I Am Begging You...

...To Pay Off Your Mortgage Faster!

One of the common features of a mortgage is the ability to pay a certain percentage off each year or increase your payment again by a certain percentage.  The percentages are generally 10%-20% per year.  Funny thing is, many people are very interested and intent on ensuring a mortgage provider allows this percentage, but people seldom use it.

I do wonder why this feature is rarely taken advantage of and I think there are some simple answers:

We forget that we can because of our busy lives, we may even be lazy, or forget how to do it.  I would say the worst is because of job loss or unexpected major debt, and this is very understandable.  Not so with the first few possible excuses.

Please consider that all you need to do is secure your lenders service phone number and your mortgage number and you can tell the lender you want to add $10/$15/$20/etc to a payment.  That amount comes off the principle with nothing going to interest.  Each time you apply even a small amount to your payment your mortgage reduces faster, which puts more money in your pocket faster.

By slightly increasing your mortgage payment, you are making a small investment that you won't miss and does so much for increasing YOUR wealth.

Home Buyers Beware

Many people do not know, but there are changes happening in the mortgage business and the confusion is just beginning.  Taking effect March 18^th, 2011:

1. The longest amortization you will be allowed to use if you purchase after this date will be 30 years.

Why is this important?  Well if you were pre-approved some time ago, your application may have used 35 year amortization.   With the new change to 30 years, now you may not qualify for the same amount, and your payment will also increase.  See your broker agent or bank to be sure. 

2. If refinancing to pay off debts, do renovations, or invest some money, the maximum amount allowed, less your current mortgage is 85%.  This is a drop from 90%.  If approved before March 18, 2011, you can still use 90%.  If you have not applied for a refinance yet but are planning to soon,  call me ASAP.

I don’t represent the lender or the bank, I represent you!

Please don't hesistate to call if you have questions.

Bryan – 519-426-9842

Credit "Horror Stories"

...And how to avoid them!

Being in the mortgage business for over 14 years, I have encountered many credit “horror stories.”  I would like to share a few different situations that you may be experiencing, or can watch out for to avoid repeating these mistakes:

A) If you decide to claim bankruptcy, student loans are not considered a “forgivable” debt.  Do not stop paying or you will find getting a mortgage will be nearly impossible for a considerable period of time.  (Also, watch out for a blog entry in following weeks all about bankruptcy).

B) Even one single late payment on a credit card damages your chances of being able to purchase a home for up to a year thereafter.

C) Do not make payments to credit cards online too close to the due date.  Allow time for the payment to be received and posted (3 business days at least, weekends don’t count).

D) Typically, VISA and MasterCard are more “forgiving” when it comes to late payments.  Be wary with cards like Sears, CTC, HBC, gas station cards (Esso), etc, because if you are even one minute late from the due date, these credit companies will often record and penalize you, lowering your credit score.\

Overall, keep paying student loans, make credit payments in advance to due dates, and watch out for less mainstream credit cards and their policies regarding lateness and penalty.  If you have more questions, or would like any advice or more information about your specific “horror story,” please e-mail me at slaney81@gmail.com or call 519-426-9842.

[Cartoon from http://misstrade.files.wordpress.com/2007/08/englehart.jpg]