Spacer135

This free script provided by
JavaScript Kit

This web site is for sharing info I have learned, my opinions, and helpful links; it is not meant to be an authoritative web site. You should seek your own council for your business, health, and personal needs.
Spacer155
 
TheInfoPond Index
 
Enter a Tech Term...
 
 
Google Ads
 
Flightnetwork.com -Specializing in Cheap Flights
 
1-800-PetMeds RX/300x600.gif
 
invisibleSHIELD for iPhone 3G
 
Find Anyone, Anywhere
 
ePuffer creative
 
Smoke Relief Trial 1
 
 
Alibris: Books, Music, & Movies
 
 
 
 
300x250 Smartest Pack
 
 
 
 
 
Shoeboxed.com - Scan Receipts and Business Cards

Google Ads

 

 
Real Estate & Mortgage Loans
Information and Helpful Links

Buying and selling real estate is something that most people will have to content with at some point during their lives. To the uninitiated real estate may seem complicated, but in truth it is no more complicated than any career you have undertaken or educational degree you have earned. The difference between you and a real estate agent is that they studied real estate while you studied something else. From my observations, being a good auto mechanic is far more involved than being a real estate agent. Once you know how to fill out a real estate contract, it is pretty much the same thing over and over. There are laws that govern real estate that must be understood and adhered to, but then the same is true of auto mechanics, certain principles of physics and mechanics must be followed or the car won't run!

On This Page: Buying Real Estate Selling Real Estate Real Estate Mortgages
  Mortgage Loan
Secret
Mortgage Loan Reduction Chart  

 

Mortgage Loan Secret!

Reduce your 30 year mortgage loan to
about 23 years and save about 1/3 on your interest!
Just a simply adjust to your mortgage payments!
Does that sound great or what?

Detailed chart at the bottom of this page.

 

Buying Real Estate

Looking to buy real estate.

Great places to search for real estate to buy.

Homes.com

Trulia.com

Zillow.com

Craigslist has a real estate section that receives new posts daily. Google maps is an amazing source for finding real estate for sale. Go to Google maps, Google the area you are interested in, at the top of the map select "More" and then "Real Estate". Also Yahoo! Maps has a real estate map.

Craigslist - Real Estate - Dallas

Google Maps - Real Estate

Yahoo! Real Estate - Listings and Maps

Other Services

ZipRealty’s iPhone App

eHow Money - How to Use Google Maps to Find Homes For Sale

MLS Multiple Listing Service Listings - United States Listings & Foreclosures

Fannie Mae's HomePath.com - Fannie Mae's First Look marketing period for potential owner occupants is typically the first 15 days a property is listed on HomePath.com (except Nevada which is 30 days). It allows owner occupants to submit offers and purchase properties without competition from investor offers.

Short Sale Realtors® - Short Sale Homes

Selling Real Estate

Short Sale Realtors® - What are short sales?
A lender agrees to accept a discounted payoff on a loan. In most cases, the home owner owes more on the property than the the home is worth and the seller qualifies for a short sale through proving a hardship.

Real Estate Mortgages

Mortgage Loan Secret

If you just hate to read, go ahead and jump to the charts at the bottom of this page and you will see the amazing effect that Mortgage Loan Secret can have, that might encourage you to come back and read all about it.

Bottom of the Page: Bi-Weekly (Every Two Weeks) Mortgage Loan Payment Plan

Thank you for reading Mortgage Loan Secret. I think that you will be happy that you did when you examine the loan example charts at the bottom of this page and discover that with some small adjustments in your mortgage loan payment schedule you could save thousands of dollars and as an added bonus, cut several years off of your mortgage; how does twenty-one years sound instead of thirty years? See Bi-Weekly plan chart below.

I would not presume to give you accounting or legal advice, for those services you should consult legal or accounting professionals. Perhaps there are some people who need huge interest payments for thirty years, but most of us average people need that money in our pockets. We have other bills to pay, children to put through college and how about a little something extra left over so that we can enjoy life!

The principle involved in Mortgage Loan Secret is simple; lenders and many real estate professionals know how it works, but they sometimes fail to pass the information along to consumers. I suppose that it is in the lenders best interest to have consumers paying them all that interest money, not having customers cutting their mortgage loans short; after all, lending institutions are in the business of generating income from interest on the money that they loan out.

