Tony Economou - RE/MAX Advantage I



Posted by Tony Economou on 8/3/2017

If you’re finding that your finances are a bit tighter these days, you might need to adjust your budget a bit. Have you ever thought about alternatives in helping you to pay your mortgage? There’s a few things that you might be able to do in your home to save a few bucks and be more comfortable with your budget and finances. 


Share The Space


This might sound crazy, but it works for many people. If you’re willing to share your living space with others, it could help you to make a dent in your mortgage. This works especially well if you have a home with a separate entrance like an in-law apartment or something similar. 


Make Adjustments To Your Expenses


There are many different costs that come along with owning a home. If you reduce some of these expenses, you’ll be able to cut your overall spending. You don’t need to completely adjust your entire way of living to do this. Some ideas:


  • Cut the cord on cable and install streaming devices
  • Go on a family cell phone plan
  • Skip the gym membership
  • Use public transportation
  • Cook at home instead of eating out
  • Use coupons


Put Tax Refunds To Good Use


If you normally get a tax refund, you can apply that money to your mortgage instead of using it to buy something else. You could also adjust your withholdings. This would allow you to get a bit more money in your paycheck each week. You’ll get less of a refund during tax time, but the extra money may help you to pay down bills throughout the year. 


Pay More Towards The Principal 


To make the most of your hard-earned savings, use your money wisely and pay down the mortgage faster. Just be sure that there’s no penalty for a prepayment of the loan. You can either make an extra loan payment each month or you can pay a bit over what you owe on the mortgage each month. If you pay the mortgage faster, you’ll save potentially thousands of dollars in interest over the life of the loan. You’ll need to check with your mortgage company to see what their process is for paying more towards the principal of the loan. Keep in mind that the first few years‘ worth of your mortgage payments will be going towards interest unless you specify extra payments to go elsewhere.


Whether you’d like a little more of a financial cushion or are just looking to get rid of all those pesky monthly bills, it’s never a bad idea to focus on paying your mortgage down as quickly as possible.




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Posted by Tony Economou on 7/28/2016

One of the requirements of buying a home is for the buyer to provide a down payment equal to somewhere between 3 and 20% of the price of the home being purchased. The reasons behind a down payment may have seemed a bit arbitrary up to this point. Home buyers know they need a down payment, but just how important a down payment is can often be overlooked. Once it’s all explained here, it will make a ton of sense to all first-time home buyers. Why Is A Down Payment Important? The larger the amount of the down payment that you can provide, the better it will be for your home loan status. The amount of the down payment provided will affect the type of loan that you get the and amount of the loan that you get for the house you buy. For any down payment that is less than 20% of the purchase price of the home, you’ll need to get PMI (private mortgage insurance). A smaller down payment may also mean that less of the closing costs will be covered up front. This is definitely something to look into because long term, it may not be a wise decision financially. Think of the down payment as the foundation of the biggest purchase you’ll ever make. Check Your Finances If you’re not able to save up for a down payment, it may not be the best time for you to buy a house. The mortgage process makes you take a step back and really check out your finances. Buying a home is a huge financial commitment. If you’re unable to save properly for a down payment, you may not be ready to commit to buying a home. If you haven’t been able to save up enough for a down payment, you may not be financially ready to buy a home. It’s a great way to take a look at your financial health when you’re thinking about acquiring a mortgage. A small down payment means that you’re eligible for fewer types of mortgages. Typically a down payment of 5% or less limits you to only a few different kinds of mortgages. This is important to keep in mind when planing your financial future. Also, keep in mind that the larger the down payment, the more keen lenders will be on actually granting you a loan. Renting Could Help You In The Long Term The thought of continuing to a rent over buy a home could be stressful for you. In the long term, however, it’s much better to continue paying rent than to risk losing your home due to foreclosure. Being unable to make mortgage payments is a serious thing. The entire process of buying a home starts in acquiring for the down payment.




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