Each monthly payment has a portion that goes towards your principal loan balance, paying down the amount that you still owe on the property. Making extra payments, or adding extra funds to your monthly amount will make the amount owed go down more quickly.
One trick is to pay half of your mortgage payment every 2 weeks – even the extra two. By doing this, you will make an extra payment each year, and that full amount will be applied towards your loan balance.
If the equity in your current home has grown over the past few years, now might be a great time to sell. And with mortgage rates near historic lows, you could be able to leverage your equity into a nicer home for the same monthly payment!
Let us know how we can help.
New Horizons Development, Inc.
Janet – 970-250-0765
Jennifer – 970-985-9432