An early mortgage payoff can net substantial interest savings compared to making scheduled payments for 15 or 30 years.

Paying more quickly reduces your housing cost, freeing up that money for other needs and wants, says Ronit Rogoszinski, a wealth adviser at Arch Financial Group in Garden City, N.Y. You’ll still be responsible for property taxes, homeowners insurance, home maintenance and repairs, but your mortgage payment will disappear. An argument can be made in favor of allocating more cash to investments instead of eliminating low-cost debt. But he says being mortgage-free can be “a very beautiful thing,” especially for homeowners near retirement age.

Here some ways to get rid of your mortgage sooner.

- Pay more each month
The simplest way to pay off a mortgage is to add an extra amount, say $50 or $500, to each monthly payment, Rogoszinski says. You shouldn’t sacrifice necessities, such as sustenance or medical care, but putting a little more toward the mortgage can be a good financial habit.

“If you can manage your expenses in a way that an extra couple of dollars goes toward the mortgage, that’s freeing up money down the road sooner rather than later,” she says.

Some homeowners add enough to their payment each month to make one extra payment each year. Divide one payment by 12 or multiply one payment by 10%, and add that to the amount each month.

Make sure the extra money is applied to principal, not interest or your escrow account. Prepaying interest or padding your escrow won’t accelerate your loan payoff date.
What homeowners insurance doesn’t cover

- Make extra payments
Making an extra payment in January, December or some other month is more challenging than paying a little extra each month, but the benefits are the same, Rogoszinski says.

The faster you get rid of your debt, the more cash flow you have, the more things you can do,
One way to make that extra payment less painful is to make payments every two weeks instead of every month. The result is 26 half-payments instead of 12 full payments. McIntosh says biweekly payments can knock approximately six years off a 30-year term, as long as the extra amounts are applied to principal.

- Pay a lump sum
A gift of money, an inheritance, a bonus or an income tax refund creates another chance to put extra money toward your mortgage. This strategy works best if you don’t have other, more costly debt, You really want to pay off the most expensive debt you have as fast as possible.

Calculator: How much home equity can you borrow?
Examples of higher-cost debt include most private student loans, auto loans, department store cards and revolving credit cards.

Another option is to deposit your windfall into a savings account and set up an automatic monthly payment from that account to your mortgage, That way, you can have money in the bank and put money toward paying off your mortgage, too.
A more aggressive approach is to invest the lump sum for a return that’s higher than your mortgage rate, then use the principal, plus appreciation, dividends and interest to pay off the mortgage when you retire.

Either way, the key is figuring out how to eliminate your mortgage, because that makes the difference between who might end up with a comfortable retirement and who will not.4. Refinance to speed up payoff. Refinancing can help you pay off your mortgage sooner, the idea being that a lower payment frees up money that can be applied to additional principal payments.

The biggest hurdle, is the effect of declining home values. A lower valuation can throw off your loan-to-value ratio, result in an appraisal that’s too low to support your loan amount or trigger a need for mortgage insurance, making your new payment more costly and refinancing less attractive.

You’ll also need a good credit score and two years’ worth of documented stable income.

To maximize the benefit of refinancing, shorten the term of your loan. For example, if you’ve paid off 10 years of a 30-year term, refinance with a 15-year mortgage instead of a new 30-year loan.

- Shrink your housing costs
Selling your house might seem like a dramatic way to get rid of your mortgage, but it’s certainly effective, leaving you free to buy a more affordable home for cash or become a renter without any housing debt.

Whether downsizing makes sense is largely a matter of your needs and personal lifestyle, don’t try to time the housing market by selling high and buying low. That’s a strategy more appropriate for professional real-estate investors than for homeowners.

- Tap retirement savings
Homeowners who don’t have spare cash on hand might be tempted to tap a retirement account to pay off a mortgage. This idea has gained purchase in recent months, as legislation pending in Congress would waive the early withdrawal penalty if money removed from a retirement account were used to pay a home loan.

