Build Home Equity Faster
One way to build home equity faster is to make additional principal payments. You can sign up for a bi-weekly mortgage. This plan has you make two payments per month (which added together equal one monthly payment). You will make the equivalent of 13 monthly payments per year instead of 12. A 30-year loan with a bi-weekly payment plan is usually paid off in about 20 years. Some mortgage companies offer this plan but check to see if there are any hidden fees or investigate how they apply the first and second payments. Keep in mind that you can make payments on your own without having to sign up for bi-weekly mortgage. If you can make extra payments, consider this to pay off your loan early.
The other way to build home equity faster is to refinance. If you had a $200,000 30-year ARM at 8.13 percent and replaced it with a 15-year fixed rate loan at 6.75 percent, your monthly payment would go from $1485.69 to $1769.82. You would save $200,000 in interest and build the same amount of equity in half the time.