4 Components of Your Mortgage and How to Reduce Them

Monday, August 1, 2016

4 Components of Your Mortgage and How to Reduce Them

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Today I’m joined by David Bowen from imortgage to discuss PITI and how to reduce it.

PITI stands for the four components of your mortgage payment: ‘P’ stands for principal, ‘I’ stands for interest rates, ‘T’ stands for property taxes, and the last ‘I” stands for homeowner’s insurance.

Though your principal and property taxes are two components you don’t have much control over, you can keep in contact with your assessor’s office to make sure that you are receiving all of the tax exemptions available to you. You may even be able to get your property taxes reduced based on factors like your income and whether you’re a senior citizen or veteran.

As far as homeowner’s insurance, you can always contact your agent to find out what you can do to get your rate reduced. David says that he contacts his agent every year to review his policy. Changing companies from time to time can reduce your insurance payment as well.

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One extra payment per year can cut eight years off of a 30-year loan.

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Some other ways to reduce your PITI are to pay extra money down on your principal balance, which can speed up your timeframe. If you make one extra payment a year, you’ll probably cut eight years off of a 30-year mortgage. If you are able to bring your balance down, it may even be possible to refinance your 30-year mortgage into a 15-year mortgage.

If you pay your principal in cash, you can avoid the first two components of PITI, but property taxes and insurance are required and can’t be avoided.

If you have any questions regarding PITI, feel free to contact David Bowen at dave.bowen@imortgage.com or (708) 705-7911, or myself by phone or email. I look forward to speaking with you.

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Why work with us?

As a dedicated real estate professional, I understand the selling and buying process and have a very unique and aggressive approach that is designed to differentiate your home from others in the market place and most importantly getting your home sold! My detailed plan of action will help alleviate any anxiety you may have about selling and purchasing a home. I have a proven track record and understand the philosophy of running a professional real estate business. My entire business operation and back office infrastucture is predicated on delivering "Disneyland-type" customer service.

Vergis Eiland

Coldwell Banker
1056 Sterling Ave
Flossmoor, IL 60422
312-802-6204
VergisEiland.cbintouch.com
vergis.eiland@cbexchange.com

What our clients have to say

"Vergis is probably the most professional real estate agent that I’ve ever worked with. We were referred to him by family member. He just asked us what we were looking for, and we told him what we needed and it just took a lot of the stress out of shopping for a home. His knowledge of the different neighborhoods made it 100 times easier to buy a house. Every showing Vergis would make sure that we would see 2 to 3 houses, and he took the time, we never felt rushed, he asked us what we did and did not like about each of the houses that he showed us. And because he asked those questions and took the time, we found a house that we really, really love."

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"We found a great house working with Vergis! They went above and beyond to help us from the beginning. It was a challenge in terms of what we were looking for because there are not many homes in our area that are contemporary, ranch-style homes, particularly that have in-suite baths in more than one bedroom. But we were able to find that, primarily because Vergis was tenacious about looking and kept showing us houses until we found what we were looking for. We were very pleased with the process, Vergis and his team were on top of it!"

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"The results were phenomenal. I stayed informed, they stayed on top of things and everything went really smoothly. I had a problem with someone trying to sabotage my deal and they stopped it and didn’t doubt my morality on the issue and we moved forward. I would recommend them one hundred percent and if I had to do it again, I would choose them!"

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"The results working with Vergis were very positive, it was a great experience. My house sold within eight months. He was very dedicated in making sure that he made me aware of what was going on and any contacts he was reaching out to. He always kept on schedule with his weekly calls. He was a great agent and I will most definitely work with him again!"

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"The results that I got were great! Vergis made sure that everything that I wanted, I got. It was amazing. When I was working with the broker and I didn’t quite understand what he wanted, he made sure that I knew exactly what I needed to know and he took care of everything. He’s wonderful!"

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"The results as far as the amount we got for the condo, was more than I expected! He had not listed a property that was that expensive before in that exclusive area. He did an excellent job and was very successful in how he approached and marketed it, I was very happy with the results! He told me he would call every Tuesday, and regardless of the time, he always took the time to speak to me live about specific questions I had."

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"We finally sold our home, that was on the market on and off for the past three years or so. We signed up in may and by october it was sold! What I want to highlight with Vergis is that he consistently checked in with us each week. We had other realtors, and Vergis was the only one that called. I could time my watch by him, he always called at noon on Tuesdays, to check in and see what's going on and stay on top of things and give an update. That's the reason we hired Vergis, there was a time there when our house was off the market, and he was consistent with contacting us and seeing if we were ready to put it back on the market."

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"The result was a positive one, we sold the house. He came on time the first time that we setup an appointment. He was very professional, he wasn’t pushing us, he gave us what I felt was an honest assessment. And what was really nice about working with him, he recognized that we had a different opinion initially, we thought the house would sell for more than what it would really sell for, and it was hard. He could recognize that our assessment was not necessary in line with his assessment. But even though he saw that we were kind of frustrated about the reality sinking in, he was always really patient. He worked with us for a 6 month period, he held open houses, he showed us how he was marketing the property and he was very accessible. We just wanted wanted to take the house of the market, but a year later when we put it back on the market he was professional. He just worked with us.

We had a tenet who was evicted and we were out of the state by that point, Vergis was very helpful. He went to the property when we couldn't. He was very patient, he came on the day of the eviction, he spent a couple hours there with us to help us find someone to fix damages, help assessing the property and just making sure we wouldn’t be alone during that difficult time. I don't think that was in his job description, but he did it. He really went out of his way to drive by the property and check on it because we were out of state and didn’t have the time or the money to have someone else check on it. He, or one of his staff, regularly drive by and just check on the property. I thought that was above and beyond what I thought a realtor would do."

