How to Pay Off Your North Shore Mortgage Early

Becoming a homeowner on Chicago's North Shore is exciting, but the thought of paying on your mortgage for the next 30 years may be anything but that. Not to mention, there are many other expenses associated with your home purchase— the inspection, the down payment, the closing costs.

North Shore homeowners can easily feel overwhelmed, but as your local real estate expert, I am happy to provide a few ways to keep those expenses down and pay off your mortgage early!

Below are three ways you can pay down your mortgage in less time, tackling all of the interest you're paying on the loan each month!

Make an extra payment
One of the simplest ways to start paying down your mortgage is to make one extra payment each month. Most lenders today do not have pre-payment penalties and just by making one full additional payment during the year could take about four years off of your loan.

Add onto your payment
If you cannot swing making a complete extra payment during the year, you can begin to add extra to your mortgage payment each month. Even adding as little as $100 onto your payment, applied to your principal, over the life of the loan, you could take five years off and pay tens of thousands less in interest!

Refinance into a shorter term
Refinancing your mortgage from a standard 30-year loan to a 15 or even 10-year term could save you thousands in interest, especially if you locked in a rate when they were much higher. Just keep in mind that these shorter term loans—although packaged with a lower interest rate—do typically require North Shore homeowners to have at least 20 percent in equity in order to avoid private mortgage insurance.

It's also important to note that you will need to pay one-time closing costs again to refinance, and what's more, your payment each month will likely be much higher than you're used to. Why? Because you're spreading out your loan amount over a significantly smaller amount of time. If you don't plan to stay in your home long-term, a refinance may not always be the best option for you, so it's key to talk to your lender in Winnetka, Glencoe, Highland Park, Deerfield, or Northbrook.

Feel free to contact me with any questions you have about buying a home in Winnetka, Glencoe, Highland Park, Deerfield, Northbrook and beyond this year or for a list of available homes in the area.

I'm here to help!

Janie Bress
Your North Shore Real Estate Expert

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5 Questions to Ask North Shore Mortgage Lenders

Buying a home is undoubtedly one of the biggest purchases you will make in your lifetime. It's important to thoroughly research ahead of time, especially as you begin the mortgage process and working with a North Shore lender.

However, finding a lender you trust can be a process in itself, not to mention remembering to ask the proper questions. Below I've included five great questions to ask North Shore lenders this year as you prepare to buy a home in Winnetka, Glencoe, Highland Park, Northbrook, Deerfield or the surrounding areas.

1. Is now a good time for me to buy?
A lender will look at your financial situation and determine if now is the best time for you to buy a home.

2. Which debts should I pay down first? And how soon?
Taking into consideration your high-interest debts and loans, a lender will determine which will help get you a better interest rate and how soon you should begin paying them in order to secure one.

3. How much will I have to pay at closing?
Each loan comes with its own set of closing costs, so be sure to ask your lender about those that apply to yours.

4. How do I pay at closing?
Inquire about the method of payment for closing costs when the time comes.

5. Who services my home loan?
Mortgage loans are often serviced by third-party, so make it a priority to ask who will be overseeing yours.

Choosing a lender is one of the most important steps in the home buying process and these questions are just the beginning. Give me a call today for more information about homes available in Winnetka, Glencoe, Highland Park, Northbrook, Deerfield or the surrounding areas or with questions about getting started as a buyer.

I look forward to hearing from you!

Janie Bress
Your North Shore Real Estate Expert

North Shore Real Estate
View North Shore Listings
Visit My Website

Local Expert... with National Connections!

Locally or across the country, think of me as your national connection. I can help you with all your real estate needs anywhere in the United States. 

3 Key Tips for Buying A Home on Chicago's North Shore in 2016

In a previous blog post, I shared why 2016 could be your year to buy a home on Chicago's North Shore, from low mortgage rates to low down payment options to rents now at an all-time high! But if the question for you is not if you will buy a home on the North Shore this year, but how you will make the purchase, then I am happy to share the following tips to guide you on the right path!

