re: Home Equity question

quote:

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But will that change the actual dollars that he pays in interest over the next 4-5yrs?

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yes, he will pay less interest in next 4-5 years which means more towards principal and his balance will be lower when he sells in 4-5 years. Therefore more money in his pocket at that time.

If he is paying $10 extra each month it won't make much difference in 4-5 years. $200-$400 extra each month could make a pretty significant difference.

ETA: There are a few instances where mortgages have an early payment penalty and you are not allowed to pay any extra during the first _____ years. However those are not very common these days.