Pay Your Mortgage off Early

Smart Tips to Pay Your 

Mortgage off Early

New data shows that nearly 40 percent of all homes in the United States are owned free and clear, with “the highest share” in West Virginia at 54%,” said Bloomberg. “Maryland and the District of Columbia were on the other end of the spectrum with rates of 27% and 24%, respectively.”

When many a real estate dream is focused on the idea of buying a home and staying just long enough to earn enough equity to move up to something bigger and better, this may come as somewhat of a surprise. If you have considered the idea of buying a forever home (or if you’re already there!) and want to be amongst the almost 40 percent of owners living mortgage-free, there are some tips that can help you move toward that zero balance.

Switch to biweekly payments

Say your mortgage payment is $2,000. Pay it once per month, and you’re paying $24,000 per year. Switch to biweekly payments of $1,000 every two weeks, and you end up paying $26,000 for the year. That adds up.

“This will have the nearly the same impact on your budget as one monthly payment, but because there are 52 weeks in a year, a biweekly payment schedule will result in 13 full-sized payments a year instead of the normal 12,” said The Motley Fool. You'll be making an entire extra payment every year without having to scrounge around for the extra money. To look at some real-life numbers, if you have a 30-year $200,000 mortgage at an interest rate of 5%, making biweekly instead of monthly payments would save you $34,328 in interest and allow you to pay off the loan almost five years early.”

Make extra principal payments

Especially in the early years of your mortgage, your payments are likely to be mostly interest. But you can eat away at your principal by making an extra "principal only" payment. “The benefit of paying additional principal on a mortgage isn’t just in reducing the monthly interest expense a tiny bit at a time,” said Bankrate. “It comes from paying down your outstanding loan balance with additional mortgage principal payments, which slashes the total interest you’ll owe over the life of the loan.”

Let’s use their example of a $120,000 mortgage at a 4.5 percent interest rate, with monthly principal and interest of $608.02. Pay an extra $25 principal payment every month and you can save more than $9,000 in interest over the life of the loan.

You’ll want to make sure you’re allowed to make these extra principal payments per the terms of your loan, however. “Check with your mortgage company first,” said Dave Ramsey. “Some companies only accept extra payments at specific times or may charge prepayment penalties.”

Refinance into a shorter-term loan

Can you swing a higher monthly payment? Refinancing out of a 30-year mortgage to a 15-term can save you an enormous amount of money. “A mortgage amount of $250,000 over 30 years at a rate of 4% would cost $429,674 in principal and interest payments by the end of the term,” said Investopedia. “The total interest would be $179,674 for borrowing for 30 years. The same loan amount and interest rate over 15 years would cost $332,860 by the end of the term. Total interest would be $82,860 for borrowing for 15 years. At 4%, you'd pay only about 46% of the total interest for a 15-year than you'd pay for the 30-year.”

There is a secondary benefit to refinancing to a shorter-term; these rates are typically lower. At press time, Wells Fargo’s 30-year fixed mortgage rate was 3.875%, while the 15-year fixed rate was 3.125%.

Make small sacrifices

“Other small sacrifices can go a long way to help pay off your mortgage early,” said Dave Ramsey. “How much could you save if you took your Starbucks money and added it to your mortgage payment each month? According to the Acorns Money Matters Report, the average American spends $3 per day on their coffee. That’s around $90 a month added to your mortgage payments—which will save you $25,000 in interest and four years on the life of your loan!”

Be careful about refinancing

The idea of a lower interest rate is what largely drives refinances. But refinancing to a lower rate may not be the best move if it means you’re paying a bunch of fees and/or taking out cash that eats away at your available equity. If your goal is to get your mortgage paid off as quickly as possible, you may want to just leave your loan alone.

As a current resident in Northern Colorado, I am fully aware of the current market trends and what it takes to get a great deal on a listing or get top dollar for your current home. When it comes to getting the job done right, you can count on me.

I have a lot of connections within the Northern Colorado area. Please don’t hesitate to call and ask me any questions you might have. This process is all about you and your needs. Real Estate is a big investment and I understand that. One thing you will get with me is a personal relationship, In the end, that goes a long way.
 

Northern Colorado is a great place to live! For more information, please give me a ring or email me today. I would love the opportunity to earn your business and partner with you in regards to your Real Estate needs.

