Comments on: Split Loans & Home Equity Lines of Credit http://moneysmartlife.com/split-loans-home-equity-lines-of-credit/ Money Tips for a Better Life Sat, 21 Nov 2009 13:21:41 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: marci http://moneysmartlife.com/split-loans-home-equity-lines-of-credit/comment-page-1/#comment-155181 marci Tue, 14 Jul 2009 18:52:28 +0000 http://moneysmartlife.com/?p=2039#comment-155181 Another thing that's helpful in keeping you out of financial trouble is to buy only what you can actually afford "right now"... not what you think you can afford in a couple years. Make sure the monthly payment is affordable "right now", and don't be thinking you can skrimp and get by til that next raise and all will be ok. The raise might or might not come along. If you have seasonal income, make sure the payment is affordable during the down season... base your payment on the worst case scenario for your monthly income, and that's the payment you'll be able to make no matter what. You can always double up on your payment or add extra principal to your payment in the 'fat' months... but the lenders are not happy if you have to deduct from your payment during the lean months. Another thing that’s helpful in keeping you out of financial trouble is to buy only what you can actually afford “right now”… not what you think you can afford in a couple years. Make sure the monthly payment is affordable “right now”, and don’t be thinking you can skrimp and get by til that next raise and all will be ok. The raise might or might not come along.

If you have seasonal income, make sure the payment is affordable during the down season… base your payment on the worst case scenario for your monthly income, and that’s the payment you’ll be able to make no matter what. You can always double up on your payment or add extra principal to your payment in the ‘fat’ months… but the lenders are not happy if you have to deduct from your payment during the lean months.

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