LINTHICUM, MD, March 20, 2023 – NFM Lending and its family of lenders have announced that they have earned the 2024 Top Workplaces USA award, issued by Energage, a purpose-driven organization that develops solutions to build and brand Top Workplaces. The Top Workplaces program has a 15-year history of surveying over 20 million employees and recognizing the top organizations across 60 markets for regional Top Workplaces awards.
Top Workplaces USA celebrates organizations with 150 or more employees that have built great cultures. Over 42,000 organizations were invited to participate in the survey. Winners of the Top Workplaces USA list are chosen based solely on employee feedback gathered through an employee engagement survey issued by Energage.
Results are calculated by comparing the survey’s research-based statements, including 15 Culture Drivers proven to predict high performance against industry benchmarks.
“Earning a Top Workplaces award is a badge of honor for companies, especially because it comes authentically from their employees,” said Eric Rubino, Energage CEO. “That’s something to be proud of. In today’s market, leaders must ensure they’re allowing employees to have a voice and be heard. That’s paramount. Top Workplaces do this, and it pays dividends.”
“We’re honored to be recognized as a 2024 Top Workplace by Energage and USA Today, reflecting our dedication to fostering a positive and inclusive culture,” said Stephanie L. Herring, Chief Human Resources Officer at NFM. “This achievement inspires us to continue prioritizing employee satisfaction and well-being as we strive for excellence.”
“This achievement would not have been possible without our incredible employees’ dedication and hard work,” said Bob Tyson, NFM President and Chief Operating Officer. “I want to thank them for their commitment to making the NFM Family of Lenders a truly great place to work.”
In addition to this award, NFM Lending is consistently recognized for its exceptional company culture. Other awards include: ‘Top Mortgage Employer’ by National Mortgage Professional Magazine; ‘Top Workplace’ by The Baltimore Sun and the Washington Post; ‘Great Place to Work’ by Great Place to Work, ‘Best Mortgage Companies to Work For’ by National Mortgage News, and ‘50 Best Places to Work For’ by Mortgage Professional Magazine. NFM Lending is proud of these accomplishments and each team member for their work to make NFM a Top Workplace.
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies include Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit https://nfmlending.com/, like our Facebook page, or follow us on Instagram.
Company Contact
NFM Lending
Gene DiPaula
VP, Communications
gdipaula@nfmlending.com
443-451-3126
nfmlending.com
LINTHICUM, MD, June 26, 2024 — NFM Lending and its Family of Lenders are proud to announce that the Washington Post has recognized it as a top workplace for the 10th consecutive year. This prestigious honor is a testament to NFM’s unwavering commitment to creating a positive and supportive work environment for its employees.
Greg Sher, Managing Director of the NFM Family of Lenders, expressed his gratitude and pride in receiving this recognition. “Being named a Top Workplace by the Washington Post for the 10th year in a row is an incredible honor and an affirmation of the work we are doing to find, develop, and retain happy employees. Our team is the backbone of our success, and we are dedicated to fostering a culture where everyone feels valued and empowered to achieve their best.”
The Top Workplace award is based on employee feedback gathered through a third-party survey administered by Energage, LLC. The anonymous survey measures several aspects of workplace culture, including alignment, execution, and connection.
The NFM Family of Lenders prioritizes employee satisfaction and development, offering numerous programs and initiatives designed to support professional growth and personal well-being. This recognition underscores the company’s commitment to maintaining a workplace where employees can thrive and contribute to the company’s ongoing success.
In addition to this award, NFM Lending is consistently recognized for its exceptional company culture. Other awards include: ‘Top Mortgage Employer’ by National Mortgage Professional Magazine; ‘Top Workplace’ by The Baltimore Sun; ‘Great Place to Work’ by Great Place to Work, ‘Best Mortgage Companies to Work For’ by National Mortgage News, and ‘50 Best Places to Work For’ by Mortgage Professional Magazine. The NFM Family of Lenders is proud of these accomplishments and each team member for their work to make NFM a Top Workplace.
About NFM Lending
NFM Lending is a mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit nfmlending.com, like our Facebook page, or follow us on Instagram.
