Tips To Help You Buy Furniture For Your Home

Furniture is on the list of essential items for any office or home. You don’t have to buy a car as you can travel without one. But you cannot manage without an office or home furniture. Although it may seem easy to buy furniture, you have to consider a few important factors before making this choice. So, if you want to upgrade your home decor or you are going to move to a new house, we suggest that you buy new furniture. In this article, we are going to share with you a few tips to help you purchase new furniture for your home.

Get the Measurements

First of all, you should get the proper measurements. If the furniture you have purchased does not fit well, you will find no use in it. These numbers will give you a pretty good idea of the type of furniture that will fit properly. Therefore, you may want to save yourself from all the trouble and purchase your desired furniture based on the correct measurements.

Consider the Color of the Walls

Before you purchase furniture for your rooms, don’t forget to take into account the wall color. If you don’t want to make things look clumsy, make sure that the furniture you have purchased contrasts with the wall color.

So, what you need to do is study and analyze the colors unless you have plans to paint your interior walls after purchasing the furniture.

Don’t go for Silly Offers

Today, you may find that a lot of companies making offers on office and home furniture. Although you can save a lot of money by opting for these offers, it is not worth it. The reason is that these furniture articles are not high quality. Good quality stuff does not come cheap.

In other words, you don’t want to invest in sub-standard furniture or furniture that has some type of defects. So, if an offer looks too good to be true, you should avoid it.

Set your Budget

Before you purchase fresh furniture, make sure you have a budget figure in your mind. It is better that you don’t compromise on the quality aspect. Once you have set your budget, you should stick to it. However, it is a great idea to keep your budget a little bit flexible. Factors that you cannot compromise on include the quality, longevity, design, and durability of your furniture.

Consider your Lifestyle

Depending upon your lifestyle, you should choose the best furniture. So, what you need to do is consider your needs, purpose, and the uses of the furniture before you place your order. This will give you a clear idea of what you should go for. In other words, the furniture you are going to purchase should meet your lifestyle.

Long story short, if you are going to buy home furniture for the first time, we suggest that you consider the tips given in this article. This will help you make it easier to purchase the best furniture.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Shalini M

7 Tips On How To Stage Your House For Sale

If you didn’t know, love at first site exists in real estate. The way you stage your house determines how fast it gets off of the shelf. If you are a real estate investor or a home owner interested in selling your house, here are awesome tips on how to stage your house for a fast sale:

Make the home spotless

This is a no brainer. Who is going to buy a dirty house? To create a great first impression you need to ensure that your home is clean. This calls for you to clean windows, floor, counters, ceiling and other fixtures. If the house is too big, chances are that you can’t clean it on your own. The safe way of going about it is hiring a cleaning company to help you out.

Maintain the yard

There is nothing that screams „bargain“ like an unkempt yard. You should cut down the glass and trim the flowers. You should also update the yard furniture.

Get rid of clutter

It’s easy to hold onto personal effects such as pictures. Remember that the homebuyer isn’t interested on your personal likes thus you should get rid of them. The personal effects also tend to clutter the place hiding the attractive areas of the house.

The rule of thumb that you should follow is to eliminate anything that doesn’t add value to the homebuyer.

Incite curiosity

A home buyer may not be interested in buying the house at first, but when he/she tours the entire house he/she might change his/her mind. To encourage the buyer to tour the entire house you should incite curiosity by placing interesting items in the hallway, corners and even at the top of the stairs.

Great items that you should consider include: painted accent walls, flower vases and light fixtures.

Keep the house smelling great

Unpleasant odors will scare the buyers away; therefore, you should ensure that your home smells great. If you have pets you should steam clean the carpets. You should also ensure that you clean all the dirty clothes that might be in the house.

To maintain good smell you should avoid cooking your food with strong spices during the days of showings. A cheap and effective way of creating a great smell is using candles. The smell of fresh cooking is popular, but you can also light a vanilla candle.

Paint the rooms

If the paint in the house has faded you should consider repainting it. Repainting shows that you have invested in the property. In addition to painting you should also fix wall holes, light fixtures and windows.

