What if there was a free online service that allowed you to connect your home buyer prospects to new development websites, and e-mailed you when they request information? What if the development wanted to help you close your prospect helping and retain your commissions without fear of getting cut out of the deal?
Florida Real Estate Agents are realizing the power of Agent Shield's new technology. In a slow paced market it is crucial to find new ways to market to your prospective home buyers. I feel that Agent Shield will substantially help Realtors connect with buyers. Agent Shield removes the barriers agents have had when trying to market new construction developments on-line.
Real Estate Agents sign up for a free account in 2 minutes or less. The Agent Shield account is similar to signing up for a free e-mail account. Real Estate agents cut and paste their special code into their e-mail marketing, blogs, and website. These marketing campaigns allow agents to target more prospects allow their prospects to click through to the experience the developer's website.
Realtors wouldn't normally market the developer's website in fear of losing their prospect. Agent Shield fixes this problem and allows the prospect to click through and experience the entire website. when they request more information the agent's contact information is reflected on the site for the prospect to contact. The prospect can even fill out a request for more information which will be e-mailed to the referring agent to ensure they retain the sales lead. This will allow you to e-mail thousands and follow up with educated prospects that have taken the time to review the development's website.
You have to experience this technology for yourself. I am sure you are skeptical, and have many questions. The best part is many of the top producing new construction salespeople have been using Agent Shield and it works. 100% free for Realtors to use and market. This online tool has helped many agents expand their online marketing campaigns to thousands, drive more leads to their e-mail inbox, and ultimately sell more homes.
What if Agent Shield helped you sell just one home this month? Take a minute to see the video and sign up for a free account.
Check out the original post and you tube video on my website:
The Federal Reserve has reduced the Federal Funds Rate 75 basis points this past week. Many home owners may be able to take advantage of attractive fixed rates. Now is the time to find out how much you can save. A ten minute phone call could save your hundreds per month!
Is your ARM mortgage due to reset at a higher payment this year? Are you interested in reducing your monthly payments and saving hundreds per month? Do you want a lower interest rate that is fixed for the entire life of the loan (30 YR Fixed, 40 YR Fixed)?
Do you want a free quote and want to choose the options that are best for your situation? I will advise but allow my clients to make their own decisions. There is absolutely no pressure.
You choose when you want to move to the next step. I only work with home owners who want to make a difference in their financial situation. I will only complete loans that will benefit your financial situation. If you decide not to go through with a quote, that's OK. Shop around and I will try to beat it. If I can't I will tell you to get the best deal possible.
I have saved hundreds of clients thousands of dollars. I have helped thousands of people increase their net worth, reduce their payments, and better their credit. I only work with home owner's who have the desire to save money, reduce their debt payments, and want a fixed rate home loan with no hassles.
My initial consultation is free, and includes a free credit report. All fees are wrapped into the refinance (except for appraisal). I will need 10 minutes of basic information such as: your credit, income, current loan information, and your goals.
You may call or E-mail to schedule a phone consultation or complete an initial secure bank application online. Your information is confidential and will not be shared. I will contact you by phone to review your home loan goals, and determine whether we want to work together.
I am very upfront, honest, and will close your loan when you want to close. I have a proven method for success. I do not rush closings. I want to make sure you understand your loan and the process. I handle all details and follow up with daily e-mails or phone calls. I want to ensure you know where you are in the process.
Loan Process (7-14 days) 1. Initial 10 minute phone consultation to gather information and goals (includes, home loan, income, credit, and work history). 2. Create options for your review. I will give three loan options and including interest rates. Approve and move forward or disapprove quotes, no obligation. 3. Schedule appraisal, order title, sign initial application, good faith estimate, and truth and lending documents. Submit to underwriting for speedy approval. 4. Review all mortgage pay offs, approval conditions, and final numbers before you give the OK to schedule the closing. 5. Schedule closing and sign final closing documents. (three day right of rescission in the state of Florida on all refinance transactions). 6. Follow up with your new loan, and contact you to make sure your satisfied with your new home loan.
