How To Be More Intentional With Your Money, Starting Now!

Mortgage Choices

Rachel Cruze emphasizes the importance of choosing the right mortgage to avoid losing money in homeownership. She advises opting for a 15-year mortgage over a 30-year one, as it helps in getting out of debt faster and saves significant interest costs. Rachel explains, "If you did a 15 year, then you'd pay $423,258 total on the original $270,000 loan, meaning that you'd get $190,000 back and you're 15 years sooner debt free, which is amazing" 1. This choice can lead to substantial savings and quicker financial freedom.

   

Financial Prep

Financial readiness is crucial before stepping into homeownership, according to Rachel Cruze. She stresses the importance of being debt-free and having a fully funded emergency fund before purchasing a home. Rachel advises, "Once you are out of debt and you have a fully funded emergency fund, three to six months of expenses, that's when you want to look at actually buying a home" 2. This preparation ensures a smoother transition into homeownership and reduces financial stress.