It’s National Homeownership Month and what better way to celebrate than knocking down barriers to homeownership! We’ll bust some common myths and shed light on some lesser-known facts for first-time homebuyers, giving you even more insight as you prep for achieving your homeownership goals! Let’s get into it.
Don’t believe it? It’s true! While having no credit history presents a challenge, it doesn’t disqualify you.
Having an established credit history and a good credit score can improve your chances of qualifying for a mortgage. But if you are looking to buy a house with no credit, there are options available. The key is to demonstrate your financial responsibility. Here are some ways to do that:
Before you disqualify yourself due to not having a long credit history, let’s talk!
We will shout this from the rooftops for as long as it takes: You DON’T Need to Put 20% Down to Buy a Home!
In fact, the median buyer puts down just 13%, and this amount reduces to 8% for first-timers and buyers under the age of 32 (NAR 2023 study).
While a 20% down payment might offer a potentially lower interest rate and no PMI, it’s not always the most strategic move for everyone.
Here’s why:
The size of your down payment should be a strategic decision based on your unique financial situation. We can help you run the numbers and find the sweet spot that balances affordability with long-term financial goals.
No matter how much money you need for a down payment, saving up that nest egg can be a big challenge. But did you know that many people, not just low-income buyers, qualify for down payment assistance programs? These programs are designed to help first-time homebuyers bridge the gap between their savings and the down payment amount, and some don’t even have a first-time homebuyer requirement!
The eligibility requirements could be based on:
And they can come in the form of:
Plus, there are programs available in every state through state and local agencies, city or county administrators, employers, or non-profit sources.
The biggest challenge? Figuring out which programs are available in your area and what you qualify for.
That’s where we can help! Just reach out, and we’ll connect you with the resources you need.
The American Dream used to be a sprawling McMansion, but times have changed. Today’s savvy homebuyers are prioritizing smart space utilization over square footage. Here’s why:
Don’t get us wrong, a spacious home is great if that’s your jam. But before you get swept up in square footage, consider how you’ll actually use the space. Could you maximize a smaller home with storage solutions, efficient layouts, and clever use of outdoor areas? Perhaps the money saved on a smaller home could be used to invest in an architect who can help you create a truly functional living space.
While interest rates might seem high right now (June, 2024), they’re a far cry from the crazy rates of the past. In October 1981, interest rates peaked at a whopping 18.63%…yikes!
Other than a great lender, a great buyer’s real estate agent can make your homebuying experience amazing!
Did you know that in 2023, 89% of homebuyers used a real estate agent? The majority of those that did not have a real estate agent were newly constructed homes. A buyer’s agent acts as your champion throughout the homebuying process, offering a wealth of expertise and guidance. Here’s how they can help:
Need a buyer’s agent connection? We know excellent, hard working professionals in your area who can help you find your perfect home, just reach out!
According to the National Reserve, homeowners have roughly 40 times more net worth than renters.
That’s a staggering statistic! Here’s why:
Buying a home can be a big leap, but for many people, the long-term financial stability is well worth it now and for generations to come. That’s why we love homeownership!
Thinking about skipping the school district research because you don’t have kids? Think again! 30% of buyers between the ages of 33-42 named “quality of the school district” as a top factor when choosing their neighborhood.
(2023 NAR Home Buyers and Sellers Generational Trends)
Buyers often seek districts that provide well-equipped schools, including libraries, sports facilities, science labs and technology resources. The presence of these amenities suggests a commitment to providing a comprehensive educational experience, making the surrounding properties more desirable. In fact, In fact, according to the Urban Institute, “A 1 percent increase in school spending increases house prices on net by 1.03 percent”.
Even for those without children, a good school district can be a smart investment, as it often translates to higher resale value when you decide to sell.
Student loan debt is a reality for many millennials and Gen Z buyers, but don’t let it discourage you from homeownership! Here’s the good news:
We can help you understand how your student loans will impact your mortgage eligibility and explore your options. Don’t count yourself out!
