Why does your calculator want me to put 20% down?!

I offer a popular mortgage calculator on my website at www.AroundCU.com/calc that you can use to determine what your mortgage payments will be on a home that you are interested in. You can also get to this mortgage calculator by clicking on the ‘Mortgage Calc’ link in the tabs at the top of any home’s information.

From looking at how clients use my website, one thing that I have noticed over and over again is that people quickly change the percentage of down payment on their dream home from 20% to something smaller. Usually 0%. Alas, for the average homebuyer in today’s economy it just isn’t realistic to make that drastic of a change. I’m not choosing 20% as a starting point because I am evilly wanting you to see a lower monthly payment. Read on, dear client, to find out the motive.
Continue reading Why does your calculator want me to put 20% down?!

Why does it help me to pay off my mortgage faster?

You might have noticed on my mortgage calculator page after you’ve done a calculation that it has a paragraph at the bottom that looks like:

Did You Know…
If you paid just $40 a month more, you would have your mortgage paid off 54 months earlier? You’d save $20,797.14 in interest and your total payments would be $195,735.89.

I sometime get told that the above paragraph doesn’t make any sense (after all, if you owe $100,000, you owe $100,000, right?), so I thought I would explain what is happening.
Continue reading Why does it help me to pay off my mortgage faster?