Want to Build Your Home Equity Faster?

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Real Estate

Interested in Building Your Home Equity?

For your information, a 30-year loan with a bi-weekly payment plan could be  paid off in about 20 years. You can make additional principal payments. If you were to sign up for a bi-weekly mortgage, you would make two payments per month, which added together equal one monthly payment. So the equivalent is that you are making 13 monthly payments per year instead of 12. 

Another way to build home equity is to refinance. If you had a $200,000 30-year ARM at 8.13 percent and replaced it with a 15-year fixed rate loan at 6.75 percent, your monthly payment would go from $1485.69 to $1769.82. You would save around $200,000 in interest and build the same amount of equity in half the time. Be sure to review these numbers closely and because of the closing costs a refi may just add more to your loan.