These are 4 Most Important Things You Should Know Before You Take a Mortgage in Kenya

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Mortgage is one of the best investment decisions you can make in your life. It allows you to not only own a home but also move from being in a rented apartment to a place you call a home….you know the stress of handling landlords.Now,before you decide to take a mortgage, you must understand these 4 things.

Interest Rate

Interest rate is important for anyone and the lower the interest the better. Before you approach a company for a mortgage, ensure the interest rate you are charged does not exceed 12 %.You should also ensure the company has a good reputation among mortgage holders.

Job security

Job security is the most important thing for anyone who wishes to take a mortgage. Government jobs ideal for this arrangement. As you are aware, mortgage payment can take up to 15 years, so you need not only a well-paying job but a secure one.

We have seen cases where people are fired two to three years after starting to pay mortgages and at the end of the day they lose their money when they are unable to for the home.

Responsibilities

Allow me to say this, that mortgage repayment is almost a lifetime commitment, it can really strain you. Before you embark on this arrangement, look at your life and determine whether you have other important responsibilities which could take a sizable amount of your salary or income. Life is short, which is why you should balance between luxuries and serious matters in life.

Building your own home

Now this is where most people get confused, do you build your own home or consider paying a mortgage? I would advise you to consider a mortgage only if you like the location of the house and the cost, otherwise building your own home is the best option. Sometimes the mortgage cost can be exaggerated by mortgage companies but when you are building your own house, the figures will be realistic.

The worst thing about mortgage houses is that you can buy a house with a design that is not your taste. In this case you might be forced to use your money to modify it.But when you are building your own house, you only consider to build  a house which is attractive to your eyes.

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