Crystin Liboma's childhood dream was to own a home. At 26 years old, she moved out of her parents' house into her first home purchase in Delaware. Then, she was slammed with major home repairs that left her struggling to pay her mortgage and several thousand dollars in credit card debt.
Three years after buying her first home in 2017, Liboma found relief in the form of a mortgage refinance. By refinancing from a mid-4%, 30-year mortgage to a 3.38%, 20-year mortgage, Liboma set herself on stronger financial footing.
Now 35 years old, the healthcare consultant has learned a few lessons about dealing with unexpected costs, along with one thing you can control but might not realize — your mortgage rate.
There are many uncontrollable costs when it comes to homeownership, including maintenance, rising property taxes and high utility bills. Naomi Peden, a housing counselor at Money Management International, helps people who are struggling to pay their mortgage. But financial stability begins before move-in day.
"One of the benefits of being a homeowner is the fact that you're stabilizing a portion of your housing cost," she tells clients during pre-purchase counseling. "That portion is the principal and interest payment."