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"Everytime he went over something he made sure to ask me at the end if I had any questions in regards to any of the questions we had just talked about, or if there were any requests I wanted to make to the seller. Vergis made sure that he contacted the seller with any questions that I had asked and got back to me with an answer."

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"He was very efficient and readily available. Any time I had questions, day or night, I could call or text him. Any concerns that I had, he would give me an answer, or if he didn’t know the answer, he would find out by the following morning. He was always attentive, when he hadn’t heard from me in a day or two, he would call and asked if I had any questions or if anything needed to be done on his end. He was very proactive and helpful. He made the whole process as easy and stress-free as possible. He was awesome. I have no complaints at all."

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"Our property sold, and that was the outcome we desired. There were a couple things that I particularly liked about the way he worked. He is one of the most disciplined persons I’ve ever met. He has a method of operation where he tells you what he is going to do and when he is going to do it. For example, every Thursday afternoon he would give us a call and update us on what was happening, even if nothing was happening. I always knew and never felt like I had previously with some previous agents and brokers where you never knew what they were doing. He always had suggestions and was always interested and working as hard as he could to sell the property."

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"My experience with Mr. Vergis Eiland was great and knowledgeable. Vergis was very supportive from day one to closing. He made myself and husband feel comfortable and good about becoming first time home owners. I am thrilled and excited to see a person of his caliber love what they are doing and have their clients at best interest. This has been a wonderful experience and good process for my family."

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"Vergis is an awesome Realtor, and extremely knowledgeable. Being a first time home-buyer, there were instances when I would be interested in a variety of homes - however he was able to quickly and easily educate me on whether or not that house fit within what I really wanted. He was able to successfully reel me back in!"

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"He’s an outstanding young man and I had outstanding results. He’s very competent, very sharp, and he cares about his clients. I can’t think of anything remotely bad that could pertain to Vergis. Not just for myself, but I’m also aware of other customers that he has had as well. I think it’s the personal touch, his customer service, and the care that he provides that makes him a real asset. He’s somebody who is not just in the business of selling real estate, but a person who understands that when you treat a person well it could also help your next sale."

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"The results were great! He sold our house for $210,000 and he made sure that it would sell. First we had the price too high and he checked to see what other homes were selling for in our area. He walked through every step of the way with us and found an attorney with us -- he did everything! Everything went very smoothly."

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"Vergis helped me find the house that I’m currently living in and purchased three years ago. He is very professional, very timely, and very receptive to my needs and what we were looking for as a family. Sometimes I would get off work a little late and he was able to let me view the homes at times when he may have been off work. Considering the fact that it was late in the day, he was always willing to go above and beyond in letting me check out some of the residences prior to me making my decision. He would give me insight into the locations as well. He always answered his phone and he was always calling to just to check up on things -- even when I purchased the house, he would call to check up and make sure everything was okay, even to this day!"

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"In regard to my results working with Vergis, it was very delightful and he was very helpful, understanding, and attentive as far as meeting our needs as first-time home buyers. There were several houses that I felt would be great for my family and I but he gave us great insight and we realized that the rooms were too small and the area wasn’t ideal for what we were looking for. I think that he went above and beyond in regards to finding the right fit for us as first-time home buyers in a single family. He gave me great feedback in regard to the home that I thought would be a great fit when I had looked online. He did some research and told us that the home wasn’t suitable due to the fact that it had damages. So he gave us great insight into what would be a quick sale for us!"

Read Even More Testimonials

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"Overall, it was a rewarding experience working with David Bowen. As a first-time homebuyer, I had a lot of trepidations about the purchase. I went through a refinance with him and it was a smooth process - there were no problems! Because the interest rate was a little high, he did the best he could to get me a low rate. Because my credit and everything was good, he got me locked into the best possible interest rate. Right now I think I’m at the best possible interest rate that you can have at this point."

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"I had great results! There was one point where I didn’t qualify for the loan and he actually got me a different loan very quickly that was even better than the first one, so it worked out very well. I was very happy with his service and I’ve recommended him to one of my good friends!"

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"We got a house that my wife and I are happy with. I was very happy with how David walked me through the process. He had good contact and returned calls promptly, as a businessman should. That was the expectation and that is what I got, so I was very happy with that. A particular instance that sticks out was when we had a contract on the first house. The appraisal came in low, it was one of those things where we needed some direction on what should be done. He advised me in a way to let that one go and go with another. We were much happier with the second contract that we got and it worked out better. He did a good job negotiating that situation, too."

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"David Bowen was a phenomenal guy to work with. I don’t think words can describe just how professional he was. He made everything as easy as possible and made me feel like everything was okay. He was amazing. A particular situation that sticks out was one that I was actually declined a loan from one banker and I decided to go through Wintrust Mortgage through a referral from someone. He talked to me and shot straight with me. He looked at my stuff and gave me an upfront answer. I gave him some basic information and he said he was going to be able to do it and actually did it. He had people look at it before having to go through the loan process. Working with him was easy; it was a night and day difference from working with my previous lender I was trying to use."

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"David is a professional. He always picks up the phone even when he is at his house, so he is easy to get ahold of and can answer any question that you have. I’ve been doing mortgages with him for the past ten years. This last refinance we did, he made a suggestion on not taking the lowest rate and taking a slightly higher rate, which worked out to get more money out of the refinance than I would have by raising the rate by a point or two, so that was helpful. We were able to do the remodel of the house because of that reason. I’ve also referred him to a number of friends of mine."

Chicago Real Estate Video Blog with Vergis Eiland

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Monday, August 1, 2016

4 Components of Your Mortgage and How to Reduce Them

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