re: Home Equity question

quote:

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The interest is figured each month on the remaining balance. Balance is lower, interest is lower. If he didn't sell it, he would just pay if off sooner.

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Yeah, its figured out ahead of time... So him paying more in principal isn't going to affect the interest he pays next month or the month after. His monthly interest amounts are fixed, not variable.

The advantage would be paying the principal off earlier so you save those remaining months of interest payments.