Thursday, October 26, 2017

How To Pay Off Your Mortgage Ten Years Sooner!

Most home loans are for a 30-year term. To calculate how you personally can pay off your home  10 years sooner, you will need to get your most recent mortgage statement or go online and get your pay off balance. Now get your interest rate from your statement and using a mortgage calculator. You can use mine at www.roxyloans.com it’s at the bottom of my home page. Just plug in your balance, leave the down payment box empty, add in your interest rate, then change the term from 30 to 10 or 15 or whatever you want the term to be and hit calculate. This will give you the principal and interest you will need to pay each month to pay off your mortgage in the term you picked. 

Now remember if you have property taxes, home owners/hazard insurance and any mortgage insurance that you pay in your mortgage payment each month too, this is called and impound or escrow account. You will need to add that figure to your payment. These figures should also be on your mortgage statement. If it’s not you can probably find the amount online in your account payment history.  

One more thing to note and it’s important. Most mortgage servicing company and lenders may not know what you are doing if you send in more than your normal payment. If you plan to pay extra to pay off your mortgage early, send the extra by mail and by check and add instructions for them to apply this extra amount to your principal balance, you don’t want them to mistakenly add it to any interest due when they receive the payment. Keep good records of your over-payments and check your principal balance every quarter to make sure they are being apply to your account correctly.

If you would like an amortization table of the new amount/term you will be paying, I would be happy to do this for you FREE. Give me a call and we can go over any questions you may have.

Thank you for visiting my blog and I encourage you to leave a comment or questions. Let me know if my blog has helped you to answer any questions you had. I would love to have ideas about what you all would like to learn about financing or real estate. Go for it give me some ideas!

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

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