Easy Techniques to Enhance the Worth of Your Home

Remodeling your kitchen may increase the resale value of your own home. The kitchen area is essential mainly because it is the spot where families spend considerable time. Several families entertain visitors within their kitchen as well.

Studies show that redesigning your kitchen area might actually add far more value to your home than it costs for the remodeling project. This means that you can really earn money by upgrading your kitchen. There are also a few disadvantages when considering a remodel. Kitchen remodeling is lots of work and may be a huge inconvenience. Over time, the benefits outweigh the disadvantages.

Know the Contractor

if you are able to complete just about all or part of the work yourself, you might be able to save quite a bit of money. Otherwise, you will need to hire a contractor. Contractors normally charge by the hour. Make sure that you hire a skilled contractor who has proper licensure.

Your Agent May Assist With The Process

Just before you undertake a big redesigning project, you might desire to talk to your agent. He or she may give you advice regarding exactly how much other clients have spent on remodeling jobs. The agent can also give you a bid of the resale value of your house after the remodeling work is finished.

Developing a Budget

Soon after talking to the agent and talking to contractors in the region, you should have a cost estimation for the job. At this point, you might realize that you're not able to afford the remodel that you had in your mind. Remember that remodeling projects are just about all about creativity and compromise. By keeping this in mind and making the mandatory changes, you ought to end up being able to get the look that you want at a cost you can afford.

Source: http://alexmitchell.articlealley.com/easy-techniques-to-enhance-the-worth-of-your-home-2433948.html

Basic (but Effective) Sales Tips and Techniques

Today there are more types of sales styles and techniques than you can shake a stick at. So how do you know what works and what doesn't? It really boils down to what works for you and what works for your product. Think about your target market and their perceptions about your product type. Do they know they need it and simply have to choose from the various brands on the market? Or, do they have no idea how much the product would help them be more productive? Do they even know about your product? Will the sales call be an education for them - or you?

Think through these things before determining what methods might work for your product or service. It goes without saying that a sales method that works for office supplies won't work for management consulting services. Although they are both targeting a similar market, the knowledge and understanding of your prospects will be much different. They have to be educated about how much they can benefit from consulting services, whereas, they already know they have to have binders to put their reports in, or paper for their copiers.

So, even though there are many sales methods, the choices are narrowed as you think about your market and what their needs are, as well as what their expectations may be.

With that said, let's just go over some things that are beneficial in almost any market. These tips are basic guidelines that most any sales person can benefit from.

• Listen to the emotional side of your prospect or client: Emotions are tied into almost everything we do even if we don't realize it. Your client may mention off-hand that they are really stressed-out about a particular project they are working on (even if it doesn't relate to what you're selling them). Make a note of this and see if there is anything you can do to assist them. You may have another client who had a similar dilemma and found a good solution. Make those connections and help where ever you can. You'll be rewarded with loyalty from all of your clients.
• Focus on your prospect or client's needs: We've talked about it before, but it's worth mentioning again. You may be tempted to sell your client your top-of-the-line model gadget when they really only need the mid-line model. By selling them more than they need, you may be cutting off future relations with them. Once they realize (and they will eventually) that they don't need most of what you sold them, they'll feel bitter and resentful toward you for wasting their money and not looking out for their best interest. They'll see you as a "salesperson" and not as a resource.
• Use language that focuses on your prospect or client: Simply changing the way you speak may also make a difference in how you are received by your prospect. Using "you" and "yours," or "you'll find..." rather than "I think" or "Let me tell you about," brings your message a little closer to home and may grab their attention more quickly.
• Help your prospect see the bottom line: If you know your product can help clients save money, or increase profitability, then make sure they understand that. Your product may have an edge in that it includes features that save time. Time is money as the saying goes, and if you can save time your can often sell your product.
• Find out your prospect's priorities: You can save yourself a lot of wasted time and effort by simply knowing how important your product and its benefits are to your prospect. If you've listened to them and determined the need, but still aren't getting anywhere, find out if there are other elements of their business that are taking priority and pushing your sale aside. If you know they have to implement a program before they can spend time considering (or funds purchasing) your product then you can schedule a call back at a later date that may stand a better chance of getting some attention. To do this you have to ask the questions because the information is not always volunteered. (Again, the key is focusing on the needs of your prospect, and having an open relationship already in place.)

