Deal with Your Debt: The Right Way to Manage Your Bill$ and Pay Off What You Owe

Summary

Homeownership can help build your wealth, but you can easily end up paying too much for your house and your mortgage.

Credit Limits

• Buy a home when it's right for you. Don't be persuaded by common myths about homeowning or be pressured into a purchase when you're not ready.

• Try to cap your housing costs at 25% of your gross income to give yourself some financial flexibility.

• Consider matching your mortgage type to the length of time you expect to be in the house. But don't automatically discount the traditional 30-year, fixed-rate mortgage, which offers stability and flexibility for many buyers.

Shopping Tips

• Refinance when it makes sense for your particular financial situation. There are no rules of thumb; the decision rests on your goals, ...