A monthly mortgage payment is the biggest expense in most household budgets. Paying off your mortgage early is a huge step toward financial freedom. But to take that step you have to know what you’re doing. Should you make bi-monthly payments? What about refinancing? Are there pitfalls to paying off your mortgage early? Financial advisor and teacher Rob West has the answers today.

To pay off your mortgage sooner, Rob’s preference would be to pay more each month. That’s because the extra payment would be applied against the principal sooner than the extra annual payment.

There are other options to pay it off, like in one lump sum if you happen to come into some type of windfall, for example, an inheritance or a bi-monthly payment strategy.

You can run into trouble if there’s a prepayment penalty in your loan agreement. So you need to pull out your closing documents and check for that, or call your lender to find out.

Make sure any extra payments are applied to the principal portion of your balance, not the interest.

Do not make yourself cash poor in the process of paying off your mortgage early. Do not deplete your emergency fund to do it. You’ve got to leave yourself some margin.

Refinancing to a lower interest rate can be a great way to free up money for extra mortgage payments.

In today’s show we also answer your questions:

My husband and I are on a fixed income. How do we determine our budget for purchasing a home?

What is the best way to pay down debt?

We have paid down all of our debt. We would like to start a business and match 401K for our employees. How do we start this process?

I am going to receive an inheritance. How will I be taxed on this money?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

A monthly mortgage payment is the biggest expense in most household budgets. Paying off your mortgage early is a huge step toward financial freedom. But to take that step you have to know what youre doing. Should you make bi-monthly payments? What about refinancing? Are there pitfalls to paying off your mortgage early? Financial advisor and teacher Rob West has the answers today.

To pay off your mortgage sooner, Robs preference would be to pay more each month. Thats because the extra payment would be applied against the principal sooner than the extra annual payment.

There are other options to pay it off, like in one lump sum if you happen to come into some type of windfall, for example, an inheritance or a bi-monthly payment strategy.

You can run into trouble if theres a prepayment penalty in your loan agreement. So you need to pull out your closing documents and check for that, or call your lender to find out.

Make sure any extra payments are applied to the principal portion of your balance, not the interest.

Do not make yourself cash poor in the process of paying off your mortgage early. Do not deplete your emergency fund to do it. Youve got to leave yourself some margin.

Refinancing to a lower interest rate can be a great way to free up money for extra mortgage payments.

In todays show we also answer your questions:

My husband and I are on a fixed income. How do we determine our budget for purchasing a home?

What is the best way to pay down debt?

We have paid down all of our debt. We would like to start a business and match 401K for our employees. How do we start this process?

I am going to receive an inheritance. How will I be taxed on this money?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

Here’s a riddle for you. What could be costing you well over a $1,000 a year yet you get absolutely no benefit from it whatsoever? If you guessed private mortgage insurance you’re right on the money! Unlike homeowner’s or auto insurance, PMI will never help you one bit. So if you’re paying it, how do you get rid of it? Financial planner and teacher Rob has several ways to do that.

PMI is not insurance for youbut is for the lender in case you default on the loan. So unlike other types of insurance it won’t replace anything you’ve lost.

PMI typically costs between a half and 1% of the entire loan on an annual basis. So with a 1% fee on a $200,000 mortgage you’re paying $166 dollars a month ($2,000 a year) for PMI.

Get rid of it as soon as you can! How? The simplest (but not the easiest) is to pay down your mortgage. Take the purchase price of the home and multiply it by 80%. Next, pay your mortgage down to that amount. So if you paid $200,000 for the home, 80% of that value is $160,000. So if you pay the loan down to that amount you can have the PMI removed.

Another way you can get rid of this is to pay the mortgage down to 78% of the purchase price. At that point, the lender has to cancel PMI automatically. You can also pay the mortgage down to the midpoint of the term of the loan. Even if the amount of the outstanding mortgage hasn’t fallen to the 78% level, the lender has to remove PMI when at least half of the mortgage term has elapsed.

