I just jumped off the treadmill in my home gym, which got me thinking about a different kind of treadmill: the mortgage treadmill. Many of us jumped on this treadmill whole-heartedly, but we can’t wait to get off of it.
Truth be told, I’d rather be paying my mortgage than paying someone else’s, so that’s fine. Reports show that people who own homes have a net worth that’s 44 times higher than renters. Even the millennials are catching up and understanding that real estate will be their No. 1 priority in the next few years.
If you do already have a mortgage and you want to pay it off faster, all you need to do is make one extra payment per year. You could put a work bonus toward it or simply increase each mortgage payment by one-twelfth. That will shorten your payment period by four years, which will save you a lot of money.
If you are like most Americans and only plan on living in your home for five to seven years, you may want to consider refinancing to an adjustable-rate mortgage that’s fixed for five to seven years. This can save you tons of money as well.
The money won’t come out of nowhere. Sacrifices will need to be made. However, if you cut some wasteful spending and just apply it to your mortgage, your run on the mortgage treadmill will be much shorter.
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.
Are you having trouble selling your home? If so, it may be because you've made one of these five home selling mistakes:
1. Overpricing the home. People think they can simply price their home high and negotiate if necessary. While it’s possible, this is not recommended. When you sit on the market for months before adjusting your price, it doesn’t reflect well on your listing. Even after the price has been lowered, buyers will think something’s wrong with it since it’s been on the market for so long. Avoid this by pricing your home reasonably from the outset.
2. Doing a “For Sale By Owner.” 92% of FSBO sellers end up using a real estate agent, so it’s best not to waste your time. Let the professionals handle it.
3. Not getting the house ready. If you want to sell your home quickly and for top dollar, your home needs to be adequately prepared. A Realtor will tell you what needs to be done and show you where you should put your money for a great return on investment. You’re basically entering a beauty contest for your home, so it needs to look great.
4. Not having a walk-through inspection. Go through the home with an inspector, contractor, or agent to find issues that need to be addressed before you list.
5. Being present for showings. Buyers will want to look through your home, but if you’re looking around in the background, they won’t feel very comfortable exploring. While you’re there, you’re actually hurting the showing. It’s best to simply leave your buyers in peace.
If you have any questions or need further information, feel free to reach out to me. I look forward to hearing from you soon.
If you’re a homebuyer in our market, here are the five P’s you need to remember to find the right home at the right price:
1. Professional: Find a real estate professional to work with. Work with someone who knows the area you want to buy in and knows how to negotiate. We’re in a low-inventory market here in the DC area, so if you don’t hire an expert to represent you, you won’t get the property you want.
2. Price: Know your price range. You don’t want to waste your time shopping for homes you can’t afford.
3. Preferences: Know your preferences. What are the items you must have regarding your new home? For example, do you need to live in a certain school district?
4. Perspective: Gain some perspective on the neighborhood you’re buying in. Start driving around the area and checking the comparable home sales from the past few months so you can make an educated buying decision. Having a knowledgeable real estate professional by your side can really help you with this process.
5. Put it all in play: This one is self-explanatory. Once you understand the previous items on this list, it’s time to put it all in play and buy the home you deserve.
If you have any questions about this method or you have any other real estate needs I can take care of, don’t hesitate to give me a call or shoot me an email. I’d be happy to help you.
