Get More For Your Money
Debt consolidation can lower monthly payments to put more money back in your pockets.
High Fives on Re-fi's
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- Do Your Research
Do you know the difference between a 3/1 variable rate and a seven-year balloon guaranteed rollover? If you're shopping for a mortgage, it'll pay to learn what kinds of mortgages are available (called mortgage products), and which best suits your current and projected financial situation. For instance, planning on moving in a few years? Get a variable rate mortgage and pay less each month than you would on a fixed rate mortgage.
- Do the Math
Reports show that as many as 10% of all mortgages are miscalculated, meaning you have a 10% chance of paying more than you should for the money you borrow. Need a mortgage calculator? Here's one: bankrate.com/gookeyword/. Check your figures from your latest mortgage statement, figure the interest rate and the amount of the loan to make sure your numbers match up with those of the mortgage holder. This site will give you terrific information on buying and financing a new home: content.realestateabc.com.
- Pay Down Your Mortgage Early
Consider paying an extra principal payment on your 30-year loan each year. In the early years of a loan, the principal portion of your payment is very small. On a 30-year $100,000 loan at 7 1/2%, the monthly principal payment in the first several years is approximately $75 to $85/month.
- Check Out the School System
One factor in the determination of housing costs is the school system. Homes in towns with good schools can sell for 20-30% more than an equivalent house in a town with a poor school system. Always buy the home in the town with the best school system. To learn more about the demographics of the town you're considering, talk to local realtors or their websites for the latest on everything from school systems to proposed property tax hikes.
- Reverse Mortgages
With the loss of a spouse, you may be concerned about being able to stay in your home. Consider a reverse mortgage, available to homeowners aged 62 and over. With a reverse mortgage, the bank sends you a check every month, you're able to stay in the home as long as you choose or are able and you can turn the equity in your home into living expenses every month.
