Before making any big purchases, moving money around, or making any big-time life changes, consult your loan officer (housing expert). They will be able to tell you how your decision could impact your home loan.

The Pros and Cons of Paying off your Mortgage Early

housing expert

If you can afford to pay extra on your mortgage every month, it seems to make sense to do so, right?

housing expert advice

Surprisingly, the housing experts are divided on whether it’s such a good idea. Like many things in life, paying off your mortgage early has its pros and cons. Let’s take a look at some of the most significant. more housing expert news below

Why you might want to consider paying your mortgage off early

housing expert tips

Financial housing experts who agree that hacking away at your mortgage every month is a good idea point primarily to the interest you’re shelling out.

The president’s Tax Cuts and Jobs Act, however, has changed that scenario. First, the cap on interest has been lowered. Next, you’ll need to itemize your deductions on your taxes to get the benefit of the mortgage interest deduction. This means foregoing the new, increased, standard deduction.

housing expert

Obviously, this is something you want to run by your accountant or tax specialist.

Other than that, those who think paying the loan off early give good reasons for suggesting it:

  • Peace of mind. What would you do with the money you’d have every month if you didn’t have to make a mortgage payment? That’s one heck of a feeling of security. housing expert advice
  • The more you pay off every month, the more equity you’ll earn. This is especially important for older Americans. With high equity, or owning the home outright, comes the ability to qualify for a reverse mortgage, which is a safety net for many on a fixed income. housing expert advice
  • Do it for the kids. When the home is owned free and clear, there’s a better chance it will remain in the family. Regardless of whether this is important to you, it creates a “forced savings” plan for your heirs. housing expert advice

Reasons to reconsider paying your mortgage early

  • Earlier we addressed taxes and your mortgage. Keep in mind that “if the interest on your mortgage is less than the standard deduction, you aren’t getting an additional tax benefit,” according to Forbes contributor Nancy Anderson. housing expert advice
  • The extra payments shouldn’t take priority over other sound financial strategies, such as building an emergency fund and another for home maintenance needs. housing expert advice
  • Some financial housing experts claim that a better use of the extra money every month is to put it toward getting out of credit card and other debt with high interest rates.
  • “the amount you save in interest likely won’t exceed what you would earn in other long-term investments, such as stocks and real estate,” according to the pros at BankRatecom. housing expert advice
  • In the event of an economic downturn it may be important to have a portion of your money in liquid assets, such as the aforementioned stocks. A home isn’t considered a liquid asset. housing expert advice

Continue Reading…

What Are Housing Experts Saying About the Rest of 2020?

What Are Experts Saying About the Rest of 2020? | MyKCM
Real Estate Expert Updates

One of the biggest questions on everyone’s minds these days is: What’s going to happen to the housing market in the second half of the year? Based on recent data (housing expert)on the economy, unemployment, real estate, and more, many economists are revising their forecasts for the remainder of 2020 – and the outlook is extremely encouraging. Here’s a look at what some housing expert have to say about key areas that will power the industry and the economy forward this year.House For Sale – housing Expert

Mortgage Purchase Originations: Joel Kan, Associate Vice President of Economic and Industry ForecastingMortgage Bankers Association

“The recovery in housing is happening faster than expected. We anticipated a drop off in Q3. But, we don’t think that’s the case anymore. We revised our Q3 numbers higher. Before, we predicted a 2 percent decline in purchase originations in 2020, now we think there will be 2 percent growth this year.”

Housing Expert Home Sales: Lawrence Yun, Chief Economist, National Association of Realtors

“Sales completed in May reflect contract signings in March and April – during the strictest times of the pandemic lock down and hence the cyclical low point…Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year.”

Inventory: George Ratiu, Senior Economist,

“We can project that the next few months will see a slow-yet-steady improvement in new inventory…we projected a stepped improvement for the May through August months, followed by a return to historical trend for the September through December time frame.”

Mortgage Rates: Freddie Mac (Housing Expert)

“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”

New Construction: Doug Duncan, Chief Economist, Fannie Mae

“The weaker-than-expected single-family starts number may be a matter of timing, as single-family permits jumped by a stronger 11.9 percent. In addition, the number of authorized single-family units not yet started rose 5.4 percent to the second-highest level since 2008. This suggests that a significant acceleration in new construction will likely occur.”

Continue Reading Housing Expert News