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paying extra on the load builds equity in the property.
if you pay extra you are putting the total amount remianing down, so if you do sell the house you get to keep more of the final sale money because you have less to pay back to the bank!!! This is a good thing.
plus, if you pay more then you get ahead of your required payments. That's the equity. In Australia, if you have problems down the track, you can use this equity to suspend payments on your house for a while as they take the payments out of this repayment 'credit' you've created. In effect you are re-borrowing the loan and using it to pay back the loan amount that you've already paid... kinda. Anyway, it gives you some brathing room to get a new job, get out of hospital, whatever went wrong. Of course it only lasts as long as the 'equity' lasts based on your minimum repayment schedule.
I colour stuff...
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AUTHOR OF THIS MESSAGE
Little green man
MESSAGE TIMESTAMP
14 january 2009, 00:17:42
AUTHOR'S IP LOGGED
211.26.96.65
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