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January 2, 2009, Newsletter Issue #149: Build Equity in Your Home More Quickly
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Tip of the Week
If you can afford higher monthly payments, you may want a refinance mortgage to build equity in your home quickly.
You can do this by refinancing for a mortgage with a shorter term. You may refinance a standard 30-year mortgage for a 15-year mortgage, for example. You still will pay toward your interest on the loan, with the rest going to the principal. But with the shorter loan term, you will have a higher payment. A larger portion of the monthly payment goes to the loan amount.
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