Open the closets

Buyers want enough storage space and many won’t buy a house if it doesn’t have enough space. Even if you have a lot of things to store, you should remove them in order to create the impression of „plenty of room.“

Conclusion

These are just a few tips on how to stage your home for sale. By putting the above tips into place you will not only sell your house fast, you will also sell it at a high price.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Idd Aziz

6 Tips for Home Buying Right Now

1. Get pre-approved for a loan.

Most sellers require a pre-approval letter along with your written offer. You should have it ready to go so that when you find the right home there is no delay getting your offer submitted. There’s a lot of confusion about pre-approved vs. pre-qualified… even Realtors sometimes use the terms interchangeably! But the pre-approval is the real deal. With a pre-approval, the lender has run your credit, and you will usually have filled out a loan application and provided documentation to the lender, who will then tell you the amount for which you are approved. With the pre-qualification, you will typically have provided some information verbally to the lender about your credit, income and assets, and the lender will give you a ballpark amount for which you are likely to be approved. Sometimes a pre-qualification letter will be sufficient; the main thing is to talk to a lender before you start looking at homes.

2. Decide if short sales and bank-owned properties are for you.

Don’t waste your time looking at properties that don’t meet your home-buying needs. Each of these types of sales has its own challenges for the home buyer, so it is important to know the basics of each and decide if either one fits in with your game plan. For example, if you need to get into a new home within a fairly short time frame, a short sale may not work for you, as they frequently take many months to complete. And bank-owned properties are often in need of work, which can add to the overall cost, or make it difficult to get certain types of loans. If you can be patient with a short sale, or have the ability and/or resources to fix up a bank-owned home, these could be excellent avenues to explore. If not, tell your Realtor® to skip the short sales and bank-owned houses.

3. Check out neighborhoods ahead of time.

One of the best things you can do at the start of your home-buying project is to take a weekend or two and cruise around various areas and subdivisions, especially if you are new to the area. Tell your Realtor which neighborhoods hold the greatest appeal for you – it will really help her understand the type of home you want and your taste in houses. Some buyers are looking for newer homes in areas with lots of families and kids; others prefer the quieter, „mature“ neighborhoods. Fortunately, there’s something out there for everyone, and a real estate agent who has plenty of local area expertise and knowledge will be a huge help in finding those neighborhoods that are hidden gems.

4. Make time for house-hunting.

Don’t plan to only go to showings on the weekend – in this market that’s not a winning strategy. There is actually a shortage of well-priced homes in good condition, and the ones that are also in a desirable location sell almost immediately. If you’re serious about finding your dream home, clear the decks and be ready to jump when your Realtor tells you a new listing just hit the market that fits your requirements. And more importantly – be ready to make an offer if it is the right house. It could easily be gone in a day or two.

5. Don’t waste time on houses that are already sold!

Do you spend your spare time house-hunting on Zillow, Realtor.com or Trulia? Or driving around and calling about houses with signs out front? Then you’ve probably already learned that a huge number of those homes – which appear to be for sale – are not really available. They are very often „under contract“ which simply means that another buyer made an offer that was accepted by the seller. These often still show as available on the public real estate websites, but in most cases the sale will close in a few weeks. Work with a Realtor® who will set up a custom search for you so you can focus on just those homes that meet your criteria and are actually still available.

6. And of course, the most important thing is to find a really professional and client-oriented Realtor!

A great agent will make your home buying experience smoother and more enjoyable. Get referrals from friends or family who’ve recently had a good home-buying experience, or call or email a few local agents. See which ones are responsive and return your call or email right away, and get a feel for how professional and knowledgeable they are about the local area and current market conditions. Also check out their commitment to their clients in terms of training above and beyond that needed to get a real estate license. Realtors® who work diligently on behalf of their clients have often invested in advanced training and designations such as:

  • GRI – Graduate Realtor Institute, only 19% of Realtors®
  • ABR – Accredited Buyer Representative, only 15% of Realtors®
  • CRS – Certified Residential Specialist, only 10% of Realtors®

______________________________________

We hope these tips are helpful, and wish you success in your house-hunting!

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Debra L Bellmaine

5 Profitable Ways To Use Your Book’s Sell Sheet

Introduction

Your sell sheet is the equivalent of your book’s resume, and it can be a very powerful and profitable marketing tool. The whole purpose behind creating it is to tell the world about your book, so it must make an impressive impact. Get the word out as fast and as widely as possible, and before you know it, the sales will start coming in. These five ways are the preeminent places you must start with to get your sell sheet into the right hands.

1. Media Kit

A media kit, often referred to as a press kit, is a set of promotional materials that is distributed to the media for promotional purposes. A sell sheet is an integral part of this media kit. Each and every book that you publish needs to have its own media kit. This kit needs to be very well prepared and complete, and viewable as a PDF. You can typically have one basic media kit for all of your books, with an individualized sheet for each book.