Call me directly for your free initial consultation: Home America Mortgage Brian M. Schoedel Phone: 239.298.1335 Fax: 239.775.4520 mailto:bschoedel@homeamericamortgage.com
Apply Online 24 hours a day. I will call you within 24 hours to follow up with your initial consultation:
There are many factors that have driven up the rates of jumbo sized loans, and stated income higher. While conventional Fannie Mae backed and FHA backed home loan rates have enjoyed a recent rate reduction. You may have recently read about the -.0.75% decrease in Fed Funds rate . You may have thought this is a great time to refinance.
In many cases, rates have been steadily dropping over the past year. Home owner's seeking to refinance their homes has been very happy at rate reduction over the past few months. Many homeowners under $417,000 loan amounts seeking to convert ARM loans into fixed are will be the only winners in this mortgage mayhem. Loan amounts under Fannie Mae Limit $417,000 and other amounts in US Territories have been getting a great deal of low rates. It is even better for borrower's that provide income, and asset information in conjunction with their loan applications. Remember you don't have to have platinum credit to qualify if you can provide your income and tax documentation.
The losers in the current home loan credit crisis will be too groups including Jumbo loan sizes over $417,000, "stated documentation" and "subprime" borrowers with weak credit scores and credit histories. Many small business owners generally have hard to prove incomes due to write offs on taxes. They will be forced to take stated income documentation loans which generally have more restrictive guidelines and slightly higher interest rates (.25%-.50%) in exchange for not having to using their tax returns to prove income.
This segment of borrowers may not have had issues obtaining home loans in the past. Self employed "stated income" borrowers will have to focus on keeping their credit scores high and keeping adequate cash reserves to qualify for new home loans in order to obtain the best or close to published rates. Subprime or weak credit score borrowers will need to watch their finances and make an effort to clear up their credit. Free FICO® Credit Score Estimator
I suggest contacting at least 2 trusted loan officer's and avoid websites that promise multiple quotes and will pulverize you with phone calls and E-mails from the lenders that "share" your information. The year of the mortgage broker or loan officer is coming back. The Broker or loan officer will work on your behalf to arrange a home loan for you. Think of them as your financial planner for your mortgage or home loans. Be smart & shop for a second opinion.
It's time to maximize your gather all your documents, maximize deductions, and get your hard earned money back from the government. Check your mail carefully over the next few weeks. You may have begun receiving important documents needed to file your returns promptly and accurately.
Keep an eye out for: W2's, 1099's, 1098 mortgage interest statements, bank or investment Interest statements, property tax, expense receipts, etc… There are many ways to file this year designed to make it fast easy and reducing the hassle of filing. Online filing may help you receive your returns in record time.
The keys to surviving the tax season are:
· Be organized
· Gather important documents
· Seek adviceDo not procrastinate
IRS E-File is available through the IRS website. If you meet the criteria you may avoid paying any fees associated with your Federal Tax Return. You may e-file if your adjusted gross income was $54,000 or less in 2007. Use Free File to prepare and e-file your taxes online. Receive your refund directly from the IRS in around 10 days, and for free. You may also file in Spanish. Visit the IRS's website to learn the details. Got questions? Check out the IRS's FAQ page.
IRS 1040 Paper Filing is always available through the IRS. It takes a little longer to receive your return but still works. You may download IRS tax forms if you want file the old fashion way. Free walk-in help is available from a real person. Visit the IRS's online zip search to locate free help in person. Don't forget to sign & date your return!
H&R Block if your adjusted gross income was over $54,000, have many deductions, or own a home H&R Blocks online software may make it easy. I would suggest using H&R blocks online software. It is easy to use and inexpensive check out H&R Block.
Changes to the tax code that may affect you!