Source: money.howstuffworks.com/business-communications/sales-technique4.htm

What to Wear to Work for a Real Estate Job

For WOMEN
                                                                       
What you wear to your real estate job may vary depending on what you plan to accomplish that day and where you will be working, but you should always dress in a neat, clean, and professional manner.

Dress in larger metropolitan areas will tend to be more formalbusiness attire on a daily basis.

Even if you are not meeting with any clients on a particular day, your colleagues may be, and it's important that the entire staff project a competent, conservative image.

For realtors in smaller towns and in locations that are vacation destinations, more casual attire is appropriate.

FOR MEN

What to Wear to Meet Clients

If you are meeting clients, or showing properties, depending on where you are working, you will most often choose to dress in business attire.

For men, this means a suit or dress slacks and a jacket, button down shirt, tie, dark socks, and dress shoes.

For women, a skirt or pant suit, conservative dress with a jacket, or dress skirt or slacks with a blouse or sweater, and coordinating jacket, hosiery, and closed toe pumps.

If you're in a more rural or a vacation resort area more casual attire is the norm. For example, if you're showing condos in a ski or beach town, business casual or even casual attire is typical.

What to Wear in the Office

If you are spending the day in the office doing paperwork and making follow up calls, you can often wear business casual.

Business casual for men encompasses dress slacks or chinos, button down shirt, dressy polo shirt, jacket optional, dark socks and dress shoes.

For women, a skirt or dress slacks, blouse, sweater, twinset, jacket optional, hosiery, closed toe pumps are acceptable.

No jeans, no sneakers, unless you are specifically told that they are acceptable, and even then, it's better to wait until after you have been there a while, and have noticed how predominant that kind of dress is..

Source: http://jobsearch.about.com/od/what-to-wear/qt/real-estate-wear-to-work.htm

Guidelines On Homes For Sale

Many people dream of owning their dream house sometime in their lives. However, most of them end up purchasing a substandard one because of inadequate funds or simply because they fear high mortgage rates. Whichever the problem, there is need to follow simple guidelines in order to make a good decision. Purchasing homes for sale is not an easy task. It requires adequate planning and funding to avoid frustrations. The important thing is to have a clear picture of what you really want before starting this process.

Conduct an adequate research into this matter before doing anything. You need to consider the pros and cons of everything that is involved. For instance, think about your source of funding. Weight the option of building a new house instead. Consequently, you will be able to make a knowledgeable decision.

As said before, it is imperative to determine your source of funding. Some people save for years then when it comes to the purchasing time, everything goes smoothly. Others on the other hand have to get loans. Your credit at that point in time will determine many factors as concerns your mortgage loan among other things.

The loan repayment terms, interest rates charged and everything else must be explained in simpler terms. This will enable you to understand every little aspect of the loan. In case it becomes a juggle, considering the assistance of a financial adviser might help. This individual will put everything clearer. Consequently, you could opt for another comfortable option. Do not put your family under too much financial strain on other expenses if you cannot meet the offered deal.

Real estate agents are good candidates to work with when seeking such houses. However, they are so many of them today and not all of them are as efficient and honest. As such, be sure to check their credentials among other things. Consider their billing as well as reputation. Obtaining referrals from friends and relatives might be the best thing to use in the selection process.

Article Source: http://EzineArticles.com/7240638

Do you know what is the History of Dragon Estate? :)

In May 1992, Ms. Laidia P. Yu, then a business entrepreneur, diverted her interest into real estate selling by forming DRAGON ESTATE . Dragon, in Chinese culture, being an emblem of power and a symbol of strength & superiority, was the origin of the company's name, as Dragon Estate manifested the characteristics of a dragon throughout the years.
Today, Dragon Estate continues to broaden its horizon with its continuous effort to provide prompt & professional service, and to offer valuable & quality investments to Filipino home buyers. Together with this is a vision of creating a name and an image for the company that is synonymous to productivity, integrity and excellence.

