Monthly Archives: June 2015

//June
27 06, 2015

What is Mortgage Amortization?

June 27th, 2015|Blog, Mortgage 101, Tips & Advice|

 

Amortization wordcloud concept illustrationIf you have ever had a car loan or even a mortgage loan then you have heard the term mortgage amortization. If  you have ever wondered how it works and how your payments get applied keep reading!

Amortization is defined as as the reduction of debt by regular payments of interest and principal sufficient to pay off a loan by maturity. In simple terms it means, how your mortgage payment is distributed on a monthly basis showing how much goes to interest and principal each month. By understanding how the amortization of your loan works you are better able to understand how the balance is paid of monthly and yearly. By following an amortization schedule it will show you the amount of interest you will pay over the life of the loan assuming you hold the loan until its paid off.amortization-schedule

 

(This chart shows how the mortgage principal begins to increase as the interest amount decreases)

If you were to obtain, let’s say, a 30-year fixed rate loan the first half of the term of that loan would go towards paying down the interest and paying very little towards the principal. This is important to note because if you are a homeowner that refinances (assuming you refinance into the same type of loan) every few years you will find yourself paying back a lot of interest and every time you refinance you go back to paying a good portion of the interest on your mortgage. This is not necessarily the case if you are more than half way through your loan term as you are now paying into a good portion of the principal. One important thing to consider, if you have already paid down […]

20 06, 2015

4 Strategies to Cut Years Off Of Your Mortgage Loan

June 20th, 2015|Blog, Home Finances, Tips & Advice|

 

certificate-of-deposit2If you have ever thought to yourself, “Am I really going to be paying on my mortgage for 30 years?!” you are not alone. Many individuals who obtain a 30-year mortgage loan often think the same exact thing. For some home owners this is something that they want to pay off sooner than later as it often saves them a lot of money in the long run. The obvious way to pay off a mortgage loan faster is to get a shorter-term loan, like a 15-year instead of a 30-year loan. However, on a $300,000 home loan with 10% down, you will likely pay about $620 more a month for a 15-year loan than a 30-year loan and for some, that may be too expensive. If you are in a 30-year loan and looking to pay it off early and save thousands of dollars here are four simple approaches that you can take.

Increase Your Monthly Payments 

This one is one of the most obvious ways to pay off a loan quicker; simply adding more money to your payment each month. If you were able to pay $200 extra per month on your 30-year fixed loan at 3.625 percent on a home purchase of $300,000 with 10 percent down, you’d save $42,969 in interest and pay off your loan six years and eight months years early. If  you could pay an extra $300 per month, you would save $57,122 in interest and pay off your loan eight years and 11 months earlier. If you were to pay $400 extra per month, you’d save $68,426 in interest and pay off your loan 10 years and 10 months early. If you find yourself able to make a higher contribution to your monthly payment amount past the $400, it would […]

16 06, 2015

First Ohio Home Finance is BBB Approved!

June 16th, 2015|Blog, Latest News|

Check out this video from the Better Business Bureau highlighting First Ohio Home Finance! We are so proud to continue to serve our customers with outstanding service year after year! Thank you to all of our past and current customers. We greatly appreciate you!

13 06, 2015

Ease the Stress of Moving Day by Doing These Five Things

June 13th, 2015|Blog, Buying a home, Tips & Advice|

Couple moving house, loading or unloading couch in moving van

As exciting as it is to close on your new home, the anticipation of packing everything up and moving does not seem as exciting. As a matter of fact, mental health experts rank it right up there alongside divorce, death of a loved one, job loss and major illness as one of the most stress-inducing life changes people encounter. So it is no surprise here that if you can develop a plan before  you begin it will eliminate a lot of the stress that comes along with it. If you are trying to make your next move as stress-free as possible listen up, we have five ways to help make the move to your new home painless, and easy!

#1 Make it a Kid-Free, Pet-Free Day

As much as you love your children and your adorable new puppy, you will love them even more if they are not right underneath of you on moving day. Small children, and small pets tend to get anxious when there is a lot of chaos (i.e. moving) and it is best if they are not there during the moving process. Find a friend or family member who can watch your little ones so that you can focus on the move. If you cannot find anywhere to take your pets temporarily, simply put them in a quiet room where they will not be in the way. You do not want them to get outside and run away because they are scared.

#2 Save Space For The Truck

Nothing is more frustrating than living on a busy street and not having room to get the moving truck in or around your home. If you live in an area where there is street parking, consider getting a […]

6 06, 2015

Building Credit after College Graduation

June 6th, 2015|Blog, General, Tips & Advice|

 

Cheerful Students Throwing Graduation Caps In The AirIf you are a recent college graduate first off, congratulations, that is an accomplishment to be very proud of! We know how difficult it can be to go to school full-time all while working a part-time or even full-time job. Kudos to you! So now that you have officially joined the “real world” as many people put it, it is time to get serious about some other really important things in life, you know, getting your first home, paying your student loans, and all those other “adult” things you have always been told about. Well here is another really important thing that you may or may not know much about, building your credit. Your credit score plays into a lot when it comes to your finances and it is best to get a good grip on the basics early on. This will save you hundreds of thousands of dollars throughout your life. Here are some great tips on building credit after graduation.

#1 Start Paying Your Student Loans

We know there is that six month grace period after graduation that essentially gives you some time to get on your feet with your career before the payments kick in, but if  you can start paying something on these before then that is great! Since student loans are considered a form of debt these loans are taken into account as part of your credit score. Do not be too concerned over the amount of loans you are currently carrying, instead be conscious of making timely payments each month.

#2 Know Where You Stand

We cannot stress the importance of knowing where you stand when it comes to your credit score and report. You want to make sure that all the information on your […]

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