Everything You Need To Know About Bi-Weekly Mortgage Payment

How old will you be when you are done paying your mortgage? Are you dreaming of having a home that you can call your own personal possession? What if there is actually a plan that will give you the opportunity to fulfill your dream in a faster and a trustworthy way? There is a method that can get you your home sooner than you think, and even save you money in the process. Here is everything that you need to know about bi-weekly mortgage payment.

1. It is not a myth, it is just simple math. By paying your loan in smaller rates on a two week basis, leaves you with almost a full month in advance. Instead of having 12 monthly payments per year, you are paying 13 in total. The payments of those extra two weeks are cutting down your principal loan and you can speed up your process of repayment for 4 up to 8 years, depending on the amount of your loan.

2. At the same time you are saving money from interest rates. You are not paying the interest rate with your two extra payments, but even from the time that you save you are significantly saving large amounts. Again, depending on your debt, you can save thousands of dollars.

3. Your bank needs you to keep paying, they are earning from your interest and the longer you are in debt, the more profit they gain. This is why banks offer refinancing easily, they are simply in it for the long term. Most banks will not grant you a bi-weekly mortgage plan, or will do it only in exceptional situations. Lenders are aware of the money that they are losing in the process in your benefit.

4. There are companies that offer this professional service. Don’t believe the myth that they are working against you, they are doing this for thousands of customers and profit from a small fee that is still a symbolic investment compared to the money that you will save in the process. They can set-up a bi-weekly plan for you with regular payments withdrawn from your account.

5. There are many advantages of this system; it provides you with a lot of extra space for moving your money around. People that are using this arrangement are more likely going to even save money on their own in the process, and if you are receiving your paychecks bi-weekly as well, there is no doubt that this method is perfect for you.

6. There is a simple way of finding out how much time and money you can actually save. Try using a bi weekly mortgage calculator and you will get the general picture of the possibilities that are out there for you. By comparing the numbers and letting them speak for themselves, you will be surprised how much one simple decision can change your life for the better.

Beware if you are trying to conduct the bi-weeklypayment system yourself. Banks will encourage you to make payments two times per month, explaining that it is the same thing that companies offer. Keep in mind that they are always protecting their investment, as you should be doing as well. Inform yourself properly! This is a proven method that works for your benefit, don’t be afraid to fight for your interest.

Categorized as Finance

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