4 Ways to Pay Your Mortgage Down Sooner

Being able to pay off your mortgage in under 30 years
is not only possible, but it’s also very easy to do.

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New data shows that nearly 40% of all homes in the U.S. have no mortgages whatsoever. The highest percentage is 54% in West Virginia. Maryland and D.C. are on the other end of the spectrum at just 27% and 24%, respectively.

Many believe that a real estate dream means buying a home and staying in it just long enough to have some equity and move up to a bigger or better home. If you’ve considered the idea of a forever home and want to be among the homeowners who are living mortgage-free, here are four tips to help you pay down that balance faster:

1. Switch to bi-weekly payments. Let’s use some real-life scenarios here: Say you have a mortgage of $200,000. With a 5% interest rate on a 30-year term, bi-weekly payments will actually save you $34,328 in interest and would shorten the length of your mortgage by five years. That’s pretty incredible for just one extra payment per year.

2. Make additional principal payments. Obviously, the first part of your mortgage will go toward interest. Making an additional payment to pay down the principal amount of the loan is going to help shorten it. On a $120,000 loan at 4.5% for 30 years, that would give you an extra $608 per month. Just an additional $25 payment per month on the principal would save you over $9,000 in interest.

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If you can afford a higher
payment, shortening your term from
20 to 15 years is smart.

”

3. Switch to a 15-year term. If you can afford the higher payment, switching the term of your loan can save you a ton. On a $250,000 mortgage with a 4.5% rate, it would cost you $429,674 in principal and interest payments. The total interest is $179,674. With the same loan over 15 years, you would only pay $82,860 in interest. That’s about 46% of the interest on the 30-year loan. Typically, the interest rate on the 15-year term will be lower. Right now, you can get one at 3.125% at Wells Fargo.

4. Make small sacrifices. This could be as easy as skipping Starbucks or a dinner out on the town. The average American spends $3 a day on coffee. That’s another $90 that you could be committing to your mortgage each month, which would reduce your term by over four years while saving you over $25,000.

If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

These 5 Tips Will Help You Get Started in Real Estate Investment

If you’re looking to get into real estate investing,
I have five tips that will help you.

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Real estate investing is hotter than ever, and it’s no wonder why.

Mortgage rates are low, home prices continue to grow, and demand for rentals is strong.

But if you're interested in investing in real estate, where do you start? And what do you need to know? Here are five crucial tips I've gathered from successful real estate investors to help you out:

1. Don't stick to your own backyard

Many fledgling real estate investors limit their search to neighborhoods they know well. This might cut into your potential for profit. The best deals might be a bit further away, and emerging neighborhoods might offer better growth potential and tax incentives.

2. Use the 1% rule

A good rule of thumb for real estate investing is to look for properties that will offer a monthly return that is greater than 1% of the sales price. In other words, if a home costs $100,000, you should only invest in it if you expect to get at least $1,000 a month in rent.

3. Don't over-rehab

An investment property doesn't have to look like a Pinterest photo shoot. Instead of trying to convert an investment into your dream home, go with middle-of-the-road fixtures—and save yourself both time and money.

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Now, these five tips are valuable—
but they are only a start.

”

4. Look to single-family rentals

Single-family homes tend to consistently appreciate. They are also most likely to attract good tenants, and they are something you have direct experience with—and can evaluate personally.

5. Understand the tax benefits

It pays to know the many possible tax benefits associated with real estate investing. These include deductions for depreciation, mortgage interest deductions, and maintenance, as well as the benefits that come from investing through qualified plans like self-directed IRA accounts.

Now, these five tips are valuable—but they are only a start.

If you're seriously considering real estate investing, I'd advise you to first take a look at some of the great homes available around the Brainerd Lakes area. And if this gets your investment appetite going, give me a call at (218) 831-4663. There are two reasons why:

First, I can give you my impressions about which types of homes (and in which neighborhoods) might make for a sensible first investment.

Second, I can also point you to other professionals I personally trust—mortgage brokers, tax advisors, contractors—who can help you make that first investment profitable with the minimal amount of fuss.

If you have any other real estate questions, feel free to reach out to me as well. I’d love to help you.

7 Tips to Help Your Home Sell Fast & For More

Today I’ll lay out seven steps to take if you want your home to
sell quickly and for the most money possible in our market.

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Today I’ll share seven surefire ways to make sure that your home is ready for the summer selling season:

1. Assess your home’s condition. Look at your home through a buyer’s eyes: Is there worn carpet on the floor or chipped paint on the walls? Are there any burnt-out fixtures that need to be fixed or replaced? Buyers have a very critical eye, and you’ll want to address any of these easy-to-fix issues.

2. Get rid of oversized furniture. Oversized furniture can shrink the apparent size of a room, and we ultimately want the house to feel spacious. If you have too many pieces of furniture, overlarge furniture, and/or just a lot of clutter, rent a storage unit and put those items there. Less is more.

3. Remove clutter and depersonalize. Put away the trophies, family photos, and other such personal items. You want the buyers to be able to clearly imagine themselves living in your home, instead of making them feel like they’re kicking you out of your home.

4. Deep clean the home. This means you should take some time to thoroughly clean the bathrooms, tiles, windows, drapery, appliances, and such. Don’t forget about the outside of your home—power wash your siding and remember to clean out your gutters.

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Following these seven steps will
ensure that your home stands out
in our market.

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5. Work on curb appeal. Most buyers will drive by a home before they’ll set up an appointment to view the inside of it. With that in mind, really focus on the exterior of the home and consider what a buyer’s first impression of it would be. Rake the lawn and be sure to plant fresh flowers to enhance the curb appeal of your property.

6. Repaint using neutral colors. A fresh coat of paint will make your home feel years younger. If you’re going to take the time to repaint the house, be sure to use neutral colors like beige, off-white, light grays, and other soothing colors to really give your property a warm, inviting feel to your potential buyers.

7. Get professional photos taken. Around 96% of today’s buyers look for homes online, and if your home doesn’t show well online, they’ll just skip yours and go on to the next listing. Research and hire a professional who will come in and capture your home in its best light.

Following these seven steps will ensure that your home stands out in our market. If you’re interested in taking the next step to get your home sold quickly and for the most money possible, please don’t hesitate to reach out to us. We’d love to give you a free market analysis, show you step-by-step how we’ll advertise your home to buyers in the market, and we’ll even help you stage your home for the best results. I hope to hear from you soon!