Watch this video before buying a home !
Secret #7: Here's A Special Technique To Save You Tens Of Thousands On
Mortgage Interest
Did you know that on a $150,000, 8% fixed-rate, 30-year loan you would
save over $68,868 in interest and pay off your loan seven years early if you
made just the equivalent of ONE extra mortgage payment every year??
What's the catch? Nothing really...just a little "smart" financial
management at work. Now, you may have heard of programs that do things like
this, called "Bi-Weekly" payment programs. There are lots of bi-weekly
programs out there and lenders promote them frequently.
What are "Bi-Weekly" programs? It's where either a third party or your lender
collects your mortgage payment bi-weekly rather than monthly and applies it to
your outstanding principal balance on your loan. This helps to minimize the
total interest you pay on your loan by increasing the frequency of payments you
make (each payment being about half your normal amount).
And the reason why they promote them is because the lender (or third
party) makes money off administering these programs to you. But what you
probably didn't know is...
There Is A Much Simpler Way To Accomplish The Same Thing Without Lenders Or
Third Parties Taking Their "Cut" Out Of Your Pocket!
No kidding! Here's how it works...
Just about every loan you get will allow you to prepay it in whole or in
part without any penalty. Here's what you do. Take your current monthly
principal and interest payment you make on your current loan (don't include
impounds for taxes, fees, or other costs - just principal and interest). If
you don't know what it is, ask your mortgage lender for an amortization
schedule of your loan. Multiply that number by 13. Then divide that total by
12 to get your new "accelerated" monthly payment.
That number becomes your new mortgage payment that will give you these
whopping savings. Let's take an example using the $150,000, 8% fixed, 30-year
loan mentioned above. Here' what you do:
Do you see what's happening here? By adding just $91.72 per month to
your current mortgage payment, you can save over $68,868 in interest over the
term of your loan, PLUS pay your loan off seven years earlier than a
conventional payment schedule.
Just a slight accelerated payment schedule can make a world of
difference in savings to you...and your ultimate net worth! The larger your
mortgage and the higher your interest rate, the more benefit you get by using
this simple mortgage acceleration calculation.
BONUS SECRET: Use an Exclusive Buyers Agent, If you find a Houston Buyers Agent, they might work for an office that also lists homes for sale. That puts you is a position for a possible conflict of interest. Look for a company that does not list homes for sale and are EXCLUSIVE Buyer's Agents for the Houston area.
(Recommended by the US Housing and Urban Development)
There's a huge difference between a Buyer's Representative and other
agents. First and foremost, if you don't have a specific agreement to be
represented by your agent...
And the question you have to ask yourself is... "Is this person going to
represent MY interests?"
Think about this: If you had to go to court, would you use the same
attorney the opposing side was using?
I think you know the answer! But did you know that by creating a
"buyer's representation" with your agent, you not only get someone representing
you, but...
Ø An Exclusive buyer's representative doesn't cost you a nickel more than any other
agent. Even though they represent you, they're still paid out of the standard
commission.
Ø Exclusive Buyer representation is easy to enter into, and will support ONLY your
interests. This includes finding your home, helping with financing, and
negotiating the best possible deal for YOU.
Ø A Exclusive buyer's representative will keep everything about you and your deal
CONFIDENTIAL!
OK, so you know the difference between any agent and creating a "buyer's
representation." But did you know what a good agent can do for you?
Ø A good agent knows the area you want to buy in because he/she is out
constantly looking at homes.
Ø A good agent can spot trouble for you. He or she will be experienced at
looking at homes and will see things you might not see.
Ø A good agent will greatly simplify the buying process.
Ø A good agent will give you MOTIVATED, reliable financing sources and
options.
Ø A good agent will refer you to proven inspectors, title and escrow
officers, and other service providers you'll need.
Most importantly, you need to know that...
There Are "Real Estate Agents"...And Then There Are Committed Professionals.
Which One Do YOU Want Representing Your Interests?
This is the last installment of the e-HomeWatch Home Buying Guide.
I have another article that I am putting together called the 8 Secrets for
Saving Thousands When Finding, Buying, and Financing Your Next Home
I will be sending it to you as it becomes available.
I certainly hope you find these articles useful and interesting.
Hopfully they will save you time and money.
TEXAS BUYER REALTY LLC
Houston Buyers Agent
Representation - Not Sales
Experts in home construction / inspections
Negotiating on behalf of the buyer
Protecting your best interests
Representing BUYER'S ONLY
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