With spring right around the corner, the home buying and selling market will be soon be in full swing and if you need some advice to gear up for the buying season our friend John Fawaz joins us with some insight..
Starting with how you finance.
finance over 15 years not 30 years: the rule of thumb is if you can’t afford a 15 year mortgage payment
then you have gone over your budget. For example if you borrow $100,000 for 15 years you will end up
paying ~$30,000 in interest however with 30 years you will pay over $90,000 in interest. With 30 year
mortgage in the first 10 years you don’t build much equity in your home most payments going towards
Put down payment 20%. You will generally get the best rate and get approved for loan much easier
additionally you avoid paying pmi (private mortgage insurance) that’s extra $100-$200/m in saving.
Consider paying biweekly instead of monthly: paying biweekly could save you a lot of money. For
instance if you have a 30 year mortgage it could save you up to 7 years.
You can also attend John’s “planning for retirement ” Course at UT! It’s catered for those closer to retirement age.
It is a two session course and starts February 21st at ut conference center. It’s a Non-credit course.
For more information go to noncredit.Utk.Edu or call 865-974-0150.