You took out a 30-year loan because it seemed like a good idea at the time. You wanted to keep your monthly payments as small as possible. That’s what many new homeowners do, especially if they’ve never had a mortgage before. To get Matched with a Lender, Click Here. Now that you are established in the home and have a grasp on your financial future, you want to know how you can pay that loan off faster. If 30 years seems too far off to own your home free and clear, use the following tips to pay your 30-year loan off faster. Make an Extra Payment Each Year If you can afford to make one extra lump sum payment each year, make it equal to your principal and interest payments. This way you make 13 mortgage payments per year rather than 12 payments. This one extra payment can knock a few years off your loan. It will also decrease the amount of interest you pay on the loan since you’ll pay the balance off faster. Make an Extra Payment Each Month If you would rather make smaller, extra payments, you can pay extra towards your principal each month. Let’s say you can afford an extra $100 each month. That would come out to an extra $1,200 each year towards your mortgage. While it doesn’t seem like a lot, after just five years, you would knock off $6,000. If you do this consistently, you may knock a few years off the term of your loan. Make Bi-Weekly Payments Some mortgage companies offer a service that helps you make bi-weekly payments. It’s not necessary to pay for that service, though; you can do it on your own. Simply take your full mortgage payment and divide it by 2. You then make that payment every other week. This is in place of your monthly mortgage payment. When you pay your mortgage every two weeks, you make 26 mortgage payments, which equal 13 months of payments. Without even realizing it, you just made one extra mortgage payment each year. This is possible because there are 52 weeks in a year, which translates into 13 months, but because some months have more than 4 weeks in them, you don’t make that 13th payment on a regular schedule. Apply Your Windfalls If you receive any type of lump sum money, such as tax refunds, work bonuses, or commissions, consider applying them to your mortgage. If it’s money you don’t count on for living expenses and truly is ‘extra money,’ you can use it to pay that 30-year mortgage down faster. Click to See the Latest Mortgage Rates. If your windfall is large enough, it could knock many years off your loan balance. Even if you don’t get large lump sum windfalls, but get several smaller ones, applying them towards your mortgage will help you reach your goal of paying the loan off faster. Make 15-Year Payments If you wish you had taken out a 15-year term rather than a 30-year term once you own the home, you can still get the benefit of the 15-year term. Using a mortgage calculator, determine the amount of your 15-year payment. You can then make that payment each month, applying the extra money towards the principal balance. The nice thing about making voluntary 15-year payments is that you can go back to the minimum 30-year required payment if the going gets tough. Let’s say you had to stop working for a few months because of an injury. You might want to cut back on your mortgage payment during that time. Since you didn’t officially refinance into a 30-year term, you can do this. If you had refinanced, though, you’d be stuck with the 15-year required payment. Combining Several Methods You can also take several of the above methods and combine them together to get your loan paid off the fastest. For example, if you receive tax refunds each year of several thousand dollars and you make one extra mortgage payment each year, you could knock many years off your loan. The quicker you pay the principal balance down, the less interest you pay, and the faster you own the home free and clear. The key to paying your mortgage off faster is consistency. Pick a method or method and stick with it. Of course, if it gets too hard to make the extra payments, you can cut back. But, if you are able to afford it, stay consistent. Also, don’t refinance your loan into another 30-year term. If you do choose to refinance, make sure the term is either equal to or less than the amount of time you have left on your current loan. Resetting your loan term back to 30 years would just start you back at square one, which is what you want to avoid. Source: https://www.blownmortgage.com/pay-off-30-year-mortgage-faster/
Do Your Research Before you even start talking to individual contractors, you should do your research behind the scenes. Use the internet to your advantage and see what others have to say about specific contractors. Use reputable sites, such as the Better Business Bureau to do this research so that you know what you are reading is legitimate. Ask for Credentials When you do start talking to contractors and determining if they will be a good fit for the job, ask for their credentials. It’s not enough for them to say they are licensed and insured, though. Ask them for proof of both. You want to see for yourself that they have the credentials necessary to do the job. Anyone can hang a shingle outside their home and claim they are a contractor, but only those that are truly contractors will be licensed and insured. Get Everything in Writing Don’t accept verbal estimates or promises to do the work. Everything must be in writing. You need a formal contract that dictates the scope of the work, how it will be done, when it will be done, and what it costs. Make sure your contract is properly broken down and doesn’t have just one lump sum fee listed. You need to know exactly how much each step costs and the approximate dates each step will be completed. If you don’t have it in writing, don’t expect it to be done. You can’t take a contractor to court on the basis that he told you something – if it’s in writing, though, it’s another story. Talk About Your Budget Don’t be shy about talking to contractors about your budget. The more honest you are upfront about what you can afford the more honest answers the contractor can provide you. If a contractor knows that your budget isn’t enough to cover the scope of the work you want done, he/she can tell you that. Click to See the Latest Mortgage Rates. If you don’t disclose your budget though, you could find yourself in over your head once the project starts. Letting the contractor know what you are working with will help him tailor his services to meet your budget. While you may have to cut out some things you wanted done, keeping it within your budget is the most important way to protect yourself financially. Have a Contingency Fund Even the best contractor cannot predict what will happen when he starts the job. If there are issues behind the walls, the contractor won’t know that until he breaks the walls down. If there’s more work that needs to be done, that means more money. If you set aside 10% – 15% of the cost of the work ahead of time, you can prevent yourself from getting financially overwhelmed when unexpected