Mortgage Insurance- There are new changes to the Mortgage insurance being deducted as mortgage interest. If you paid mortgage insurance premiums during 2007 you may be able to deduct the premiums as mortgage interest. Check the site to see if your mortgage insurance payments qualify.
Business standard mileage rate- If you used your car for business and were not reimbursed by your employer or were self employed you may deduct the standard mileage rate $.48 ½ per mile.
Earned Income Amount for Additional Child Tax Credit- 2007 the minimum earned income amount used to figure the additional child tax credit has increased to $11,750.
IRS's Tips E-mail newsletters- The IRS will E-mail you over the next few months great tips on our taxes. It's like having a tax consultant for free. The best part is it will remind you to file your taxes while giving your fun facts and money saving tips. I think this is a great way to learn without getting overwhelmed of the entire IRS's website content. Subscribe today, I did. Here is the link to IRS tip 1.
Check out more articles on Brian M. Schoedel's site! Owe taxes or want to reduce your bills? Do you want a free home loan review, and see if Brian can lower your bills through home finance. I have helped many people save hundreds per month. It's fast, easy, and there's no obligation to receive a free review. Apply online through my secure online pre-application, or call me directly.
Are you buying a newly constructed home in Florida? Have you heard horror stories about escrow accounts being shorted for property taxes? This is a big problem with most lenders that they have not fixed the tax loophole for escrow accounts. They also have a hard time fully disclosing what a true estimate of property taxes will be on your new home. It only takes a few moments to ensure this doesn't happen to you.
Home Loan lenders are notorious for shorting your escrow account that pays your taxes and insurance. Your cash to close on your purchase may be affected when calculating the correct estimated amount for county property taxes.
I have personally felt the impact of a mortgage company improperly estimating the property taxes shorting the escrow account. The actual taxes were much higher and increased my monthly payment by $500 per month for the next year to correct the actual county property taxes. I have seen client's escrow accounts shorted by thousands. There are a few things that you "the consumer" can do to safe guard this unexpected surprise and avoid a financially upsetting situation.
How does this happen? This shortage generally happens if the newly constructed home was built in the same year that you are closing on your home purchase. The taxes on your HUD1 or settlement statement may only reflect the taxes due on vacant land. The following year you're taxed on the fully calculated land and improvements. There may also be adjustments based on your occupancy type. Homesteaded owner occupied properties may reduce your county property taxes.
This discount for the first year could be great as long as you are aware that the actual taxes may be significantly higher than the taxes on the land in the first year of ownership.
Here are the steps to prepare for the proper estimated county property taxes on your new home:
File for Florida's homestead exemption as soon a possible. Owner occupied home owners may help reduce your tax liability, and prevent substantial tax increases on your new home. Visit your Florida's county tax collector's website for more details. This may save you thousands of dollars in property taxes as your home's value increases over time.
Calculate the estimated taxes based on purchase price available on the website. Review the current property tax bill in order to see the estimated increased amount. This will allow you to plan for the proper county property taxes.
Review your HUD1 or settlement statement before closing to make sure the lender and Title Company has properly estimated the fully taxed amounts for your escrow reserves. Keep in mind they will not be able to show the actual taxes paid to reflect the increase. They may only increase the reserves needed for you to properly fund your escrow account. Make sure you ask your lender or loan officer to increase the required to escrow reserves to keep your escrow account in the black and avoid a substantial monthly payment increase.
Review the following lines on your settlement statement: Buyer's side, 210. City taxes, 211. County Taxes, 216. Proration of Taxes, 1000. Reserves with Lender, 1003. City Taxes and 1004. County Property Taxes.
I have dealt with hundreds of people purchasing newly constructed homes. They are so excited about buying the home that there are many things they do not consider before buying. All prospective home buyers really want to comfortably afford their new home. Keep a comfortable cushion of cash savings for any unexpected expenses or increased payments due to either tax or insurance increases.
