Mid-Year Financial Check-In for Homeowners

Your home may be one of your most important assets. Like any other important aspect of your life, it’s good to have a regular review of how things are going.

Completing a mid-year check-in ensures that your mortgage, equity, and finances align with your current goals.

Here’s Your 8 Step Homeowner Checklist:

1.    Revisit Your Financial Goals

Reviewing your financial goals will give you a clear idea of how your home fits into your finances.
Many factors can affect your progression towards these goals. Maybe you’ve gotten married, or had children, or changed jobs.

Taking all these things into consideration, you have to ask yourself if you’re still on track with the financial goals you’ve set. Once you do this, you can begin making adjustments going forward.

2.    Assess Your Budget & Spending

Similar to the previous step, changes in your life can affect your spending habits and budgets. If you have more expenses, this should get factored in to ensure you're not going over budget. 

Maybe you landed a better job and can afford to spend more. You can also factor this in.
Either way, it’s worth reviewing your budget so you have a clear idea of how your money is being spent.

3.    Check Emergency Funds

It’s essential to have an emergency fund that covers three to six months of your expenses. An assessment of your spending will give you a clear idea of how much money is needed for this fund. And if you don’t have an emergency fund, this is a great opportunity to start building one.

4.    Retirement Contributions

This is a great time to look for opportunities to increase contributions to any retirement funds you may have. You can ask yourself: “Can I put more into my retirement funds without impacting my other financial goals?” If the answer is yes, you can make that adjustment and ultimately make the most out of your finances.

5.    Evaluate Debt & Credit Score

Your debt and credit score play a major role in your overall financial health. Review your current debts, check your credit score, and look for opportunities to pay down high-interest balances.

If your credit score has improved since you took out your mortgage, you may qualify for better loan options or more favorable terms.

6.    Review Your Mortgage

How is your mortgage affecting your financial goals? Here are some things to consider:

Changes in rates may affect your strategy going forward. Consider refinancing to lower your monthly payments and interest rate.

• Review your loan term. Has your financial situation changed, allowing you to switch to a better loan term?

• Evaluate your home equity. If your home has increased in value or you've paid down a significant portion of your mortgage, you may have access to equity that could be used for home improvements, debt consolidation, or other financial needs.

• Consider your monthly budget. If your mortgage payment is limiting your ability to save or invest, it may be worth exploring ways to improve your cash flow.

• Revisit your long-term plans. Whether you're planning to move, renovate, pay off debt, or prepare for retirement, your mortgage should support your financial goals, not hold them back.

7.    Consider Renovations

Home improvements can make a big difference in your equity. So can a lack of repairs.

Here are some ideas for maintenance and projects:

• Ensure HVAC systems are running properly.

• Start an outdoor project, whether it’s new lighting, a patio, or gardening.

• Consider indoor upgrades for your kitchen, floors, and bathrooms.

Not only could some repairs and renovations significantly improve the value of your home, but they could also be fun projects to complete over the summer.

8.    Plan and Make Adjustments for the Rest of the Year

A mid-year financial review gives you the opportunity to adjust your plans before the year ends. Review your progress toward savings, debt reduction, and other financial goals, and make any necessary changes to stay on track. Small adjustments now can help you finish the year in a stronger financial position.

Need Assistance with Reviewing Your Goals & Mortgage?

Taking the time to complete a mid-year review is a great way to maximize your finances and ensure you're on track to hit all your goals.

If you’d like assistance with assessing your goals and reviewing your cash-out refinancing options with complementary debt review, contact us by calling an Onity Mortgage loan officer at 1-877-319-0577.