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Author: Holly Taylor

Holly Taylor is a freelance contributor in the financial services industry. In addition to financial editing, writing, and research, Holly enjoys reading, traveling, exercising, board games, and spending time with family.

15 Tips For An Easy Mortgage Process During The Holidays

by Holly Taylor 
‘Twas a crisp, cold, clear night, when we hoped for a house. 
With my hot cocoa stirring, I looked at my spouse. 
We’d mapped out our assets and budget with care, 
In hopes that our offer would not catch a snare. 
The children were nestled all snug in their beds, 
While dreams of new bedrooms danced in their heads. 
My spouse in their slippers, and I in my cap, 
Had just settled down for a long winter’s nap. 
When from my cell phone there arose such a clatter, 
I sprang from my bed to see what was the matter. 
Seeing the name, I answered in a flash;
Our offer was accepted, with a loan, not of cash.
What a gift to receive, our hearts were aflutter — 
In the morning we'll celebrate with hot scones and butter. 
When what to my wondering eyes did appear, 
A little less worry and a little more cheer.
With the offer accepted, I hung up the phone.
Knowing that we were approved for the loan,
What should we do now? We were happy as larks!
The news was like light after uncertain dark,
I feel joy for the mortgage we have with Benchmark!

Your housing timeline may have you moving right in the middle of the holiday season. It can be a crazy time, but that’s no reason not to seize the day and make some holiday memories in a new home.

However, it’s also a season when personal budget planning often gets neglected to make room for extra joy and memories — sometimes with an expensive price tag.

Benchmark is here to help.

As you assess your financial situation, be mindful of your spending. Be aware of your normal budget, and pay careful attention to your holiday expenses.

At Benchmark, we are committed to delivering a smooth and easy mortgage process. Keep these lists handy as you start your home buying process this holiday season:

DO’s:

  • Keep an eye on your holiday budget — remember not to make big purchases that might affect your credit score.
  • Keep in mind that interest rates are sometimes lower during holiday months.
  • Let family and friends know that you have moved addresses so they know where to send your housewarming gifts!

DON’Ts:

  • Don’t make any large purchases that require credit checks or open new lines of credit. This can affect your credit score and change your loan status.
  • Don’t wait until the last minute to complete and send the required documents to your loan officer. Doing it in a timely manner will ensure a smooth loan process.
  • Don’t rush putting an offer on a house just so you can close before the holiday season. Remember, this is a long-term decision.
  • Don’t use your entire down payment on holiday gifts. Save as much money as you can.
  • Don’t accept monetary gifts from relatives (e.g., accepting down payment assistance) without consulting your loan officer first.
  • Don’t open, transfer, or close any asset accounts without first discussing any plans with your loan officer.

This holiday season may look a little different. Maybe you forego large Christmas gifts and stick to a budget to keep your credit score on target and your mortgage process on track. But, your new home will likely be the best gift you receive this season — and we’d say that’s more than worth it.

“Home for the holidays” takes on a whole new meaning!

At Benchmark, we are committed to helping you with your home loan needs and decisions for future success.

Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service for your new loan.

 

Benchmark brings you home.

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Can You Pay Off a 30-Year Mortgage Early?

by Holly Taylor

Whether you’re buying your first home or have owned several houses over the years, you’ve heard of the 30-year fixed rate mortgage. Many people choose the traditional, 30-year loan for the financial flexibility it provides.. Like most things in life, there are pros and cons.

A Fixed Rate 30 Year Mortgage…

✓ Offers a lower payment amount than similar loans with shorter periods, allowing other income to go toward necessities, retirement accounts, college savings, etc.
✓ Requires more interest in the long run in exchange for the lower payments over time.
✓ Provides the opportunity to own more property than a 15-year mortgage would allow due to the lower payments.

Whatever the reason you chose a 30-year mortgage loan, it may someday occur to you to consider paying off the loan early.

So, the short answer is yes. You can pay off the loan early. However…

Consider these two questions:

  • Should you pay off the loan early?
  • If the answer to the first question is yes, what is the best way to do that?

The answers to these questions depend on the reasons behind your payoff decision. Your highest priority could be one or more of the following.

  1. Do you want to be debt-free?
  2. Are you looking to save money on interest?
  3. Do you need your income for other needs?
  4. Do you want to reduce your monthly expenses?

Once you understand your financial motives, you will be able to make the best choice for you.

Should I pay off the loan early?

First of all, congratulations for even reaching the point of considering paying off a loan early. That’s an accomplishment in itself!

Many people who pay off their mortgages early are motivated by the peace of mind that comes with lowering debt, and saving thousands of dollars of interest payments.

Before you take action:

  • Find out if there is a prepayment penalty on the mortgage.

    A prepayment penalty is a rare circumstance — but it is possible.

  • Consider any other debt first.

    Should your money pay off something more time-sensitive first or another loan that has a higher interest rate?

  • Remember your other financial goals.

    Do you need to put money toward your retirement savings, emergency funds, college savings account, etc.?

  • Consider whether your extra payment amount would serve you better elsewhere.

    Sometimes the potential for earnings in another opportunity exceeds or offsets interest payments.

  • Find out how long you have left to pay off the loan.

    See if the interest amounts you save would be worth lowering your monthly usable cashflow.

It’s a good idea to evaluate your current financial situation, as well as what you want your future to look like, before making any decisions.

What are some smart ways to pay off a mortgage early?

Once you have determined that it would be wise to pay off your mortgage, there are multiple ways to do so and become free of housing debt!

It is also good to remember that paying off a mortgage early doesn’t mean you have to pay it off all at once or immediately.

Taking baby steps toward a goal is often better than taking a giant, unsteady leap! It’s vital to choose what works best for you.

Here are some options you might want to consider:

  • Make extra monthly payments.

    Extra monthly payments are the baby steps that can get you to your goal!

    If most of the value of your latest monthly payments go to principal, timing your extra payments is less impactful; you’ve made it past the maximum opportunity to save the most on interest.

    However, if most of the value of your latest monthly payments go to interest, we’d recommend waiting toward the end of the month — as this will reduce your interest payment a little on your next pay period. This method takes patience, but your overall savings will build up to a large amount over time!

  • Make an extra annual payment.

    Although this won’t make your payoff date come as quickly as making monthly payments, every little bit counts! And, the advise to make the payment toward the end of a month still stands.

  • Put bonuses and unexpected income toward your loan.

    Occasionally, you’ll receive extra during the holidays or through a special turn of events. Why not invest in yourself and your financial situation by putting it toward your mortgage? Your future self will thank you!

  • Refinance the loan with a shorter-term mortgage.

    Shorter term loans typically come with lower interest rates. If this is a solution you would like to explore, let’s see if we can come up with a creative option that meets your needs. Contact your local Benchmark branch to discuss your options.

  • Pay off the mortgage completely — evaluate your financial position with a financial planner or loan officer.

    Benchmark would welcome the opportunity to talk with you about this. We want you to make the best decision possible for you and your financial goals! Contact your local Benchmark branch to learn more.

Ultimately, everyone’s situation is unique, which means everyone’s method to a mortgage payoff will be different. But with some hard work and financial strategy, it is possible! We’d love to help you move toward better financial well-being overall.

At Benchmark, we are committed to helping you with home mortgage loan needs and decisions that set you up for future success. To learn more, contact your local Benchmark branchcontact us todaycall me or contact me today. We would be honored to provide you with our famous, excellent service!