Existing home sales rose 18.7% in Chicago from April to May but are still down 27.5% from May of last year, according to data from the Illinois Association of Realtors. Within the city, the median price rose 2.3% to $225,000, which is still 29.5% down from last year as well.
From the Tribune, this article answers a reader question about paying down your mortgage–i.e. putting a little extra toward the principal each month–even when you already have a low interest rate:
One of the great benefits of prepaying your mortgage is that each prepayment is applied toward the principal of the loan. Because you’re paying interest on what you’ve actually borrowed, paying down the loan faster than prescribed in a 30-year amortization schedule means you’re paying less interest overall.
Prepaying your mortgage is most effective when interest rates are high, because you’re shortening the life of the load and reducing the amount of higher interest you’ll pay. But even with a low rate, prepaying the loan can shave years off the term of the mortgage.