Refinance your mortgage. Maybe you were planning to do that anyway to take advantage of lower interest rates. In the process, you may be able to refinance without PMI in the new loan agreement.

The simplest way to get rid of PMI is to prove that the value of your home has risen to the point to where the outstanding balance of the loan is 80-percent or less of the home’s current value.

On today’s program we also answer your questions:

We’re over 65 years old. Is it too late to get long-term care insurance at a reasonable price?

I want to buy an airplane. How will this affect getting life insurance?

I have extra money that I’m able to apply to my mortgage each month. Is it better to apply that money to the principle or is it better to pre-pay the monthly payments? Or should I do both?

Should I buy a new car or get a used one instead?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Heres a riddle for you. What could be costing you well over a $1,000 a year yet you get absolutely no benefit from it whatsoever? If you guessed private mortgage insurance youre right on the money! Unlike homeowners or auto insurance, PMI will never help you one bit. So if youre paying it, how do you get rid of it? Financial planner and teacher Rob has several ways to do that.

PMI is not insurance for youbut is for the lender in case you default on the loan. So unlike other types of insurance it wont replace anything youve lost.

PMI typically costs between a half and 1% of the entire loan on an annual basis. So with a 1% fee on a $200,000 mortgage youre paying $166 dollars a month ($2,000 a year) for PMI.

Get rid of it as soon as you can! How? The simplest (but not the easiest) is to pay down your mortgage. Take the purchase price of the home and multiply it by 80%. Next, pay your mortgage down to that amount. So if you paid $200,000 for the home, 80% of that value is $160,000. So if you pay the loan down to that amount you can have the PMI removed.

Another way you can get rid of this is to pay the mortgage down to 78% of the purchase price. At that point, the lender has to cancel PMI automatically. You can also pay the mortgage down to the midpoint of the term of the loan. Even if the amount of the outstanding mortgage hasnt fallen to the 78% level, the lender has to remove PMI when at least half of the mortgage term has elapsed.

Refinance your mortgage. Maybe you were planning to do that anyway to take advantage of lower interest rates. In the process, you may be able to refinance without PMI in the new loan agreement.

The simplest way to get rid of PMI is to prove that the value of your home has risen to the point to where the outstanding balance of the loan is 80-percent or less of the homes current value.

On todays program we also answer your questions:

Were over 65 years old. Is it too late to get long-term care insurance at a reasonable price?

I want to buy an airplane. How will this affect getting life insurance?

I have extra money that Im able to apply to my mortgage each month. Is it better to apply that money to the principle or is it better to pre-pay the monthly payments? Or should I do both?

Should I buy a new car or get a used one instead?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

Author Mark Twain became wealthy from his writings but later had to declare bankruptcy. Maybe that’s why he said, Good decisions come from experience. Experience comes from bad decisions.We all make financial mistakes, and, ideally, we learn from them, even better, to learn before you make them. Today on MoneyWise, Kingdom Advisors President Rob West chats with money expert Ron Blue to help you do just that.

Without goals, it’s difficult to even recognize success or failure.

What are your living goals, your giving goals, your debt payoff goals, and your accumulation goals? Long term, what are your goals regarding financial independence? What are your goals regarding college education for your children?

If you’re married, you have to sit down as a couple and make sure you share the same goals. You may need to bring in a financial advisor to help you reconcile them so you can be on the same page.

Make a budget. Without one, you’re just spending as needs come up rather than according to a plan. If you’re sincere about controlling your lifestyle, you must work up a written budget.

Another common financial mistake involves debt.But debt is never really the problem; it’s always symptomatic of something else (like greed, ignorance, or self-indulgence). Debt is overextending yourself to satisfy some short-term need or often a want. When you make a commitment to stay out of debt you’re committing to have less than what the world may say you’re entitled to.

Never invest for tax purposes alone. If an investment gives you a tax deduction, that means it has a cost associated with it which allows you to take those tax deductionsand that means it’s not necessarily a good investment. On the other hand, I would consider an IRA, for example, to be an investment that also has tax shelter characteristics. It's an excellent way to invest and get a tax benefit.