Blogging Success

1. Blogging Works

The simple formula of blogging regularly to a well defined audience pays off.

Most agents never get to experience this success because they:

A: Can’t commit to blogging a few times a week
B: Quit before they start to see results

So how long does it take to generate leads from blogging?

The answer is “it depends.” But you can help speed up your success by blogging with a specific target in mind. Instead of thinking that you need to be on the front page (of Google) for “San Diego real estate” in order to put yourself in a position to generate leads from your blogging, aim to be found by your target audience based on their specific needs.

Chances are, once you have really defined EXACTLY who you are aiming for, you realize that the phrase that they are searching with is not “San Diego real estate.” It is more specific; a community, a niche, a situation, a type of property… When you are focused on a specific target, you can’t approach it broadly.

For some this success comes in a matter of weeks, for others is can take months. But if you understand the above, and commit to writing to it, IT WILL WORK.

2. Blogging Is Easy

Blogging has made them relevant, current, competitive and savvy.

By definition it is just writing and publishing an entry to your blog/website.

The hardest part is getting motivated and finding the time to make it happen.

The most important thing is to hit publish as often as possible. That means Publish Pithy Posts!

3. The Leads Are Great

“Jim, I have been reading your blog for a few months now, and I love it. You have answered so many questions – some I didn’t even know I had. Anyhow – my wife and I are ready to talk to someone about selling our home and we’d love to meet with you.”

This is a typical lead that our blogging clients receive from their blogging efforts. Your audience gets to know you, your expertise, and dedication to their education before they contact you. And, it is for all these reasons that they do contact you.

Gone are the days of a database of fake emails and phone numbers entered just to access your property search.

4. Blogging Makes Them a Better Real Estate Agent

A dedicated blogger can see improvement in the following areas:

Discipline
Focus
Organization
Networking
Exposure
Expertise
Knowledge
First Impressions.

All of which are hugely important to being a successful real estate agent.

Why Real Estate Blogging Makes You A Better Realtor, Part 1 of 3

5. They Dominate In The Search Engines

It’s no secret – the most common reason for our clients to start blogging is to take advantage of theawesome power a blog has for being found on Google.

Blogs can be very well optimized for search engine success. This coupled with a regular posting habit is the recipe for taking over the results pages for coveted search terms.

6. There Is Plenty Of Room To Compete

How many agents are in your association? 100, 500, 1000, 5000, 20,000? Out in the field, you are competing with a sizable percentage of them for new business.

You won’t find a market with 1% of members actively using content creation (blogging) as a marketing strategy. Heck I bet you can’t find one with 0.5% of the members blogging.

This means that there is plenty of room for you to carve out your own active audience for the most obvious of topics and locations.

7. The Sooner You Start The Sooner It Works

You won’t find a market with 1% of members actively using blogging as a marketing strategy.

The first thing keeping you from being a successful real estate blogger is getting started.

Your audience is out there waiting for you to establish a reason for them to start working with you.

Waiting until you “have the time” or “when the market slows” or “when I get an assistant to help” is just prolonging how long it will take to start getting leads.

8. They No Longer Suffer With A Bad Website

Bloggers understand what makes their site successful. They know why their site is being found in the search engines and why their leads are contacting them. They are familiar with the workings of their website. They are in control and the positive results happen because they make them happen

The mystery of how to generate business from the web is no longer there.

Blogging has made them relevant, current, competitive and savvy.

9. It’s The Best Marketing Money They Spent In The Last 5 Years.

You need a website, and you expect to pay for its development and hosting.  But now that you are in full control of its success, the cost to achieve it is measured only in effort, not dollars. Once you have everything in place, the act of blogging is free.

Improving your presence in the search engines with post: free
Building an audience around your expertise: free
Gaining the trust of your readers: free
Generating leads: free

Five practices for Real Estate in Facebook

Here are five best practices for using Facebook in 

real estate marketing.

1. Use Facebook To Connect with Potential Clients

Social media makes it much easier to make a fast, personal connection with people you meet.

2. Maintain a Consistent Flow of Communication

It used to be that a monthly newsletter was enough to keep your network updated on your business, but with the advent of social media, you now have the opportunity to stay top-of-mind on an ongoing basis.