2. Website

Your media kit must be accessible from your website as a downloadable PDF. Also include a PDF of the sell sheet for each book that you publish, directly on the webpage for each book. Doing this will allow everyone to be able to easily and quickly find it and view it.

3. Email Marketing

Email marketing is amazingly cheap, quick, and easy to implement. One of the best things about email is that it is trackable. This data can be used to analyze open rates, clicked links, and conversion details. All of this data can help you fine-tune your email content and message. Use email to stay in touch, and share your sheet, with all of your leads, and current customers. Email bookstore managers, library book-buyers, book reviewers, and print and online media about your new publication.

4. Direct Mail Marketing

Direct mail will get your sheet directly into the hands of potential book buyers. The very buyers that might not have been able to find you or your book in today’s crowded book market in the first place. It is also your chance to lead them to your website, where you must provide more marketing material for your book, and also wow them with information about you. Bookstore and library email addresses can easily be found online.

5. Hand-Out

Whenever you attend a conference, trade-show, give a class, or presentation, use the sheet as a back-of-the-room hand-out. If you have an office that clients visit, leave the sell sheet at the receptionist’s desk where it can easily be seen.

Conclusion

If you stick to these five profitable ways to use your sell sheet, you will make a great impression and increase your chances of selling more books, and bring in new customers.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Joseph C Kunz, Jr

How Thousands of Our Clients Sold Their Homes Without Agents?

In the past, due to the lack of awareness about the home sale process, selling a home used to be a stressful task. The decision to sell a home can become a roller-coaster for the first-timers and if you have enough time and energy required to sell your home on your own there must be a thousand questions popping in your mind. Selling a house is a huge undertaking and probably the biggest transaction of your life. It’s easy to get swept off of your feet in the process of home selling and make mistakes that could leave you with remorse later. But thousands of people are doing it and once you know the process, it’s actually very doable. Preparing for what’s ahead will help you gain the most money at closing and keep your stress at bay. Fortunately, there are steps you can take before putting your home on the market to increase your chances of receiving a solid offer from a buyer. Homeowners who are wondering how to sell a house by owner should understand that it’s a learning process and isn’t something that people are doing every day.

Nowadays, you can sell a house without an agent by listing it on minustheagent.com.au. By adding a good description of your property and adding a few appropriate images, you can sell your home without an agent in an efficient manner. Minus The Agent also assists you through every step of the sales process and shares your listing on other leading websites in Australia such as domain.com.au, realestate.com.au, and many more. Minus The Agent also allows you to upload videos, a virtual tour, the floor plan, etc. of the property on the website so that the potential buyers can make a well-informed decision.

What does ‚Minus The Agent‘ do?


Minus The Agent puts you directly in touch with genuine buyers or tenants so that you can successfully sell or rent without the need of an agent. By listing your property on high-profile and high-visibility websites like domain.com.au, realestate.com.au, etc., Minus The Agent gets your property and put it on the market in front of thousands of potential buyers. Minus The Agent also provides end-to-end support with out and handy marketing tools so that the sellers have a smooth home selling process throughout.

Minus The Agent helps home sellers who opt ‚for sale by owner‘ list their properties on realestate.com.au, domain.com.au, homesales.com.au, and many more. Minus The Agent also provides on-going assistance to make the sale or leasing a stress-free process when you opt for sale by owner. Get the right valuation for your property now without paying the commission fee and save your money with Minus The Agent.

Why choose us?


User-friendly platform

Our website, minustheagent.com.au, is easy to navigate and allows you to take advantage of all our services. From listing your home for sale without an agent to closing the deal, our website guides you through the process and gives you tools to be your own agent so that you can present and sell your home confidently.

Diverse packages

Our packages are tailored according to your needs and offer you the tools that you need to successfully sell your home without an agent. You are in charge of your marketing and have 24/7 access to our system to update or make changes to your listing from any computer or mobile device.

Expert support

Our team consists of highly experienced professionals who can help and guide you at each and every step of the home selling process. Minus The Agent offer after hours‘ phone and email support 7 days a week, meaning we are there to deal with any inquiries you or your prospective buyers/tenants may have.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Jass P Chawla

Overcapitalisation – Why Cost Does Not Equal Value?

