Why Credit Scores Matter, How They Work, and More

 Credit scores are critical, but not everyone understands how they work. Thankfully, local mortgage professional Ron Smith of Opes Advisors sat down with us recently to answer a few common questions.

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Credit scores are a hot-button subject. Despite this, not everyone understands as much about them as they should.

To help amend this, I recently sat down for a discussion on this crucial subject with local mortgage consultant Ron Smith of Opes Advisors, and I’m excited to share a few highlights from our conversation with you today.

Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure:

0:45 - What is a credit score?

1:10 - How is a credit score determined?

1:54 - Why are credit scores so important?

2:42 - How can someone improve a credit score?

3:51 - How can major purchases or credit inquiries impact your score?

5:40 - How can someone check their score without damaging it?

6:44 - Are free credit reports legitimate?

7:41 - A few closing words about the importance of credit

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How to Slay the Mortgage Monster

Slaying the mortgage monster can seem like an insurmountable task. Here are a few tips to make the task much easier.

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You may know this already, but when you get a 30-year mortgage, the interest is paid almost completely up front. The 360 payments you make throughout the life of the loan remain almost identical, aside from taxes. However, most of your first payments in the first few years strictly go toward interest. You don’t get to pay down the principal amount of the loan until after that.

However, today we’ve got some tips to help you eliminate some of that monster interest you are paying at the beginning of your loan. If you pay about $100 extra per month and put it toward your principal amount, it will have a huge effect on your bottom line down the road.

A lot of people also just make one extra mortgage payment per year. That will take seven years off of a 30-year mortgage right there.

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Making an extra payment per year will take seven years off a 30-year mortgage.

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Starting at 2:00 in the video above, you can see the differences in paying off a 30-year mortgage versus paying off a 15-year mortgage for a $250,000 home at 5.25%. For a 30-year mortgage, you’d be taking out a $237,500 loan, which would make your payment right around $1,300 per month. The amount that you’d be paying in interest over that time period would be $234,634.

As for a 15-year mortgage, that same $237,500 loan would have a monthly payment of around $1,900. However, once your home is paid off in 15 years, you will end up saving $128,476 in interest for taking the burden of adding that extra $600 per month to your payment.

If you want to know more about how to reduce your mortgage amount or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

6 Reasons Why Selling During the Winter May Be the Best Decision Ever

Here are six reasons why selling your home in winter is a great idea.

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Forget what you’ve heard about spring—winter is where home sellers can flourish! Today we’ll be going over six reasons why winter is a great time to sell your home:
 

1. Potential buyers tend to be more serious. In spring, you’ll find tire kickers and lookie-loos who are more interested in finding out what they should price their own homes for. When you list in the winter, people looking at homes are looking to buy. Your home will also stand out because there are fewer homes on the market in this season.
2. Parents have time to look. School’s in session and things have settled down. Parents have had time to think things through and begin looking for an upgraded home. They’re also wanting to avoid the competition of other buyers in spring.
3. Senior citizens want to downsize. They often want to list during the winter because there are fewer sellers, which ensures a better price for their homes.
4. There’s less competition. Because buyers are more serious and there are fewer houses on the market, your home is an immediate option.
5. Buyers have more money. After the first of the year, many buyers have more money due to bonuses and tax returns.
6. Employees are transferred and need homes. This is the time of year where corporations transfer employees, meaning these people need homes fast.

You’re playing the odds when you sell your home, and the odds of selling your home are greater in the winter. If you’d like help with your real estate needs, have any questions, or need more information, feel free to reach out to me at 541-284-8068. I look forward to hearing from you.