There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan's principal.
This is the method being used by "Bi-Weekly Mortgage Reduction Services" and "Bi-Weekly Mortgage Savings Programs". Only, when you do it yourself, you don't pay a third party unnecessary set-up costs and fees!
Example: $100,000 loan, 30-year mortgage, 6.5% fixed interest rate
Extra Mortgage Payments/ Year
Principal & Interest
Additional Monthly Payment
# of Years
29.92 / 359 mos.
24.12 / 290 mos.
20.5 / 246 mos.
17.92 / 215 mos.
15.92 / 191 mos.
14.34 / 172 mos.
It may not be possible for you to increase your monthly mortgage payment. Keep in mind that most mortgages will permit you to make additional payments to your principal at anytime. Perhaps, five-years after moving into your home you receive a larger than expected tax return, or an inheritance or a non-taxable cash gift. You could apply this money toward your loan's principal, resulting in significant savings and a shorter loan period.
With a $100,000, 30-year, 6.5% fixed interest rate mortgage loan, the borrower will pay a total of $227,542.98 to pay back the loan in 30 years. That equals $127,542.98 in interest payments.
If the same borrower makes a one-time $5,000 payment the first day of year 6, he/she will pay a total of $204,710.75 and pay off the loan in 27 years (324 months). That's a savings of $22,832.23 in interest.
One of the most important elements of marketing your home effectively is setting the price right. Set the price too high, and you won't get any offers or your home will take too long to sell. Set it too low and you cheat yourself by not getting your home's full, fair value. As an expert in Neosho and SW Missouri real estate, we analyze the market and set area home prices every single day. We will work closely with you to assure that everything possible is done to get the highest price, in the time frame you need.
The condition and appearance of your home are also critical factors in getting the best price for your home. Our professional Realtors will personally walk through your home with you and advise you of what you can do to properly stage your home most effectively. Some areas are much more important and more likely to pay off than others! Often, the buyer is motivated by emotional responses as much or more than financial issues. There are usually things we can point out to you that are easy and inexpensive, yet go a long way toward triggering those "buy" emotions.
As your agent, we will negotiate furiously on your behalf throughout the entire process to ensure that your best interests are protected. Real estate negotiations and contracts can be intimidating in their complexity. Most people have almost no experience in these negotiations. After all, how often do you buy or sell a new house? As top real estate professionals, getting you the best terms and prices in all negotiations is simply part of our job. Call us today at 417-455-2878 or contact one of our professional Realtors!
Tips regarding purchasing a short sale home!
Are you a patient buyer? Often it takes anywhere from 2 to 4 months to complete a short sale!
Be sure you completely understand the short sale process before making an offer on the property!