LOOKING TO BUY??

If you are looking to purchase, I can save you a lot of money, as much as 10% on the purchase and finance of your home. 

Contact me today to learn about ALL of my strategies to get you the BEST price for your home in the shortest possible time! 

CLICK HERE TO SEARCH FOR ALL PROPERTIES IN NORTHERN COLORADO

SAVE UP TO 10% ON YOUR PURCHASE AND FINANCE

CONTACT ME FOR DETAILS AT 970-217-3245 OR CLICK HERE

https://ross-homes-noco.com/

SOURCE: REALTY TIMES / WRITTEN BY JAYMI NACIRI

Building Your Dream Home

6 Things to Consider 

When Building Your Dream Home

Building your dream home can quickly turn into a nightmare if you go into the situation blind. While there's a great deal to understand and to consider in building a home of your own, this brief overview can help you focus on some of the most important aspects. By considering these points, you may make wiser decisions that will help you have a more positive home-building experience.

Going By the Numbers

Before you apply for financing, it's important to consider all of the costs associated with building your dream home. In addition to working with contractors for the actual construction of the home, consider how much you will have to pay for the land, building permits, taxes, insurance, and the installation of utilities. Also bear in mind that you will first need a construction loan to pay your contractors, which will later be converted into a traditional mortgage.

Buying the Land

It's important to be very critical of the land you buy. The first thing to consider is accessibility for yourself and for the construction equipment and building supplies that will have to be transported to the property. If there's not clear street access, this may pose a legal problem with trespassing. Additionally, you will have to have the land surveyed to identify drainage issues that may result from uneven or rocky land. It’s also advisable to look at what will be involved in delivering water, electricity, and gas to your new home.

Hire the Right Professionals

Many contractors employ electricians, plumbers, and other skilled workers, which allows them to offer a comprehensive service. Whether you hire a contractor like this or hire individual professionals, be sure you're always working with reputable professionals. Check to be sure their licenses, certifications, and insurance are all valid and up to date. It may also be sure to check online customer reviews to learn what previous customers had to say about them. While you will ultimately have to rely on your instincts, these resources can help you make a more informed decision.

Work Closely with an HVAC Service Company

From the beginning, when you're working with the architect to design your home, and throughout the building process, keep your HVAC company involved. Their input will be invaluable when it comes to designing the layout of the home and keeping your living spaces energy efficient. Otherwise, the completed home may be too susceptible to mold growth or it may be too costly to heat and cool. Your HVAC professionals can help advise you, so you can get a design you like that won't drain your pocketbook six months of every year.

Designing a Green Home

In addition to working with an HVAC technician, you should also choose an architect experienced in thinking green. For instance, you may want to ensure your living room and dining area faces the south to maximize sunlight, while also ensuring those rooms have ample window exposure. Conversely, you may want bedroom windows facing north and you may want those windows smaller to minimize sunlight. This can help create a more relaxing environment. The bedrooms should also have lower ceilings to help keep better control over the temperature. These are just a few things to consider in designing your home to be energy efficient.

Prepare a Punch List

A punch list is a list of items that need to be addressed before you will consider the construction complete. The unreasonable flaws should be addressed first by your contractors because fixing these items will allow you to move into the home and begin the closing process. The reasonable flaws, or those that don't affect the livability of the home, can be repaired later. Remember to account for everything in creating the punch list or you may be left with overlooked flaws that need to be repaired out of your pocket.

You may have more concerns as far as the design of your home, but these factors are major points to consider in constructing your dream home. While this overview shouldn't discourage you, it should give you a more practical sense of what will be involved. Taking these factors into consideration can help you avoid unpleasant surprises down the road.

As a current resident in Northern Colorado, I am fully aware of the current market trends and what it takes to get a great deal on a listing or get top dollar for your current home. When it comes to getting the job done right, you can count on me.

I have a lot of connections within the Northern Colorado area. Please don’t hesitate to call and ask me any questions you might have. This process is all about you and your needs. Real Estate is a big investment and I understand that. One thing you will get with me is a personal relationship, In the end, that goes a long way.
 

Northern Colorado is a great place to live! For more information, please give me a ring or email me today. I would love the opportunity to earn your business and partner with you in regards to your Real Estate needs.

