3 Pieces of Advice You Can Share About How to Manage a Mortgage:

Reblogger
Real Estate Agent with Good Company Real Estate License # SA577557000

David has shared some excellent advice for anyone who is considering buying a home and needing financing for their purchase. These three pieces of advice can not only prevent new homeowners from financial hardship, but could also save them thousands of dollars in interest over the years. 

Original content by David Kosmecki Sierra Pacific NMLS 1788

Children Leaving the Nest? 3 Pieces of Sage Advice You Can Share About How to Manage a MortgageWhen your children are about to step out into the world on their own, you want to help them on their way. This especially holds true when it comes to buying a house. As your sons or daughters prepare to take the plunge into home ownership, make sure they follow three crucial tips that will help them during the mortgage process.

Don't Bite Off More Than You Can Chew:

One of the biggest mistakes that homeowners make is choosing a home that is beyond their price range. Your children need to remember that they are going to be paying for their home for a long time. A crushing house payment could be difficult to manage.

In order to find a reasonable mortgage, you need to look at the numbers. The bank, or mortgage lender, will generally look at a client's income, debt, and the current mortgage rate to determine an acceptable amount when purchasing a home. Your children can look at their own budget, lay out all of their costs, and determine how much spending room is left for a house payment.

Choose A Shorter Term For A Mortgage:

When the time comes to sign the dotted line, the mortgage lender will offer various payment terms for your child's home loan. Twenty-five to thirty years is the typical term for most mortgages, but the sooner the mortgage is paid, the better. Advise your children to choose the shortest possible term while still living within their means.

Make Extra Payments When Possible:

Your children can pay their mortgage off sooner by making extra payments. While this may seem like a challenge, it can be accomplished with careful budgeting.

Making one extra payment a year will shorten the length of the loan and put more equity into the home. Whether your children plan on staying put or want to buy another home down the line, they'll appreciate it when they have paid off a considerable chunk of their mortgage.

Getting a mortgage is a rite of passage and a milestone that thousands of Americans encounter every year. Make sure that your children get the best mortgage available by following these tips. For more helpful information, or to make sure your children are getting a good deal, contact a trusted mortgage professional today.

David Kosmecki

Direct: (763) 519-1100 | Toll Free: (800) 536-0233

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         Contact Troy Erickson, Realtor®, Good Company Real Estate

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This post is for informational purposes only and should not be construed as legal advice. If you desire specific legal or tax advice, please consult the appropriate professional. The opinions expressed here represent my own and not those of my employer. Troy Erickson will not be held liable for any errors, ommissions, accuracy, validity, currentness, suitability, completeness; or any losses, injuries or damages arising from its display or use.

Comments (29)

Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Lou - Thanks for stopping by and commenting, and glad you thought it was informative. 

John - Yes, I thought this information was valuable.

Grant - The faster you pay off a mortgage, the less you end up paying in interest.

Oct 20, 2014 01:46 PM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Troy Erickson ... I totally agree with your LO, when possible ... these things should be considered.   But the savings can also add-up if only extra dollars are added to the monthly principal payment where possible.  Even $25 extra each month is of huge benefit down the road.  That action is something that many more could manage to accomplish with some consistency ...

Gene

Oct 22, 2014 12:39 AM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Gene - Yes any additional cash one can put towards the principal on their mortgage will benefit them.

Oct 22, 2014 12:47 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Troy

Some good old fashion advice and wisdom.

Good luck and success.

Lou Ludwig

Nov 04, 2014 12:17 PM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Thanks again Lou for stopping by and commenting.

Nov 04, 2014 02:09 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

I agree with you that making extra payments and doing it every month consistently will help you reach your goal a lot quicker. You are smart and wise!

Nov 07, 2014 12:31 PM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Patricia, thanks for stopping by and commenting on my re-post. Paying more principal will reduce the interest paid over the life of the loan, as well as pay off the mortgage that much sooner.

Nov 07, 2014 03:21 PM
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

This was a great post - thank you for the reblog.  I didn't see it first time around, but am glad I caught it this time.  There is some good advice about how to lower your costs, etc.  THANK YOU!

Nov 08, 2014 02:11 AM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Joy, I'm glad you found value in it. That is exactly why I felt it was worthy of a re-post.

Nov 08, 2014 04:47 AM
Lynn B. Friedman CRS Atlanta GA 404-939-2727
Atlanta Homes ODAT Realty - Buckhead - Midtown - Westside ... Love our City - Love our Clients! - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Troy Erickson 
Excellent ideas to share - sound financial steps for all to follow.
Have a happy day -
Lynn

Nov 11, 2014 01:44 PM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Thanks Lynn for stopping by and reading this post. Everyone could use a little financial advice, and I thought this post was well written.

Nov 11, 2014 03:17 PM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Troy, Thanks for the reblog as those items shown  are all good points. many folks have no idea what to do when it comes to a mortgage. 

Nov 21, 2014 05:51 AM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Robert, glad that you felt the information could be useful to others. Thanks for stopping by.

Nov 21, 2014 05:59 AM
Melissa Stutes
Kama'aina Mortgage Group Inc. - NMLS# 1276471 - Honolulu, HI
Mortgage Loan Partner - NMLS# 948108

Great advice!!

 

Nov 27, 2014 11:49 PM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Thanks Melissa for stopping by and commenting.

Nov 29, 2014 01:03 AM
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

I find the 15-year is often too much pressure for folks. 

Dec 26, 2014 05:48 AM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Michelle - You definitely need to be able to afford the 15-year loan before you try and make it work. If you can swing it, it can save borrowers thousands upon thousands in interest over the life of the loan.

Dec 29, 2014 03:31 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is a good selection for a re-blog and great information for consumers to ponder.

Jan 05, 2015 10:52 PM
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

Do the math it is terrible the money these 30 years vs 15 years get 

Jan 08, 2015 12:10 PM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Roy - The more information, hopefully the better decisions people can make.

Michelle - Of course if everyone could afford it, the 15 year loans will save thousands of dollars in interest. Unfortunately people typically want as much home as they can afford, so they would rather get a 30-year loan.

Jan 08, 2015 12:24 PM

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