Enter our drawing by emailing me your answer to the riddle below, and you’ll be entered to win a retro-styled popcorn maker! The winner will be drawn on February 8th!

Question:
Six drinking glasses stand in a row, with the first three full of juice and the next three empty. By moving only one glass can you arrange them so empty and full glasses alternate?

Email your response to: contests@perlmortgage.com!

The Baker’s Dozen of Mortgage Payments

Paying down your mortgage principal will increase equity and improve your credit rating. But did you know that by simply paying an extra mortgage payment each year, you can reduce the life of your loan by several years? In other words, if you’ve obtained a 30-year fixed rate mortgage, you could effectively transform your loan into a 24-year mortgage.

Here’s a general example on how this might work:

• Original mortgage amount: $200,000
• Interest rate: 5.5%
• Term: 30 years
• Monthly payment: $1,135
• Total paid in full on your loan: $409,131

By paying an extra payment of $1,135 or in increments totaling $1,135 over the year, you reduce total amount paid and the life of the loan:

• Total paid in full on your loan: $367,828
• Money saved: $41,302
• Term: 24 years

Before you start pre-paying your mortgage, consider these factors:

An Upcoming Sale: If you’re thinking of selling soon, it might make more sense to save the extra cash for home preparation, last minute repairs and closing fees.

Paying off Other Debt: Mortgage rates tend to be much lower than credit card rates, school loans, and even car loans. Using the extra money to pay down higher interest rate debts will be better for your financial picture.

More Savings: If you’re thinking about paying down your principal, consider your current interest rate. You might be able to refinance your loan and save thousands of dollars each year. Getting a lower rate AND making an extra mortgage payment a year, will save money and reduce the life of your loan at the same time!

If you’re planning to stay in your home for the full length of your loan, consider paying down your principal. If you choose to do so, make a special note on the check that states that it is a “principal reduction” vs. an early payment for the next month. And as always, please call me if you have any questions. I’m here to make sure you have the lowest rate on the market!

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If you’ve recently received a new tax bill and want to know more about how to control your real estate assessment and tax hikes, check out www.cookcountyassessor.com or call 312.443.7750 to compare your home’s valuation with similar properties in your area.

Exemptions, such as the Homeowners Exemption, Senior Citizen Exemption and Senior Assessment Freeze Exemption, could potentially saving you hundreds of dollars in taxes. There are three grounds for assessment reduction:

1) Assessor’s Error: If you can prove that the assessor made an error in the description of your property, you can win a reduction - but the error must affect your home’s estimated market value.

2) Uniformity Complaint: If your home’s assessment doesn’t align with the assessed valuation of similar homes in your neighborhood, you should find at least three examples of similar homes with lower assessments.

3) Evaluations Approach: Homeowners file an appeal and submit a recent closing statement from their home and/or purchase prices of similar homes to show that the assessed value is greater than 10% of the purchase price.

File an appeal with the Assessors office at 312.443.7750 (www.cookcountyassessor.com) or the Cook County Board of Review at 312.603.5542.

Source: The Home Front, DeBat Media 2010

Give Your Home a Boost in 2011

Whether or not you plan to sell your home, everyone has a list of renovation resolutions. Here are some tips for making some valuable improvements in 2011.

Floor: Refinishing hardwood or reinstalling carpet will give your home a new sheen and an edge if you’re considering putting your house on the market this spring.

Paint: A fresh coat of paint gives any home a new look and feel. Note to potential sellers: pick neutral colors, such as beige and tan, in order to give your home a better look before putting it on the market.

Kitchen: Give your kitchen some love and add a back splash! Show-off great tile work by adding task lighting with lights mounted under cabinets.

Bathroom: Give your bathtub a face lift by re-caulking and sealing. Consider updating fixtures, mirrors and finding storage solutions such as new cabinets for all rogue cosmetics and spare toiletries.

Ceiling: Consider updating old fixtures with something modern and energy efficient. Adding crown molding will draw attention to these upgrades and provide a stunning finishing touch.