There are many advantages when you pay your mortgage earlier than when it is supposed to end. Probably, the best benefit is having a peace of mind knowing that you finished paying your financial obligation. If you are looking for ways to pay off your mortgage early, consider the following:
- Refinance with a shorter-term mortgage
This is what you can do: you initially set-up for a 30-year fixed-term mortgage for $200,000 at 4.5%. After 5 years, you realized that you have more money to pay your mortgage. You can refinance into a 15-year loan at 4% interest. Doing so will cut your mortgage payment by 10 years and will be able to make you save more than $60,000.
- Pay more each month
What you are paying each month is the principal plus the interest of your loan for buying las vegas luxury homes. If your income can afford it, pay extra than what is being required. To determine how much you need to add from what you normally pay, divide your monthly principal plus the interest by 12. Whatever the amount is, add it up to your monthly mortgage payment which is equivalent to 13 payments in within a year.
- Make an extra every year
If you don’t like option number two, then you can pay one extra payment after every 12 months. Save at least 1/12 of a payment every month so that you can afford to pay one extra month in a year. This means that if you will do this from the first month after getting a 30-year mortgage for $200,000 at 4.5%, you can save as much as $27,000 interest, you will finish paying your loan four years and three months earlier.
- Put whatever extra you have on the mortgage
There are times when you receive money that you are not expecting. If you have a generous boss, you probably get a bonus each month. How about a tax refund? Whatever extra money that comes your way, consider putting it into your mortgage rather than spending it on something else. In the same scenario above, if you a 30-year fixed rate mortgage of $200,000 at 4.5 %, then you paid a lump-sum of $10,000 from your bonus. By doing this, your mortgage will be paid two years and four months earlier and saves more than $19,000 in interest.
Discount realtors can be a great option to reduce the expensiveness of full-service realtor commissions from the sale of a home that typically range in the amount of six percent of the sale price for which a home sells. Before using a discount realtor, homeowners must consider that using a discount realtor will not save them the full commission price. Discount realtor services range in price from a flat fee service to lower percentage rates depending on the services the seller wants. Lower commissions or fees means less service so that the homeowner must determine services he or she is willing to forfeit for savings in commission costs.
Getting a home listed on a flat fee MLS service is the best way for homeowners to get the word out about their home for sale to realtors. Whether a local or a multiple listing service covering a larger geographic area, only realtors can get homes listed on these services. There are flat-fee services that permit homeowners to get their names on a multiple listing service through a realtor that can range in price usually around $100. Therefore, having your ‘for sale by owner’ home listed on a multiple listing service is not sufficient justification for signing a contract with a traditional realtor. By having a ‘for sale by owner’ home on a flat fee MLS listing service other realtors will bring home buyers into your home. If another realtor brings in a buyer, the homeowner will have to pay a commission to that selling realtor. This is important for sellers to remember because it means that they will be saving half the commission they would have paid using a full-service realtor rather than the full amount.
Flat fee realtors offer many of the same types of document services that full-service realtors provide including binder and contract documentation. Realtors that assist with this documentation also range in providing document services for less than traditional rates or for flat rates. Because contracts used by realtors are typically fill-in-the-blank documents, sellers can often obtain such a document on their own and the provision of such a contract would not in itself justify commission paid to a realtor. Sellers can also use an attorney for the contract for the sale. Receiving the down payment at the time of the contract signing which is typically about 10 percent of the purchase price will require that a homeowner have a realtor or attorney or escrow agent to hold the down payment money. Other documentation from title searches to mortgage documents are typically handled by professionals in those fields and as long as a seller is using a checklist to make certain necessary documentation is obtained for a closing, a realtor is not a necessary part of assembling this paperwork. Arranging closings and contacting appropriate parties will also likely be part of a For Sale By Owner’s job when a discount broker is used.
The most significant area that distinguishes full-service flat fee realtors from the range of full-service realtors is in the area of marketing the home. From signs to advertisements in media to screening buyers and bringing in traffic, realtors advertise that their services will save a seller hassle and effort in getting an interested buyer. This is a judgment call that each seller must make for him or herself. Showing a home, making appointments for buyers to see your home and determining the ability of a buyer to pay for your home can be time-consuming work that may be worth the additional expense. On the other hand, discount realtor services are thriving because many people do not believe that realtors live up to their promises about providing these specific marketing services.
Unlike other US cities, Realtors are a very important part of the home buying and selling process in Houston, Texas. A good, reliable Houston Realtor can help you process paperwork, make good home buying decisions, help you find properties and buyers that match your needs, and can take most of the stress out of the whole experience. So how do you choose the right Houston Realtor? When beginning your search for a great realtor in the Houston, Texas area, make sure to first check with HAR.com. HAR, or the “Houston Association of Realtors” is a great resource for finding reliable Realtors in the greater Houston area. To become and remain part of the Houston Association of Realtors family, realtors are required to follow a strict code of ethics. They are also subject to a rating system put into place by the Association. You can glance through many realtors in a short period of time by browsing HAR’s website. The Association can also help to match you up to a realtor that will match up with your specific needs and geographical location.
Another great source for a good realtor is your friends and family. If you know of someone in the Houston area who has recently purchased or sold property with a realtor, ask them who they used, and if they would recommend them. A source of a good realtor that you may not have thought of is other companies you use that deal with realtors on a regular basis, such as your insurance company. These companies may buy and sell property more often than the average home owner, and may have a close relationship with a realtor in the area.
Once you have a list of good, prospective realtors, go meet them! Don’t skip the interview process. Employers would not consider hiring an employee without an interview, so why should you hire a realtor, who will technically become a temporary employee of yours, with sitting down and asking a few questions first? So what sort of questions to ask? Be sure to start with conversation; some realtors you may click with automatically just through conversation. Make sure this feels like an agent you can trust, and that you can be candid with about your needs, financial situation, and budget limits. If you are not comfortable, the sale will not be a comfortable process either!
Next, you want to get a feel for their career. Feel free to ask for references; again, you have to look at this as a job interview. Make sure that their customers are as happy as they want you to think they are. Also ask how long they have been in the business and how long they have sold realty in the Houston area. It will give you a feel for how well they know the business and the area. If the realtor is new to the area and has never lived there, he or she may not be the right fit, especially if you are new to the area as well. Get a feel for what they can do for you. Ask what special or unique services they provide, such as virtual tours or special hours. Ask about the strategy they have in mind for selling your home or finding you a new property. Don’t be afraid to get your potential realtor to give you a break down of what your experience will be like, from start to finish.