There are many things you can do to lesson the time of your mortgage and increase your equity without really doing anything that will affect your monthly budget and below I have given you just a few.

Did you know that if you pay half your mortgage payment every other Friday instead the full payment once a month that you are doing the same as paying one extra payment per year? That is correct, the key is to use some kind of auto pay through your bank and pay every other Friday. There are 12 months in a year, but not every month has 4 weeks, so what happens is you will actually be paying two extra half payments for a total of a full extra payment every year. You also cut the interest every month because you have paid the money early and there is less principle at the end of the month when they figure out the interest to charge.

If you have extra money from a bonus check or a raise, consider paying 10% of the money and apply it to your principle every month.

If you got a 100% loan you have Private Mortgage Insurance. After 4 years consider doing a appraisal to see if you have built 20% equity in your home. Then take the money saved from not having to pay the insurance and apply that to your mortgage payments. You were already paying it every month; consider using it to your advantage.

These can and will take up to 10 years off your mortgage and build your equity in you home much faster without affecting your household income.

Todd Clark - broker
Kastings & Associates
(503)524-9494
Todd@IFoundYourNewHome.com
www.IFoundYourNewHome.com