One exception: If you’re in danger of foreclosure due to a temporary financial setback, a retirement account might be a resource of last resort.

The year of 2012 does not have to be remembered as a financially straining year if steps are taken now to reduce costs. By making a conscious effort to save money through the year, these steps can be followed in subsequent years to ensure better financial harmony.

-Make A Budget – Yeah, I know what you’re thinking: ‘Duh.’ But trust me, you’d be surprised how much you can save by just keeping track of what you spend, instead of blowing whatever you’ve got in your bank account(s).

-Eliminate Optional Expenses – Instead of stopping off at Starbucks every morning, try making your own coffee at home. It’ll save you at least $100 a month or more depending on your habit level. Rather than waste hundreds of dollars per year on a gym membership, buy some free weights and a stationary bike and work out from home. Do you really need to blow $200 on a pair of jeans? You get the point . . .

-Side Projects – You can only cut down on expenses so much, so to help hasten the debt elimination process you need to bring in some extra income. Always fancied yourself a good writer? Well, there’s plenty of freelancing opportunities out there. Maybe you’re a graphic designer, or a consultant of some kind? Weigh some of these options. You’d be surprised how much your skill set may be in demand.
- Conserve Energy
Start with simple things like turning off lights in rooms when they are unoccupied, then consider changing your light bulbs to compact fluorescents—doing both can save a bundle. You can also save electricity by plugging your gadgets into power strips and then turning the whole power strip off when the gadgets aren’t in use. This will keep the electronics from sucking electricity day and night. Also consider making an investment in new windows, which will save serious money in the future as they make your home more air-tight. Keep in mind that these changes are not only good for the pocket book, they’re good for the earth. Everyone wins!
- Condense Services
Bills for services like cell phones, internet, television and even car insurance can be reduced by switching to cheaper plans through other providers. But if you want to really get in the spirit of saving, consider getting rid of some of these services. By canceling your land line and using only a mobile phone you’ll cut a substantial amount from your monthly phone expenses. By cutting cable and watching television only on the internet, you can cut another major expense. You can even use your Wii or X Box with Netflix and Hulu Plus. These changes to your TV and phone habits can be made without much inconvenience.
- Dine Out Less Often
We all know it—eating meals in restaurants can be expensive, especially if gratuities for service are factored into the equation. If you’re serious about saving money, you’ve just got to buckle down and make the change. Many similar foods can be purchased in a local grocery store for a fraction of the cost. Exquisitely crafted meals can be prepared in home kitchens. As an added touch, home dining rooms can be adorned with candles and other fancy decorations to give the meal an added touch of sophistication.
- Collect Coupons
Couponing has evolved. In addition to pulling coupons from the Sunday paper or the mail, you can also find tons of coupons online and use coupon apps on your smartphone. By using any of these forms of coupons, it is amazing how much money can actually be saved. The key is to focus on goods and services you would have purchased with or without the coupons. Grocery costs and other bills can be drastically reduced to almost nothing if coupons are used wisely. And if your friends and family haven’t discovered the utility of couponing, get them to give theirs to you and save extra!
- Purchase Second Hand Goods
Many people think of the items available at thrift stores as having a substandard quality. This notion, however, is not always true. Many gently used brand name clothing items in good condition can be purchased at a reduced price. Other household items can be found at bargain prices.
Second hand stores are also a great option for avid book readers, as most of these stores offer a large collection of books and other media items at unbeatable values. Also keep in mind that buying second hand is very eco-friendly. By buying things that other people no longer need, you prevent them from ending up in a landfill.

Getting out of debt isn’t easy, but it’s also not impossible. I’d be willing to bet too that implementing these lifestyle shifts will not only save you money over time, but will probably improve the quality of your life experience. When you make a budget, you take on a new level of personal accountability. Eliminating optimal expenses teaches you that you can get by quite happily with less which makes for a more peaceful mind. And by shouldering a few side projects here and there, you make yourself more marketable. And that’s a good thing, especially when the market becomes unstable.

