As the New Year begins, many of us resolve to shrink our waistlines while others of us resolve to fatten up our wallets. If you are a homeowner, one key to your financial fitness in 2017 could be to add a little to your monthly mortgage payment.
For example, say you originally purchased your home with a 5% fixed rate, 30-year, mortgage for $400,000.If you were to pay an extra $100 per month for the remaining life of the mortgage, you could eliminate almost three years of payments and over $41,000 in interest off your home loan.
You’ll immediately begin adding to your equity (the difference between what your home is worth and how much you owe on your loan). Additionally, if you ever have an emergency, you’ll have more equity to take out a home equity loan.
Best of all, the less you owe on your mortgage, the more money you pocket if you sell your home!