Nate Moch, of Zillow.com, was probably correct in assuming that “your mortgage payment is most likely your largest monthly expense.” However, there are ways you can decrease your monthly payment and pay off your loan faster. In order to provide you with an example of exactly what you could be saving, from this point forward let’s pretend you have a $200,000 loan with a 30-year fixed rate, at 6%. That means you end up with a $1,199 monthly principle and interest payment.

With that being said, just a few simple adjustments could end up saving you thousands of dollars in interest and significantly cut down the life of your loan. If this sounds as good to you as it did to me, then I encourage you to continue reading and check out the 7 ways you can save money on your mortgage.

1. Make an Extra Payment Each Year

If you have the means, the easiest way to save money on your mortgage is by making an extra mortgage payment each year. These extra payments are automatically applied on your principal, not interest. Not only does your remaining balance drop, but you will not have to pay interest each month on that principal for the remainder of the loan term.

Savings: If you were to make one extra payment of $1,199 each year and apply it to your principle, you could save over $47,000 in interest and cut 5 years off the life of the loan.

2. Create Bi-Weekly Payments

Another way to pay off your loan early is by creating a bi-weekly payment plan. Put half of your monthly mortgage payment in a savings account every other Friday (or, on your pay day). Each month, pay your mortgage from the account. At the end of the year, you will have made 26 half payments, which is 13 full payments. This will leave with you an extra payment that you can put toward your principal. Most people manage the separate accounts themselves, but there are companies that you can hire to act as an escrow service and manage the payments for you.

Savings: They would be the same as the extra payment.

3. Cut your PMI

Many people are forced to pay private mortgage insurance (PMI) because their down payment is less than 20 percent. If you are in this boat, you can petition your lender to cancel the insurance as soon as your mortgage balance falls below 80 percent of the home’s appraised value. This can happen if your home’s value has gone up or you have repaid some of the principle. This may require a new appraisal but could shave hundreds of dollars off your monthly payment.

Savings: If you only put down 5 percent and had a PMI rate of .78 percent, you could save $130 per month.

4. Fight Your Property Assessment

Property taxes can be thousands of dollars a year. If you think the value of your home has decreased in the last year and it was not properly accounted for in your tax assessment, you can petition your assessor and fight your assessment. Lowering your tax assessment will lower your yearly taxes.

Savings: Depends on your local tax rate and home adjustment, but could be hundreds of dollars a year.

5. Recast Your Mortgage

Some lenders are willing to recast (reset) your monthly payment when you make large payments toward the principle of your mortgage. Usually when you put money toward your balance, your monthly payment stays the same but the term of your loan shortens. When the loan is recast, your monthly principle and interest is recalculated so you end up with a lower monthly payment over the existing term of the loan.

Savings: $120 per month. Putting $20,000 into the loan would reset the payment to $1,079, saving you $120 per month.

6. Loan Modification

If you are late on your payments and are going through a financial hardship, you may be eligible to modify terms of your loan to make it more affordable. The goal of these programs is to allow borrowers to stay in their homes and continue making their monthly payments. Not everyone qualifies for these types of programs, but if you do, they can save you a lot of money. To find out if you qualify, contact the servicer of your mortgage or visit the Making Home Affordable eligibility site.

Savings: Varies. It can reduce your interest rate to as low as 2%, extend your term to 40 years, or reduce your principle.

7. Refinance Your Mortgage

The most common way to save money is by refinancing your mortgage to a lower interest rate. Reducing your rate can lower your monthly payment and help you save on interest payments. However, there are costs associated with refinancing so you want to be sure you are going to save enough to cover the refinancing fees. With rates at historic lows, if you can refinance, and you haven’t already, you should.

Savings: $126 per month. By lowering your interest rate to 5 percent, you would have a payment of $1,073 which would save you $126 per month. If the refinance costs $5,000, you would recoup the fees after 40 months.

Save Money On Your Mortgage is a post from: Nashville, Brentwood and Franklin, Tennessee Real Estate

Buying or selling a home is one of the biggest events in your life.  Real estate sales are complex transactions in which innumerable snags can occur.  Be prepared with the tools you need to successfully navigate the real estate waters. 

With over 14 years of experience working in the Nashville real estate market I’ve put together an extensive collection of resources to guide homeowners, homebuyers and real estate investors through the process of selling and buying a house, condo or other Nashville TN property.  I hope the following tools will be of assistance to you in your Middle Tennessee real estate dealings.  And remember I can be reached directly by clicking here for one-on-one expert help and advice. That’s my job.

