Better Homeowner

When financing a home, the 30-year fixed-rate mortgage is often the go-to option because of its lower monthly payment. But for buyers who can comfortably afford a higher payment, the 15-year mortgage deserves a closer look and may lead to significantly greater financial rewards over time. Let's compare two scenarios based on a $360,000 mortgage with current rates: 30-year mortgage at 6.58% Principal and interest: $2,294.42/month 15-year mortgage at 5.69% Principal and interest: $2,977.92/month At first glance, the 15-year loan costs about $684 more per month. But when you look at where that money is going, and what it saves you, it starts to make a compelling case. Interest Savings and Faster Equity Build-Up The key difference lies in how much of your payment goes toward the principal balance. With the 15-year loan, you pay less interest over time and you pay it off faster. After 10 years: On the 30-year loan , you'd still owe $305,804 . On the 15...

One of the biggest benefits of homeownership is the ability to build equity�the portion of your home you truly own. Equity grows naturally over time in two ways: first, as you pay down your mortgage through regular payments (amortization), and second, as your home increases in value due to appreciation. But did you know there are smart ways to accelerate that growth? By paying down your mortgage faster, you can significantly boost your equity and financial freedom, often shaving years off your loan and saving thousands in interest. Here are several strategies to help you do just that: Apply Your Tax Refund to Principal - Instead of spending your refund, apply it as a lump-sum payment to your mortgage principal. Even one annual extra payment can make a noticeable difference. Make One Extra Payment Per Year - If you can budget for 13 payments instead of 12 each year, that extra payment goes entirely toward principal and helps you pay off the loan faster. Switch to Biweekly ...

There was a memorable Fram Oil Filter commercial years ago where a mechanic asked a customer during an oil change if he wanted to replace the filter. When the customer declined, the mechanic calmly replied, "That's okay with me. You can pay me now, or you can pay me later." The implication was clear: skipping the small cost of a new filter now could lead to a costly engine rebuild down the road. That same logic applies to homeownership. Many people dream of one day having their home paid for free and clear. But how you get there is a matter of choices. You can choose to pay a little more now, or you can pay a lot more later. Those who take the time to make regular additional principal payments on their mortgage are making the decision to "pay now" to avoid the heavier burden of "paying later." Pre-paying a fixed-rate mortgage will save interest, build equity, and shorten the term of the mortgage. Let's look at the strategy. Say you ...

Buying a home is one of the most significant financial decisions most people will ever make, yet it's a process fraught with potential pitfalls. The good news? By learning from the common mistakes others have made, you can sidestep unnecessary stress, save money, and make more informed decisions. A knowledgeable homebuyer is a confident homebuyer, and understanding these 12 common missteps can empower you to navigate the process smoothly and successfully. Whether you're a first-time buyer or a seasoned homeowner, this insight can make all the difference in ensuring your experience is a positive one. Not Knowing Your Budget  - Many homebuyers start searching for homes without understanding how much they can afford, leading to disappointment when they find out their price range is lower than expected. Skipping Mortgage Pre-Approval  - Failing to get pre-approved for a mortgage can result in missed opportunities or delays, as it shows sellers that you are a seri...

With high home prices, more buyers may turn to Federal Housing Administration (FHA) loans in the coming year. These government-backed mortgages are known for their flexible borrower requirements, such as lower credit scores and down payments as low as 3-5%. However, many sellers and even some agents, have misconceptions about FHA loans, believing they are difficult to work with or that the approval process is more complicated. In reality, agents who regularly assist FHA buyers know that these loans are a solid financing option, providing opportunities for buyers who might not otherwise be able to purchase a home. FHA loans are not inherently harder to close, and when paired with the right professionals, they can be just as seamless as conventional financing. A key factor in ensuring a smooth transaction is working with an agent familiar with FHA guidelines and a lender who specializes in FHA mortgages. This helps eliminate many of the perceived hurdles and ensures the ...

Each year, homeowners receive a notification of their property tax assessment, which, when combined with the local tax rate, determines how much they owe in property taxes. While this process is meant to fairly reflect a home's value, assessments are not always accurate. If the valuation is incorrect, homeowners may end up paying more than they should. Fortunately, you have the right to challenge the assessment if you believe it is inaccurate. Here are some of the most common reasons a property tax assessment may be incorrect: Overvaluation - Assessors estimate your home's market value, but if they overvalue it, your taxes will be higher than necessary. This can happen if they rely on outdated or incomplete data or if home values in your area have declined since the last assessment. Errors in Property Information - Mistakes in the assessor's records can lead to an inflated value. Common errors include incorrect square footage, an inaccurate number of bedroom...