If you are unaware of the real estate terminologies then you might be wondering what overcapitalisation is. Basically, overcapitalisation refers to an overspend on construction or renovation costs which means the actual cost of a construction/renovation of the property is superior to its real market value. Overcapitalisation is also considered as asset inflation. Confused? Let’s make it simple. For instance, Mr A is planning to renovate his house by remodeling the bathrooms, basement and kitchen; upgrading the living room and bedrooms; adding a porch and swimming pool; installing vinyl siding, fencing front entrance and extending the garden. Mr A decides to use upper end expensive quality materials in the renovation. While doing so, he forgot to consider the real market value and quality of the houses in this area, which was lower than the value of his upgraded house. This is overcapitalisation.

Now the next question is what should be done to avoid overcapitalisation? Simple! When renovators and home builders are planning for home improvements, they must keep in mind some factors which have greater impact on the overall value of the property. For instance, evaluating neighbour’s housing style, demographics of neighbourhood, streetscape, design trends of neighbouring property, and recent resale prices of the homes in the area.

Although generally improvements and renovations add value to a property, it will be wrong to say they will ALWAYS increase its value. The reason is that if renovations and improvements are overdone, without keeping in view the real value of the area where your property is located, you might be overcapitalising your property. This means that your property cost will not equal its market value.

Hence, it is rational that a renovator or home builder is aware of overcapitalisation, and increases the value of the property only to an extent that it can cope up with. Remember, you’ve got to be really careful about overcapitalisation when upgrading or renovating your property.

Often overcapilisation occurs when people are not rational and business minded in their approach. Typically home owners will spend more on fixtures and fittings with the aim to live in the property.

Some cultures often prefer to live in larger homes as status symbols and will opt to spend more on improvements than is the norm in the locaility.

However if you are an investor or builder, it is important to get the mix right as this will result in higher profit margins. Getting it wrong can often mean longer selling periods and discounted prices. Do your due diligence to avoid disappointment.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Keith P

Top 6 Tips for Optimizing Your RSS

If you’re completely new to blogging and don’t know what the RSS fuss is all about, RSS simply stands for Really Simple Syndication and it is a family of web feed formats that is automatically updated regularly. So in blogging this is usually in the form of blog posts. Each time you publish a blog post, whoever is subscribed to your RSS feed, be it via book marking or email, they’ll automatically be updated or notified of the new post. In a nutshell that is the simplest way to understand RSS…

What do we mean when we say optimizing your RSS? Let me explain –

When I’m talking about optimizing your RSS I mean taking steps to ensure that your RSS is performing effectively, to attract new subscribers to your content, aka your blog. Let’s take a look –

Tips for Optimizing your RSS

  1. Bowl them over with mind blowing and content awesomeness…

First thing’s first, if you don’t provide exceptionally great quality and resourceful content, the 5 remaining tips below will be worthless to you…

  1. Offer full RSS

Offer your readers both options for subscribing either by RSS bookmarking, or email opt-in for RSS updates.

  1. Make it unique

Think about the design of your RSS icon and the design of your RSS email opt-in form. Make it unique; add some extra texts or incentives for enticing readers to subscribe. Don’t bombard it so that it looks like a billboard ad, just make it stand out.

  1. Make it Visible & easy subscribe

Whilst you can make your RSS unique, don’t paddle backwards by making it a challenge for readers to find your RSS subscriber icon or opt-in.

I’ve visited many blogs where I’ve enjoyed reading the content, but felt so damn frustrated because I couldn’t find the RSS subscription form or icon. In the footer is a no!, hidden in a page somewhere else on your blog no, no, no!, not having any… worst still! Top of the side bar and below your posts is often the best places for having RSS icon and subscriber form.

Also make it easy for readers to subscribe, don’t give them questionnaires or a list of radial buttons to check, just make it really simple.

  1. Let them know what it’s all about

Don’t assume that everyone knows what that big orange square RSS logo means. Consider teaching your readers about RSS; write a couple of posts or do a video tutorial explaining what it’s all about and the value of subscribing to an RSS feed. Education is the best policy in any blogging niche…

  1. Don’t give them too many other options

My last tip is for those who want to greatly increase their RSS subscriber count. Don’t offer your readers too many other options for subscribing. You’ll see many bloggers putting RSS icon with social icons and everything else, this isn’t a bad thing at all so please don’t get me wrong here, but if you’re really want to increase subscribers, place RSS close to the top in your sidebar and place the rest i.e. Facebook, Twitter and YouTube further down below.

So just to recap the tips for optimizing your RSS using bullet points, because we all love bullet points right? Yeah… I thought so…

  • Give readers awesome content
  • Offer full RSS
  • Make it unique, visible and easy to subscribe
  • Let your readers know what RSS really is
  • Don’t give readers too many other options (If you want to increase RSS subscribers)

What do you think?

