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Although you make regular payments on your mortgage, home equity, student loan, personal loan, and/or car loans, it may be difficult to track your progress on paying down this debt, especially if you’re juggling multiple loans at one time. Luckily, there are simple ways to determine how large of a dent you’ve made – and how you can make it even bigger.
Whether you receive paper or online statements, most loan providers will give you these specific pieces of information on each statement:
By comparing the amount you currently owe to the amount you originally borrowed, you can get a good idea of how much progress you’ve made on your loan. Your statement also shows how much in principal you’re paying from period to period. If you can add a little more to your monthly payment to go towards principal, you will decrease the total cost of your loan and pay it off faster.
To figure out how much equity you have in your home, deduct the balance of your mortgage from the value of your property. Because the value of your home may change over time, it’s important to have the home appraised if you’re applying for a home equity line of credit or refinancing your first mortgage.
Knowing where you stand with all of your loans will help you formulate a repayment plan that will get you the most from your money. To find ways to pay your debts faster, look for ways to track your spending and pay down debt.
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