According to a Pew Research Center survey, the majority of Americans (57%) prefer spacious living with houses further apart, even if it means a commute to amenities. However, a significant portion (42%) favor walkable communities with smaller homes closer together.
Here’s a breakdown of where most homes are sold:
If any of these facts for first-time homebuyers got you wondering if homeownership could be possible for you, let’s chat! We will set up a no-cost consultation to learn more about you, your goals, and your options.
LINTHICUM, MD, June 10, 2024— NFM Lending and its Family of Lenders announced today that we have been recognized once again as one of the top lenders in the country by Scotsman Guide, the leading magazine and resource for mortgage originators. This year, we have achieved several prestigious accolades:
· 14th Largest Retail Lender in the Country
· #1 Retail Lender in Maryland
· 21st Overall Lender (including wholesale mortgage companies)
· 20th Largest VA (Veterans Affairs) Lender
· 21st Largest FHA Lender in the Country
The list put out by Scotsman Guide is “the industry’s most comprehensive, verified rankings of the nation’s top producing mortgage companies.”
David Silverman, Founder and CEO of NFM Lending, expressed his gratitude and pride in the company’s achievements: “It is an incredible honor for NFM to be recognized in these rankings. Over the last 10 years, we have experienced tremendous growth, steadily moving up the ranks to become a top 15 lender. This recognition is a testament to the hard work and dedication of our entire team. We are committed to continuing our growth and providing exceptional service to our clients.”
NFM is proud of this achievement and thanks its NFM Family and real estate partners for their support.
About NFM Lending
NFM Lending is a mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit nfmlending.com, like our Facebook page, or follow us on Instagram.
LINTHICUM, MD, June 4, 2024— NFM Lending and its Family of Lenders are pleased to announce LaTasha Waddy’s promotion to Executive Vice President and Chief Legal Officer. Waddy has been integral to the NFM Lending team since 2012, previously serving as General Counsel and Chief Compliance Officer.
In her tenure at NFM Lending, Waddy has demonstrated exceptional leadership and dedication, significantly contributing to the company’s overall business strategy and success. Her expertise and commitment have made her a critical member of the executive team, where she has played a pivotal role in guiding the company through complex legal and compliance landscapes.
“I am excited to announce that LaTasha Waddy has been promoted to Chief Legal Officer and Executive Vice President of the NFM Family of Lenders,” said Founder and CEO David Silverman. “As those at NFM and many throughout the industry know, LaTasha has been much more than a lawyer for our organization. She is a thoughtful leader, coach, mentor, businesswoman, and phenomenal teammate. Her understanding of every department and the inner workings of our ever-changing industry is unparalleled. We are excited to see her take on new and more impactful responsibilities that will benefit not just NFM Lending but our entire industry.”
Waddy’s promotion reflects NFM Lending’s commitment to recognizing and nurturing talent within the organization. As Executive Vice President and Chief Legal Officer, she will continue to oversee the company’s legal and compliance functions while taking on additional responsibilities to enhance NFM Lending’s strategic initiatives further.
“I am honored to take on this new role and grateful for the opportunity to continue contributing to NFM Lending’s growth and success,” said Waddy. “I look forward to working with our exceptional team to navigate the challenges and opportunities ahead.”
NFM Lending congratulates LaTasha Waddy on her well-deserved promotion and looks forward to her continued leadership and contributions to the company’s future achievements.
About NFM Lending
NFM Lending is a mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit nfmlending.com, like our Facebook page, or follow us on Instagram.
June is the best month of the year – It’s National Homeownership Month! As a local lender, we’re dedicated to helping people achieve sustainable homeownership and their American Dream. We believe in the power of owning a home, and we’re thrilled to celebrate the countless benefits it brings to individuals, families, and communities this month – and every single day of the year!
Homeownership is more than just having a roof over your head – it’s a dream, it’s stability and control of your environment, and it’s a powerful tool for building wealth. Beyond the personal benefits, research shows that stable housing plays a crucial role in children’s well-being, strengthens communities, and contributes to a thriving economy.
