Question
I’ve heard of mortgages with bi-weekly payments you can pay your mortgage off faster. Is that true?
Answer
If your lender will allow you, paying half your mortgage every 2 weeks will allow you to pay off a 30 year mortgage in around 22 years. The additional payments pay down your interest quicker and let you start paying down your principal loan amount. If you want to pay your mortgage off quickly and you can budget it, this becomes an attractive proposition.
You should realize lenders will often charge a one-time fee to set bi-weekly payments up as they will usually want to deduct the amount from your bank account. You can achieve the same affect of bi-weekly payments by paying an extra mortgage payment each year, or by paying additional money to your principal every month.
You should realize lenders will often charge a one-time fee to set bi-weekly payments up as they will usually want to deduct the amount from your bank account. You can achieve the same affect of bi-weekly payments by paying an extra mortgage payment each year, or by paying additional money to your principal every month.
Filed under: Mortgage
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