All three sound like a good idea to me. So why not give them a go? After all, it’s still early January . . . plenty of time for New Year’s resolutions.

There are many programs and home loan products that allow homeowners to take advantage of the equity they’ve built up in their homes. One resource qualified FHA mortgage holders have at their disposal is the Home Equity Conversion Mortgage (HECM) loan, also known as an FHA reverse mortgage. FHA HECM loans are like other home equity loans–they let you cash in on part of the value a home has built up over the years. But the FHA reverse mortgage is unique because FHA borrowers don’t make any payments on FHA HECM loans until they stop using the home as their principal residence. There are no mortgage payments due until you stop using the home as a primary residence.

Since a “principal residence” is defined as the place where the borrower does the majority of their dwelling, using summer homes, time shares or RVs doesn’t disqualify you from an FHA HECM loan. As long as you meet the requirements for an FHA HECM loan and use the property as your main address, you can take the cash value of your home’s equity to use in any number of ways.

QUALIFYING FOR FHA REVERSE MORTGAGE OR HECM LOANS

To qualify for an FHA reverse mortgage, you must be at least 62 years old. You must own your home, or have a low enough balance that the FHA reverse mortgage loan will pay off the outstanding amount when the HECM loan is approved. Like other FHA loans and FHA mortgages, the property must be either a single-family residence or a one to four unit property where the borrower occupies one of the units.
Condos and manufactured homes qualify, but only if they meet FHA requirements.

FHA reverse mortgages are also different than conventional reverse mortgages or HECM loans because the borrower is required to get financial counseling from an approved HECM counselor. This is a condition of the loan and is non-negotiable. The Department of Housing and Urban Development recommends searching for an approved counselor by calling the Housing Counseling Clearinghouse at 1-800-569-4287.

NON-FHA HOMES

It doesn’t matter if you purchased your home with a conventional loan or an FHA mortgage. As long as you meet FHA and HUD requirements for approval, you can use an FHA reverse mortgage to claim the cash value equivalent for the equity in your home.

One of the conditions of the FHA reverse mortgage is that you aren’t allowed to owe more than the home is worth. The amount of your loan is determined by interest rates, your credit report, and by the appraised value of the property. If you are approved for an FHA reverse mortgage or HECM, you must pay off any remaining balance at closing time on your new loan. As with any other FHA home loan, you are still responsible for paying property taxes, insurance, and related bills.

Like other FHA mortgage products, your application must be made through an FHA approved lender. If your current financial institution does not participate in FHA loan programs, look up the local FHA-approved banks in your area to get started.

Your Personal Credit History

One of the most important things you must remember as a small business owner is that your personal credit history plays an enormous role in your ability to attract financing for your business. Banks and other financial institutions will look closely at your credit history and credit score before lending you money.

You should obtain your credit reports from the three main credit reporting agencies, TransUnion, Experian, and Equifax, before applying for a loan and make sure there are no errors on them. If there are any errors, write the credit reporting agency a letter disputing the error so a correction can be made. Make sure that you are able to explain any late payments or defaults on your credit report before you go to the bank. So, the first thing you should do before approaching a bank is to have your credit history in order.

How Much Money Do You Need?

Second, you must estimate how much you will need in assets to start up your business, such as inventory, money for payroll, supplies, manufacturing expenses, real estate, and miscellaneous assets.

How Good is Your Business Plan?

Third, you will need to have a business plan. The business plan must tell the bank what the business is and why it is feasible in your area. You must make your case both in words and in numbers. Most banks require at least five years of forecasted financial statements before they will make a loan. In other words, you must look five years out into the future and try to estimate your sales and expenses for those five years. This is not an easy task, but you can base your estimates on similar businesses in your area and economic variables such as inflation rates. Developing a business plan will require some research on your part, and you may want to hire a financial planner or an accountant to help you.

The Profitability of Your Business

Fourth, you must convince your loan officer that your business will be profitable. You use your forecasted financial statements for this task. The loan officer must be persuaded the business will be profitable in order to be confident that you will pay back the small business loan in a timely manner.