Do not feel badly if you never realized the full impact of Mortgage Loan Secret, even though it might have crossed your mind that you could save interest money by paying off your loan quicker. I have explained Mortgage Loan Secret to people in a variety of income and professional or career situations and each person that I explain it to was amazed at just how dramatically they could change their mortgage loan by making minor adjustments in their payment schedule.

Some of you will have more knowledge and experience with mortgage loans than others. For some of you mortgage loans are just boring stuff. To that end, I have tried to be basic in my explanations and charts. I want everyone to be able to enjoy the full benefits of the knowledge that I have laid out. Whether or not you use this knowledge is up to you, but knowledge is always valuable and this information can be applied to other loans, such as car, truck and RV loans. Please note that to receive the full benefit of Mortgage Loan Secret, there should not be an early pay-off penalty clause in your loan contract and you should not need the interest deduction for, say, tax purposes. Most loans today do not have early pay-off penalties, but you should check your loan contract or contact your lender to verify that there will not be a penalty if you pay off your loan before the contract scheduled date.

I hope that you will be fascinated with savings that are possible
with Mortgage Loan Secret!

Who can use Mortgage Loan Secret?

Anyone; however, for your accounting or legal needs you should consult with your accountant or attorney.

Can Mortgage Loan Secret be applied to any mortgage loan?

In the past, many mortgage loans had what were called pre-payment penalties or early payment penalties; this meant that if you paid off your mortgage loan in less time than stated in your loan contract you were forced to pay a large dollar amount to compensate the lender for the interest revenue they lost with the early re-payment of your loan. Perhaps this is the reason many people do not fully realize the value of this Mortgage Loan Secret; the shadow of the past still lingers in people’s minds today. It is time to wake up and realize that mortgage lenders have turned over a new leaf. Today, the average mortgage loan contract no longer contains an early payment penalty clause. Mortgage Loan Secret can be applied to any mortgage loan, but with those old loan contracts that contained pre-payment penalties it was necessary to weigh the interest savings against the dollar amount of the pre-payment penalty. Now that pre-payment penalties are basically a thing of the past, Mortgage Loan Secret can save you literally thousands of dollars on long-term loans. To receive the full value of Mortgage Loan Secret, be sure to check your mortgage loan contract or contact your lender and determine whether or not your mortgage loan contract has a pre-payment penalty clause.

Do I have to understand mortgage loans and high finance in order to apply Mortgage Loan Secret to my mortgage loan?

Absolutely not. If your mortgage loan contract does not contain a pre-payment penalty clause (and today most do not) then it is simplicity itself. With a mere stroke of your pen, you write your monthly mortgage check for, say, $550.00 instead of $500.00 or if you have your mortgage loan payments automatically deducted from your bank account, just instruct the bank or loan company to deduct a different amount. It is all in how you want to handle you finances, you might prefer to write one or more separate checks during the course of each year, but however you choose to approach it, it requires no more knowledge of finance than it requires knowledge of electricity to turn on an electric light.

Can Mortgage Loan Secret be applied to other loans, such as car and RV loans?

Yes, but again, to receive the full benefit there should be no pre-payment penalty clause in your loan contract. The savings on something like a car loan will not be as great as with a mortgage loan, because, of course, the term of a car loan is generally much shorter, but a savings is still money in your pocket.

Will Mortgage Loan Secret still work if a mortgage or car loan has a pre-payment penalty clause?

Yes, Mortgage Loan Secret can be applied to any loan (if the lender will accept additional principle payments) but with loan contracts that contain a pre-payment penalty clause you should weigh the savings generated by the early pay-off and interest savings you would receive using Mortgage Loan Secret against the cost or dollar penalty that the lender will levy against you for the early pay-off of your loan. The odds are that your loan does not have a pre-payment penalty clause; they are pretty much a thing of the past. If, however, you do run into a pre-payment penalty clause in one of your loan contracts, then learn from the past and put this new knowledge to good use. The next time you finance or re-finance a property, be sure to check your loan contract for a pre-payment penalty clause (ask the loan agent), and if there is such a clause, you can negotiate with the lender to have the clause removed or marked out before you agree to sign the loan contract.