Keep these tips in mind as you make preparations to buy a home in Winnetka, Glencoe, Highland Park, Northbrook, Deerfield and the surrounding communities and throughout your house hunt:

Don't wait too long
Did you know the majority of buyers who plan to buy a home over the next 12 months say they will likely wait until spring or summer to make a move? According to a new Realtor.com survey, buyers plan to sit back until the busy real estate season begins! However, the truth is that those who begin their house hunting early in the year will find less competition and yet just as many homes on the market!

Consider all of your options for homes
When you begin house hunting you will find both new and existing homes for sale on the North Shore. And while you may think purchasing an existing home or one that does not require customization or finishing is the best option, do not be too quick to rule out new construction! New construction is expected to see a boost this year, with new home sales rising 16 percent from last year's levels.

You may be met with less competition in the new construction market as well as find a larger variety of homes to choose from, but these new properties do tend to cost more. Before making your decision on which type of home to buy, be sure you've considered all of these factors!

Always shop for a mortgage
Many homebuyers on Chicago's North Shore may take the first interest rate quote they receive from a lender and be on their way, but that is not the most cost-effective choice! Shop around for a mortgage and gather quotes from more than one lender on the same day. As rates are expected to rise as high as 4.65 percent over the next year, a lower quote could mean thousands of savings over the life of your loan.

You can count on me as your North Shore real estate expert to provide you with the best tips for buying a home in our area this year! Contact me today with any additional questions you have about the process or for a list of available properties in Glencoe, Winnetka, Highland Park, Deerfield, Northbrook and the surrounding communities!

Janie Bress
Your North Shore Real Estate Expert

North Shore Real Estate
View North Shore Listings
Visit My Website

Local Expert... with National Connections!

Locally or across the country, think of me as your national connection. I can help you with all your real estate needs anywhere in the United States. 

North Shore Homebuyers Should Shop Around for Mortgage Rates This Year

Just as it would in any other purchase scenario on the North Shore, shopping around can be a major benefit to today's homebuyers.

Home prices and sales are rising and as a result, the real estate market is getting busy and seeing more buyer demand. But that doesn't mean you should rush into a home purchase in Glencoe, Winnetka, Highland Park, Northbrook or Deerfield! Taking the time to research mortgage rates could save you more than you think on your new North Shore home.

Below are some common questions homebuyers on Chicago's North Shore may be wondering about rate shopping this year:

How long should I shop around?
As you know, mortgage rates are known to rise and fall daily and could change as much as .25 in a single day. In order to accurately compare lenders, you need to get quotes from each lender on the same day. Homebuyers will need to gather these rates before making a home offer and if the North Shore seller accepts, you will then choose one.

How do I know if the rate is accurate?
Your comparison of rates should consider the relationship between closing costs and the rate itself. The higher the closing costs, the lower the rate and vice versa. When you receive your rates from lenders, compare the rates with fees and APRs. You won't know which is best until you compare each summary given from each lender and look at these factors.

What happens if rates drop after I lock in my mortgage?
Every lender will have their own policy on how to tackle this subject. Many of them will give you some leeway when re-negotiating a previously locked in rate. For instance, if you just locked in your mortgage at 3.75 and mortgage rates drop to 3.5, the lender may allow you to re-negoiate your rate to 3.625. As you gather quotes, simply ask the lenders about their policy.

With years of experience in all things North Shore real estate, I understand how overwhelming the homebuying process can feel— from home shopping to mortgage rate shopping to home closings. I can recommend area professionals to assist you with rate shopping and am happy to answer any questions about buying a home on the North Shore!

I look forward to hearing from you!

Janie Bress
Your North Shore Real Estate Expert

North Shore Real Estate
View North Shore Listings
Visit My Website

Local Expert... with National Connections!

Locally or across the country, think of me as your national connection. I can help you with all your real estate needs anywhere in the United States.