Steve Jacobson

  • Home
  • Search
    • Map Search
  • My Listings
  • Areas
    • Arvada
    • Golden
    • Lakewood
    • Littleton
  • Buying
    • VIP to HOT New Listings!
    • Personalized Property Alerts!
    • IRA Real Estate Investing
    • Relocation Help
    • Steve Jacobson Mortgage Calculators
    • Interactive Real Estate Listings Map – Denver and the Front Range
    • My Rentals
  • Selling
    • Print and Digital Marketing Package
    • Our Marketing Plan
    • Current Market Trends Through 10/18
    • How to Get Full Market Value for your Home!
    • Get Your Home Ready for Sale!
    • Steve Jacobson – Short Sale Specialist
    • Avoiding Foreclosure with Short Sale!
    • Mortgage and Finance
      • Home Buyers FAQ About Mortgage
      • IRA Real Estate Investing
  • Aerial Photos
    • 1438 Braewood Ave Aerial Photos
    • 6017 Zinna Ct.
    • 12389 W. Atlantic Ave.
    • 15145 W Harvard
    • Aerial Photos 4520 Saulsbury St Denver
    • 16098 W Ellsworth Dr.
  • About
    • Steve Jacobson Biography
    • Testimonials
    • Useful Links!
  • Sold Properties
  • Blog
  • Contact

Try Our Property Search

Get Property Alerts

Read Our Blog

What's Your Home's Worth

Paying Off Your Home Early – Myths and Facts

November 2, 2017 By Steve Jacobson

Nancy Lumbye is our prefered lender! We thank her for this educational contribution!

Nancy Lumbye 2

Paying Off Your House Early…

Did you know that you could really pay off your home 6-8 years ahead of schedule?

Bi Weekly Payment Advantages:

The good news!

By making a payment every other week, you are actually making 13 monthly payments instead of the customary 12. Depending on the terms of your loan, one extra payment a year may enable you to pay for your house an average of six to eight years ahead of schedule.

Myths: What you need to know!

Myth No. 1: Paying your mortgage twice a month gives you better credit.

Lenders report your account status once a month, so you are still counted as making a normal, on time payment.

Myth No. 2: Paying twice a month reduces the compound interest on your mortgage.

Wrong!!! In fact, even though you are paying biweekly, it is likely your loan servicing institution is paying your loan monthly. This means that you are actually loaning the servicing company half of your mortgage payment — interest free — for at least two weeks every month.

Three ways to pay down that extra principal:

        1) Pay an additional one-twelfth of your mortgage each month. Designate on your coupon that the amount should go against the                             principal.

        2) If you get a tax refund or bonus each year, add the extra payment to your mortgage, informing the bank that the additional money                     goes toward the principal.

        3) If you get paid biweekly, take half of your mortgage payment from each check and put it in a savings account. At the beginning of the                month, write your mortgage check from that account. At least twice a year you’ll be including the equivalent of an extra half-                                payment.  Be sure to identify on the mortgage coupon that the additional money goes against principal.

As a mortgage professional, I like to share knowledge that may benefit your financial position. Please be sure to ask any questions that you may have. I am grateful to be a resource for you, your family and friends.

Nancy Lumbye
303-329-4572
nlumbye@westerracu.com

Filed Under: Buying a Home, Mortgage and Finance Tagged With: buying a home, Colorado realtor, credit union, denver colorado fixer uppers, finance, home search, lakewood realtor, lender, looking for a home, looking for lender, mortgage, paying off a home early

Categories

  • Buying a Home
  • Denver and Front Range
  • Fixxer Upper
  • Home Care
  • Investing in Real Estate
  • Living in Colorado
  • Marketing
  • Mortgage and Finance
  • Online Searches
  • Relocation
  • Remodeling
  • Selling a home
  • Title Company
  • Uncategorized

Recent Posts

  • Six Mistakes to Avoid
  • Hot or Not?
  • How to Tell You Have a Great Realtor®!
  • Protecting Yourself Against Real Estate Wire Fraud
  • Home Staging Benefits
  • Email
  • Facebook
Equal Housing
Blue Fire Group    Real Estate Websites
© 2023 Copyright
LAC
Buying Buddy    Powered By Buying Buddy ®