Hi, this is Jonathan Phillips, your Local Real Estate Agent in Tacoma & Pierce County, Washington. I wanted to touch base with this week's edition of Housing News. I will educate you on housing issues that affect homeowners in today's crazy times.
Here is what I am going to cover in today's issue:
* Is the economy finally starting to recover?
* How To Pay Off Your Home 7 Years Sooner and Save Thousands On Interest
If you have any pressing real estate needs or questions, then you can reach me at 1-800-LISTING. Or, e-mail me at Phillips Realty LLC.
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Is The Economy Finally Starting To Recover?
The stock market just experienced its best October in seven years. October is a month many stock market investors fear. October was when some of the largest historic crashes happened: The Stock Market Crash of 1929, Black Monday in 1987, and October 2008. However, this year October was a great month for the stock market.
And it is continuing to climb. In addition, many business owners are optimistic again. A recent poll was conducted of prominent Wall Street Money Managers. A majority of them saw the stock market going up next year. And as we all know, as the stock market goes, so goes the rest of the economy.
I am optimistic about 2011. I think the real estate market will finally stabilize. Businesses will start hiring again. People will start spending money again. And before we know it, we won't be thinking about the recession anymore. Sometime next year, maybe spring or summer, the economists will release a report and tell us the economy has restarted.
And then we won't worry about it anymore. I think the economy will recover fairly quickly. Everyone gets real beat down during a recession.
Remember the recession in the early 90s? Everyone thought that our best days were behind us. Experts told us, "The Soviet Empire just fell. That means lots of unemployment in the former soviet bloc and slow growth for America."
Was it true? No. The same thing happened in 2001. People thought the economy would never recover. "The tech sector of the stock market is dead", they said. But look at where tech stocks are today. Many of them are at new highs. Americans will continue to innovate and compete on the world stage. And our economy will grow.
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How To Pay Off Your Home 6-8 Years Sooner and Save Thousands On Interest.
I've been thinking about it a lot. Wouldn't it be nice to have a paid off house? Life would be so much simpler. I would have less stress. I would also be able to enjoy life more when I (eventually) retire.
I could use that money for something else. And if the economy tanked again, I wouldn't be worried about a place to live. Fortunately, there is a pain free way to pay off your house 6-8 years faster on a 30 year loan.
It's called the Bi-Weekly Mortgage. The premise is that you pay half of your mortgage payment every two weeks. At the end of the year you will have made one extra payment. But, if you do this year after year, then you will pay off your mortgage 6-8 years earlier on average.
I was shocked when I realized how much money that would save me. 6 years of mortgage payments? If your monthly mortgage payment is $1,000, then you would save $72,000. What if you instead invested that money? It could be $100,000 when the 6 years is over.
The Bi-Weekly Mortgage is fairly easy to do because it coincides with most people's paycheck. It might actually help you manage your finances better if that's the first thing you pay on your paycheck. You won't have to worry whether you spent the mortgage money when the mortgage is due.
To start a bi-weekly mortgage, contact your lender. Some of them charge to put you into the program. If you don't want to go with that option, then you can pay the extra money from the partial week at the end of the month and send it to your lender.
Just make sure to note on the payment that it is to be applied towards principal only. I have been told that Federal Law requires they apply it to principle and not interest.
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