Rent Vs. Buy

Nashville Tennessee Real Estate Tools is a post from: Nashville, Brentwood and Franklin, Tennessee Real Estate

A new government agency named the Federal Housing Finance Agency (FHFA) was recently formed to promote a stable and liquid mortgage market, affordable housing and community investment through safety and soundness oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks.  A web site premiered October 27, 2008, as the portal to information about this new agency, which was formed by a legislative merger of the Office of Federal Housing Enterprise Oversight (OFHEO), the Federal Housing Finance Board (FHFB) and the U.S. Department of Housing and Urban Development (HUD) government-sponsored enterprise (GSE) mission team. FHFA regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. Click here to read more about the FHFA.

Are you a Nashville TN homeowner still not convinced it is the best time to sell your Nashville TN home but concerned about your financial situation if you stay in your current home?  Use the self-assessment tools provided by FHFA on MakingHomeAffordable.gov to see if you are among the 7 to 9 million homeowners who may be able to benefit from Making Home Affordable. The President’s Plan was created to help millions of homeowners refinance or modify their mortgages to a payment that is affordable, both now and in the future.

Are you thinking of buying your first Nashville TN home?  As a first time homebuyer the mortgage process might be a bit intimidating.  Review the Mortgage Basics….
HOW-TO GUIDES AND TOOLS FOR EVALUATING MORTGAGES provided by FHFA

GOVERNMENT

Federal Reserve Board
Website tool for comparing mortgage rates and terms
https://www.federalreserve.gov/apps/mortcalc/

Handbook describing adjustable rate mortgages (produced in conjunction
with other federal agencies)
www.federalreserve.gov/pubs/arms/armsbrochure.pdf

Publication describing interest-only and payment-option mortgages (produced
in conjunction with other federal agencies)
www.federalreserve.gov/pubs/mortgage_interestonly/mortgage_interestonly.pdf

Brochure describing the basics of mortgage-rate lock-ins
www.federalreserve.gov/pubs/lockins/default.htm

Information on settlement costs
www.federalreserve.gov/pubs/settlement/default.htm

Primer on home equity lines of credit
www.federalreserve.gov/pubs/equity/equity_english.htm

Federal Reserve Bank of Atlanta
Payment calculator and affordability analysis tools
www.frbatlanta.org/partnerssoftwareonline/dsp_main.cfm

Federal Deposit Insurance Corporation
Shopping guide for obtaining the best mortgage (produced with the Interagency
Task Force on Fair Lending)
www.fdic.gov/consumers/looking/index.html

Broad educational tutorial on the banking system and wise financial decision-making
www.fdic.gov/consumers/consumer/moneysmart/mscbi/mscbi.html

U.S. Department of Housing and Urban Development
Detailed guide to settlement costs
www.hud.gov/offices/hsg/sfh/res/stcosts.pdf

NONGOVERNMENT

Freddie Mac
Online resource detailing the benefits and costs associated with homeownership
http://www.freddiemac.com/corporate/buyown/english/preparing/right_for_you/

Simple description of how mortgages work and different mortgage types
http://www.freddiemac.com/corporate/buyown/english/mortgages/what_is/

Fannie Mae
High-level guide describing the basics of homebuying and mortgage applications
www.fanniemae.com/homebuyers/findamortgage/becoming/index.jhtml p=Find+a+Mortgage&s=Becoming+a+Homeowner ?

Monthly mortgage payment calculator
www.mortgagecontent.net/scApplication/fanniemae/monthlyPayment.do?p=Resources&s=Calculators&t=How+Much+Is+Your+Monthly+Payment ?

Home and mortgage affordability calculator
www.mortgagecontent.net/scApplication/fanniemae/specificSalesPrice.do

Tool for determining value associated with mortgage refinancing
www.mortgagecontent.net/scApplication/fanniemae/refinanceResults.do

Primer on reverse mortgages
www.fanniemae.com/global/pdf/homebuyers/moneyfromhome.pdf

Mortgage Bankers of America
Brochure discussing mortgage basics and ways of finding the right mortgage
www.homeloanlearningcenter.com/files/MtgsAtoZFirstSteps.pdf

Details on the mortgage application process
www.homeloanlearningcenter.com/files/MtgsAtoZHomeLoans.pdf

National Association of Home Builders
Short, high-level description of mortgages with tips on shopping for adjustable- rate mortgages
www.nahb.org/generic.aspx?genericContentID=303&print=true

New Agency Formed to Promote a Stable Mortgage Market Offers Nashville TN Homebuyers and Sellers Assistance is a post from: Nashville, Brentwood and Franklin, Tennessee Real Estate

U.S. House Prices Increase – Is This a Good Time to Sell or Buy a Home in Nashville TN? is a post from: Nashville, Brentwood and Franklin, Tennessee Real Estate

What does the Anti-Foreclosure Plan mean for Nashville home owners and home buyers? 

The Foreclosure Fix Plan and What it Means For Nashville Home Owners and Home Buyers is a post from: Nashville, Brentwood and Franklin, Tennessee Real Estate

I read a great article on FrontDoor.com today regarding what to expect from the housing market in the new year.  I hope you find it interesting and helpful.  I’ve outlined the article below….