Just how does Mortgage Loan Secret work?

Mortgage Loan Secret is simply a matter of reducing your mortgage principle at an accelerated rate; thus reducing the interest that you pay and the length of time it will take to repay your mortgage loan.
The results can be staggering!

Principle – Is the amount of money that you borrowed (not the purchase price of the property, just the amount that you are borrowing).

Interest – Is the amount of money you will pay the mortgage lender for the privilege of using (borrowing) their money.

Interest Rate – Is the percentage figure the lender uses to multiple times the principle you owe to establish how much you pay them for using their money.

When you borrow money, the interest you pay is calculated on the amount of money that you owe (the remaining principle). As you make payments and reduce the principle, you also reduce the amount of interest you will be charged. Reducing the principle does not change the interest rate that you are being charged, but the less principle that you owe, the less money (principle) there is to charge interest on.

Example:

$100.00 at 10% interest rate for 12 months = $10.00 owed in interest.

Where As

$1,000.00 at 10% interest rate for 12 months = $100.00 owed in interest.

The example above shows that the more principle you owe, the more interest must be paid; what you do not see in the example above is the dramatic effect that interest has on principle in a long-term loan. With a long-term loan, the mortgage lender generally gives the customer the interest rate and shows the customer what their monthly payments will be and the customer then decides if they can afford the payments and thus the house or property. At closing, the lender will most likely go over the total interest that will be paid over the life of the loan, but they will probably not do a month-by-month breakdown to show the customer just how little principle is being reduced each month during the first few years of the loan repayment.

For an example:

Let’s use a $100,000.00 loan, at 10% interest for 30 years; this creates a monthly payment of $877.58.

After the full 30 years, the cumulative interest on this loan = $215,909.74.
So that $100,000.00 loan will cost $315,909.74; no wonder it takes 30 years to pay it off.

Here’s a breakdown for the first year of the above loan example in six-month increments.

1st month - principle = $44.25 / interest $833.33
6th month – principle = $46.12 / interest $831.46
9th month – principle = $47.28 / interest $830.30
12th month – principle = $48.48 / interest $829.10
First Year Total - principle = $556.00 / interest = $9,974.96

During the first year, the cumulative principle = $556.00
While the cumulative interest = $9,974.96

So the first year the loan was reduced by a mere $556.00, but there was nearly $10,000.00 in interest. WOW!

As you can clearly see by the example above, during the first years of your mortgage loan you are primarily paying interest and reducing the principle very little. Since you are being charged interest on the amount of money you still owe (the principle) the interest portion of your monthly payments remains high. You are basically spinning your wheels in a deep rut during the first half of your mortgage loan; paying lots of interest and just barely reducing your principle. You will eventually break out of that deep rut, in about 20-25 years, but why not give yourself a little push and break out sooner. That is what Mortgage Loan Secret is all about. It gives you the knowledge to break free of the interest-verses-principle merry-go-round at an accelerated rate.

All anyone has to do to accelerate the reduction of the principle
that they owe is to pay more than the repayment schedule
calls for; thus reducing the principle.

The less principle that you owe,
the less principle there is to charge interest on.

There are some mortgage loan charts at the end of this article to give you some idea of the powerful effect the accelerated principle reduction strategy has over the term of your loan. The charts also offers some various options for reducing your loan principle.

The Mortgage Loan Secret!

Reduce the principle at an accelerated rate over what the mortgage loan schedule calls for.

Sound too simple? Take a look at the loan charts at the bottom of this article and you will be astounded at just how simple it really is and how much this simple plan can save you. Mortgage Loan Secret can save you literally thousands of dollars and as an added bonus it will reduce the number of years that would normally be required to repay your loan.

Accelerated principle reduction does not have to stress your financial budget; there are various ways to approach principle reduction. Because principle reduction is your own personal goal, you can tailor it to what you are comfortable with and even slack off anytime you need extra money to handle more pressing financial needs. How and how much to reduce your principle is all up to you. You can do it as quickly or slowly as you are comfortable with; any reduction in the principle you owe is interest money saved that stays in your pocket.

Special Note: Making a mortgage payment a week or so in advance of when it is due is not the same as principle reduction. Staying ahead on your mortgage payments may make you feel good, but the goal here is to accelerate the repayment of the principle that you borrowed.