A little time spent to review and know all the estimates before closing will ensure that you are fully prepared for home ownership, and any unforeseen expenses. Consult with your Real Estate Agent, Mortgage loan officer, Broker, Lender, or Title Company, to ensure that your taxes are properly escrowed for your home purchase.
Call Brian Schoedel for free advice on correcting your escrow shortage on your current home loan. You have several options available to get your monthly payment into a manageable monthly payment and correct your escrow shortage.
Review home owner's insurance policies (including flood policies)- I personally saved $1,200 dollars this year when I renewed my insurance in October on my home owner's insurance by using these steps. This especially applies to people living in Florida and coastal states where insurance premiums have skyrocketed by 25-50% in the past few years due to increased property damage due to hurricanes. Review your declarations page which explains your coverage and reflects your premium (1-3 page policy of coverage).
This is especially important for those who pay their insurance escrow-ed into their home loan. You may not be aware of the amount you are actually paying for your home owner's insurance since it is wrapped into your monthly mortgage payment. If you house payment has increased over the past few years it may be from insurance premium increases.
Review your policy (declarations page)- Call your current agent and ask them to shop your policy around to other insurance companies. Many insurance agents do have access to several companies and may be able to save you hundreds or more off your yearly insurance premiums. The best part is that they already have your information on file making it easy. If you are not happy with your agent's quote shop around to at least 2 other agents. You would be surprised how much an agent will save you to gain your business. I personally saved $1,200 off my policy. I was amazed that my 10 minute discussion with my agent produced such great results. She shopped around and found a new company that was able to offer the same coverage for much less.
I paid the premium faxed in the new insurance declarations page (proof of insurance and paid receipt) to my current mortgage company and cancelled my old policy. I received my refund in about 2 weeks and stuck the $1,200 savings in the bank!
Steps to saving money on home owner's insurance:
Gather Home Owner's declarations pages
Review your current policy and shop for lower quotes
Pay for new policy, cancel old policy
Cash your refund check 2 weeks later
What if I have recently replaced my roof? You may qualify for a discount. Many insurers will ask for a roof certification from a roof inspector. Most inspections run $200-300 and could save you even more money off your policy. Check for any recent hurricane protection upgrades such as shutters, or hurricane glass. The insurance company doesn't know unless you tell them. This step may save you an additional 10-15% off your home owners policy.
What if I have lender forced placed insurance? I would do this as quickly as possible. Your savings will be slightly less for the first year. Forced place lender insurance only covers the lender of loss and is extremely expensive. Many homeowner's don't realize that they are overpaying, and getting "forced place" insurance. It is similar to obtaining car insurance without prior coverage. You will generally be charged a 10% premium for no prior coverage (12 months prior). The following year your premium should drop or you may shop around to obtain an aditional 10% savings.
Does this work if I escrow my insurance? You can still save this money if you currently escrow with your mortgage company. Contact your mortgage company's escrow department and ask them for their fax number. They will pay for the new policy. This will allow you to change insurance at any time without a dime out of your pocket. You will sign over the refund check to your mortgage company to fund your escrow account. You may request the savings to be refunded to you within a few weeks.
What if I don't have the money to pay thousands up-front or don't want to use my own money? I used a credit card for my premium. I received my refund before my credit card payment was due. I paid the credit card in full and kept my $1,200 savings. The key is to use a card that doesn't have a balance and you will receive 30 days without interest. Using the bank's money to save me money is fun!
I pay it on my own but, what if I don't have credit cards, or the cash to pay for this now! You may have just paid this premium recently making it tough to come out of pocket for thousands more. I suggest reviewing your home owner's insurance policy the month before it renews. That way you are prepared to pay it as usual. At worse borrow the money from a relative or take a free no cost line of credit to save the money. See how much the savings is, then find a way to get the money to pay for the premium and refund the extra savings.
Review your savings in your complete financial picture.
$100/ month
$1,200 per year
Over a 30 year home loan I will save $36,000!
