- How to buy a home and pay it off EARLY

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How to buy a home and pay it off EARLY...

First, remember, you cannot afford not to buy a house. Buying is usually cheaper than renting and homes make great investments.  The government wants you to become a homeowner and you don't need a big down payment. Also, you don't need perfect credit or a big income to get a mortgage.  It is NEVER TOO LATE to buy a house!

Places that can help you buy a home

www.hud.gov


www.ncsha.org


www.freddiemac.com


www.fhaloan.com


www.valoans.com


www.va.gov

Special discounts and help available for first-time homebuyers. Check your local bank and get quotes online

eloan.com Mortgage, Home Equity, Pre-Approval and Refinance

www.IngDirect.com

 www.quickenloans.com

How much can you afford? Use these formulas:

Gross Monthly Income x 0.28 = Maximum Monthly Mortgage Payment

Gross Monthly Income x 0.36 = Maximum Total Monthly Debt

** 30 year fixed below 8% is a great deal!

 

Pay it off 5 to 7 years early

Pay 1/2 of a payment every 2 weeks - check with your lender to see if they take bi-weekly payments

Make 26 half payments per year or 12 full payments per year, see the advantage?

Or just make one extra payment per year just on the principal.

Another way is to add 10% to your regular mortgage check each month and have the money applied toward the principal.

Depending on your interest rate you will be paying off your mortgage 5 to 7 years early!

That can save you tens of thousands of dollars in interest payments over the life of your loan.

 

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