Linda D. Dempsey's Blog
Paying off a mortgage early is a dream of many homeowners. By making larger payments on your home loan, you can cut years off of your loan term and save thousands of dollars in interest payments that you can use toward savings or investments. But in an economy that has seen decades of wage stagnation and increasing costs of living, it can often seem like an unattainable goal.
With some planning and initiative, however, there are ways to pay off your home loan before your term limit.
In today’s post, we’re going to talk about three of the ways you can start paying off your mortgage early to avoid high interest payments and save yourself money along the way.
1. Refinance your mortgage
If you’re considering making larger payments on your mortgage, it might make sense to look at refinancing options. Most Americans take out 30-year, fixed-rate mortgages.
If you can afford to significantly increase your mortgage payments each month, you could refinance to a 15-year mortgage. This will save you on the number of interest payments you’ll have to make over the years. But, it will also help you secure a lower interest rate since shorter term mortgages typically come with lower interest rates.
This option isn’t for everyone. First, refinancing comes with fees you’ll have to pay for upfront. You’ll have to apply for refinancing, get an appraisal of your home, and wait for the decision to be made.
But, you’ll also have to ensure that you can keep up with your higher monthly payments. If your income is variable or undependable, it might not be the safest option to refinance to a shorter term mortgage.
2. Make extra payments
An option that entails less risk than refinancing is to simply increase your monthly payments. If you recently got a raise or are just reallocating funds to try and tackle your mortgage, this is an excellent option.
Depending on your mortgage lender, you may be able to simple increase your auto-pay amounts each month, streamlining the process. Otherwise, it’s possible to set up bill-pay with most banks to automatically transfer funds to your lender.
3. Bi-weekly payments or one extra payment per year
Making bi-weekly instead of monthly payments is an option that many homeowners use to pay off their mortgages early. Bi-weekly payments work by paying half of your monthly payment once every two weeks.
The vast majority of homeowners make 12 monthly payments per year. But by switching to 26 bi-weekly payments, you can effectively make 13 full monthly payments in a year without seeing too much of a difference in your daily budget.
This doesn’t seem like much savings in the short term, but let’s take a look at how much you could save over the term of a 30-year mortgage.
On a 30-year fixed mortgage of $200,000 with a 4.03 annual interest rate, you would make a monthly payment of $958.00 and a bi-weekly payment of $479.
Over 30 years of an extra monthly payment, you could save nearly $20,000 on the total interest amount and pay off your mortgage almost 5 years early.
Sending and receiving faxes is still growing in popularity around the world, and online fax services have come to light to enable users to change from traditional fax machines to online (internet) fax. So, if you are the type of person that needs to send and receive faxes every day and still glued onto the traditional fax machines, take a look at some few benefits of adopting online fax:
1. It saves you a lot of money
Online fax services may cost you something in the neighborhood of $20 monthly. Meanwhile, traditional fax machines can require many times than that. Purchasing a fax machine alone costs about $100 to $300. When you include the cost of ink, toner paper, replacement parts, and maintenance, you start to see the picture of why online faxing is better.
2. It is convenient
Generally, when using the traditional fax machine, you need to be in your office to start faxing. But when you switch to online fax, you can send and receive faxes from wherever you are and whenever you want. Anywhere and at any time.
3. It keeps your document always organized and available.
Say, you are receiving at least fifteen faxes every day, and after one month, you would have achieved nothing less than 500 pages. Calculate that for a year, and you will realize it is a difficult task to manage such loads of paper. Well, when you switch to an online fax service with a cloud storage feature, you can store all your sent and received faxes in one place. Apart from that, you can quickly get access to the files whenever you want to.
4. It allows you to send and receive faxes from your smart-phone
There are so many online fax providers that offer applications for Android and IOS devices to start getting and sending faxes on the go. This benefit means you can use the camera of your smart-phone as a scanner to convert paper documents to digital text and send a fax with just some few touches on your smart-phone screen.
5. It is highly secure
Online fax services make use of OpenSSL or other trusted encryption systems to ensure your data is safe and no one else except the receiver and sender can read the content of faxes. With that in mind, you won't have to worry about your data sent to unsecured phone lines or an unauthorized employee having access to received fax accidentally.
Apart from these five, there are more amazing benefits waiting for you when you switch to online fax services. Don't wait any longer. Get started today!
- There are two main reasons that people hold garage sales: to make extra money and to get rid of things they no longer need or want. In most cases, they're highly motivated to make sales and do not expect to rake in boatloads of money. If they happen to be in the process of selling their house and getting ready to move, they should be especially motivated to clear out all their garage sale inventory. The last thing they want to see is an interested customer with a wad of cash in their hands walk away because the price wasn't right. If you make a reasonable offer, chances are they'll either accept it or make a counteroffer. By cultivating some basic negotiating skills and learning to have fun with it, you can pick up some amazing deals in your neighborhood.
- At first, going to garage sales may seem like a hit-or-miss proposition. However, persistence pays off. Good timing, a little bit of luck, and being in the right place at the right time will eventually work in your favor. It's sort of a "numbers game," so if you plan to visit a few different yard sales in one morning, you're bound to find all kinds of worthwhile treasures and bargains.
- If you know what you're looking for and have a pretty good idea of what its worth, you'll be in a good position to make reasonable offers and walk away with exceptional deals.