Check out more of Brian Schoedel's posts/ articles on saving money!
I came accross another great gadget last week. I just included in my website.
My Plugoo buddy- Is another great widget that I was able to easily add to my site. Many of these widgets are really great if you have a site built on Google's blogger, yahoo, etc... This plugoo buddy widget allows you to add an instant messenger to your website allowing a visitor to communicate directly to you while on-line. Instant messaging isn't new but this plugoo widget's features are new. It allows a casual web surfer/ potential client that visits your site talk with you directly. My plugoo is located on the down the left side of my site:
That's something a regular instant messenger couldn't do. This opens communication between strangers and cold open dialog to make a new contact or client. I was thought it could prove to be very useful for my mortgage clients that may have a question, want to know how to apply for a mortgage, etc... However there is one catch. I have noticed that you have to physically login to your e-mail in order for my plugoo buddy to show that you are on and active "green". I generally use my outlook and do not physically login. However, I am sure they will fix that soon too. So far I am learning of such great tools to help me build my site and a new way to generate some contacts from my site and generate business.
Have you been looking for a way to increase your web traffic? Have you been looking for a way to add content to your website such as daily news posts, mortgage rates, calculators, or polls? I have recently come across several free ways to increase traffic and content without having to manage the day to day content.
Keep in mind that these are absolutely free and can be used with a lot of different websites, blogs and social networking websites such as blogger, and facebook. When you try them out the widget will have a list of all compatible blog software making it easy to add to your site.
What's Widgetbox?: I have come across several great widgets to add to my website that allows great tools such as: The home front widget- allows you to add a free home valuation tool into your website. The person can type in their address and click to find an automated value based on Home Values search criteria. It's not 100% accurate but allows users to interact with your site and allows you to track the address searches. It could help create enough curiosity to obtain a CMA from you or open doors to a listing.
Live Mortgage rates- allows you to place a widget of rates on mortgages, car loans, etc... This definitely looks great and is updated without you having to do anything. Your customers could use the free on-line calculator and average rates to determine payments. This is a great ways for people to approximate their payments on-line. They will want to speak with a qualified loan officer such as myself to determine rates and programs they will be able to obtain.
V Flyer mortgage calculator- allows you to add a mortgage calculator widget. It works great to calculate the principle and interest payment on your website without opening another link keeping your viewers interested in your listings or content. It also could help them determine what their monthly budget and have an accurate view of what they can afford monthly.
Blidget- Allows you to turn your blog/ website into a widget. Now you may have your friends, family, colleagues place your widget of scrolling articles onto social networking sites such as; Myspace, Facebook or they can add your blog to their own website to add content. This could be used as a great marketing tool. You could even use it for scrolling listings on your site and could be replicated to other people's websites to help increase your traffic.
Google's Blogger Newsreel (for Google's free blogger users): You may integrate the Newsreel function if you currently use blogger for your Real Estate website. The newsreel function is easy to add as a click of the button. You just list the key words and Google find s relevant daily news articles and posts them on your site. Check an example by visiting my site. The newsreel is located down the left side of my site.
Google Blogger Polls- Ask your readers questions to interact and gain feedback from them. My new poll is located on the left side of my site.
All of the mentioned tools are free and are located on my website. Check them out and click on the mini icon to get your own through the web based tool provider:
On-line- You may pull your credit reports on-line. You may obtain one free copy of all three credit reports on-line per year. There are also a host of sites that offer pay services to obtain, monitor, and perform on-line disputes. Some of the websites even offer fraud insurance protection in case of identity theft. I will list a company where you may obtain these services. You will be asked to create a password for the site similar to e-mail and it will send you through each of the three credit bureaus. This is considered a promotional pull and doesn't affect your scores. Keep in mind that the site will "offer" additional services for a fee or subscription.
