Why to Consider a Growing-Equity Mortgage

A growing-equity mortgage is a type of mortgage loan that is designed to help you pay off your mortgage balance faster than normal. Here are the basics of the growing-equity mortgage and why it could be beneficial to you.

Growing-Equity Mortgage

The growing-equity mortgage is one that is going to provide you with an increased mortgage payment as time goes on. They will start you out with a small mortgage payment that you can afford. Then, every few years, your mortgage payment is going to increase slowly. By doing this, you will be able to get used to the small increases in payments and pay more money towards the principal balance of the loan. 

Benefits

Doing this type of mortgage can be very beneficial to you financially. By forcing yourself to make larger mortgage payments, you are going to be able to retire your mortgage debt earlier than most other people. This will give you a way to eliminate your largest monthly payment and you will have a lot of financial flexibility at that point. In addition to paying it off quicker, you are going to save thousands of dollars in interest over the life of your loan.

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