There are numerous ways to approach accelerating your principle reduction, from making erratic extra principle payments whenever you happen to have the spare cash, to setting yourself up on a specific principle reduction schedule.

If you choose to occasionally make principle reduction payments, as you feel you can afford to, with most mortgage lenders (be sure to verify this with your lender) it is just a matter of writing a mortgage payment for more than is called for and then include a note on the check that the extra money is to go towards principle only. For example if the normal monthly payment should be $500.00 and you want to pay and extra $50.00, then write the check for $550.00, but put a note on the check something to the effect - $50.00 principle payment. Don’t play guessing games with your lender, tell them what you are doing by putting a note on your check. (Check with your lender to see what wording they want for extra principle payments.) If you are between monthly payments and you come up with some extra cash that you want to apply to your principle before you are tempted to spend it elsewhere, just send your check with a note on the check that says “principle” (again, check with your lender for wording). Be sure to include your account number on your check so that your payment can correctly be applied to your loan. If your loan payments are automatically withdrawn from your bank account, contact your bank to determine how they want to handle principle reduction payments.

The surest way to keep yourself on track in speeding up your principle reduction is to set yourself up on a schedule. This schedule can be monthly, bi-monthly, annually, bi-annually, quarterly, just whatever you choose. Because this is your own personal schedule, not the lenders, you can skip or change things up whenever you want. The amount can be a flat amount that you are comfortable with, say $10.00 a month or $20.00 a month. However, a simple way to approach principle reduction is to, during the course of each year, make one or more payments that in total equal one month’s mortgage payment.

Example:
(This is an example only, you would need to substitute your own loan payment amount for the $877.58 used in this example below.)

Let's use a monthly mortgage payment is $877.58 (So in this example, during the course of each year, make a principle payment or payments equal to about $877.58).

Monthly:
$877.58 / 12 months = about $74.00 a month (Actually $73.13, but it’s your plan.)

Annually:
Make one payment (noted on your check as principle) about equal to one monthly payment; you can round the amount up or down to whatever you want.

Bi-Annually:
Make two extra payments each year that equal about $878.00 (they do not have to be equal).

Quarterly:
Make four extra payments each year that equal about $878.00, so about $220.00 each.

There are other ways to approach principle reduction. There are companies that, for a fee, will set you up on a Bi-Monthly payment plan. For people who enjoy finance and have a computer program (there are probably free programs on the Internet) that will break down each month’s principle and interest payment, you can be as creative as you desire. As an example, you can pay an extra amount each month that equals that month’s principle payment. You can also chose to use any escrow balance that is to your credit to reduce principle and so on.

The charts at the bottom of this page show what will happen if you go with the flow and make your normal monthly payments as per your loan contract, but the charts also show how just an extra $10 to $300 a month can affect your loan.

Enjoy your savings!



Google Ads
Sign up for PayPal and start accepting credit card payments instantly.
 
Alibris
 
Back To Top

Google Ads
Bi-Weekly
(Every Two Weeks)
Mortgage Loan Payment Plan
Reduces your 30 year loan to about 23 years and saves you about 1/3 on your interest!

Note: This is something you can do yourself or there are companies that,
for a small fee, will help you with a Bi-Weekly mortgage payment plan.

The idea of a Bi-Weekly payment schedule is very simple, you pay one half of one months mortgage payment every two weeks.

So, how does this save you interest money and reduce your loan time? It's all in the math!

There are 12 months in a year, but there are 52 weeks in a year!

Some months have more days than other months and it turns out that 52 weeks are more than 12 months (don't ask me). If you ask a business person familiar with say, calculating payroll checks, you will find that it is necessary to multiple a weekly to monthly payroll figure by 4.333 as there are more than four weeks in a month; there are an average of .333 extra days each month.

By making payments on a Bi-Weekly plan, you will make the equivalent of one extra monthly payment per year. You will in essence be making 13 monthly payments each year. I didn't create the calendar, talk with the ancient Romans and the 16th century Pope Gregory.

Still don't get it? Let's us an easy figure like $10 as a monthly payment.

Making monthly payments.