After the recent housing boom, 2008 was a dose of reality. The subprime mortgage crisis and the collapse of major financial institutions made this year a tough one for Nashville real estate. Expect 2009 to be filled with more change and adjustment in home values and expectations.  Some experts say a slow recovery could begin in late 2009. Prepare yourself for the home sale and home buying challenges — and opportunities — of 2009 by getting familiar with what to expect in the Nashville TN housing market.

Click here to read this article in full on FrontDoor.com.

This information was brought to you by JoAnne Staler, Nashville Tennessee REALTOR with Rochford Realty & Construction Company is providing a unique level of service to buyers and sellers in Nashville, Brentwood, Franklin, Williamson County, Green Hills, Belle Meade, Bellevue, Forest Hills, Oak Hill, Vanderbilt, Belmont, Midtown, Downtown, Historic Areas, Spring Hill, and Thompson Station Tennessee.  Whether Buying or Selling Real Estate locally or Relocating to Middle Tennessee, let a Top Selling Nashville Real Estate Agent help.  To find out more about JoAnne Staler or search for real estate via the Middle Tennessee MLS visit www.JoAnneStaler.com.

See what home buying bargains are out there!  Search all local Middle TN listings for your dream home today.

Know what school district or even specific neighborhood you want to buy a home in?  Use my advance property search tools to narrow your Nashville home search.

What to Expect in the Nashville TN Housing Market in 2009 is a post from: Nashville, Brentwood and Franklin, Tennessee Real Estate

It is a great time to buy a home in Nashville, TN while mortgage loan interest rates are very low!

Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 5.47 percent, down from the prior week when it averaged 5.53 percent and from the prior month with November ending with an average of 5.97 percent. At 5.47 percent the 30-year FRM is at its lowest point for all of 2008!

One-year Treasury-indexed ARMs averaged 5.09 percent last week, down from the previous month when it averaged 5.18 percent.

“After Federal Reserve actions to increase liquidity in the mortgage market, interest rates for fixed-rate mortgages (FRMs) took a dive,” said Frank Nothaft, Freddie Mac vice president and chief economist. “This week’s decline was the largest since the week of November 27th, 1981, and 30-year FRM rates are now almost a full percentage point lower since the last week in October.”

[SOURCE: Freddie Mac]

Click here for more Nashville TN mortgage information.

Prequalify for your Nashville TN mortage online here.  Quick and easy!

Have mortgage questions?  I can help…. click here to contact me directly.

This information was brought to you by JoAnne Staler, Nashville Tennessee REALTOR with Rochford Realty & Construction Company is providing a unique level of service to buyers and sellers in Nashville, Brentwood, Franklin, Williamson County, Green Hills, Belle Meade, Bellevue, Forest Hills, Oak Hill, Vanderbilt, Belmont, Midtown, Downtown, Historic Areas, Spring Hill, and Thompson Station Tennessee.  Whether Buying or Selling Real Estate locally or Relocating to Middle Tennessee, let a Top Selling Nashville Real Estate Agent help.  To find out more about JoAnne Staler or search for real estate via the Middle Tennessee MLS visit www.JoAnneStaler.com.

Great Time to Buy a Home in Nashville TN-Mortage Loan Interest Rates VERY Low is a post from: Nashville, Brentwood and Franklin, Tennessee Real Estate

The Tennessean newspaper reports: At the 2008 Governor’s Housing Summit in Nashville last week, the state’s Attorney General warned of an increase in Tennessee foreclosure scams…..

*** BEGIN QUOTE ***
“Scams built around false promises to help borrowers facing foreclosure hold onto their homes — perhaps perpetrated by some of the same people who issued predatory loans to begin with — appear to be on the rise, the state’s attorney general told housing officials Monday.

The state has filed lawsuits against two “foreclosure rescue” companies that it says promised to help borrowers restructure mortgages but instead pocketed fees without following through, Attorney General Robert E. Cooper Jr. said in an introductory address to the 2008 Governor’s Housing Summit in Nashville.

A group of Tennessee agencies, including the Office of the Attorney General and the Division of Consumer Affairs, believes the rise in foreclosures statewide has touched off a wave of deception aimed at capitalizing on struggling borrowers’ desperation.
*** END QUOTE ***

To read the news report (from the TENNESSEAN) on the Attorney General’s remarks, go HERE.

This information was brought to you by JoAnne Staler, Nashville Tennessee REALTOR with Rochford Realty & Construction Company is providing a unique level of service to buyers and sellers in Nashville, Brentwood, Franklin, Williamson County, Green Hills, Belle Meade, Bellevue, Forest Hills, Oak Hill, Vanderbilt, Belmont, Midtown, Downtown, Historic Areas, Spring Hill, and Thompson Station Tennessee.  Whether Buying or Selling Real Estate locally or Relocating to Middle Tennessee, let a Top Selling Nashville Real Estate Agent help.  To find out more about JoAnne Staler or search for real estate via the Middle Tennessee MLS visit www.JoAnneStaler.com.