We love telling the stories of happy homeowners, especially the ones that capture the joy and fulfillment that comes with ownership after overcoming challenges and hurdles. These new homeowners are the reason everyone at the NFM Family of Lenders is passionate about getting people and families into the homes they love.
The History of National Homeownership Month
To get a glimpse into why we celebrate Homeownership Month nationally, here’s a timeline of homeownership and this special month in the United States. These events have paved the way for more Americans to achieve the dream of homeownership:
Homeownership rates in the US have steadily climbed over the years, offering a reason to celebrate progress. In 1900, the homeownership rate stood at 46.5%. By 2000, it had risen to 66.2%, and it continues to hover near that mark today. National Homeownership Month allows us to reflect on these gains and express gratitude for the increased accessibility of homeownership.
Here’s an interactive data visualization that lets you explore homeownership and renter-occupied housing rates by state.
Single women can celebrate having the highest rate of first-time homeownership (19%) behind married couples (59%), and overtaking single men (10%). Especially since women in the U.S. were not allowed to finance the purchase of real estate without a husband or male cosigner until the 1970s.
However, despite overall growth in minority homeownership, racial and ethnic disparities persist. According to the Census Bureau, the homeownership rate for non-Hispanic White Americans sits at 73.8% (4th quarter 2023), compared to 63% for Asian Americans, 49.8% for Hispanic Americans, and 45.9% for Black Americans. We still have work to do in ensuring equal access to homeownership for all.
Owning a home is a powerful tool for building wealth, particularly for low and middle-income families. Statistics show a significant gap in net worth between homeowners and renters. In 2022, the Federal Reserve reported a median net worth of $396,200 for homeowners, compared to just $10,400 for renters. This means the average homeowner has nearly 40 times the net worth of a renter. (see graph below):
Here’s what Economist at First American Title, Ksenia Potapov, has to say about the wealth gap between renters and homeowners:
“Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments . . .”
So, what’s the secret behind the #1 wealth builder for low- and middle-income Americans? Here are some key factors:
Home Value – Loan Amount = Equity
Equity: the cornerstone of wealth building
Housing equity is the largest component of net worth for most owner-occupied households. Owning a home, even at a more affordable price point, can significantly contribute to your overall financial well-being through appreciation. This is especially evident for Black and Hispanic homeowners and those with lower-to-mid range incomes.
Owning a home offers a variety of advantages that go far beyond just financial rewards. In fact, the impact on your physical, mental, and financial well-being can be life-changing. A 2013 study by two professors at the University of North Carolina at Chapel Hill documents a range of social benefits associated with homeownership.
National Homeownership Month is a time to celebrate progress, but we acknowledge that significant barriers still prevent many Americans from achieving the dream of homeownership. Here at NFM Lending, we are committed to addressing these challenges head-on.
Recognizing that racial and social inequities, limited financial literacy, and systemic issues have historically disadvantaged certain communities in homeownership, we believe that advocacy and tailored financial solutions are key to closing these gaps. By providing access to funding for home construction and ownership, we can promote inclusive growth in the housing market.
We’re strong believers in creating a housing market that’s open to everyone. That’s why NFM offers special programs and resources to empower first-time homebuyers, low and moderate-income families, and communities of color. These initiatives aim to make homeownership a reality for everyone. And we want everyone to experience the joy and stability that comes with owning a home! You can learn more about our equity, and inclusion initiatives on our website.
National Homeownership Month is a time to celebrate the power of owning a home and the positive impact it has on individuals, families, and communities. We’ve come a long way in increasing accessibility and equity in h, but there’s still work to be done. Here at NFM Lending, we’re committed to helping more people achieve their homeownership goals and build generational wealth in the process.
If you don’t know where to start, give us a call! We’re here for you before, during, and throughout your entire homeownership journey.
LINTHICUM, MD, April 5, 2024 — NFM Lending and its Family of Lenders is proud to congratulate their loan originators who were recognized in the Scotsman Guide Top Originators 2024 lists.
