Buy Now And Save Thousands In Interest And Taxes

Dated: 04/05/2018

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Buying a Home Can Save You Money

Do you know how?


FIRST you’ll save on taxes because your home purchase will give you what’s likely your biggest tax deduction— the interest on your mortgage. SECOND, you'll save big on interest payments while keeping that great break by taking advantage of little - known differences among mortgage plans. SIMPLY PUT, now you can buy your dream home AND save thousands in interest and taxes. For example, if you take a $200,000 loan for a 30 yr fixed rate, say of 5% you will pay $360,000 in interest before the loan is repaid, if you keep it the full 30 yrs. But by choosing a shorter term, you’ll save thousands. Choose A, B, or C to reduce interest payments and make your dream a reality.


(A) SAVE WITH 15YR MORTGAGE PLAN. Want to save $102,965 in interest (and even more after tax deductions)? Then shorten that 30yr loan term to 15yrs. Besides paying interest for a shorter term, which saves you money, you usually get a lower interest rate, which means you save even more with a 15yr plan, another bonus is the equity in your home grows faster because a shorter term means you’ll pay a little more principal each month than you would pay with a 30 yr loan. On a $200,000, 15yr loan at 4.875% you would pay $1569.00 monthly principal and interest, compared to a 30yr loan payment of $1074.00

Loan AmountTerm in YearsInterest RateTotal Interest Paid Over 360 MonthsMonthly Payment
$200,000.00305%$186,512.00$1,074.00


$200,000.00154.875%$83,347.00$1,569.00

                            TOTAL INTEREST SAVINGS: $102,965.00                                                                                                 

B.) CUT THE INTEREST WITH THE 13TH PAYMENT on the 30-yr 5% loan one extra payment per year saves $32,707.19 in interest and retires the mortgage in just over 23 years. On the 15 year mortgage an extra principal and interest payment saves $9,404.53 and pays off the loan almost two years ahead of schedule. Either way, you save. You can also save on interest expenses with another inside secret ——- simply by making that extra principal-only payment each year. By making that extra principal-only payment, you increase your equity in your home faster than the traditional payment plan does. In this way, you cut several years off the life of the loan, reducing the total interest you pay. Remember there are two ways to make the 13th payment: One easy method is to add an amount equal to 12th of your monthly principal and interest payment. Another way is to make one extra payment at the end of the year that includes an additional monthly principal and interest amount along with your regular monthlypayment.


C.) BI-WEEKLY SAVINGS STRATEGY Bi-weekly payment plans involve making a payment every two weeks, usually to a third party who then sends the payment to the lender. The payment, made 26 times a year, equals one-half of a monthly payment. often lenders do not recommend or offer bi-weekly plans due to the added processing, and either of the first two 13th payment methods above has the same effect as bi-weekly payment program without added fees or hassles with your lender. And, if money becomes tight you can choose not to make the extra payment at any time. In any case, be sure the payment is clearly labeled to go toward the loan principal only, and not toward a late fee or contribution to escrow fund. For more information Please feel free to CALL OR TEXT H.Wayne Green, Realtor @ 863-242-7860, or visit my website at www.wayne.ithinkrealty.com.

I'm here to make your home buying experience an informed and worry-free. I serve Winter Haven, Haines City, Davenport, Lake Alfred, Lake Hamilton, Lake Wales, Auburndale, Lakeland



       

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