I recommend many of these services which may allow you to monitor your three bureaus daily. Many of the subscription services may allow you to have unlimited disputes on-line and streamline the credit dispute process for a fee. These companies allow you to have access to your reports. I do not believe in paying a "credit repair company" to "fix your credit". There is no magic fix to a better credit report and scores. Please do not get scammed into paying a company hundreds and sometimes thousands of dollars for what you can do in 1/2 hour of your time.
You may print them out an have on-line access to them for 30 days. Generally after 30 days will be outdated and may remain viewable in the system without re-pulling a new report. Keep in mind that reports change daily including your credit scores. Make sure to print them out and review them for accuracy and highlight each of the items you wish to dispute. Keep in mind that the on-line dispute is limited to a few trade lines unless you opt for the additional services. You also may mail in a letter with the supporting documentation for numerous account disputes. The on-line dispute takes about 30 days and could take as long as 60 days to reflect the changes in your reports and scores. The bureaus will mail you an update of their findings.
Disputes included; removing incorrect items, correcting account balances or Paid status, or items that do not belong to you. Dealing with collection companies- Make sure to only dispute accounts that you know are incorrect to improve your scores. Otherwise you will re-report the derogatory item and change the reporting date which may negatively affect your scores. Call any creditors directly to settle any outstanding accounts. I will cover how to negotiate collections in another post. Ask for a settlement letter that the company and you have agreed upon.
Very Important: Do not give the creditor your banking information and do not pay over the phone until you receive the settlement letter in writing VIA mail or fax stating the terms, and date of final payment to satisfy the debt completely. Then remit payment with a written letter stating that you want a written confirmation that the debt has been settled completely in full. This is the letter you will send into the credit bureaus. Keep in mind that these collections company's buy your debt for $.01-$.99 on the dollar. Collection company's will tell you what ever you want to hear to get your money. They will do whatever it takes to get your money. Do not send them a dime unless you get it in writing. If a customer service rep doesn't help you. Call back and ask for a manager. Don't take no for an answer. Remember get it in writing. Collections companies can be; Third party companies, Law firms, Original creditors collection departments.
US Mail- Include your information in your letter. Mail copies to all three Credit bureaus (Equifax, Experian, Trans-union) have to verify that you are you. The mailing addresses for dispute are located in your printed reports. So included the following information in your letter:
Date Your Name Your Address Your City, State, Zip Code Complaint DepartmentName CompanyAddressCity, State, Zip Code Dear Sir or Madam:I am writing to dispute the following information in my file. The items I dispute also are encircled on the attached copy of the report I received. This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information. Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible. Sincerely,Your name Enclosures: (List what you are enclosing)
Enclose copies of settlement letters and any other supporting documentation that will help your case. The credit bureaus can only correct or remove items with supporting documentation and will verify their validity in order to make the changes. This is why the dispute process takes 30-60 days. The creditors have 30 days to prove it or remove it. Keep accurate records of phone calls, letters, etc...
Rapid re-score- Lenders may offer a pay service that allows "you" the borrower to fast track a re-score when you are in the process of a loan application. This could be crucial when it comes to a home loan and could make or break your approval. However the lender cannot guarantee that the disputed item will result in a better score or better approval. The lenders do not have control over the third parties or credit reporting bureaus. Higher scores may be the difference of obtaining a lower rate, reduce costs, documentation type, or a better program on all types of loans. You would submit the satisfaction letters to the lender and they will send in the information with the required fee in order to fast track a re-score. many lender have this service but do not publicize it. Lenders generally don't want to become credit repair agencies and do not want to push a service they are not making money on since the fees are paid to the bureaus, or credit reporting companies. This re-score fee is generally paid by the borrower.
