Life changes affect everybody and it makes sense to be prepared. A death or birth in the family, relatives or friends in need and personal life events can make previous plans for a home suddenly less feasible. While no one wants to dwell on the loss or worsening condition of a loved one, it behooves you to consider how this will affect your home mortgage plans. The loss of your job; how do you plan to pay for the mortgage if you have a drastic reduction in income for several weeks or months? A birth may be a joyful occasion, but it is also an expensive one and one that may make you rethink moving. These things need to be taken into consideration.

It seems obvious that shorter-term mortgages are best for people who keep track of interest rates and current events and know what they plan to do with their home. It is also wise to have liquid assets that can be used to cover your living expenses in case of loss of income, unexpected events and the possibility that interest rates will go up when you need to refinance. Andy Asbury