Nicholas Desantis' Blog
Most homeowners would love to be able to pay off their mortgage early. However, few see it as a possibility when they take into account their earnings and other bills.
There are, however, a few ways to pay down your mortgage earlier than planned. But first, let’s talk about when it makes sense to try and pay off your mortgage.
When to consider paying off your mortgage early
If you recently got a promotion, have someone move in with you who contributes to paying the bills, or recently got a secondary form of income, you might want to consider making extra payments on your mortgage.
However, having extra money doesn’t always mean you should spend it immediately on your home loan.
First, consider if you have a large enough emergency savings fund. It might be tempting to try and throw any extra money at your mortgage as soon as possible, but there are other financial commitments you should plan for as well.
If you have kids who will be applying to college soon, remember that student aid takes into account their parents’ finances. If your children plan on applying to institutions with high tuition, then your equity will be counted against you.
Refinancing to pay your mortgage early
Refinancing your home loan is one option if you’re considering increasing the payments on your mortgage. If you can refinance a 30-year loan to a 15-year loan with a lower interest rate, you’ll save money in two ways--your lower interest rate and the fact that you’ll be accruing interest for less time.
There is a downside to refinancing. Once you refinance, you’re locked into your new payment amount. So, if your higher income isn’t dependable, it might not make sense to commit to a higher monthly payment that you aren’t sure you’re going to be able to keep paying.
There’s also the matter of refinancing costs. Just like the costs associated with signing on your mortgage, you’ll have to pay closing costs on refinancing. You’ll need to weigh the cost of refinancing against the amount you’ll save on interest over the term of your mortgage to see if it truly makes sense to go through the refinancing process.
Paying more on your current loan
Even if you aren’t sure that refinancing is the best option, there are other ways you can make payments on your mortgage to pay it off years sooner than your term length.
One of the common methods is to simply make thirteen payments each year instead of twelve. To do this, homeowners often use their tax returns or savings to make the thirteenth payment. Over a thirty year mortgage, this could save you over full two years of added interest.
A second option is to make two bi-weekly payments rather than one monthly payment. By making biweekly payments you have the ability to make 26 payments in a year. If you were to just make two payments per month then you would make 24 total payments. Over time, those two extra payments per year add up.
Your Florida luxury home likely has served you well over the years. However, there are many signs that may help you determine whether now is good time to add your Sunshine State luxury residence to the real estate market. These include:
1. You are looking to downgrade.
If your luxury home in Miami, St. Augustine or elsewhere in Florida has become too big for you, there is no need to stress. In fact, there are dozens of outstanding houses available across the Sunshine State, ensuring you can sell your current residence and move into a smaller home at your convenience.
As you look to sell your Florida luxury residence and relocate to a smaller house, you may want to put together a property selling plan. This strategy will help you map out your Florida luxury home selling goals and determine where you want to live going forward. As a result, you can use a house selling strategy to streamline the Florida luxury home selling process.
2. You want to live closer to family members and friends.
If you live far away from family members and friends scattered across the Sunshine State, you can always sell your luxury residence and move closer to these loved ones. That way, you can enjoy quick, easy access to family members and friends.
As you prepare to list your Florida luxury home so you can live near loved ones, you may want to consider the current state of the local luxury housing sector too. For example, the luxury homes in Miami may have higher initial asking prices in comparison to similar residences in Jacksonville. And if you fail to account for the current state of the local luxury housing market, you risk pricing your Sunshine State luxury home too high or too low.
3. Your current luxury house no longer suits your lifestyle.
If you find your luxury home in Orlando, Tampa Bay or any other Florida city or town no longer suits your lifestyle, now may be the perfect time for a change. Lucky for you, the Sunshine State luxury real estate market offers many opportunities for sellers. And if you list your Florida luxury residence and promote it to the right groups of potential buyers, you could reap the benefits of a quick, profitable home selling experience.
Of course, if you decide to list your Florida luxury home, you may want to hire a real estate agent. Because if you have a real estate agent at your side, you can get the help you need to navigate the Sunshine State luxury house selling journey.
A real estate agent will promote your Florida luxury residence to potential buyers in your area, regardless of whether you live in Fort Lauderdale, Gainesville or anywhere else in the Sunshine State. Plus, a real estate agent will ensure you can get the best price for your Florida luxury home.
Employ a real estate agent today, and you can receive comprehensive support as you navigate the Florida luxury house selling journey.
The homebuying journey may prove to be difficult, and assorted challenges may arise that make it tough to quickly find and buy your dream house. Whether it's encountering problems during a home inspection or negotiating a house price with a property seller, there is no telling what may happen during your pursuit of your dream home. However, if you know how to handle homebuying challenges that come your way, you'll be better equipped than ever before to enjoy a seamless homebuying experience.
Now, let's take a look at three tips to help you tackle various homebuying challenges.
1. Stay Patient
When you are faced with a homebuying hurdle, it is important to remember that every problem has a solution. Thus, if you take a calm, cool and collected approach to a homebuying issue, you can find the best way to alleviate this problem.
A patient homebuyer usually is a successful homebuyer, and for good reason. If you maintain patience as you navigate the homebuying journey, you can analyze problems that come your way and allocate the necessary time and resources to solve them. And as a result, you may be able to speed up the homebuying journey and acquire your dream residence in no time at all.
2. Consider Your Options Closely
As you encounter homebuying hurdles, you should consider your options closely. That way, you can weigh the pros and cons of potential homebuying decisions and make informed choices as you try to buy your ideal residence.
Sometimes, it may be beneficial to consult with family members and friends too. If you reach out to loved ones for support, they may be able to help you make the best-possible decisions throughout the homebuying journey.
3. Collaborate with a Real Estate Agent
When it comes to purchasing a home, you may require expert assistance. Lucky for you, real estate agents are available in cities and towns nationwide, and these housing market professionals can help you overcome property buying issues.
A real estate agent is committed to your homebuying success, and as such, will work with you to make your homeownership dream come true. Therefore, if you want to acquire a city residence as quickly as possible, a real estate agent can help you do just that. On the other hand, if you want to purchase a small town home at an affordable price, a real estate agent will help you accomplish your desired result.
Let's not forget about the comprehensive guidance a real estate agent can provide as you search for your dream residence, either. A real estate agent can teach you everything you need to know about the housing market. By doing so, he or she can help you identify and resolve homebuying problems before they escalate.
For those who want to streamline the homebuying journey, it helps to prepare. Thanks to the aforementioned tips, you can reduce or eliminate homebuying hurdles and purchase your dream house without delay.
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