On today’s program we also answer your questions:

I have a loan at 4.9% interest on a home loan. And with the interest rates dropping, how many points should I let it drop before I refinance?

If I don’t go through I lawyer, does a will have to be notarized?

What’s the difference between treasury and government bonds?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Author Mark Twain became wealthy from his writings but later had to declare bankruptcy. Maybe thats why he said, Good decisions come from experience. Experience comes from bad decisions.We all make financial mistakes, and, ideally, we learn from them, even better, to learn before you make them. Today on MoneyWise, Kingdom Advisors President Rob West chats with money expert Ron Blue to help you do just that.

Without goals, its difficult to even recognize success or failure.

What are your living goals, your giving goals, your debt payoff goals, and your accumulation goals? Long term, what are your goals regarding financial independence? What are your goals regarding college education for your children?

If youre married, you have to sit down as a couple and make sure you share the same goals. You may need to bring in a financial advisor to help you reconcile them so you can be on the same page.

Make a budget. Without one, youre just spending as needs come up rather than according to a plan. If youre sincere about controlling your lifestyle, you must work up a written budget.

Another common financial mistake involves debt.But debt is never really the problem; its always symptomatic of something else (like greed, ignorance, or self-indulgence). Debt is overextending yourself to satisfy some short-term need or often a want. When you make a commitment to stay out of debt youre committing to have less than what the world may say youre entitled to.

Never invest for tax purposes alone. If an investment gives you a tax deduction, that means it has a cost associated with it which allows you to take those tax deductionsand that means its not necessarily a good investment. On the other hand, I would consider an IRA, for example, to be an investment that also has tax shelter characteristics. It's an excellent way to invest and get a tax benefit.

On todays program we also answer your questions:

I have a loan at 4.9% interest on a home loan. And with the interest rates dropping, how many points should I let it drop before I refinance?

If I dont go through I lawyer, does a will have to be notarized?

Whats the difference between treasury and government bonds?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

Over the course of your working life, say 40 years or so, you’ll earn an astonishing amount of money, probably over a million dollars for the average full time worker. So now you might be asking, where does it all go?A better question might be, how much do things reallycost?The answer could change your whole outlook about spending. Financial planner and teacher Rob West has some startling stats for us today.

Rob West reviews some Economics 101 and discusses a scenario about opportunity cost.

Rob offers wisdom on how sacrificing a purchase now could really pay off in the investing long run.

The bottom line is, things cost more than you think, and you have less to spend than you think, so you want to use every dollar wisely, ideally to give you a bigger return in the years ahead.

In today’s show we also answer your questions:

My husband and I just received a bonus from his work. Should we use this to pay down some credit cards or put it in savings?

The Equifax breech affected me. I recently heard about a settlement for this. Is this legitimate?

I am buying a house and the sellers do not want to pay closing costs. Should I be looking at other options or should I renegotiate with the sellers to try and get them to pay some of them?

My wife and I are both teachers. We will be eligible for student loan forgiveness. Should we wait to file for this until we purchase our house this summer?

What’s the best way to learn about stocks and bonds and reenter the market?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Over the course of your working life, say 40 years or so, youll earn an astonishing amount of money, probably over a million dollars for the average full time worker. So now you might be asking, where does it all go?A better question might be, how much do things reallycost?The answer could change your whole outlook about spending. Financial planner and teacher Rob West has some startling stats for us today.

Rob West reviews some Economics 101 and discusses a scenario about opportunity cost.

Rob offers wisdom on how sacrificing a purchase now could really pay off in the investing long run.

The bottom line is, things cost more than you think, and you have less to spend than you think, so you want to use every dollar wisely, ideally to give you a bigger return in the years ahead.

In todays show we also answer your questions:

My husband and I just received a bonus from his work. Should we use this to pay down some credit cards or put it in savings?

The Equifax breech affected me. I recently heard about a settlement for this. Is this legitimate?

I am buying a house and the sellers do not want to pay closing costs. Should I be looking at other options or should I renegotiate with the sellers to try and get them to pay some of them?

