“Paying off your mortgage years ahead of time” – CBS Interview with Bob Idakaar

CBS Interview with Bob Idakaar – NEW YORK (CBSNewYork) — “Paying off your mortgage years ahead of time”

Just because you signed on for a 30-year mortgage does not mean it has to take that long to pay it off.

As CBS2’s Dana Tyler reported, there are painless ways to shave years off your home loan and save a boat load of money.

Bob Idakaar paid off not one, but two mortgages in half the time it should have taken him. He said he did a “happy dance around the house.”

“The amount of money that you will save is amazing!” he said.

And it’s not as difficult as you might think.

“It’s establishing that discipline,” Idakaar said.

Mortgage specialist Barry Habib said one way to go is to get the amortization schedule for your mortgage.
Your amortization schedule is a complete breakdown of your loan, showing the amount of principal and the amount of interest comprised in each payment.

“Take a look at the principal amount of your next mortgage payment. It’s usually pretty small. It could be $100 or $150 – affordable — add that payment to the payment you’re making and you will literally skip the next month’s payment,” he said.

That extra $100 or so a month could actually cut a decade or more off your payment schedule…

“Another way to do it — look at what the difference would be in payment to a 20-year,” Habib said.

You can calculate the difference and make the 20-year monthly payment instead of the 30-year, according to Habib.

“The difference is less than what most people think and saving those 10 years is great,” he said.

“You’d be saving $72,000,” Idakaar added.

Idakaar, a real estate agent in Morristown, says his approach was to simply make one extra payment a year.

“One extra payment a year in the scheme of things will save you over $127,000,” he said. “That’s 67 payments that you will not make.”

Another way to do that is to switch to bi-weekly payments.

“When you get that piece of paper that you’re just paying taxes now, your lien is satisfied,” Idakaar said. “That’s a great feeling.”

Committing any windfalls like a tax refund toward your mortgage’s principal is also a great way to pay of your mortgage faster.

About 30 percent of Americans own their home free and clear.NEW YORK (CBSNewYork) — Just because you signed on for a 30-year mortgage does not mean it has to take that long to pay it off.

As CBS2’s Dana Tyler reported, there are painless ways to shave years off your home loan and save a boat load of money.

Bob Idakaar paid off not one, but two mortgages in half the time it should have taken him. He said he did a “happy dance around the house.”

“The amount of money that you will save is amazing!” he said.

And it’s not as difficult as you might think.

“It’s establishing that discipline,” Idakaar said.

Mortgage specialist Barry Habib said one way to go is to get the amortization schedule for your mortgage.
Your amortization schedule is a complete breakdown of your loan, showing the amount of principal and the amount of interest comprised in each payment.

“Take a look at the principal amount of your next mortgage payment. It’s usually pretty small. It could be $100 or $150 – affordable — add that payment to the payment you’re making and you will literally skip the next month’s payment,” he said.

That extra $100 or so a month could actually cut a decade or more off your payment schedule…

“Another way to do it — look at what the difference would be in payment to a 20-year,” Habib said.

You can calculate the difference and make the 20-year monthly payment instead of the 30-year, according to Habib.

“The difference is less than what most people think and saving those 10 years is great,” he said.

“You’d be saving $72,000,” Idakaar added.

Idakaar, a real estate agent in Morristown, says his approach was to simply make one extra payment a year.

“One extra payment a year in the scheme of things will save you over $127,000,” he said. “That’s 67 payments that you will not make.”

Another way to do that is to switch to bi-weekly payments.

“When you get that piece of paper that you’re just paying taxes now, your lien is satisfied,” Idakaar said. “That’s a great feeling.”

Committing any windfalls like a tax refund toward your mortgage’s principal is also a great way to pay of your mortgage faster.

About 30 percent of Americans own their home free and clear.NEW YORK (CBSNewYork) — Just because you signed on for a 30-year mortgage does not mean it has to take that long to pay it off.

As CBS2’s Dana Tyler reported, there are painless ways to shave years off your home loan and save a boat load of money.

Bob Idakaar paid off not one, but two mortgages in half the time it should have taken him. He said he did a “happy dance around the house.”

“The amount of money that you will save is amazing!” he said.

And it’s not as difficult as you might think.

“It’s establishing that discipline,” Idakaar said.

Mortgage specialist Barry Habib said one way to go is to get the amortization schedule for your mortgage.
Your amortization schedule is a complete breakdown of your loan, showing the amount of principal and the amount of interest comprised in each payment.

“Take a look at the principal amount of your next mortgage payment. It’s usually pretty small. It could be $100 or $150 – affordable — add that payment to the payment you’re making and you will literally skip the next month’s payment,” he said.

That extra $100 or so a month could actually cut a decade or more off your payment schedule…

“Another way to do it — look at what the difference would be in payment to a 20-year,” Habib said.

