Interest Only:  Rate starts @ 1.99%

• There are 2 ways to add equity to your home.

  • You can pay down your mortgage by making a principle and interest payment, in which your principle payment will apply will add to your equity. You can also make extra payments, but remember the extra principle paid does not reduce the interest in your monthly payments. It does however reduce the number of payments and the interest associated with those payments.
  • The Market will also add equity to your home. Typically that has dropped dramatically in Houston but is still about 2% a year in most cases.
  • You will add 5 times the equity through the market then you will by paying down the mortgage.
  • The rate is a lot lower with interest only and therefore you are able to realize a significant difference in your monthly payment, about 35%. You can use this for reducing the loan or anything else!