LOOKING TO BUY??

If you are looking to purchase, I can save you a lot of money, as much as 10% on the purchase and finance of your home. 

Contact me today to learn about ALL of my strategies to get you the BEST price for your home in the shortest possible time! 

CLICK HERE TO SEARCH FOR ALL PROPERTIES IN NORTHERN COLORADO

SAVE UP TO 10% ON YOUR PURCHASE AND FINANCE

CONTACT ME FOR DETAILS AT 970-217-3245 OR CLICK HERE

https://ross-homes-noco.com/

SOURCE: REALTY TIMES / WRITTEN BY VINCENT STOKES

Landscaping: 101

Landscaping: Curb Appeal on Any Budget

Landscape updates can completely transform the look and feel of your 

property. But, like other renovations, the options for landscaping are 

plenty, ranging from simple do-it-yourself renovations to massive 

overhauls. Consult this exploration of landscaping costs — from least 

expensive to most expensive — to determine which projects will work 

best for your budget.

THE AFFORDABLE UPDATE:
$500 – $3,000

“If you have a large area to mulch, buying in bulk may be cheaper in the long run, even with delivery fees. If you’re going to spread it yourself, have the load dumped onto a tarp for easier cleanup.”
RICK SLAVINSKI, owner of Curb Appeal Landscaping, Cape Cod, MA

ADDING ROCKS/MULCH:$136 – $2,020

Adding rocks or mulch to unused or weed-infested areas of your yard will cut down on maintenance and create a manicured look. River rock is particularly effective in places like old flowerbeds. You can also have larger rocks or boulders delivered to create a focal point. Cypress bark and wood chips are perfect for functioning flowerbeds.

INSTALLING LANDSCAPE CURBING:$330 – $2,600

Landscape curbing keeps flowerbeds and other landscaping features from spreading and killing your grass. Additionally, edging creates a tidy border around your yard. You can choose between metal, concrete or brick edging. Brick and concrete are long-lasting and will require fewer repairs. Metal is easier to move, but it will rust over time.

CREATING A PAVER PATIO/WALKWAY:$490 – $2,880

Pavers are individual bricks that are laid into patterns. They come in a variety of styles and shapes, from cobblestone to herringbone. You can use pavers to create a small patio, or use them to craft walkways around your yard and garden areas.

INSTALLING FLOWERBEDS:$1,000 – $3,000 (per bed)

Flowerbeds provide visual interest to your landscaping. Many homeowners install flowerbeds along the outside of their yard or next to structures like patios and pergolas. Hiring a professional to install your flowerbed will ensure your soil, bed depth and location are right for your plants.

THE MID-GRADE UPDATE:
$5,000 – $15,000

“Aerating and composting helps to improve the condition of the soil and converts struggling sod into a luscious landscape.”
PHILLIP GERMANN, owner of Green Lawn Specialists, Lewis Center, OH

ADDING NEW SOD:$450 – $4,500

Replacing dead or dying grass with fresh sod will give your yard a full and healthy appearance. When installing sod, remember that the size of your installation is a primary cost driver. For smaller budgets, experts recommend adding sod on an as-needed basis. The species of grass is also an important consideration:

• ZOYSIA:$0.40 – $0.59/sq. ft.Zoysia comes from hotter climates like those found in Japan and the Philippines. This is a slow-growing grass, which reduces mowing, but it can also be slow to re-grow in the event of damage.
• BERMUDA:$0.37 – $0.83/sq. ft.Bermuda is common in lawns across the United States. This type of grass has deep root systems, which means it can be difficult to remove if you decide to add a new type of sod. Bermuda’s embedded root system makes it resistant to drought.
• ST. AUGUSTINE:$0.32 – $0.71/sq. ft.This is a warm-weather grass that thrives in hot, coastal environments. St. Augustine will require regular mowing, but it is sensitive to scalping (low cutting). This type of grass is not recommended for areas that experience temperatures below 10 degrees Fahrenheit.
• FESCUE:$0.27 – $0.67/sq. ft.Fescue is popular for its resistance to foot traffic and its ability to stay green all year long. This is a low-maintenance grass that works in most climates.