You can calculate the difference and make the 20-year monthly payment instead of the 30-year, according to Habib.

“The difference is less than what most people think and saving those 10 years is great,” he said.

“You’d be saving $72,000,” Idakaar added.

Idakaar, a real estate agent in Morristown, says his approach was to simply make one extra payment a year.

“One extra payment a year in the scheme of things will save you over $127,000,” he said. “That’s 67 payments that you will not make.”

Another way to do that is to switch to bi-weekly payments.

“When you get that piece of paper that you’re just paying taxes now, your lien is satisfied,” Idakaar said. “That’s a great feeling.”

Committing any windfalls like a tax refund toward your mortgage’s principal is also a great way to pay of your mortgage faster.

About 30 percent of Americans own their home free and clear.

Article provided by : CBS New York

Top 4 Mortgage Questions

While you may want to start searching for your dream home right away, the first step in preparing to buy a home is understanding how much home you can afford. To know this out, you should get pre-qualified or pre-approved by a lender, who will tell you the maximum amount you can mortgage. This will help you start searching within your price range. Now it’s time to prep for your meeting with a lender, so make sure you know the answer to the following questions.top 4 mortgage questions

Who Will Be on the Mortgage?

If you are searching for a home not just for yourself and you have a partner involved, it is important to understand whether just one of you or both of you will go on the mortgage. In some cases, one partner may have better credit or financial standing than the other, so it may be beneficial to have just that one partner on the mortgage. On the other hand, combining two good credit scores and incomes can help increase the amount of the loan.

What Is Your Monthly Budget?

It is important to understand what your monthly budget will be when owning a home. While you may be able to qualify for up to a certain amount on your mortgage, the monthly payment may be more than you can really afford. That is, it would leave you cash poor. Remember that you want to buy a house but also maintain a lifestyle you are comfortable with. Have in mind a monthly payment amount that would achieve this, and you can see what mortgage amount that could get you.

Do You Have Reported Stable Income?

Without a regular income, it is very difficult to get a loan of any kind. For a mortgage, it is important to be able to prove that you have a steady income by providing proof of income. This can be in the form of a paystub. The number of paystubs the lender would like to see can vary, but be sure you know how to access these documents so you can provide them. Also, if you are getting paid “off the books” or “under the table,” you may have a difficult time getting a mortgage.

What Does Your Current Debt Look Like?

Take an assessment of what current debt you have and how much of your income it takes monthly. The lender will look at this to get your debt-to-income ratio, which can determine the confidence the lender may have in you as a borrower. If there is a debt you can easily pay off, then do it to free up more monthly income to put toward your future house and mortgage. It is also important to not take out any additional loans until after you close on your house, as this could change the amount of mortgage you can get.

Also, it is important for negotiation purposes to know how much an extra $1,000 on the mortgage would add to your monthly payment.

If you would like me to refer you to one of the lenders I typically deal with, please feel free to reach out to me.

Refinancing Your Home? Things You Might Not Think of ….

Are you planning to refinance your home? If you’re interested in lowering your mortgage payments, decreasing your interest rate or more, chances are you’ve probably thought about whether or not you should refi your mortgage. Refinancing Your Home

When you’re ready to learn more about preparing for a new mortgage, here are six things you might not think of when refinancing your home.

  1. You’ll have to get an appraisal. You’ll have to get an appraisal when refinancing your home, so keep your house’s value and your savings in mind when determining whether or not you should pursue smaller monthly mortgage payments or a lower interest rate.
  2. You’ll need to pay closing costs. You’ll need to pay closing costs a second time when refinancing your home, so make sure you have an adequate amount of money saved to pay these upfront fees and any other costs associated with a mortgage refi.
  3. You’ll have to think about the interest rate. Are rates higher than they were when you first financed? Are they lower? Even a small difference can mean a lot of money over time. Take into account the full picture: the number of months you’ll be paying the new mortgage and the rate you’ll be paying compared with your current timeline and rate.
  4. You’ll need to get your credit checked. The bank is going to want to check your credit score when you’re refinancing your home, so keep in mind that you won’t be able to negotiate a better deal if your credit score is lower than it was when you were first approved for a mortgage.
  5. You’ll have to go through the same process. To a certain extent, it’s like buying a house all over again, so think back to when you bought your house and make up your mind about whether or not you can dedicate enough time to the effort.
  6. You’ll need to live in your house a long time. Refinancing may not be worth it if you’re planning to move in the near future. Figure out how long you plan to live in your current place and how much your closing costs will be before making the refi decision.

These six things you might not think of when refinancing your home are important to take into account before you start shopping around for a new mortgage. Because a refi can lead to a number of benefits and costs down the road depending on the outcome, you’ll need to prepare for every scenario before making a commitment.

We’re here to help, so if you think refinancing might be right for you, we can help you decide what your next steps should be.

– To view the entire BobsHomes July Newsletter, click here.