3. Integrate Facebook Into Your Existing Marketing

In addition to giving people the ability to follow you on Facebook from your website, think about other ways that you can integrate Facebook into your marketing. For example, if you’re blogging, set it up to automatically post each new article on Facebook.

4. Consider Using Facebook Ads

Facebook Ads have also become a popular way for agents to market both themselves as well as new properties. To get the most value, there are a few key things to keep in mind.

5. Create and Maintain a Professional Image

Be careful what you post to Facebook — pictures of you drinking a cocktail or posts about a wicked hangover aren’t likely to inspire trust.

Source: mashable.com

Tips for a Successful Real Estate Career!

Too many would-be real estate agents obsess over the licensing test, then fail in their first two years because they didn’t develop a plan and follow it for success in becoming a real estate agent.  They passed the test, but failed to understand the business, to develop a budget and a business plan, or to learn the ropes that aren’t taught or covered in the test.

These are not just tips, but tools to help you to go into the business with a plan in place to be successful.  Learning about the pace of the business, the costs of doing business, and getting to the right prospects is critical.

1. Basic Checklist for Becoming a Real Estate Agent

This article prepares you for the others to follow.  Here you’ll learn the major points to consider in becoming a real estate agent and starting your business in the right way.  Keeping these tips in mind will help you to use the others that follow to set up a plan that you can follow, but even more important, believe in.  A realistic start and plan will give you the confidence to go out and make it happen.

2. Reasons for Failure After Becoming a Real Estate Agent

Knowing why others have failed, and a large percentage do, will be an important factor in keeping your new real estate business plan on track.  Most successful people in any business will tell you that they are successful not only because they studied ways to be successful, but that they also studied the failure of others in order to avoid the same mistakes.

3. It’s a Business – Know Your Expenses Before Becoming a Real Estate Agent

How much are your personal expenses?  You need to know, as they go on while you’re trying to kick off your new real estate career.  Becoming a real estate agent doesn’t stop the rent, food, clothing and other expenses.  Here’s some help in making sure you have a handle on those expenses and a plan to make sure that they’re paid while still allowing you to devote time and budget to your new business.  There’s even a spreadsheet at the link that you can download to estimate your personal and business expenses.

4. Planning Income With a “Sales Funnel” Approach

Becoming a real estate agent requires that you know your present and future expenses, both personal and business.  However, that’s just half the puzzle.  What about your income?  Sure, it’s sales, and who knows how well you’ll do at first, or how many deals you can get done in your first couple of years?  You can develop an income budget just like an expense budget, and you’ll get a spreadsheet and a step by step process to come up with a realistic estimate of what you can expect for income the first year or so.

5. Develop a Marketing Budget When Becoming a Real Estate Agent

Now that you’ve gone through the steps for estimating expenses and income, you can develop a budget for your marketing efforts.  You probably thought about this in the income funnel approach, as the number of leads you’ll get from direct mail will be based on the number of mailers.  So, you know how many you want to mail, and can determine that expense budget item as well as others in this article.

6. Choosing a Broker When Becoming a Real Estate Agent

Choosing your first broker to carry your license could be the difference in success and failure when becoming a real estate agent.  Making the right choice requires an understanding of your needs, both income and training related.  While one broker may seem to be offering more leads with floor time, are you going to get the training you need to do a good job with those leads?  Learn in this article how to work toward a decision, including considering both anticipated income and expenses.

7. Income Splits & How The Money Is Divided – Broker Choice

While “splits” can weigh heavily in your first broker selection, they shouldn’t be the only criteria.  Learn here how the money is divided up between all of the parties involved, including franchises.  In estimating your income in the spreadsheet provided, you can change the numbers for split percentages to compare results and the impact on your income.  Keep in mind that the initial split can get better once you show your broker that you’re going to be a deal generator.  So, don’t make your broker decision based only on splits.

8. Fast Track Your Prospect List When Becoming a Real Estate Agent

In this article you’ll learn proven ways to get a jump on building your “sphere of influence” or prospect database.  Many are the old “tried and true” ways others have used to get started.  They’re here because they work.  Take this step in your business plan seriously, and you will see income sooner, and may be able to go into your income funnel spreadsheet and make positive adjustments.