Well those are my tips for optimizing your RSS and getting the best out of using it to get more subscribers. I now want to hear your thoughts, or perhaps you have your own tips you’d like to share. Please do so in the comment section below as always

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Daisy Graham Jones

For Sale By Owners (FSBO) – Home Buying & Selling Tips

Traditionally, home buyers and sellers have hired the services of a real estate agent or a brokerage firm, a trend that continues to be popular. Yet the concept of FSBO (For Sale By Owner), where the sales transaction is directly between the home owner and a prospective buyer, is becoming increasingly popular.

The growing popularity of FSBO can be attributed to the growth of the Internet and the opportunities that it offers both home owners as well as home sellers to find one another more easily.

Of course, selling through a brokerage firm or a realtor makes sense if the idea is to make a quick deal. On the flip side, that comes with the price of a heavy commission. Obviously, one has to pay for the expertise of the realtor. Unfortunately, another downside is the susceptibility to malpractices during the process, particularly, behind-the-back negotiations.

On the other hand, if immediacy of a sale or purchase of a home is not the most important criteria and the objective is to reduce costs and save money, then the best option is to go for FSBO.

Tips for FSBO Sellers

Selling a house yourself is not a joke by any means. However, there are some very basic factors that an owner can take care of, some of which are listed below.

Pricing

As a seller, it is important that you price your house correctly ie. the price should be neither too high nor to low. Research and survey the real estate prices in the market. A lot of the information is publicly available; and don’t forget the time tested method of fishing for information by asking around. A strategy that home sellers often adopt is to set much higher prices initially and then lower it during negotiations. It might come off occasionally but more often than not, it is bound to put off a prospective home buyer who might think the property is overvalued.

FSBO Services & MLS websites

FSBO has become such a mainstream method for home owners that there is a full-fledged industry to support it. The website SellItYourselfUSA.com (http://www.sellityourselfUSA.com ) is a case in point. The objective of these FSBO services is to help these owners and buyers complete the process in a smooth fashion and cost-effectively. Make the most of the information provided by the FSBO websites and service providers.

Marketing the home

Undoubtedly, marketing continues to be one of the biggest challenges for a seller, but it has been made ever so simpler by the Internet. The sale-purchase scenario of property has undergone a drastic change. Advertising or listing on the niche FSBO and MLS websites gives enormous exposure to the property that an owner is trying to sell. In fact, the choice of how much exposure a person wants is really dependent on the seller with the various targeting options that are available these days.

FSBO tips for buyers

Some simple points that home buyers are well advised to consider when they plan to buy directly from the property owner:

When to buy

Typically, the best time to buy homes is during Fall and Winter when the best bargain property deals seem to be available. This is the time when FSBO sellers generally lower their prices to get potential buyers. Conversely, home prices tend to get higher during the warm weather seasons. As a home buyer it will be good to take these into consideration.

Mortgage pre-approval

In order to avoid problems later, it is important that you have a mortgage pre-approval before making an offer. This is because the seller can be entertaining multiple bids and in such a scenario, you might need to make an offer quickly. In addition, you should arrange the amount required for the down payment.

Insurance-claims report

While buying property, secure the seller’s permission to buy the Comprehensive Loss Undertaking Exchange or C.L.U.E. as it is commonly known. The report has the insurance-claims information and related data and is available online from a company called Choice Trust.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Jon Gropper

Multi – Family Rental Property: Buying, Selling, Renting

Many of us, consider, whether purchasing a multi – family, rental property, is a good fit, in terms of being, a component of one’s investment strategy, and process. Like anything else, a wise consumer researches, and becomes familiar with the possible, pluses, and minuses, and whether it, is for them. It is important to understand, and evaluate, the best, buying – opportunities, whether it should be sold, or if renting, is the best strategy. Should one purchase a new property, or an existing one? With that in mind, this article will attempt to briefly consider, examine, and review, when, and, if, someone should buy, and whether it is the best time to sell, and/ or, if renting, might be the best strategy and approach.

