Finance
Ways To Eliminate The Mortgage More Quickly – Part 4
Welcome to the latest series at JosephSangl.com – Ways To Eliminate The Mortgage More Quickly. It is my hope that this series can help you eliminate what is usually the single largest expense in the household budget and free that money up to much greater things than make a bank rich!
Part 4 Pay one extra payment each year
One of the most common ways that people reduce their mortgage payback period is by sending in one extra payment each year. This will eliminate 5 to 7 years from a 30-year fixed rate mortgage. You can send one extra payment each year using a variety of methods.
- Send in one extra payment when you receive a tax refund or profitability bonus
- Since this money is not part of the normal budget, it is can be easier to send this money immediately toward the mortgage.
- Set up 1/2-payments to be made every two weeks
- Since there are 26 two-week periods in a year, this means that 13 full payments will be made each year. Presto! An extra payment!
- Send in 1/12 (8.3%) extra on each monthly payment.
- 1/12th payment/month X 12 months = 1 full payment per year
Use the Early Pay-Off Calculator located HERE to run some numbers for your mortgage and become debt-free sooner!
Read the entire series HERE
Ways To Eliminate The Mortgage More Quickly – Part 3
Welcome to the latest series at JosephSangl.com – Ways To Eliminate The Mortgage More Quickly. It is my hope that this series can help you eliminate what is usually the single largest expense in the household budget and free that money up to much greater things than make a bank rich!
Part 3 Pay 10% extra each month
Whatever your monthly payment is, add 10% and you will eliminate 7 years or more from a 30-year fixed rate mortgage! For instance, if your mortgage payment (including escrowed taxes and insurance) is $1,000, you would send in an extra $100 per month – $1,100/month.
Example If you have a $150,000 5.50% fixed-rate mortgage with a monthly payment (including escrow) of $1,000 with $852 being applied to principal and interest each month (the other $148 being applied to taxes and insurance). If you send in $1,100 each month, there is now $952/month being applied to principal and interest. This will reduce a 30-year note to a 23 year 4 month note!
Use the “Early Pay-Off Calculator” located HERE to run some numbers for your mortgage and become debt-free sooner!
Read the entire series HERE
Ways To Eliminate The Mortgage More Quickly – Part 2
Welcome to the latest series at JosephSangl.com – “Ways To Eliminate The Mortgage More Quickly”. It is my hope that this series can help you eliminate what is usually the single largest expense in the household budget and free that money up to much greater things than make a bank rich!
Part 2 Lower The Interest Rate
One key way to eliminate a mortgage is to have an excellent mortgage interest rate. Mortgage rates are at historic lows. CNNMoney’s website has an excellent calculator that one can use to evaluate different refinancing alternatives to see which one is best for your situation. It can be obtained HERE.
Just lowering the interest rate by 1% on a $100,000 mortgage will nearly $1,000/year! That, my friends, will spend just like money and I would much rather apply that money toward principal reduction or funding a dream than sending it as a gift to my mortgage lender!
We have an “Early Pay-Off Calculator” located on under our NextSteps tab (HERE) that will show you how much more quickly you can pay off your loan if you obtain a lower interest rate.
This can seem very basic, but it is easy to get caught up in the day-t0-day bustle of life and miss one of the key ways to eliminate the mortgage more swiftly!
Read the entire series HERE
One key way to eliminate a mortgage is to have an excellent mortgage interest rate. Mortgage rates are at historic lows. CNNMoney’s website has an excellent c
Thisalculator that one can use to evaluate different refinancing alternatives to see which one is best for your situation. It can be obtained at http://money.cnn.com/tools – click on mortgage refinance calculator.
Ways To Eliminate The Mortgage More Quickly – Part 1
Welcome to the latest series at JosephSangl.com – “Ways To Eliminate The Mortgage More Quickly”. It is my hope that this series can help you eliminate what is usually the single largest expense in the household budget and free that money up to much greater things than make a bank rich!
Part 1 Introduction
I remember the day that I signed up for my first home mortgage. I financed such a large amount of money that I could not really comprehend the amount. All I knew was that I wanted to purchase a house, and the bank was willing to lend me the money. When I made my first mortgage payment, I realized just how much this debt was going to cost me. Less than two-percent of the payment was applied to principal balance reduction. The rest of the payment went to make other people and businesses wealthy – banks, insurance companies, and the government.
What I discovered was that if I paid the scheduled payments on my first house for the entire thirty year term, I would end up paying more in interest than I paid for the house. Ridiculous! I set out to find ways to eliminate the mortgage more quickly so that more of my money would be applied to the principal balance.
This will be fun!
Read the entire series HERE
I remember the day that I signed up for my first home mortgage. I financed such a large amount of money that I could not really comprehend the amount. All I knew was that I wanted to purchase a house, and the bank was willing to lend me the money. When I made my first mortgage payment, I realized just how much this debt was going to cost me. Less than two-percent of the payment was applied to principal balance reduction. The rest of the payment went to make other people and businesses wealthy – banks, insurance companies, and the government.
What I discovered was that if I paid the scheduled payments on my first house for the entire thirty year term, I would end up paying more in interest than I paid for the house. Ridiculous! I set out to find ways to eliminate the mortgage more quickly so that more of my money would be applied to the principal balance.
SERIES: Fundamental Rules Of Money Management VI
In this series, I have been sharing some thoughts on some fundamental rules of money management that are time-tested and known to be true. If applied, these rules can help you take your finances to the next level.
Rule #6 Your business idea has a much better chance of succeeding when there is a strategic plan and a financial plan.
As a financial counselor, I routinely meet with small business owners who started their own businesses. Some of them have been wildly successful. Others have not had the success that they had expected and desired. There are always a few exceptions, but it has become very apparent to me that individuals who take the time and effort to prepare a strategic business plan AND a “Seed Fund” for their idea have a better chance at succeeding.
A strategic plan includes developing critical milestones that must be achieved and establishing detailed action steps necessary to achieve them. It should also include financial targets that must be achieved for the business to be considered a successful effort.
Having some money available to start the business with is essential as well. I have seen too many good business ideas fail before they could mature simply because the business was too highly leveraged with debt.
And of course, one should always remember Warren Buffets number one rule of money management – “Don’t lose money.”