9. Basic Checklist for Using Technology and the Internet

You just learned about some “tried and true” methods for getting a fast start on building prospects for your new real estate business.  But, the new reality of marketing in this business is the Internet and technology.  Starting early in planning and building an effective Internet presence will make a huge difference in the long run.  Becoming a real estate agent who is highly successful will require the Web.

10. Choosing a Marketing Niche for Your Real Estate Business

While it isn’t something you need to do right away, and you may never do it, consider studying your market area in order to specialize in a niche market in the future.  Learn in this article some of the most successful niches chosen by others.  Congratulations on your decision, and good luck and success in becoming a real estate agent.

Source: realestate.about.com

100 Real Estate Blog Posting Ideas

by TAYSHA

Blogging is a wonderful tool for real estate marketing.  Not only does it increase your exposure on search engines but you start to build a valuable reputations for yourself as a reliable source and professional. When it comes to blogging you are bound to develope some writers block now and again.  It’s important to blog about topics that relate to you industry, neighborhoods, market trends, etc. while keeping it fun and interesting for your readers. Here is a extensive list of 100 Real Estate Blog Posting Ideas for you to utilize:

Describing Your Neighborhood…

1. Tell a story about your neighborhood. 2. Architecture or housing styles in your area. 3. Attend a public meeting and write about it. 4. Churches – what denominations are in your area, where are they located, when are services. 5. Commentary on local news stories. 6. Commentary on local public policy. 7. Cost of Living Comparison (for different cities or neighborhoods in your local market). Put in a side by side comparison for average price of homes, gas, utilities, etc. Provide proof to your buyers of what they get for their money in one city versus another. 8. Day Care – who provides day care services, what are rates, where are they located, etc. 9. Environmental issues – does your area do something significant to lessen the population’s impact on the environment? 10. Guide to dining out – rank all the restaurants in your area (let the restaurants know about your ranking guide and see if you can get a link from the ones you rank highly) 11. Historic buildings – what time periods are represented, where are the historic districts, are there any museums or historical tours? 12. Job market in local area – who employs the most people in your area? What job sectors are considered “growth” industries right now? 13. Lists of local businesses – categorize them based on utility: supermarkets, department stores, hair salons/ barber shops, gas stations, etc. 14. Local Parks – what can you do at each park? Any commentary on which is your favorite and why? 15. Local Schools Ratings – reference online studies that you can find and what you know of the different schools yourself. 16. Market statistics for your area, including average prices and absorption rates 17. New businesses coming to area 18. Places to eat 19. Places to shop 20. Transportation & Parking – Does your area have a good public transportation system? Is it bike friendly? Are the freeways or highways well-connected? 21. Travel tips for visitors to your area (great for out-of-town buyers) – What kinds of items do people frequently forget when traveling to your area? 22. Upcoming sporting events, concerts, shows, etc. 23. Your city council. 24. Local directory of doctors, dentists, hospitals, chiropractors, etc. (also, get these providers to link to your site and add a blurb about their facility and the services they offer)

Buyer And Sellers Resources

25. A closing – what goes into one, how long it takes, what to expect, etc. 26. Avoid Legal Battles when Buying or Selling a Home (a great place to talk about the importance of hiring a professional – You! – and to talk about the protections and responsibilities built in to your state/local real estate contracts) 27. Book review of a real estate related book. 28. Buying a second home or vacation home/condo. 29. Buying your first investment property. 30. Real estate hoaxes and scams. 31. Create a helpful checklist for buyers and sellers. 32. Do and don’t list on buying investment properties. 33. Equity stripping scams. 34. Fair housing issues. 35. Final walk through overview. 36. First-time home buyer programs. 37. Home owners associations – how they can impact your long-term expenses. 38. Home prices in local market. 39. How do I price my home right to sell without giving it away? 40. How not to sell a house. 41. How to sell a house. 42. Investment scams. 43. Land lord or tenant issues. 44. List of basic real estate definitions, from A-Z. 45. Local real estate market trends and observations. 46. Over-priced homes – how to identify them. 47. Pet-friendly housing. 48. Property taxes. 49. Real Estate Laws. 50. Senior housing. 51. The home buying process. 52. The home selling process. 53. The pros and cons of buying and owing a timeshare. 54. Things that go wrong with real estate sales. 55. Three Biggest Seller Mistakes (typically, these are Price, Condition, and Marketing – they must price it right, have it in good condition, and market it well – this is where you can talk up how your marketing program beats the competition). 56. Types of mortgages. 57. What you need to know about buying foreclosures. 58. What you should know about home inspections. 59. Women home buyers.