What if Your Loan is not Granted?

One of the last questions the loan officer is likely to ask you is what you will do if your loan is not granted. Have a good answer prepared for this question. You want to remain excited and positive about your business; you want to explain to the bank that you will simply try other lenders and programs that cater to small businesses until you find someone to finance you.

Remember that you may have to try several lenders before you are successful in obtaining a small business loan. Don’t get discouraged!

Banks and other lending institutions cite risk factors as their main reason for turning down small business loan requests from startup businesses. Yet, you can still get a loan for your business by proper preparation.

Avoid the common error of thinking you can start with grants from the government and community agencies. It is even more unlikely than getting the money from your own savings, family, friends, or a bank.

The main requirements of attaining a small business loan are your personal credit history, business plan, experience, education, and feasibility of the business you are starting or expanding.

The most important task to obtain a small business loan is preparing a business plan. The business plan needs to show the lender that providing you with a small business loan is a low-risk proposition. Your business plan must answer the questions a lending institution would ask. These questions usually are:

How much money do you need?

If you are starting a business, this should be included at least in the start-up capital estimate. Accuracy is important, so request enough money to invest wisely.

What are you going to do with the money?

You will have to provide, in detail, the designated use of every dollar requested. A small business loan is often needed for: operations (new employees, marketing, etc.), assets (equipment, real estate, etc.), or to pay off business debts.

When will you repay the small business loan?

Explain in detail how this small business loan will serve as a stepping-stone for your business. You will need to convince the lender (with your financial statements and cash flow projections) that you are able to repay the loan through the expected long-term profitability of your business.

What will you do if you don’t get the loan?

Let lenders know that rejection will not discourage you from starting or growing your business. You want to portray a confident and determined personality and you will try lender after lender until you receive the money you need to get your business moving.

As a small business owner, you will need a certain degree of fortitude. Be confident and proud of your venture. Let lenders know you are in control and know what’s best for you and your business. Understand that lending institutions need to make loans. But if you don’t get one, don’t get discouraged. Ask the lender why you didn’t get the small business loan. Learn from the answer, move on, and try other lenders.

The Women’s Venture Fund is a resource for women in business who need money and training to expand their venture for New York or New Jersey businesses. To learn more about the Women’s Venture Fund call 212-563-0499 or visit www.womensventurefund.org.

TYPES OF ASSISTANCE
Direct Loans; Guaranteed/Insured Loans.

USES AND USE RESTRICTIONS
Direct and guaranteed loans may be used to buy, build, or improve the applicant’s permanent residence. New manufactured homes may be financed when they are on a permanent site, purchased from an approved dealer or contractor, and meet certain other requirements. Under very limited circumstances, homes may be re-financed with direct loans. Dwellings financed must be modest, decent, safe, and sanitary. The value of a home financed with a direct loan may not exceed the area limit. The property must be located in an eligible rural area. Assistance is available in the States, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of Northern Mariana’s, and the Trust Territories of the Pacific Islands. Direct loans are made at the interest rate specified in RD Instruction 440.1, Exhibit B (available in any Rural Development local office), and are repaid over 33 years or 38 years for applicants whose adjusted annual income does not exceed 60 percent of the area median income, if necessary to show repayment ability. Payment assistance is granted on direct loans to reduce the installment to an “effective interest rate” as low as one percent, depending on adjusted family income. Payment assistance is subject to recapture by the government when the customer no longer resides in the dwelling. There is no funding provided for deferred mortgage authority or loans for deferred mortgage assumptions. Guaranteed loans may be made to refinance either existing RHS Guaranteed Housing loans or RHS Section 502 Direct Housing loans. Guaranteed loans are amortized over 30 years. The interest rate is negotiated with the lender.