Each year, Scotsman Guide recognizes the nation’s top-producing mortgage loan originators. Originators are ranked in ten categories, including Top Dollar Volume, Most Loans Closed, and Top Purchase Volume. Each set of rankings is thoroughly audited, making Scotsman Guide the mortgage industry’s “most intensely reviewed, accurate and substantiated rankings of its kind.” To be considered, entrants must either have done at least $25 million in loan volume or personally closed 75 or more home loans in the 2023 calendar year.
Oleg Tkach was ranked at #75 nationally and led the Top Dollar Volume category for the company with $150,593,253 in production, followed by Jane Floyd ranked 3106 nationally with $$150,593,253, and Daniel Sa ranked #191 with $$101,483,726.
“What an incredible year it was for these top salespeople!” said NFM Lending President / Chief Operating Officer, Bob Tyson. “Everyone in the mortgage industry knows the headwinds we faced last year, and yet these individuals faced the challenges head-on and came out on top. Congratulations to them and all our originators. We are looking forward to a great 2023.”
NFM Lending would like to recognize and congratulate all the loan originators within the NFM Family for this incredible achievement.
Top Dollar Volume
NFM Lending
David Arocho
Michael Badessa
Michel Baez
Camille Baldwin
Tyler Barnett
Andrew Beigel
Trevor Bennett
Benjamin Burkett
Brian Burnham
Anthony Cellini
Michael Colagrossi
Jerry Cook
Gregory Cowart
Casey Coyle
Mario Cua
Mack Dadyan
Rich Dillman
Jane Floyd
Ronald Gosewisch
Dana Gounaris
Tina Konidaris
Dakotah Kutz
Tracy Marino
Kelsey Marquardt
Kyle McCort
Jeff Miltenberger
Todd Novosel
Brandon Pavlovic
Jesse Perrone
Craig Pollard
Bryan Raiford
Steven Rivera
Daniel Sa
Shanon Schinkel
Justus Sharp
Matthew Shiner
Shane Staples
Rob Stettler
Blane Stewart
Oleg Tkach
Raquel Wilson
Tammy Wittren
Main Street Home Loans
Darran Anthony
Neil Bourdelaise
Clay Carroll
Karen Dulmage
Derek Evans
Carolyn Flitcroft
Rita Hairston
David Licciardi
Peter O’Donnell
Kyndle Quinones
Michelle Roman
Salvatore Savastano
John Savastano
David Travers
Jon Wald
BluPrint Home Loans
Jeff Welgan
Elevate Home Loans
Chris Magnotta
Element Home Loans
DeAnn Ellis
Sharon Wofford
Most Loans Closed
NFM Lending
NFM Lending is proud of these loan originators’ accomplishments and wishes them continued success.
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, Freedmont Mortgage Group, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
Confused about pre-qualification and pre-approval? You’re not alone! Many first-time homebuyers get tripped up on these mortgage terms; not only do they sound similar they have a few similar qualities. Here we break down the difference between pre-qualification and pre-approval, explaining what each involves. Also learn about the benefits of getting pre-approved, and how it can give you a leg up in today’s competitive housing market.
Imagine pre-qualification is like window shopping. You get a general idea of what you like and where you might want to shop, but you’re not quite ready to commit.
Pre-qualification is a quick and easy process, often done online with a calculator. First answer some basic questions about your income, job situation, and any debts you have. Then, based on this info (which you provide), a lender will give you a rough estimate of how much you might be able to borrow.
Remember: Pre-qualification is a great first step, but it’s not the real deal – a pre-approval is where things get serious.
Pre-approval, on the other hand, is like actually having your credit card out and ready to swipe at the store. You know exactly how much you can spend, and sellers know you’re a serious buyer. This gives you the upper hand to other window shoppers when you’re find the right place and want to make an offer right away.
Income, Assets, Debts
You will fill out a mortgage application and answer some questions about your finances, rental or ownership history, and credit history. Then you will provide documents to verify your:
Save our Pre-Approval Document Checklistto help you organize your documents before getting pre-approved.
Credit
Next, we will pull your credit report to see your credit score, checking to see if there were any red flags in the past that weren’t disclosed. Things like bankruptcy, delinquency on a loan, etc.
Savings
We’ll also discuss how much you have set aside for a down payment and closing costs.