1. Before you buy: There are many considerations, before you should purchase, a multi – family, rental property. Are you going to live in one of the units, or rent the entire property? If you live there, your mortgage interest rate, will be lower, because it will be considered, an owner – occupied property, but, you also, will receive less revenue from rentals. Those doing so, often, look at this, as a way, to use rental revenues, to significantly, reduce one’s own, housing costs. If you are looking at this, as an investment, then, your mortgage interest rate, will be slightly higher, your down – payment, a little more, and you might have to justify the viability of the purchase, based on rentals. A formula, I suggest, is receiving a 6% return, and a positive cash flow. This means, if the property costs $500,000, you must have a rent – roll of a net of $30,000 per year, after deducting real estate taxes, and owner/ landlord paid utilities, and basic maintenance. Therefore, if taxes were $10,000 and anticipated utilities and basic maintenance were an additional $5,000, then you must collect, at least $45,000 per year, in rents. Do this calculation, based on 10 months rents, in order to prepare for potential vacancies, etc. In addition, calculate the rents, and compare them, to your expenses, and proceed, only if this is a positive cash flow, and the 6% return, is achieved.

2. Selling: Is owning the best idea, for you? Are you prepared for the unanticipated expenses, and will you commit to putting aside, a reserve fund, for maintenance, repairs, and renovations? Is the real estate market, the right one, now, to get the best results, from a sale? Consider competition, the local market, mortgage interest rates, and how much, you feel, you need, from any transaction.

3. Renting: Ensure you do, a quality, legal, enforceable, screening process, and seek the finest tenants. There is no guarantee, but pricing correctly, to ensure, you are not the most expensive, often, creates the best opportunities. You must also, either, have the abilities, to do, lots of the repairs, etc, or have qualified service technicians, to prepare for the possibilities, and obstacles.

Like any investment, one should proceed, in the most prepared way, in order to make the best decisions, possible. It may be for you, or not, so, proceed, with your eyes, wide – open!

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Richard Brody

Mortgage Pay Off Trap – Why the First Five Years of Your Mortgage is Set to Work Against You

The first 5 years of your mortgage is the most critical. The general rule of thumb is that you spend at least 5 times more in principal than interest. You can run the numbers for yourself at http://www.bankrate.com

The banks‘ hope you won’t break free from this cycle and have designed the mortgage tables to trap you into paying interest for a longer period of time.

To get ahead of your mortgage…

…it is important you have a basic understanding of your mortgage amortization schedule so that the banks don’t take advantage of you and suck you into a lifetime of payments.

HUH!

I know this may sound strange but nothing in life is constant.

Chances are at some point you will move, need to borrow money from your mortgage, pay for the kids education or take out a reverse mortgage in retirement. Knowing how your mortgage works will help you make those important financial decisions.

Let’s take a closer look at an example.

For a $334,000 mortgage at a 6.3% interest rate you will end up paying approximately $774,252.88 in repayments over 30 years.

You will spend $410,252.88 in interest and $334,000 in principal.

That sounds pretty fair right?

At approximately year 21, you will pay off 50% of your mortgage. So in the last ten years you will still owe $167,000.

Can you see what going on?

For the 1st 20 years you are working for the bank. Most of your hard-earned paycheck goes towards interest.

Which sucks!

Let’s take a closer look at the first 5 years of your amortization schedule. You will notice that you spend $22,068.33 in principal and $101,973.82 in interest.

Out of a total repayment of $124,042.15, you would pay approximately 82% in mortgage interest as compared to principal.

This made me feel sick when I found about this for my mortgage.

So where did it leave me and what does this mean to you?

You really start making a small dent in your mortgage after the first 8 years.

Please don’t take my word for this. You can go directly to http://www.bankrate.com and check this for yourself if your mortgage balance has changed. Pay close attention to your outstanding balance and how much of your monthly repayments are applied to interest at this point.

At the year 21 mark of your monthly mortgage payments, more of your money will go towards principal than interest. Your hard-earned paycheck would finally begin to work for you.

There are two key numbers to understand when dealing with your mortgage.

  • The first 5 years, where you would typically pay five times more in interest than principal, is the first key milestone.
  • The second key point is at year 21 when you still owe at least 50 percent of your mortgage principal.

This is interesting to know that at the 21 year mark, you pay less in interest and in the last 10 years you get very little to almost no tax deductions for your mortgage interest.

To make a dent in your mortgage, the first barrier you need to break is the five to eight year mark. Once you get past this, a little more of your cash goes towards principal and you begin to build some momentum.

Just imagine if you refinance or take out a new home.

The process starts all over again and you are stuck in a lifetime of payments.

Now here is how the banks really make their money by lending your funds to buy a home.



They count on a homeowner like you to move within the first 8 years or refinance their home. The more times you do this, the cycle starts all over again and you end paying a significant amount of your money on interest.

The goal is to break through this barrier.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Neil Venketramen

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