  DECEMBER 2021 | WHAT’S IN THIS ISSUE?» Why wouldn’t you go with a 30-year mortgage? » Ready to downsize? Four tips to help the process go smoothly » New year, new town: 3 cities on the rise in 2022   Why wouldn’t you go with a 30-year mortgage?Most homeowners will choose a 30-year mortgage, largely because it offers the lowest monthly payment amount. It’s the right choice for many. But not all. Choosing a shorter-term loan has distinct advantages for buyers in particular situations. The three examples below are some of the most common cases where a 15- or 20-year mortgage is definitely worth consideration. If you can afford higher monthly payments and want to save in the long run The difference between monthly payments on a 15-year vs. a 30-year mortgage can be substantial, with 15-year payments costing as much as 40% more. While the increase is big, buyers that can accommodate the larger payments benefit in the long run, saving up to six figures in total on a $300,000 home loan. If being debt-free is important There’s nothing inherently wrong with debt. Healthy debt allows for more cash on-hand and facilitates the purchasing of items that would otherwise be out of reach. However, there are also a variety of reasons why a person might want to live debt-free. If that’s important but buying a house without a loan is out of the question, then a shorter-term mortgage may be the way to go. If you want to build equity fast Finally, for a buyer who wants or needs to build their home equity quickly, a shorter-term mortgage is optimal. It ensures the principal balance gets paid down faster, giving the homeowner access to larger home equity loans in the case of an unexpected expense or emergency.  Ready to downsize? Four tips to help the process go smoothlyDownsizing is a great way to free up assets and reduce responsibilities. But it comes with some shrinking pains along the way. Here are four tips to help the process go smoothly. 1. Be realistic Going from 2,000 sq. ft. to 100 sq. ft. means discarding nearly everything you own. For most, that’s unrealistic. Consider your new lifestyle, and what you’ll need to be comfortable and happy. Structure your reduction with that vision in mind. 2. Start early, work steadily Moving is hard. Letting go of a big chunk of your possessions in the process is even harder. Give yourself time to work through the process; a minimum of three months is recommended. 3. Set a strategy One popular decluttering method is to go room by room, categorizing items as Keep, Donate/Sell or Discard. You can also set aside heirlooms to pass on to friends or family. Once the categories are set, stick to them rigorously. 4. Remember your goals The downsizing process sometimes gets overwhelming. Try to keep your reasons why in mind: an easier way of life, saving money, traveling more, etc. Use these goals to stay focused and moving forward.  New year, new town: 3 cities on the rise in 2022People are on the move as remote work continues to change the way we live. Here are 3 U.S. cities that are predicted to see major population growth in the coming year. 1. Frisco, TX 2. Fort Myers, FL 3. Seattle, WA |