Based on this verified information, you’ll receive a pre-approval letter stating the exact amount you’re pre-approved for, and the estimated interest rate.
The pre-approval letter will only be good for 60-90 days. Finances change, interest rates change, and we want to make sure clients still qualify for what they were originally pre-approved for, or maybe they qualify for even more after additional review!
You’ll just need to provide updated (or additional) documents you’re asked for. We will take current interest rates into consideration and how the fluctuations in interest rates could affect your affordability.
Pre-Approval with a Trusted Lender
Getting pre-approved with a trusted lender provides you with added peace of mind and gives you access to a professional who can run multiple scenarios for you and all the “what ifs”:
We’re here to help, so use our expertise to your advantage now and for your future.
During your application, but honest and upfront about your financial situation. This will help us give you an accurate picture of what you can afford and avoid any surprises down the road. We can often work through many of the challenges our clients are nervous to share with us.
Remember, we are here to serve you! Its our goal to help homebuyers achieve sustainable homeownership and build generational wealth now and in the future.
Beyond Pre-approval: Setting Sail on Your Homebuying Journey
With your pre-approval letter in hand, you’re officially ready to set sail on your homebuying adventure! Here are some additional things to keep in mind:
Check out our home loan process map to see what’s to come in your homebuying journey.
By understanding the difference between pre-qualification and pre-approval, you’ll be a more informed and confident homebuyer. With the right preparation and resources, you’ll be well on your way to finding your dream home!
LINTHICUM, MD, May 3, 2024 — NFM Lending is pleased to announce the opening of a new branch led by Branch Manager Petros Christophilis. The branch is located at 3334 NE 65th Street, Seattle, WA 98115. The new NFM Lending branch will focus on expanding NFM’s flexible and powerful lending platform to better serve community families with exceptional customer service. NFM Lending offers Conventional, FHA, VA, USDA, Jumbo, and many other loan options to fit every borrower’s needs.
“I am thrilled to join the NFM Lending family, a decision inspired by the company’s exceptional culture, dedication to outstanding customer service, and the comprehensive range of loan programs offered,” said Christophilis. “I feel like I have truly found a new home here and am excited to begin this next chapter of my career with such a reputable and well-rounded company.”
The branch’s goal is to continue to provide the same commitment and dedication to borrowers, ranging from first-time homebuyers to seasoned buyers looking for their next home, a second home, or investment properties.
“We are very excited to announce the addition of Petros to the NFM family,” said NFM Founder/CEO David Silverman. “Petros is one of the very top originators in Washington State in both production and professionalism. His work ethic and experience level are at the top of the game, and we look forward to working with Petros to increase his presence in the region and help as many families as possible realize their dream of home ownership and lower payments.”
Christophilis is currently seeking qualified Mortgage Loan Originators for full and part-time positions.
For more information, please contact:
Petros Christophilis Branch Manager NMLS# 92866 206-406-4690 petros@teampetros.com teampetros.com
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states and the District of Columbia. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, Bluprint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
Dreaming of shedding years off your mortgage and saving a ton on interest? You’re not alone. From millennials and Gen Z to those who are preparing to retire, many homeowners are prioritizing early mortgage payoff. Here we’ll explore powerful techniques to pay off a mortgage early like biweekly payments, lump sum payments, and even the potential of mortgage refinance. We’ll answer all your burning questions, like “Is it really better to pay off my mortgage early or invest?” Let’s unveil the best ways to pay off your mortgage early and help you craft a personalized plan for financial freedom.
Now that you’re a homeowner, you aren’t paying your landlord’s mortgage and instead you’re building equity in your own place. Now picture yourself with that same home and free from a monthly mortgage payment, with the financial freedom to invest, travel, retire, or just breathe a little easier. That’s the magic of early payoff.
There’s no one-size-fits-all approach to early mortgage payoff. The ideal strategy depends on your financial situation, risk tolerance, and long-term goals. Consider these factors when creating your plan:
Once you’ve considered these factors, you can choose the strategies that best suit you.