INSTALLING NEW FENCING:                                               $430 – $8,000

New fencing acts as an eye-catching backdrop for other landscaping features like flowerbeds and retaining walls. Fences come in a variety of materials and price points:

FENCE TYPE	FENCE COST PER LINEAR FT.	LABOR COST PER LINEAR FT.
Metal / Chain	$7	$10
Wood	$12	$12
Vinyl	$17	$7
Aluminum	$26	$10+

INSTALLING RETAINING WALLS:$1,200 – $13,000

Retaining walls prevent erosion, expand your yard and provide an aesthetic focal point. Retaining walls come in a variety of materials, ranging from boulders to metal. The type you choose will vary based on price and the aesthetic of your home and landscaping.

MATERIAL	AVERAGE PRICE PER SQUARE FT.
Cinder Block	$10 – $15
Poured Concrete	$20 – $25
Wood Timber	$15 – $25
Stone Veneer	$11 – $15
Boulder / Rock	$8 – $12
Gabion	$4 – $40
Brick	$14 – $15
Corten Steel / Metal	$3 – $4
Earth / Chalk	$3 – $27

THE HIGH-END UPDATE:
$30,000 – $100,000+

“When you remove a bush or a tree, the ground around it will have settled over the years, so you want someone to bring in topsoil and level off that spot.”
JOHN SCHOTT, owner of Schott Services, Indianapolis, IN

INSTALLING WATER FEATURES:$3,000 – $10,000+

Water features range from simple fountains to elaborate pondless waterfalls. Designers can incorporate water features into a variety of landscaping designs, ranging from hardscaping to swimming pools.

CLEARING THE LAND:$450 – $9,000

Land clearing involves removing trees, shrubs and rocks from the yard. This is a key step in larger landscaping projects, like pool or multi-story deck installations, that will require further excavation.

GRADING:$400 – $5,000

Yard grading prevents erosion and foundation damage and creates a new layout for future landscaping additions. Many homeowners use yard re-sloping as a preliminary step to ensure larger additions like gardens and patios aren’t affected by bad drainage. It’s important to note that yard sloping will require new sod installation afterward.

CREATING AN OUTDOOR LIVING SPACE:$10,000 – $30,000+

“The first thing homeowners should do to their yards this year is to create an area for relaxing. This can be as simple as an area of lawn that is enclosed by fragrant shrubs with a chair and table to have a cup of coffee or glass of wine. Or, the area can be more elaborate with a fire pit or patio with landscape lights.”
JOHN SCHOTT, owner of Schott Services, Indianapolis, IN

Outdoor living areas are a common addition to high-end landscaping. These spaces include large patios or decks (some homeowners add multi-story decks), outdoor kitchens, fire pits, chimineas, and entertainment areas with TVs and stereos. Some homeowners also include heaters and misters to add comfort in less-than-ideal weather. Creating an outdoor living space may require extensive construction, including excavation, running utilities and structural work

HIRING A LANDSCAPING DESIGNER/PROFESSIONAL

Landscaping professionals are a critical part of any project — even the small ones. Pros have the training, tools and experience necessary to ensure every aspect of your project is successful and up to your standards. The expertise of your professional will also simplify project pricing, making it easier to budget for a picture-perfect final result.

As a current resident in Northern Colorado, I am fully aware of the current market trends and what it takes to get a great deal on a listing or get top dollar for your current home. When it comes to getting the job done right, you can count on me.

I have a lot of connections within the Northern Colorado area. Please don’t hesitate to call and ask me any questions you might have. This process is all about you and your needs. Real Estate is a big investment and I understand that. One thing you will get with me is a personal relationship, In the end, that goes a long way.
 

Northern Colorado is a great place to live! For more information, please give me a ring or email me today. I would love the opportunity to earn your business and partner with you in regards to your Real Estate needs.

LOOKING TO BUY??

If you are looking to purchase, I can save you a lot of money, as much as 10% on the purchase and finance of your home. 

Contact me today to learn about ALL of my strategies to get you the BEST price for your home in the shortest possible time! 

CLICK HERE TO SEARCH FOR ALL PROPERTIES IN NORTHERN COLORADO

SAVE UP TO 10% ON YOUR PURCHASE AND FINANCE

CONTACT ME FOR DETAILS AT 970-217-3245 OR CLICK HERE

https://ross-homes-noco.com/

SOURCE: HOME ADVISOR