things do come up. Don’t Pay Large Deposits up Front If a contractor seems to be ‘all about the money,’ you may want to move on to another contractor. Typically, contractors will ask for a small deposit to ensure that you want the work done and to help them get the materials. Beyond that small deposit, though, contractors shouldn’t ask for too much upfront. If you find a contractor that wants half or even all of the cost of the work up front, walk the other way. These are usually scams. The contractors collect the funds and then leave town, never starting the work or ordering the materials for your project. Consult With an Attorney If you are having a large job done on your home, it’s not a bad idea to have an attorney look over your contract. While it’s another expense you’ll incur, it’s meant to protect you. The attorney can review the contract and let you know if he sees any issues or loopholes that could leave you with an unpleasant surprise when it’s all done. Take these tips to help protect you from a contractor that isn’t honest or doesn’t offer the quality work he claims to offer. The more steps you take to protect yourself, the happier you may be with the outcome of the renovations on your home. Source: https://www.blownmortgage.com/protect-hiring-contractor-home-renovation/
Here are just some of the reasons you need a real estate professional in your corner: There’s more to real estate than finding a house you like online! There are over 230 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to ensure you achieve your dream? You Need a Skilled Negotiator In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes. What is the home you’re buying or selling worth in today’s market? There is so much information on the news and on the Internet about home sales, prices, and mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer? Dave Ramsey, the financial guru, advises: “When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” Hiring an agent who has his or her finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear. Source: https://www.keepingcurrentmatters.com/2019/06/25/having-a-professional-on-your-side-makes-all-the-difference/
Sell your home fast, since June of last year, we have seen an increase in the inventory of homes for sale month per month. Every spring and summer, the inventory increases because people want to sell their homes. Those with children may want to be in their new home for the beginning of the school year. If you are one of those sellers, you may find these 4 tips helpful in getting your home sold more quickly. 1. Make buyers feel at home Declutter your home! Pack away all personal items like pictures, awards, and sentimental belongings. Make them feel like they belong in this house! According to the Profile of Home Staging by the National Association of Realtors, “83% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.” Not only will your house spend less time on the market, but the same report mentioned that, “One-quarter of buyers’ agents said that staging a home increased the dollar value offered between 1 – 5%, compared to other similar homes on the market that were not staged.” 2. Keep it organized Since you took the time to declutter, keep it organized! Before the buyers show up, pick up toys, make the bed, and put away clean dishes. It is also a good idea to put out some cookies fresh from the oven or a scented candle. Buyers will remember the smell of your home! According to the same report, the kitchen is one of the most important rooms to stage in order to attract more buyers. 3. Give buyers full access One of the top four elements when selling your home is access! If your home is available anytime, that opens up more opportunities to find a buyer right away. Some buyers, especially those relocating, don’t have much time available. If they cannot get into the house, they will move on to the next one. 4. Price it right As we mentioned at the beginning, more inventory coming into the market guarantees there will be some competition. You want to make sure your home is noticed. The key to selling your house in 2019 is ensuring it is Priced to Sell Immediately (PTSI). That way, your home will be seen by the greatest amount of buyers and will sell at a great price before more competition comes to market!
Over 10% of all residential homes are purchased by investors, and that number continues to rise. Who are these investors? Many have speculated that large institutional conglomerates such as Blackstone, American Homes 4 Rent, and Colony Starwood dominate investor purchases. However, a special report on investor home buying by CoreLogic, Don’t Call it a Comeback: Housing Investors Have Been Here for Years, shows this is not the case. Ralph McLaughlin, CoreLogic’s Deputy Chief Economist and author of the report, explained his findings at the recent National Association of Real Estate Editors conference in Austin: “Investor buying activity in the U.S. is at record highs. And our records go back confidently, about 20 years… What’s going on and why? Well, it turns out, it’s not the big institutional guys that are leading the increase in home buying. It’s actually the smaller guys. It’s those that have bought between one and ten properties over this 20-year period, they’re the ones that are really leading the increase in investor home buying.” Here is the breakdown of the percentage of purchasers by type of investor over the last six years according to the report: As the graph shows, the percentage of “Mom & Pop” investors is currently dominating the number of homes purchased by investors, as the percentage of homes purchased by both professional and institutional investors is falling.
If you’re currently renting and have dreams of owning your own home, it may be a good time to think about your next move. With rent costs rising annually and many helpful down payment assistance programs available, homeownership may be closer than you realize. According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying within the next 5 years, and 38% are planning to buy within the next 2 years. When those same renters were asked why they disliked renting, 52% said rising rental costs were their top reason. The results of the survey can be seen here: It’s no wonder rising rental costs came in as the top answer. The median asking rent price has risen steadily over the last 30 years, as you can see below.There is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. With nearly half of renters (48%) surveyed already spending more than that, and with their rents likely to rise again, it’s never a bad idea to reconsider your family’s plan and ask yourself if renting is your best angle going forward. When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44%) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.” The reality is, the need to produce a 20% down payment is one of the biggest misconceptions of homeownership, especially for first-time buyers. That means a large number of renters may be able to buy now, and they don’t even know it.