Merge reports- Lenders may also have a quick additional report added to major bureau's credit reports called a merge. This is when a third party will call to verify items such as; mortgage payment histories, collection account balance and status, and incorrect items. These are used strictly to underwrite the loan and do affect your actual credit report or credit scores. These reports are generally paid by the lender or may be a small fee to the borrower. Please call Brian for details on credit reports, and credit bureau disputes. I have personally helped hundreds of people dispute incorrect information. Disputing information inaccuracies may increase borrowers credit scores and clean up their credit histories. If your collections are too large to pay them on your own. You may want to consider a refinance to pay off creditors, and collections. Then dispute them properly through the three credit bureaus in order to update the paid status, or remove them which may increase your credit scores.
Complete the on-line home loan analysis application. There is no obligation, and I will call you by phone, and E-mail you to discuss your financial & credit goals. We can review your credit report together and find ways to improve your situation.
You may have seen many TV commercials on “Combo” or “consolidation” home loans. These cash out refinance mortgages wrap all or some of your monthly obligations into a new home loan saving you money every month. I have outlined several benefits to choosing a cash-out home loan. Contact your mortgage loan officer to perform a home loan and debt analysis to see whether a combo refinance is right for you.
1 Easy payment- Refinancing into one payment makes life a lot easier. You may decide to wrap high interest credit cards, car loans, equity lines, school loans, home improvements, and any other obligation you can think of into a home loan. Placing the bills you choose into your hoe loan will be easier to manage and will help prevent you from missing any monthly payments.
Lower interest rate- Generally your new home loan will have a much lower interest rate than your credit cards and other unsecured debt. Many credit card rates range in the 10-29.99%. The current national average is over 15% and many minimum payments are 2-3% payback each month. Most minimum payments on credit cards barely cover the interest and are amortized over 25-30 years.
Lower overall monthly payments- Consolidating your credit cards and other bills into your home loan may allow for some substantial monthly savings. This should significantly improve your monthly budget. Your new found savings may allow you to accomplish many financial goals.
Build a savings for emergencies- I suggest 6-12 months of cash reserves in an account incase of an unexpected job loss, medical crisis, and unforeseen expenses. You may contribute more towards your retirement gaining interest. Home owner who have interest only loans; the monthly savings could allow you to pay down the principle balance of your loan sooner. You may be able to save for vacations, education for your children, and secure a healthy financial future for your family.
Debt free sooner- Consolidating all your bills into one payment will provide you with a substantial monthly savings. This could allow you to apply some of the monthly savings towards your home loan and pay it off years earlier. Did you know that one extra principle payment per year will remove 7 years on a traditional 30 year mortgage? This will save your thousands in interest allowing you to become debt free sooner.
Tax savings and reduction of interest – Combining your monthly obligations into your home may allow you to deduct the interest from your mortgage. Credit cards and other monthly expenses may not be tax deductible. I suggest speaking to a licensed tax professional to explain the tax benefits from your refinance. The savings may allow you to apply a portion to reduce the principle balance on the loan sooner. One extra monthly payment per year over the life of the loan may eliminate thousands in interest and eliminate 7 years from a 30 year loan term.
Ex: 1 Consolidation refinance on a 30 year principle and interest loan.
Current home loan 7.5% $1,048.82 $150,000
A Credit card 14.99% $126.36 $10,000
B Credit card 22% $128.52 $7,000
C Credit card 24.99% $62.51 $3,000
Current total monthly payments $1,366.21
Consolidation Refinance
Interest% Monthly payments Balance
New home loan 6.5% $1,099 $174,000*
A Credit card - - -
B Credit card - - -
C Credit card - - -
New total monthly payments $1,099 .00
New monthly savings $267.21
Conclusion: In this example the borrower will have a new monthly savings of $267.21/ month. This savings saves them thousands in interest over the life of the loan. If the borrower applied $91.58 of the monthly savings toward the principle balance reduction, the loan would be paid off in 23 years. *I have included the average closing costs wrapped into the loan as an illustration (Average $4,000 in costs divided by $267.21 in monthly savings= 14.97 months to recover closing costs). Every loan scenario will vary, for illustration purposes only.
Brian Schoedel
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