can calculate your maximum mortgage amount based on your income. Do this and make a note of this amount.
- Then the type of mortgage. As you learned, the most commonly chosen mortgage form is an annuity. In the second part of the assignment, you will determine which form is best for you. Are you sure you will earn more in the future? Are you expecting a specific amount over a period of time? How do your other financial goals fit into the picture? Combine your current and future financial situation to determine what type of mortgage is the best fit.
By doing this exercise you will be super prepared for when the time comes, and you will make a rational choice about this extremely difficult subject.