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Pay Off Your Mortgage Faster With These Sneaky Tips

by Kathy T.

2837855969_63e4c584f9_zScrimping and saving is never easy, and with a payment as large as a monthly mortgage, it can sometimes seem impossible to get ahead. But, making extra payments on your mortgage (even if they are small) can save you thousands of dollars and years of paying in the long run if you are committed to it. Check out these “painless” ways to pay your mortgage off faster by Marilyn Lewis at Daily Finance:

-Make biweekly mortgage payments

-Pour every bit of extra cash into your mortgage- all work bonuses, raises, gifts, inheritances, winnings, tax refunds- put them into your payments!

-Round up your payments

-Make it your mission to make at least one extra payment a year- you will pay it off in 26 years instead of 30.

Photo Credit: Andreanna Moya Photography 

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Mortgage News For The Beginning Of 2016

by Kathy T.

4384741509_0f2075d2b5_zAccording to this article by Matthew Graham at Mortgage News Daily, mortgage rates have slightly dropped since the beginning of March:

 The average lender continues to quote conventional 30yr rates in a range of 3.75% to 3.875%, but today’s gains bring a few of the more aggressive lenders back to 3.625% on top tier scenarios.

Now may be a good time to lock in a rate if you are applying for a mortgage for a new home! Rates are only continuing to rise, so get a good one while you can. Also, don’t ever be afraid to shop around for a mortgage- and check back. Mortgage rates will fluctuate even daily! Check out the entire article here for a more in depth analysis of the recent rise and fall of interest rates.

Photo Credit: Micheal Pedersen 

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Don’t Get Audited

by Kathy T.

11747440176_15b9dc7497_zIt’s never happened to me personally (knock on wood!), but I imagine that being notified that you’re going to be audited is one of the scariest things that can happen to you. Most people are upfront and honest about their taxes to avoid this very thing. In fact, the reason that most audits happen is NOT being shady with your income- it’s making mistakes on your tax forms. Check out this post by Kori at the Kori@Home blog for how to avoid tax audits this season and every year to come:

-Be honest with your income. Declare it, and declare ALL of it. This is especially important for bloggers and other independent contractors!

-Be clear and double check- miscalculations will send red flags to the IRS. Using tax software will help.

-Also double check your filing status, social security info, and all other personal information!

Photo Credit: Lending Memo 

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Before You Apply For A Mortgage…

by Kathy T.

8169560070_290a4e1fc4_zIf you’ve never bought a house before, you’ve probably never had your finances seriously scrutinized before. Sure, you do your taxes each year, and maybe you’ve had your credit checked for a loan or two, but getting a mortgage is a whole different ball game. You will have to be ultra prepared, and ready with all the paperwork they will ask from you. Check out this post by Jesse Mcarl at the House Hunt Blog for all the documents you will need when applying for a mortgage:

-Previous two pay stubs

-Previous two years’ W-2s

-2-3 months of bank statements

-Social Security cards

-All previous home addresses (last 2 years)

Photo Credit: Kate Hiscock 

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Wordless Wednesday: Modern Fireplace

by Kathy T.

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Photo from Home Design Etc

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Protect Your Identity When Online Banking

by Kathy T.

Padlock

I am definitely a member of the “millenial” generation. I depend on my phone for everything: driving directions, scheduling, social networking, emails, and, yes, banking. I love that I can look at my accounts anywhere, any time, and see where my money is going. It’s extraordinarily useful, and basically eliminates the need for physical checkbook balancing. However, banking online is more susceptible to security risks like identity theft. To protect yourself and your money, read these tips by Andrea Ditter-Middleton at Living Rich With Coupons:

-Monitor your accounts regularly, and make sure there are no suspicious transactions

-Create complex passwords, protect them, and change them often

-Use a secure connection- don’t access your account over public wifi

Photo Credit: Steven Taschuk

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Pay Off Your Mortgage…In Four Years?

by Kathy T.

17056577489_fd5cd0fb6d_zPaying for a home is a process that can take a lifetime. Seriously. Most people opt for a thirty year mortgage, making monthly payments lower and more affordable. The problem is, those people also end up paying WAY more interest than people who pay off their homes faster. Some people instead go for a fifteen year mortgage- higher monthly payments, but less of them in the long run. However, I just stumbled this article by Debt Free Divas on how to pay off a home just four years. Here’s their idea:

If this hypothetical client continues to direct all the money previously paid toward debt into a conservative investment vehicle (this calculator assumes a 5% interest rate) for the next 4.5 years (the same amount of time needed to dump consumer), they would amass $280,000.

Photo Credit: Ly Thien Hoang 

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Stop Living Paycheck To Paycheck

by Kathy T.

6921645378_e3bfae5af9_zBecoming financially stable is hard work- especially if you have low income. It can seem impossible to get ahead when you are struggling to make ends meet each month, and living paycheck to paycheck. To stop the vicious spending cycle, check out this post by Savanah at Midwest Modern Momma. Here are her cornerstones for people who are financially stable:

-Track your expenses- save EVERY receipt for three months, see where your money is really going.

-Create a budget that you can live with

-Start small- focus on one positive habit at a time

-Set up a payment arrangement- tackle one debt aggressively at a time

-Set up automatic transfer to an investment or savings account each month, even if it’s as low as $5 a week.

Photo Credit: Tax Credits 

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How To Pay Off Those Credit Cards

by Kathy T.

12696360474_2376446bb7_zCredit cards are a trap, no matter how alluring they are. It seems like a great idea to get “free” stuff now, and pay for it later. Yes, sometimes they are necessary if you have an emergency expense, but other than that, they should be avoided at all costs. Many Americans are thousands of dollars in credit card debt, and it keeps them paying month after month, while damaging their credit scores. If you want to get out of credit card debt fast, read this article by Patricia Poladian at the Money Crashers blog. Here are her steps to paying off any debt:

-Free up cash for some additional debt payments. Eliminate excess expenses, or bring in more income with another job.

-Work debt repayment heavily into your budget- make it a main priority

-Try balance transfers, debt consolidation, or negotiating with your bank to make debt repayment easier. You may even be able to lower your interest rate.

Photo Credit: Sean MacEntee

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Wordless Wednesday: Modern Farmhouse

by Kathy T.

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Photo from Sztuka Architektury

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