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Peter Thompson 2626 Warrenville Road Downers Grove, IL 60515 Direct Line: (630) 598-2375 Cell Phone: (630) 479-6424 |
PeterT@promortgagepartners.com
Free refinance Guide – Avoid the mistakes that can cost you thousands
Questions? Whether purchasing a new home or refinancing, let me know how I can help.
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Your privacy is important to me. Your information will not be shared, sold or exchanged with anyone else and I will contact you personally by phone or email.
Illinois Residential Mortgage Licensee #5814
Term Loans – Pay your loan down fast to build equity
How old do you want to be when you pay off your mortgage? For most people, their home is their biggest asset and one of their principal forms of savings. The traditional mortgage is based on a thirty year payoff, but there are ways to pay it off early, save on interest and build your equity faster.
The easiest way is through the type of mortgage you take on. Many people refinance from a 30 year mortgage into a 15 year loan. The interest rates on 15 year loans are slightly better, and though the payment is higher, it is not as much as you might think. For many people the extra payoffs are a good trade off for the increased equity build up. You do need to be careful with this, though. Locking into that higher payment reduces your flexibility, and if your income goes down over time, it may become a problem. I’ve had several clients who have refinanced from a 30 year down to a 15 year, but then after their personal situations changed the higher payments became a burden, and they went back to the longer loan.
There are more options than just a 15 or a 30 year loan. You can choose your amortization so that you can pick a 20 or a 25 year pay off, where the increase in payments is much lower, but you are still building up more equity.
There are other ways you can pay your loan off faster on your own. One way is by just adding extra payments toward your principal. Doing it this way you are not locked into the larger payment of a fixed loan, but every dollar extra you pay reduces your mortgage balance and pays the mortgage down a little faster. Some people pay extra every month, but if you are short on cash, you aren’t obligated to the larger amount.
Another popular option is the Bi-Weekly mortgage. This is a service that is usually set up after closing. You pay a fee to set it up, and then the loan servicer automatically deducts one half of the mortgage payment from your checking account every 2 weeks. By paying every 2 weeks you are making 26 half payments per year. That means you are really paying an additional payment over the course of the year. By paying that one extra payment, a 30 year loan is cut down to about 23 years.
Testimonials
- “I felt he went above and beyond his job. Very satisfied."
Terry S.
Chicago, IL - "This was my first mortgage and he held my hand all the way. It was a great experience."
Rosaria A.
New Lenox, IL - “Pete Thompson was extremely helpful. He was honest and service oriented. After reading his homebuyer’s guide, I knew what to expect. We will definitely use Pete again, and refer him to all our friends.”
Wayne and Beth B.
Lemont, IL - “Pete Thompson understands our needs. He answered all our questions and made the loan process simple and easy. He was great.”
Bob and Sherry R.
Chicago, IL - "Pete Thompson was great! Helpful, friendly, he went out of his way to make us feel good. I've already passed his name on to my brother, and recommended him strongly."
Jason W.
Chicago, IL - "Pete made everything so easy. We'd heard horror stories from friends who had bought earlier, but it all went great. He made it effortless on our part."
Dan and Sherrie P.
Wheaton, IL - "Pete Thompson was very helpful and informative. I was very happy with the services I received. As a first time buyer with no money down I didn't know what to expect."
Mike B.
Oswego, IL - “Pete was extremely helpful. We felt very confident with his expertise and information. Everything went very smoothly.”
Mike and Monica A.
Glen Ellyn, IL - “An outstanding professional! Pete is the best!”
Daniel and Peg O.
West Chicago, IL - “Pete Thompson was great! Helpful, friendly, he went out of his way to make us feel good.”
Kathy N.
Winfield, IL - “Very nice to work with. Very efficient service.”
Harry and Mary S.
Naperville, IL - “Pete handled the entire process with the professionalism and courtesy I try to show clients in my business.”
Cynthia B.
Chicago, IL - “I knew what to expect upfront, and everything happened just as Pete said it would. A great experience.”
Nick P.
Bloomingdale, IL - “Pete was efficient, thorough, enthusiastic, informative, responsive and proactive in all our dealings with him. It was an honor to work with him.”
Mark and Daphnee M.
Naperville, IL - “Everything was totally professional and seamless – greatly appreciated.”
Richard and Jeanie S.
Huntley, IL - “Pete Thompson made my financing end of buying a home far less stressful than in the past using other mortgage companies. Thank you, Pete.”
Jerry P.
Bloomingdale, IL - “I relocate regularly, and have bought several homes in the past. The level of service I received from Pete and his team was second to none!”
Roman S.
Oak Lawn, IL - “The service was very good and it was a pleasure working with you. I am sure we will be in touch in the future.”
Ron and Lisa S.
Naperville, IL - “I was not sure what to expect, but everything went so smooth it was surprisingly easy. Having the information upfront really made a difference.”
John T.
LaGrange, IL - “We counted on Pete to take care of everything because we lived in Wisconsin. It couldn’t have been handled better.”
Robert and Karen H.
Lombard, IL - “Excellent service. Pete was a pleasure to work with.”
Kent S. and Edward.
Chicago, IL
