RE: Money-Saving Tips from Tibs and Shell
December 7, 2016 at 7:36 am
(This post was last modified: December 7, 2016 at 7:50 am by Joods.)
Tip: by dividing your monthly mortgage payments into biweekly payments, you are essentially paying 13 months instead of 12. The last two payments you make each year, as specified by you, would go directly on the principal of the loan.
If you took out a 15 year loan and did this every year, your house would be paid off seven years sooner, saving you years worth of interest payments.
What you are essentially doing is making 26 payments per year instead of 12. Not only is this keeping more money in your pocket over time, but you are also increasing the equity in your home faster and your credit rating gets a healthy boost as well.
Also, check out homes for sale due to property tax leins. Many times, the local city, town, borough etc, will post notices of property tax sales. If you pay the past due taxes on the house, and the current owner cannot pay you back within a certain number of days, you become the owner of the house. It's a good way to get a nice house for well below market value. And because the property tax owed is generally less than a few thousand dollars, you can outright own the home typically within three months of paying those taxes off.
The risk is that the current home owner will manage to come up with the money within the 90 days, and get to keep their home, but it's not really that much of a risk to you since you have nothing to lose by getting your money back. If they don't pay in full by the deadline, you keep the house and file to evict the occupants. This is also an interesting way to acquire rental property if you're interested in becoming a landlord.
There are also public auctions, sheriff's sales and federal foreclosure auctions as well that offer up houses well below market value. Many times banks are willing to let a house go cheap because an empty house costs the bank money they have to pay on property taxes and utilities that can't be shut off during the winter.
If you took out a 15 year loan and did this every year, your house would be paid off seven years sooner, saving you years worth of interest payments.
What you are essentially doing is making 26 payments per year instead of 12. Not only is this keeping more money in your pocket over time, but you are also increasing the equity in your home faster and your credit rating gets a healthy boost as well.
Also, check out homes for sale due to property tax leins. Many times, the local city, town, borough etc, will post notices of property tax sales. If you pay the past due taxes on the house, and the current owner cannot pay you back within a certain number of days, you become the owner of the house. It's a good way to get a nice house for well below market value. And because the property tax owed is generally less than a few thousand dollars, you can outright own the home typically within three months of paying those taxes off.
The risk is that the current home owner will manage to come up with the money within the 90 days, and get to keep their home, but it's not really that much of a risk to you since you have nothing to lose by getting your money back. If they don't pay in full by the deadline, you keep the house and file to evict the occupants. This is also an interesting way to acquire rental property if you're interested in becoming a landlord.
There are also public auctions, sheriff's sales and federal foreclosure auctions as well that offer up houses well below market value. Many times banks are willing to let a house go cheap because an empty house costs the bank money they have to pay on property taxes and utilities that can't be shut off during the winter.
Disclaimer: I am only responsible for what I say, not what you choose to understand.
