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As a owner of 2 homes, one rental and one living, I'm adding to the principal each month. My rental has a payment of 471, 62 is principal. My residence has a payment of 828, 92 is principal.

I'm adding 25 to each in principal a month. I've used a prepayment calculator, courtesy of the web, and will have both houses paid for in 16 and 18 years respectively, instead of the standard 30.

Now I know that some out there will say it's better to take that 50 and invest it. Well arguments can be made for both sides of this topic.

My personal stake is that each additional principal payment I make increases my equity ( for future needs if they arise) and reduces my interest paid had I stayed on the 30 year course.



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