 Click here to search the Nashville MLS and see all local homes for sale.

Read about mortgage changes that may affect you here.

Rise of Foreclosure Scams in Tennessee is a post from: Nashville, Brentwood and Franklin, Tennessee Real Estate

I just wanted to take a second and update you on some current and soon to be FHA mortgage loan changes that may affect Nashville area home sellers and home buyers. As of last month FHA has changed its up front and monthly mortgage insurance premiums. The new upfront premium is 1.75% and the new monthly premium is .55%. Prior to these changes both the monthly and the upfront were credit score driven.

The other change that will go into effective on January 1, 2009 is the new minimum down payment that will be required on all FHA loans. FHA will change the minimum required down payment to 3.5% which is up from 3%. The borrower is still allowed to get this gifted from a relative but no longer from Down Payment Assistance Programs.

As always, Heather, Kristi, Gary, Josh, Gena, and I are always available to answer any questions you may have regarding Middle TN mortgage loans.  Click here to speak to me immediately.

The JoAnne Staler Group specializes in first time home buyers.  We offer home purchase counseling to walk you through every step of purchasing your first home in the Nashville TN area.  We’ll help you find your perfect Nashville neighborhood, educate you on financing options, assist in the mortgage loan prequalifying process, find your dream home, guide you through the home inspection,  make sure the final contract is in your best interest and coordinate the closing.  Click here to see Why Nashville area home buyers choose me as their real estate agent.

To see what other TN Home Buyers have said about JoAnne please click here. 

New to the home buying process? Click here to tell me your concerns or ask me questions. It’s my job to help! There’s no obligation, and I promise to get back to you quickly… 

JoAnne Staler, Nashville Tennessee REALTOR with Rochford Realty & Construction Company is providing a unique level of service to buyers and sellers in Nashville, Brentwood, Franklin, Williamson County, Green Hills, Belle Meade, Bellevue, Forest Hills, Oak Hill, Vanderbilt, Belmont, Midtown, Downtown, Historic Areas, Spring Hill, and Thompson Station Tennessee.  Whether Buying or Selling Real Estate locally or Relocating to Middle Tennessee, let a Top Selling Nashville Real Estate Agent help.  To find out more about JoAnne Staler or search for real estate via the Middle Tennessee MLS visit www.JoAnneStaler.com.

Click here to pre-qualify for your Brentwood, Franklin or Nashville TN mortgage loan.

Find Out About the Latest Nashville, Brentwood and Franklin Area Homes for Sale Before Anyone Else! INSTANT DAILY EMAILS! 

FHA Mortgage Loan Changes may affect Nashville TN Homebuyers and Sellers is a post from: Nashville, Brentwood and Franklin, Tennessee Real Estate

Congress passed and President Bush signed the "Housing and Economic Recovery Act of 2008", or the H.R.3221 bill as it is being referred to, this past week.  Two especially interesting aspects of the bill are: 1- that the tax credit being offered is an after purchase benefit that must be paid back to the government and 2 -the bill eliminates seller funded down payment assistance, however it does not eliminate legitimate down payment assistance administered by HUD approved community development agencies such as Affordable Housing Resources and the Housing Fund.  With this in mind, there are still several home loans available to offer down payment assistance to home buyers. 

Click here to read the National Association of REALTORS® Summary of Key Provisions of H.R. 3221 – The Housing Stimulus Bill.

Still have questions regarding H.R. 3221?  Click here to speak to me IMMEDIATELY, call my office at (888)801-2666 or send me an email and I’ll provide you with answers promptly.

I help buyers pre-qualify for mortgages every day. Click here to get pre-qualified for your next mortgage and or find out what loan options are available to you.

The first step in buying a house is determining your budget. Please try my Java loan and mortgage calculators to find out how much home you can comfortably afford. 

JoAnne Staler, Tennessee REALTOR with Rochford Realty & Construction Company is providing a unique level of service to buyers and sellers in Nashville, Brentwood, Franklin, Williamson County, Green Hills, Belle Meade, Bellevue, Forest Hills, Oak Hill, Vanderbilt, Belmont, Midtown, Downtown, Historic Areas, Spring Hill, and Thompson Station Tennessee.  Whether Buying or Selling Real Estate locally or Relocating to Middle Tennessee, let a Top Selling Nashville Real Estate Agent help.  To find out more about JoAnne Staler or search for real estate via the Middle Tennessee MLS visit www.joannestaler.com.

The Housing and Economic Recovery Act of 2008 H.R.3221 is a post from: Nashville, Brentwood and Franklin, Tennessee Real Estate