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ROBERT BENJAMIN REALTY
1283 Golden Mile Road
P.O. Box 266
Wysox, PA 18854-0266
Phone: 570 265-9005
Fax: 570-265-6797
E-mail: RBENJ@EPIX.NET
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Show Off Your Home!
Make your home more attractive to potential buyers. A sparkling clean appearance gives the impression that your home has been well-maintained and cared for over the years.
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Real Estate Trivia
Find the answer somewhere on our website. We try to change the questions every month...so come back next month.
1) What is the only U.S. city where all professional sports teams use the same colors?
2 ) What is the highest mountain in the United States?
3) In what country is the Westernmost point in continental Europe?
TIPS ON SAVING MORTGAGE INTEREST
HOW TO SAVE MONEY ON YOUR MORTGAGE
(A BEGINNER'S GUIDE BY ROBERT BENJAMIN REALTY)
Let's assume that you have a $100,000 mortgage at 6.00% interest payable monthly for the next 30 years with a payment of $599.55 per month. Total paid in 360 payments is $215,838, rounded.
- Scenario #1 - Simply pay an extra $5.00 each and every month...the mortgage is paid off in 352 months for a total of $212,802...TOTAL INTEREST SAVED EQUALS $3,036...You avoid paying interest on that $5.00 for each and every month from that payment forward.
- Scenario #2 - Simply pay an extra $10.00 each and every month...the mortgage is paid off in 345 months for a total of $210,295...TOTAL INTEREST SAVED EQUALS $5,543
- Scenario #3 - Simply pay an extra $20.00 each and every month...the mortgage is paid off in 330 months for a total of $204,452...TOTAL INTEREST SAVED EQUALS $11,386
- Scenario #4 - Make every payment a couple of days early starting with the first month. Since interest is computed in arrears, the lender's computer doesn't add the interest until the first 30 days have gone by...so the payment you make goes directly onto the principal; then a couple of days later interest is added on the lower balance. If you start this scenario, you must continue to make every payment early or you will lose the benefit gained in the beginning.
- Consider taking some percentage of your income tax refund every year and applying it to your mortgage principal.
- Instead of spending a lot of money on relatives you only see once or twice a year, craft a personalized gift or do a chore for them (mow the lawn, shovel the sidewalk, etc.) and put the money you would have spent on your principal payments.
- Stop smoking and/or drinking coffee and soda and take the money you spent on these items and put it on your mortgage principal each month...you will save money and be healthier.
- If your lender provides a bi-weekly payment schedule, by all means DO IT, you pay 1/2 of your monthly payment every two weeks or 26 half payments per year instead of 12 monthly payments. This means you pay approximately one extra monthly payment every year. This concept alone saves about 12 years on a 30 year mortgage. Even better round up the bi-weekly payment as stated above.
- Every time you purchase something at a store, save the coins in a jar or can...then pay the total amount in the jar as extra money on your mortgage each month.
- The bottom line concept is that the quicker you reduce the balance owed on your mortgage, the less interest you wind up paying over the long haul. In the bi-weekly tip, your balance is reduced after just 14 days instead of after 30 days.
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