New Wealth Rules

3 New Rules to Live By that Allow You to Easily:

• Save thousands on interest
• Reduce the time it takes to pay back your mortgage
• Eliminate invisible (and hefty) penalties
• Understand how to choose the best loan for your unique situation

Banks used to be viewed as wholesome, upstanding pillars within small communities across our nation. Yes, no one could deny that they were in business to turn a profit, but they performed with integrity, delivering the best possible terms to their clients, because they understood that customer service was how you maintain your customers.

Is it just me or did something gradually snap in our banking system?

A decade ago you could call and speak to someone you knew at your local bank, and now you often get an automated robot, or worse, a call center outside of our country. Your loan specialist used to tell you how you could improve your credit and save money paying down your mortgage, and even give you the best possible rate, but relaxing the standards of how banks manage their own money sent that notion flying out the door. We can all agree that times have changed, but you are more than empowered to change the impact banks have on your lifestyle as long as you’re open to learning the truth.

The Truth: What banks don’t tell you can hurt your wallet, your credit, and your lifestyle.

If you’re wondering how to pay off your mortgage early, here are a few helpful tricks you can use right now to easily to save thousands, reduce the number of years it takes you to pay off your mortgage, and eliminate penalties.

Save Thousands and Pay Off Your Mortgage Faster

Technique #1: You may already have heard that it is wise to split your payment in half every month, and pay twice when you pay your mortgage. The reason is simple math. If you normally pay your mortgage every thirty days, you accumulate thirty days’ worth of interest. If you pay half of what you would normally pay in 15 days, and then pay the other half at thirty days, you are saving on the interest you would have paid for the first half. Less interest means that your amortization schedule declines faster, and more of what you spend goes toward paying down your principle instead of your interest.

The Pitfall: Some banks will not apply your two payments separately to reduce interest unless you ask.

The New Rule: Take ten minutes and call your lender. Let them know that you want to make sure that they understand that you are paying two times per month. Ask if they need a letter from your attorney, or if they would prefer that you record the phone call so that you could refer back to it later if you found out your money was not being applied accurately. You’ll likely save tens of thousands over the life of your loan, and years of interest.

Technique #2: Pay a little more each month, and put your bonuses, and tax refund toward this debt.

The Pitfall: Banks do not automatically put your extra payments toward your principle, instead putting it toward your interest, which will not reduce the amount of interest you pay amortized over time on your regular home loan.

The New Rule: Send your extra payments in on your attorneys legal letterhead stating that you want the any additional amount you send it applied to your PRINCIPLE. Mail it with a signature required. Believe me when I tell you that it is worth the thousands you will save on interest to simply send the letter, and pay a little extra every month, or a few time each year.

Eliminate Hefty Penalties and Save Your Credit

Technique #3: Many people can fall on hardship more than once over a thirty year period.  Nearly half a decade of layoffs has made this fact more than apparent. You have the option to defer one or more payments without penalty, and tack that payment on to the back end of your loan.

The Pitfall: Your bank is not obligated to call you when they are assessing you an extra fine if you signed your mountain of paperwork at closing, nor are they required to tell you when they ding your credit.

The New Rule: If you know you’ll be late, even by one minute past midnight, call and ask to defer your payment, or give a promise to pay on a specific date. It’s as simple as picking up the phone and asking for your banks billing department, and it could save you thousands in fines, additional interest, and dings to your credit.

Some loans have pitfalls worked in preventing you from reducing debt, and gaining wealth built into the loan terms. If you find that your lender says no to any of the techniques mentioned above just give me a call at (562)257-5008 or email me at [email protected] to discover how an ethical, caring professional mortgage consultant can find you the most profitable loan for your lifestyle.

Find the Answers You Need Here

Process of Getting Approved for a Home Loan • How to Pay Off Your Mortgage Early? •  How Much Can You Afford For a House? • How to Get Approved for a Large Loan? • Refinancing Home Mortgage