Before we delve into specific strategies, let’s solidify the role of interest vs principal in your mortgage payment. This is key to maximizing your payoff efforts.
Note: There are other costs added to your total monthly mortgage payment (local property taxes, homeowners insurance, HOA fees, etc.), but we’re only discussing principal and interest right now.
Every monthly payment is divided between interest and principal. In the early years of your loan, a larger chunk goes towards interest, with a smaller amount chipping away at your principal balance.
Example: For simplicity, let’s imagine your monthly Principal and Interest (P&I) payment is $1,000. Every loan is amortized over time, meaning monthly payments are split between principal and interest, reducing the loan balance over the span of your loan term. In the beginning, maybe $700 goes to interest and only $300 reduces your loan amount. The next month, your overall principal is reduced by $300 and the interest is now calculated upon your new, lower balance. That’s why early payoff is so powerful – it allows you to pay down the principal faster, reducing the overall interest you pay over time.
Related: Take a look at our amortization calculator.
Pro Tip: Before changing your payment strategy, confirm if your mortgage servicer allows extra principal payments without penalties.
Alright, now that you’re armed with that knowledge, let’s explore some strategies to conquer your early mortgage pay-off strategy. Get ready, these may surprise you!
One popular way that some homeowners pay down their principal more quickly is to make biweekly payments. Instead of paying one monthly payment, you pay half the payment every 2 weeks.
Here’s a simple example to show the power of a biweekly payment. Let’s say you have a home loan for $400,000 with a 7% interest rate on a 30-year mortgage. In the example below you would pay $139,850.33 less in interest over the life of the loan with biweekly mortgage payments than if you made standard monthly payments!
There are online calculators available to determine these payments, or we can talk and run the numbers for you!
Because a year has 52 weeks, this works out to 26 biweekly payments. This essentially allows you to make 13 full payments a year instead of 12. That one extra payment really compounds over time! When you pay your principal balance down faster, there’s less money to charge interest on, which lowers the amount of overall interest paid.
Similar to biweekly payments, you can make an extra payment towards the principal each month. Even a small amount can make a big difference over time. Let’s revisit our example: $400,000 loan at 7% interest with a 30-year loan term. If you consistently put an extra $500 towards the principal each month, you could save a significant amount of money on interest payments in the long run.
There are online calculators available to determine these payments, or we can chat and run the numbers for you!
Important! Be sure to clearly communicate to your lender that any extra payments should be applied to the principal, not interest.
Don’t underestimate the power of small changes. Consider rounding up your monthly payment to the nearest hundred and applying the difference towards the principal. This might seem insignificant, but over the years, it can make a dent in your loan amount.
For example, rounding up a $1,950 payment to $2,000 translates to an extra $50 towards the principal each month. Over a 30-year loan term, that’s a total of an extra $18,000 you’ve put towards your loan principal and $18,000 less that interest has had to compound on!
Tax refunds, bonuses, or unexpected financial windfalls can be powerful tools for early mortgage payoff. Instead of spending them all, consider putting all or part of that money towards a lump sum payment on your mortgage principal.
Let’s say you receive a hefty $5,000 tax refund. Putting that entire amount towards your principal can significantly decrease your loan balance, reducing your future interest payments.
Refinancing your mortgage can be a strategic move for early payoff. It involves replacing your existing loan with a new one, typically with a shorter term (like a 15-year loan) and ideally a lower interest rate. For example, if you were to refinance and get a 2% lower interest rate, you could save thousands of dollars on interest over the life of the loan.
Another benefit of a shorter loan term: With a 15-year loan, you’ll be putting more money towards your principal balance each month. This allows you to pay off your house much faster and save on overall interest costs. While your monthly payment will increase because the loan term is shorter, it won’t double (which is a common misconception with shorter term mortgages).
Important to consider: There are closing costs associated with refinancing a mortgage. These upfront fees can be significant. Let’s discuss this to make sure the long-term savings from a lower interest rate outweigh the upfront costs of refinancing.
