Mason explains payment shock: the sudden jump in housing costs when you move to a higher rent or mortgage. His strategy is simple: pay down credit cards, car loans, and other debt first so the bigger housing payment doesn't break your budget.
So I want to talk to you guys today about a little thing called payment shock. Now, a lot of people aren't familiar with what payment shock is, but put quite simply, it's going from paying a certain amount, whether that's in a mortgage or in rent, to paying a much higher amount. Now granted, rents and housing expenses have gone up drastically in the last year or so, which means that a lot of people are experiencing payment shock, whether that's in the rental market or whether that's in the purchasing market. Now, a lot of people are also upgrading their living situation. You know, they're going from living in an apartment or a condo to living in a single-family home, and that causes what we call payment shock in the mortgage industry. Now, one of the best ways that we're able to combat payment shock is very simple. By getting rid of additional debt such as credit cards, car loans, and other monthly debt obligations that you're already paying, it lessens that burden of having that payment shock.
How to Qualify for your First Time Home Purchase #mortgagerates #homeownership
