Having many monthly debt obligations not only prevents you from living on a comfortable budget, but it also prevents you from accomplishing other financial goals. Still, it’s not just the amount of debt you have that matters – it is how much debt you have relative to your income. If you’re considering buying a new house it is important that you care about your debt to income ratio for a mortgage.

For most homeowners, mortgages take a considerable chunk of their paychecks. Making sure your budget is up to date is important to ensure monthly cash flow.

In simple language, mortgage refinancing is getting a new mortgage to replace an existing one. It has several perks when taken at the opportune time and for the right reason. In some cases, like when you have too much debt or a bad credit score, refinancing can be risky.

When your mortgage is up for renewal, do you know what you are going to do? You will receive a slip in the mail from your bank saying that to renew all you have to do is sign the form and mail it back in. Pretty easy, right? Banks are hoping that you will be too busy and too lazy to look into all of your options before sending that little slip of paper back in to them.

Many young and older adults are not well educated in finance. When your credit score goes up for the first time or the tenth time, you may receive offers to borrow money from a plethora of lenders. Because advertising and gimmicks can be so persuasive, and people have very little education in personal finance, many people will take on debt from these offers that they don't necessarily need, and these debts may prevent them from getting a home.

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