My wife and I are both teachers. We will be eligible for student loan forgiveness. Should we wait to file for this until we purchase our house this summer?

Whats the best way to learn about stocks and bonds and reenter the market?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

Spring is well under way, the days are getting longer, the weather’s getting warmer, and songbirds have returned from their winter roosts. Now’s the perfect time to do some spring cleaning of your finances! Like your closet and garage, money management can also get cluttered over the long winter months. Today on MoneyWise, Kingdom Advisors President Rob West has some ways to clear out the cobwebs.

Close out any old accounts you may have. Make a list of all your current accounts and determine which ones you aren’t or shouldn’t be using any more. For example, if you’ve paid off one of your credit cards, close that account. You shouldn’t have more than one card anyway.

If you’ve got an old 401(k) someplace where you no longer work, roll it into your current 401(k) or an IRA.

Clean up your paperwork. This is a great time to go through all of your files to see what you can get rid of. For anything tax-related you can’t go wrong by keeping everything for seven years. But for most other things, like bank and credit card statements, maybe utility bills, three years is probably long enough. And don’t throw away anything with your personal information on it without shredding it first.

No spring cleaning would be complete without spiffing up your budget. Take time to go through the last several months of statements to make sure you’re allotting the right amount to each category. Then, make adjustments as necessarythis helps you identify and cut out any unnecessary expenses.

Start using the snowball method to get rid of any debt. Put some extra money toward your smallest debt and work your way up. Put the rest in an emergency fund so that you’re prepared for unplanned expenses.

Decide the best place to keep your emergency fund. If your savings account is at a brick and mortar bank, consider moving it to an online bank like Ally or Marcus where you can get a better interest rate.

Automate your savings. You’ve already fine tuned your budget and you know how much you can put in savings each payday. So go ahead and set up an automated transfer to put that amount in savings. Out of sight, out of mind!

On today’s program we also answer your questions:

My husband and I, retired, want to travel. We want to purchase a travel trailer. What do you think of reverse mortgages to get one?

Interest rates by the Federal Reserve are lower. I have a CD already. Should I get another one now while the interest rates are this low?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Spring is well under way, the days are getting longer, the weathers getting warmer, and songbirds have returned from their winter roosts. Nows the perfect time to do some spring cleaning of your finances! Like your closet and garage, money management can also get cluttered over the long winter months. Today on MoneyWise, Kingdom Advisors President Rob West has some ways to clear out the cobwebs.

Close out any old accounts you may have. Make a list of all your current accounts and determine which ones you arent or shouldnt be using any more. For example, if youve paid off one of your credit cards, close that account. You shouldnt have more than one card anyway.

If youve got an old 401(k) someplace where you no longer work, roll it into your current 401(k) or an IRA.

Clean up your paperwork. This is a great time to go through all of your files to see what you can get rid of. For anything tax-related you cant go wrong by keeping everything for seven years. But for most other things, like bank and credit card statements, maybe utility bills, three years is probably long enough. And dont throw away anything with your personal information on it without shredding it first.

No spring cleaning would be complete without spiffing up your budget. Take time to go through the last several months of statements to make sure youre allotting the right amount to each category. Then, make adjustments as necessarythis helps you identify and cut out any unnecessary expenses.

Start using the snowball method to get rid of any debt. Put some extra money toward your smallest debt and work your way up. Put the rest in an emergency fund so that youre prepared for unplanned expenses.

Decide the best place to keep your emergency fund. If your savings account is at a brick and mortar bank, consider moving it to an online bank like Ally or Marcus where you can get a better interest rate.

Automate your savings. Youve already fine tuned your budget and you know how much you can put in savings each payday. So go ahead and set up an automated transfer to put that amount in savings. Out of sight, out of mind!

On todays program we also answer your questions:

My husband and I, retired, want to travel. We want to purchase a travel trailer. What do you think of reverse mortgages to get one?

Interest rates by the Federal Reserve are lower. I have a CD already. Should I get another one now while the interest rates are this low?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.