12 months times $10 = $120

Making a half payment every two weeks:

$10 / 2 = $5
52 weeks / 2 = 26 weeks

Now multiply 26 weeks X $5
26 times $5 = $130

$130 that's $10 more, so one full payment in the example above.

 

Using a more realistic loan payment amount.
A 30 year loan at $100,000 at 10% interest creates a loan payment of $877.58

Making monthly payments.

12 months times a loan payment of $877.58

equals $10,530.96

Making a half payment every two weeks:

52 weeks divided by 2 (Bi-Weekly) equals 26 weeks.
And
$877.58 divided by 2 (Bi-Weekly) equals $438.79

26 week times $438.79 equals $11,408.54


Bi-Weekly verses Monthly Payments
(For the example here.)

Monthly = $10,530.96
Bi-Weekly = $11,408.54
Difference = $877.58
(Adds one monthly payment each year.)

Here is a chart breakdown of monthly verses bi-weekly payments for the first year of a loan.

A 30 year loan at $100,000 at 10% interest creates a loan payment of $877.58

12 Months (Standard Loan)
Payment #
Principle $
Interest $
1
44.25
833.33
2
44.62
832.96
3
44.99
832.59
4
45.36
832.22
5
45.74
831.84
6
46.12
831.46
7
46.51
831.07
8
46.89
830.69
9
47.28
830.30
10
47.68
829.90
11
48.08
829.50
12
48.48
829.10
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total =
$556.00
Principle

$9,974.96
Interest

360 payments = 30 years with interest of $215,909.74
26 Weeks (Bi-weekly Plan)
Payment #
Principle $
Interest $
1
54.17
384.62
2
54.38
384.41
3
54.59
384.20
4
54.80
383.99
5
55.01
383.78
6
55.22
383.57
7
55.44
383.35
8
55.65
383.14
9
55.86
382.93
10
56.08
382.71
11
56.29
382.50
12
56.51
382.28
13
56.73
382.06
14
56.95
381.84
15
57.17
381.62
16
57.39
381.40
17
57.61
381.18
18
57.83
380.96
19
58.05
380.74
20
58.27
380.52
21
58.5
380.29
22
58.72
380.07
23
58.95
379.84
24
59.18
379.61
25
59.40
379.39
26
59.63
379.16
Total =
$1,478.38
Principle
$9,930.16
Interest
545 payments = 22.71 years with interest of $139,103.51

With a Bi-Weekly plan, and using the example above, you could reduce the interest amount by over $76,000.00 and reduce the length of the loan by over 7 years. Wow! Wow! Wow!

This page is difficult to proof read, so please use your own figures and consult with your own accounting professional.

Back To Top
 
 

*NOTE: The information presented in this web site are opinions - NOT Authoritative Advice. The content of this web site is not medical advice, legal advice, financial advice, business advice, personal advice, etc. You should always seek out the proper council for your business, health, and personal needs. The opinions expressed in the forums are those of private individuals and while we try to monitor the forums for illegal content, we are not responsible for forum postings.

*Advertising Disclaimer: This web site generates income from the ads and links placed on this web page and in this entire web site. Web sites, blogs, and personal sites, can generate income by providing text links, picture links or advertising links to companies that sell products or services. The web publisher's income can be earned in various ways including affiliate programs, where the publisher is paid a commission if the reader clicks on an ad or link and purchases a product or service, pay-per-click compensation, when a reader clicks through to an another web site, and webmasters and bloggers can endorse products and services and receive compensation. There are various ways that a web site can generate income so please be aware that when you are clicking an active link in this web site that this publisher is acting as an advertising agent and will receive compensation for your clicks and purchases. It took a huge amount of time to collect the information presented in this web site and continues to require many hours to monitor and maintain this site, we hope that you find this information informative. Thank you. TheInfoPond.com.
*Advertisements Disclaimer: The advertisements in this web site, and the products or services linked to by this web site, contain the views and opinions of the advertisers. We do not necessarily agree with or support the advertisers' opinions. We are not responsible for the advertising content of those advertisers. We, of course, do not support illegal advertising, please contact us if you were ever to come across any illegal ad or content.
Final Note: It is difficult to keep up with all of the government rules and regulations, this webmaster has done their best to keep things legal in all aspects of this web site.

© Copyright 2007-2014 TheInfoPond