principal. Every dollar put toward your loan’s principal represents a dollar of equity — actual ownership of the property. Further, the property should appreciate in value over the life of the mortgage, further adding to equity (what the house could be sold for versus what is owed on it).
PAYING OFF YOUR MORTGAGE FASTER
One strategy is to pay your mortgage Biweekly rather than monthly as it makes about 3 extra payments per year. This strategy can pay your mortgage off 5 years faster and its hardly noticeable. Purchase Plus Improvements - You can add mortgage money for improvements. As homeowner you can increase a home’s value through home improvements, thus both making your home more comfortable and enjoyable while growing its loan-to-value (LTV) ratio. For instance, adding a bathroom or finishing a basement substantially increases the property’s functionality and appeal, while potentially boosting its value. Current mortgage rates are still relatively low. Interest rates vary through the years. In 2021 interest rates were well below normal averages making it easier to obtain a mortgage. Rates have now increased making it more expensive to own, but compared to the rental rate hikes it's still on average the same cost to rent as it is to own. Ownership rights and creative freedom. Your decorating and home-improvement choices are just that — yours, provided they don’t break building codes or violate restrictive covenants that maybe registered on your title. You can paint walls any which way, add fixtures, update or finish your basement, or build a patio or deck. Changing your environment to suit whims is a freeing aspect of homeownership.
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