If you are a homeowner, equity is key for the future! making your monthly payments is good but if you want financial freedom and more buying power on your side in the future it will take more than the standard! Here are 4 quick tips to building equity quickly!
#1. Bi-Weekly Payments
One young family I know was able to knock 60+ months off their mortgage by switching their 30 year standard mortgage to this payment style. The overall monthly payment remains the same but attacks the principle on the mortgage before the interest builds up!
#2. Take advantage of your bonus
By taking a portion of your bonus, inheritances or even taxes and applying it to the mortgage consistently you will start to make a massive dent in the overall amount you still owe to the lender.
Sure, it is not as fun as going to Cabo but if you can make small sacrifices now the future will be in your favor!
#3. Make Home Improvements
Add the deck, update the kitchen and bathroom! All of these steps will help your home appreciate exponentially! I know one person who invested into their curb appeal and he was able to sell his home for $40,000 more than the average of the neighborhood! Find a good, competitive landscaper or contractor and get to work.
#4. Apply for a 15 Year Mortgage!
Paying off a house in 15 years as opposed to 30? Yes, the equity on your house will be built up faster than you could imagine! While it may be more difficult to be approved and cost more, it will help avoid the massive interest payments of a 30 year mortgage.
Message me to find your dream home or for more tips! — I love to make real estate easy!