Getting a cash rebate on your mortgage is a fantastic way to free up some extra money for a few things around your new house, but it can also provide some security.
Many new home owners find themselves cash strapped after buying their home. The down payment and moving costs add up quickly. Once you’re in your new home there are a lot of costs to getting it up and running. Hooking up your utilities, cable, and internet can come with installation fees, equipment rentals or deposits. While you may have budgeted for insurance, taxes, and condo fees, you might be surprised by a special assessment, or an increase in the tax rate.
Along with unexpected fees are unexpected costs. If the hot water heater goes, or that new-ish looking refrigerator stops running, you’ll be out of pocket trying to replace them. A new coat of paint might have hidden a leaky pipe, and plumbers aren’t cheap.
Then there’s the stuff you just didn’t think of. You’ll need a lawn mower for that nice big yard. And a weed whacker. And furnace filters. Light bulbs. A snow shovel. It really never ends.
While it’s tempting to use your rebate to get that big screen TV you’ve had your eye on, hanging onto it for a few months can really help you get over some unexpected hurdles while you break in your new home. Besides, there will be an even bigger TV out there in a couple of months.