| What
is a Biweekly Mortgage?
What is a biweekly mortgage plan anyway? Simple, it is just paying your
house bill on a different schedule. Rather than making your entire payment
at the end of the month this payment is broken in half and paid every
two weeks.
Even though
your mortgage interest may be 6% (for example) you will end up paying
more than 60-70% in interest throughout the life of your 30 year loan?
If you have a $200,000 home loan the interest would end up being $120,000-140,000.
The money you save by using the biweekly plan comes from paying less interest
on your loan.
Here's an example scenario.
You make
a schedule of making your bi-weekly payment on a certain day of the week,
we’ll say Friday just for example. Lets say your current monthly
payment is $1000. This will make your biweekly payment $500. On some months
there will be 5 Fridays. These months you will make three $500 payments.
This will happen approximately twice a year. By continuing this schedule
you will pay off your mortgage in about 3/4ths the time. This
will save you a great deal of money on interest.
The biweekly
payment is a very efficient paying plan and has saved many people thousands
of dollars. Most mortgage compaines partnered with CreditAndDebt.com offer
these plans for a small one time fee once you get your loan established.
Be sure to ask your loan officer when they get in contact with you.
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