ELIGIBILITY REQUIREMENTS
Applicants must have very low-, low- or moderate incomes. Very low-income is defined as below 50 percent of the area median income (AMI), low-income is between 50 and 80 percent of AMI; moderate income is below 115 percent of AMI. Families must be without adequate housing, but able to afford the housing payments, including principal, interest, taxes, and insurance (PITI). Qualifying repayment ratios are 29 percent for PITI to 41 percent for total debt. In addition, applicants must be unable to obtain credit elsewhere, yet have an acceptable credit history.

INFORMATION CONTACTS
Regional or Local Office Consult your local telephone directory under United States Department of Agriculture for Rural Development field office number. If no listing, contact appropriate Rural Development State Office listed in Appendix IV of the Catalog or on the internet at http://www.rurdev.usda.gov/recd_map.html.

Headquarters Office Director, Single Family Housing Direct Loan Division or Director Single Family Housing Guaranteed Loan Division, Rural Housing Service (RHS), Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1474 (direct loans), (202) 720-1452 (guaranteed loans).

TYPES OF ASSISTANCE
Direct Loans; Project Grants

USES AND USE RESTRICTIONS
The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners in rural areas to repair, improve, or modernize their dwellings or to remove health and safety hazards. Grant funds are only available to homeowners aged 62 or older who cannot repay a Section 504 Loan. This includes repairs or replacement of heating, plumbing or electrical services, roof or basic structure as well as water and waste disposal systems, and weatherization. Loans bear an interest rate of one percent and are repaid over a period up to 20 years. In addition to the above purpose, loan funds may be used to modernize the dwelling. Maximum loan amount cannot exceed a cumulative total of $20,000 to any eligible person and a maximum lifetime grant assistance is $7,500 to any eligibile person. The house must be located in an eligible rural area which does not not exceed 10,000 population. Some places with population between 10,000 and 25,000 may be eligible if not within a Metropolital Statistical Area (MSA). Assistance is available in States, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of Northern Mariana’s and the Trust Territories of the Pacific Islands.

ELIGIBILITY REQUIREMENTS
Applicants must own and occupy a home in a rural area; and be a citizen of the United States or reside in the United States after having been legally admitted for permanent residence or on indefinite parole. Loan recipients must have sufficient income to repay the loan. Grant recipients must be 62 years of age or older and be unable to repay a loan for that part of the assistance received as a grant. Applicant’s income may not exceed the very low-income limit set forth in RD Instructions.

INFORMATION CONTACTS
Regional or Local Office: Consult your local telephone directory for Rural Development county office number. If no listing, contact your Rural Development State office listed in Appendix IV of the Catalog or visit http://www.rurdev.usda.gov/recd_map.html.

Headquarters Office: Director, Single-Family Housing Processing Division, Rural Housing Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1474. Use the same number for FTS.

Web Site Address http://www.rurdev.usda.gov.

If you have a partner make sure he or she can speak clearly enough so that you can understand them, and the same goes for you. Not knowing what your partner is saying or what you are saying half the time is not a good way to do business with each other or other people, and can lead to miss information that could be vital to your business. Another thing with communication is make sure that you or your partner knows what is going on. Don’t make decisions without each other because someone may have a different outlook on the situation that could help the deal or plan go much smoother than what you might have thought to be a good idea.

So make sure you can understand each other and make every move with your partner so they know what is going on.

2. Work Ethic

Are you the kind of person that will work around the clock making sure that things get done and everything is in order? If so, that is great, because in order to make things happen whether it is a purchase or a sale or negotiating you have to stay on top of things so they can get done. Your partner should have the same or close to the same work habits you do. That way you can be an unbeatable team that will take on any thing and grow successful.

So make sure your partner is just as willing as you are to put in time and effort to find the deals, potential buyers, help make the sale, or what ever else, because nobody wants a lazy partner just collecting checks and not helping in getting them.

3. Knowledge

Knowing what you are doing will only make things easier for you. If your partner knows nothing then they need to get with the program and learn a few things before they try to jump head first into something that could hurt the company or the partnership or both. Now I know there are new people out there getting their feet wet, trying to learn the tricks of the trade but, that is what they have you for or the other way around. Ask the other person “what do I do” if you don’t know what to do, and make sure that the other person asks you as well if they don’t know what they are doing. That way either one of you can see that the other want to learn and be ready in case this problem ever comes up again.