Home Maintenance and Remodeling

60. Building trends. 61. Childproof Home Safety Tips. 62. Decorating ideas. 63. Energy Saving Tips. 64. Fire Safety Tips for your home (also discuss 2 story homes, condos/high-rises, small children, the elderly, etc.). 65. Furniture. 66. Gardening and landscaping. 67. Home maintenance. 68. Home owners insurance. 69. Landscaping can make a difference. 70. Paint and painting. 71. Pest control. 72. Resources and tips for hiring contractors and actually having a good experience (a lot of folks have bad experiences with contractors either not showing up, not finishing the job, not doing work they were already paid for, etc. – you could provide a list of tips and resources, such as your local or state contractors association, referral services, etc.). 73. Simple repairs to help your home show better and sell faster. 74. The importance of safety around swimming pools. 75. Trends in kitchen design. 76. What are the Top 10 Scams of building contractors and how to avoid them? 77. What is curb appeal? 78. What to do about mold – is it really a problem? 79. What to look for when shopping for Energy Saving Appliances. 80. Feng Shui Decorating.

Home Listings

81. Local subdivisions/ farm area prices, solds, actives, pendings, etc. 82. Lofts in the Area. 83. New construction plans in area. 84. Open houses.

Loans And Mortgages

85. Advantages of going through a mortgage broker for your next loan as opposed to your local bank (i.e., more options for finding a lender to say yes, potential for better rates, competing lenders so can find the best program for your needs). 86. Repairing your credit. 87. Credit scores. 88. Dangers of certain types of loans (such as interest only, certain ARMS, etc.), and why they are not for everyone – be careful not to buy more house than you can afford. 89. Interest Rates. 90. Mortgage fraud. 91. Mortgage rate updates. 92. Mortgages news.

Move-Related

93. Bad neighbors – what to do to repair bad relations with them. 94. Good neighbors – how to show them you’re appreciative! 95. Home safety. 96. Moving – how to prepare, what to do, etc. 97. Moving resource guide (resources for buyers moving in from out of the area, for local moves, and for sellers moving out – all are potential client bases for you). 98. Moving with children. 99. Moving with pets.

Referrals

100. Detail a lender who does a great job with your clients.

Source: realestatemarketingblog.org

Before You Buy a Home – Look at Eight Reasons to Buy a Home

If you’re like most first-time home buyers, you’ve probably listened to friends’, family’s and coworkers’ advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are eight good reasons why you should buy a home.

Pride of Ownership

Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.

Appreciation

Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. ItsHouse Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.

Mortgage Interest Deductions

Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.

Property Tax Deductions

IRS Publication 530 contains tax information for first-time home buyers. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. In California, the passage of Proposition 13 in 1978 established the amount of assessed value after property changes hands and limited property tax increases to 2% per year or the rate of inflation, whichever is less.

Capital Gain Exclusion

As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the “over-55″ rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit–subject to limitation–free from taxation.

Preferential Tax Treatment

If you receive more profit than the allowable exclusion upon sale of your home, that profit will be considered a capital asset as long as you owned your home for more than one year. Capital assets receive preferential tax treatment.

Morgage Reduction Builds Equity

Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. On average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of your first 12 months to $99,500.

Equity Loans

Consumers who carry credit card balances cannot deduct the interest paid, which can cost as much as 18% to 22%. Equity loan interest is often much less and it is deductible. For many home owners, it makes sense to pay off this kind of debt with a home equity loan. Consumers can borrow against a home’s equity for a variety of reasons such as home improvement, college, medical or starting a new business. Some state laws restrict home equity loans.

Source: homebuying.about.com