How to Own your home...
Believe it or not, most people never reach the point of actually owning their home. If you have a home mortgage loan, your home doesn't actually belong to you. As you know, your lender has an interest in your property (i.e. lien or deed of trust). To actually make your home your own, you need to completely payoff your home mortgage loan.
Home mortgage loans are amortization type loans. Basically, the interest is calculated on your remaining principal balance each month and the lender assumes you will pay the principal back over a certain period of time (usually about 30 years).
As a result, during the first half of the loan period, the majority of your monthly payment is applied toward interest, not principal. About halfway thru your 30 year loan, the tables turn and the majority of your monthly payment is then applied toward your principal.
However, most people move within the first 7 years of buying their home. So by this time, you too may have decided to buy another home.
Although at closing you payoff the loan on your old home, you start a new loan when buying your new home. This starts the amortization process all over again. So you never actually get to the point where your don't have a mortgage on your home.
However, by using accelerated debt elimination strategies, you can pay more on your principal sooner than originally planned. The less principal you owe, the less interest you pay and the sooner you payoff your home mortgage loan. You can payoff your mortgage in 5 to 7 years.
So use these accelerated debt elimination strategies to be debt free faster.Debtfree › Own Your Home