Mortgages Savings

A bi-weekly mortgage can save much money!

You know, after paying 15 years on a 30-year mortgage, you can still pay 90% of the amount that was borrowed?

This simple method to make your payment dramatically repay the mortgage ... saving several years worth of payments. Paying twice a week does not pay your mortgage twice a month - this means dividing the payment in half and pay that amount every two weeks. And what difference will it make!

Thanks to a payment schedule biweekly years it will be reduced mortgage term and rapidly increase the equity in your home.

How does it work?

It's really easy! Instead of a monthly mortgage payment ... you make a payment every two weeks. This automatically adds an extra payment each year, which actually reduces the principal of your loan.

For example, we will use a $ 100,000 mortgage at a rate of 7%. Your principal and interest payment would be about $ 665 per month. Cut it in half and pay $ 332.50 every two weeks. You will then have an additional payment at the end of the year to go directly to your capital. It is unbelievable that this could cut your mortgage in 30 years for a loan of 23 years ... save nearly 35,000 in the process, is not it? The higher the loan, the more dramatic the savings will be.

If you are interested in having a mortgage every two weeks, call your lender and ask for cash management ... or someone who can help with inquiries payment. Learn about options for a mortgage bi-weekly. But always make sure that the extra payment is applied directly to your principal balance. (It would not hurt to keep a record of the call and the name of the person you spoke with ... just for future reference). If your lender does not have a provision of this option, contact us and we can help you with more ways to pay off your mortgage early.

Another way of repaying your mortgage is too early to consider your repayment schedule and determine how much of any payment is given to principal. Just add this amount to small monthly payment and you begin to see a reduction in your principal balance. For many years, the amount applied to your principal will be very low. But paying even this small amount can make a huge difference in the duration of your loan.

Remember to always read the fine print in your loan documents. Make sure there is no prepayment penalty. And if there is a penalty, many times only for a number of years. Usually, they allow you to pay a certain percentage of your principal balance on an annual basis prior to any prepayment penalty applies. Doing your research will really pay off. And a loan program bi-weekly amortization will also pay - big time!

Remember, you pay the same amount of payment ... but breaking it down into two smaller payments. Just a little more than bookkeeping. The savings will be yours!