So if you know what you are doing and the other person does not, try to teach them and if it is the other way around, try to learn from them that way you both can be on the same page.

Over Look

All 3 of these things will tie into each other, from wanting to learn more to become a better partner, to updating your partner on information that could help your partnership, to trying to find out information that will lead to the big a pay off. If you and your partner show all 3 of these to the fullest, you all will no doubt come out on top every time, but if you don’t, things can be very difficult. From seeing this myself it made things hard for my father to get things done, when he was with a partner did not care what would happen as long as he gets paid, or always disagreeing even when he know he was wrong. My father was the only one in the partnerships doing all the work. So if you had enough of your partner you might just have to let then go. You shouldn’t have anyone slowing you down and don’t you slow anyone else down from getting on the road to success and happiness.

There are other factors that you have to take into account before buying a property. Check the present market value of the lot through the local assessor and compare with what the lot owner or agent has supplied to you.

Determine the size of the lot you want so you can know if you can afford to pay for the property. Although you can always have the option for financing, it is always good to have funds set aside for the purchase. If you plan to have it financed then be ready with the requirements needed.

The location of the property is of great importance as well. A residential or commercial building should be accessible to schools, malls, transportation and commercial areas. This will give you convenience of everything when you decide to relocate and live in the purchased property.

To find a good location check your local newspaper for possible lots for sale in the area that you prefer. You may also check with your bank for foreclosed property that they are offering and may be purchased through a bank loan. Foreclosed properties are great deals as they are priced lower than the present market value of the property.

Survey your prospective lot before even thinking of purchasing it. This makes sure that every boundary is correct and accurate. Also make sure to look into some vital information regarding the lot – owner’s information, lot description, tax information, map, etc.

Avoid making mistakes in buying a property instead learn the tricks of the trade. It can be very hard and complicated but through patience eventually, you will benefit from it. This is about investing on a property that will secure your future and provide you a place of your own.

2. Up and coming neighbourhood – As with any investment of this size, people are looking for good value and the potential for return. An up and coming neighbourhood could therefore offer greater value and potential for price increases than somewhere well-established.

3. Near schools – Parents or would-be parents will look for properties that are located near good quality schools, where their children can get a top-notch education.

4. Good commuter links – Another factor you may wish to use when choosing the location for your development is its proximity to helpful commuter links. Buyers will be looking for homes near train stations, bus routes or tram links.

5. Spacious living – Nobody wants to live in a rabbit warren (except rabbits, presumably); instead, they want space to enjoy their home. While there may be more value for you in cramming as many homes into a single space as possible, many buyers will be on the look out for a larger space to live in.

6. Nice garden – For many buyers, having a nice garden where they can entertain their friends and family, relax and let their children play will be a major deal-breaker. While not possible for flats, if you’re planning the development of houses, it could be advisable to leave plenty of space for a garden.

7. Central heating – Anyone who has ever used heating devices that are not controlled by a central boiler will know the cost of keeping their homes warm. Central heating will therefore often be a significant factor in their decision-making.

8. Double glazing – It’s also important that any new property’s you build have good quality windows to help them retain the heat providing by their central heating system.

9. Sound insulation – If you’re building homes that are close to other properties, providing adequate levels of sound insulation will be crucial to allowing buyers to live somewhere that offers them privacy, as well as peace and quiet. If the quality is not high enough, expect buyers to look elsewhere for their new home.

10. Parking – The number one gripe amongst neighbours is in relation to parking. It’s therefore no surprise that many buyers will only look at properties where they know there is plenty of parking space for them. Overlooking this in your developments could therefore have a damaging impact on the quick sale you’re looking for.

If you’re developing new property, sound insulation and other forms of sound control could be extremely beneficial for securing buyers.