If it fits well into your budget, a 15-year fixed-rate mortgage might be an option when purchasing a new home. While the monthly payments will be higher than a 30-year loan, you’ll build equity much faster and save a ton on interest in the long run. Let’s discuss your options and we can give you advice on what would be best for you with your personal budget and finances.
Related: Check out our calculator to compare 2 mortgage options!
It might not all be about “can I pay down my mortgage early?”, a better question might be “should I?”
Ultimately, the decision depends on your financial goals and risk tolerance, but it is important to know all of your options!
Remember, paying off your mortgage early is a marathon, not a sprint. Be patient, stay disciplined, and celebrate your milestones along the way.
Let’s talk! We can run all kinds of scenarios for you on your current and potential mortgage options. We’ll see how funds can be allocated and the long-term impact of those choices. We’d love to help you calculate your individual situation!
NFM Lending is not a Financial Advisor, Tax Advisor or Credit Repair Company. You should consult with a Financial Advisor, Tax Advisor or Credit Repair Company to learn more. Refinancing an existing loan may result in the total finance charges being higher over the life of the loan.
LINTHICUM, MD, April 29, 2024 – NFM Lending and its Family of Lenders are thrilled to announce that Mortgage Executive Magazine has recognized it as the 15th largest retail housing lender in the United States. This significant achievement highlights the company’s commitment to excellence and innovation in the mortgage industry.
In an impressive showcase of talent, 58 of NFM Lending’s loan originators have been named among the top 1% of originators nationwide. Additionally, eight of these outstanding professionals have earned spots in the esteemed top 200 originators list:
Oleg Tkach – Lynnwood, WA – #23
Jane Floyd – Tampa, FL – #37
Daniel Sa – Columbus, OH – #70
Ron Gosewisch – Haddonfield, NJ – #138
Dana Gounaris – Haddonfield, NJ – #147
Andy Beigel- Columbus, OH – #182
Tina Konidaris – Raleigh, NC – #194
David Arocho – Columbus, OH #200
Greg Sher, Managing Director of NFM Lending, expressed his pride and congratulations to the recognized individuals: “This recognition from Mortgage Executive Magazine is a testament to the hard work, dedication, and unparalleled professionalism of our team. Each of our loan originators plays a vital role in our success, and being named among the top performers in the nation is a well-deserved honor. I am incredibly proud of their commitment and the example they set for the entire industry. Their excellence propels NFM Lending forward, demonstrating every day what we stand for.”
This accolade reflects individual excellence and underscores NFM Lending’s robust training programs, innovative mortgage solutions, and client-focused approach, which collectively contribute to such high-level industry performance.
Mortgage Executive Magazine recognized the following originators as being among the top 1% in the nation:
David Arocho
Michael Badessa
Michel Baez
Camille Baldwin
Tyler Clayton Barnett
Andrew Beigel
Trevor Bennett
Benjamin Burkett
Brian Burnham
Anthony Cellini
Michael Colagrossi
Jerry J. Cook Jr
Gregory B Cowart
Mario Anthony Cua
Mack Dadyan
Rich Dillman
Jane Ann Floyd
Ronald Gosewisch
Dana Gounaris
Tina Konidaris
Dakotah Kutz
Tracy Colleen Marino
Kelsey Marquardt
Jeff Walter Miltenberger
Todd Novosel
Brandon Pavlovic
Jesse Diane Perrone
Craig Pollard
Bryan Raiford
Steven Rivera
Daniel Sa
Shanon Schinkel
Justus Sharp
Matthew Shiner
Shane G Staples
Rob Stettler
Blane Stewart
Oleg Tkach
Raquel Jeanette Wilson
Tammy Wittren
Darran Anthony
Neil Karl Bourdelaise
Clay Carroll
Karen Dulmage
Derek Evans
Carolyn Flitcroft
Rita Hairston
David Licciardi
Peter O’Donnell
Kyndle Quinones
Michelle Roman
Salvatore Savastano
John Savastano
David A Travers
Jon Wald
Chris Magnotta
DeAnn Ellis
Jeff Welgan
NFM Lending is proud of these loan originators’ accomplishments and wishes them continued success.
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, Freedmont Mortgage Group, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram