Real Talk
THIS WEEK Want your home paid off sooner, without the bigger bill? One idea took off online this week. And it's a good one.
Most people think there are only two choices. A longer loan with a smaller payment. Or a shorter loan with a much bigger one.
There's a third choice. Hardly anyone uses it.
Keep your regular loan. Then, when you can, send a little extra toward the principal. That's the money you actually borrowed.
Every extra dollar there shrinks what you owe. Owe less, and less interest piles up. The finish line moves closer.
A shorter loan makes that bigger payment due every single month. Even the month the truck breaks down. Paying extra on principal is your call. Pay more in a good month. Pay the normal amount in a tight one.
One thing to check first. The CFPB says prepayment penalties usually don't apply when you pay extra principal in small chunks. Still, double-check with your lender. And mark the extra as "principal" so it lowers your balance.
This is good to know whether you already own in Show Low or you're still saving for your first place in Snowflake. Know someone who thinks a shorter loan is the only way to pay off early? Send this their way.
🤯 INTERESTING FACT Most people guess this one wrong.
Ask around, and folks will tell you almost every homeowner has a mortgage.
Not even close. A record 40.3% of U.S. homes are owned outright. No mortgage at all.
That's from the latest Census Bureau data. And the Census Bureau found rural counties are more likely than cities to have lots of mortgage-free owners.
Right next door in New Mexico, the share of mortgage-free homes climbed from 41.5% to 48.5% in ten years. That's nearly half.
So a paid-off home isn't some fantasy. Four in ten owners have already gotten there.
Inventory is up 12.5% from last year and homes are taking nine days longer to sell. Here is what that means if you are buying or selling in the White Mountains right now.
💡 Did You Know I Can Do This? Here's one people don't expect. Some lenders offer a cash-out second. It lets you pull cash from your home's equity and leave your first mortgage exactly as it is.
It's a separate loan that sits behind your first one. People use it for a remodel, paying off high-interest debt, or a big life moment. It's worth knowing about whether you own in Pinetop-Lakeside today or plan to someday.
Wondering if a cash-out second could work for you? Reply and ask, or shoot me a text. I'll walk you through it, no pressure.
THE REAL MOVE Pay it down on your terms. You don't need a loan that squeezes your budget to pay your home off early.
You need the right loan from day one. And a simple plan for your extra dollars.
If you're looking at a place in Show Low or Springerville-Eagar, the loan you start with matters. The same loan can be priced very differently from one lender to the next. A better deal up front leaves more room to put toward principal later.
Already own? Pull up your last statement and see how much of your payment goes to principal. That one look can change how you use your extra money.
That's where I come in. I'm a broker, not a bank. I shop hundreds of lenders to find the one that fits YOU, not the one that fits them. Know someone in Heber-Overgaard who's dreaming of a paid-off home? Send this their way.
Kristi Olson, MBA — mortgage broker (NMLS #1459928) and licensed Arizona Realtor, serving the White Mountains. Equal Housing Opportunity. Nothing here is a commitment to lend. Get in touch →