Saturday, October 21, 2017

10 Ways To Pay Off Your Mortgage FAST!

1. Using a mortgage calculator to figure out how much more you will have to pay each month to lower your principal balance and shorten your term. Paying a little bit more then your normal payment will  save you on the interest each month and in turn shorten your term. 

 2. Divide your payment in half and make that payment every two weeks instead of once a month. Because there are 52 weeks in a year at the end of the year you will have made 13 payments instead of 12. Most mortgage servicing companies and lenders will allow you to set this up. They will most likely have a setup fee but you will be saving interest each month and paying off your mortgage early saving you money. Check with your lender to see if they will except partial payments in advance of due date. You will need to get ahead of your current payment to get this in motion.

 3. Refinancing your 30 mortgages into a 
15-year or even 10-year term mortgage will save you an incredible amount of interest. This has become very popular as baby boomers look at retirement and want to stay in their homes.

 4. Refinancing in general could be an option for you to save money, I always advise my clients to do an annual mortgage analysis to make sure your current mortgage is working for you and see if there might be is a better loan product available that could save you money.

 5. Blending a traditional mortgage with one or more deposit saving accounts. Both the mortgage and savings are established with the same bank/lender. Each mortgage payment is made and the interest is calculated on principal of your mortgage loan, minus the aggregate in your savings accounts, you still have access to your savings. This is a very common financial tool used in many countries that our US banks really don’t want you to know about.

 6. Setting goals to pay off your home early can also mean sacrifices no one wants to work a second job, but increasing your income with a second job or other type of work that can increase your income and pay this extra income to the principal on your mortgage will work to get it pay off early.

 7. Cutting up those credit cards is another sacrifice you could do to create extra income. Once they are paid off, start making that same payment to your mortgage principal.

 8. Do a price analysis on all your other expenses to see if it’s possible to reduce some of your monthly bills. Cell phone, cable and internet, electric. If you use your checking account to pay all your bills, some banks have reports on the different type of expenses you spend your money each month, use these reports to see where you spend and where you can reduce your spending. Take that savings each month or even quarterly and make a payment toward to mortgage principal.

 9. Investment accounts, 401K, Roth IRA’s, IRA’s, annuities, life insurance with cash value, etc. Checking these accounts annually to see if using them to pay off or reduce your mortgage debt is financially right for you. Determine your gain vs the interest paid on your home and see where you are and what is working and what is NOT.

10. Using your home as a money earning asset, renting it out. Renting a room or space in your home. If you have the ability to turn remodel old basement or attic into a rental space you can earn a second income from your home. If you have a lot of land or large lot consider renting a space to someone living in an RV or storing it for them while they are not using it. Be creative and do what works for you.

With all of these different ways to pay off your mortgage early please make sure you are careful and if you need help contact me. I can whip up an amortization table or do an mortgage analysis pretty quickly for you and help you with any questions you might have about any one of these 10 ways.

Thank you for stopping by my blog,  I appreciate and welcome your comments and questions.

Roxy Redenbaugh
ACMC Loan Consultant
Certified Mortgage Coach
Branch Manager
NMLS #269926

Monday, July 24, 2017

USDA Home Loan Program NOT just for Farmers

USDA is a power loan helping first-time and lower income home buyers realize the American dream of owning their own home. You don’t have to be a first-time homebuyer to qualify. This loan features ZERO down and allows you to incorporate 2% of your closing cost into your loan. 

USDA loans are eligible in rural and suburban areas in the US, they allow many types of property of be included. Townhouse, Condominiums, Single Family Residents as well as multifamily units. You can also use a USDA loan for refinancing your current home. It’s THE most affordable loan product in the marketplace with zero down, the lowest mortgage insurance rates (MI) with a 1% upfront fee and .35 monthly rate.

USDA is a loan program provided by the US Department of Agriculture. But don’t let that discourage you thinking this loan is for AG land or farmers only, not the case at all.

USDA guarantee the loan, this means the US Department of Agriculture backs the lender if for some reason you default on your loan and reimburses the lender, this insurance allows lenders to approve loans at a higher risk with zero down.

It’s easy to get started to see if you qualify, contact me for a fast, easy and free prequalification process. I will provide you with a preapproval letter for your Realtor, you can then go shopping for your home.

Once you find a home you’ll want to make sure it’s in an approved USDA area prior to submitting an offer.  You can easily check at USDA link Income/Property Eligibility to see if your income and property are eligible. 

Your home will be appraised to insure value, the lender will send your file to USDA for final approval and once they sign off on your loan approval, you close escrow and move into your home. It’s about a 60-day process. In most cases USDA will take no more the 14 days to review and approve your loan once submitted by your lender.

I hope this information has been helpful to you.

I always welcome and encourage your comments and questions.
Thank you for stopping by my blog, enjoy your day!

Roxy Redenbaugh
ACMC Loan Consultant
Certified Mortgage Coach
Branch Manager
NMLS #269926