Home Financing Library
Build Home Equity Faster
Many borrowers use a refinance to shorten the term of the mortgage. Even at a lower rate, a shorter loan term means higher monthly payment. The benefit is you will build up equity faster and the total amount of interest paid will be less over the life of the loan.
If reducing your mortgage to a 15-year term and the higher payment is not in your budget, your best means of building equity is to refinance for less than 30 years if possible.