A lot goes into your total net worth. To figure your net worth you can simply just take the total amount of your assets and subtract that by the cost of all your liabilities. This may seem like a simple formula, but like I said, a lot goes into it. There are also a lot of side-factors involved in the whole financial scheme; things that might seemingly not have anything to do with value, wealth, or money. For example, let’s take a look at mortgages.
In order to be approved for a good mortgage that fits the detail that you want it to it helps to have a high net worth value. This shows that you can pay the bills and not get yourself into a rut, like debt. However, there are factors that influence your likeliness to be approved for a mortgage. Your house is most likely going to be your biggest asset, and it’s also where you’re going to have a lot of equity. In order to keep the value of your home up, it’s important that you maintain that level of equity. Equity is a very fluctuating figure, so a lot home owners will let it slide a little to the left or right. But when everything is set and done, your net worth needs to be a solid. There are lots of liabilities out there than can harm your net worth – one of these is your health. Yes, having poor health can badly affect your net worth. When applying for a mortgage, it’s not uncommon to have to fill out a bunch of information regarding your health. The market wants to know if you’re a healthy person because research has shown that if you’re willing to take care of your body, then you’re more likely to take care of a house.
Having good health along with a good net worth can score you a fantastic mortgage, but what else can you do to better your financial situation? For one, you can pay attention to mortgage interest rates. Mortgage, just like your level of equity, is a fluctuating number that moves around a lot. Most mortgages are for 30 years, but that’s a lot of interest that can accrue! This is why paying attention to interest rates will give you a little insight as to what your bills might be so you can plan accordingly.
Is Healthy Really Wealthy Credit Picture License: Tracy O via photopin cc