Bi Weekly Mortgage
How Paying More on Your Mortgage Can Save You Money
It’s the American dream to own your own home and dreamers will go to any lengths to accomplish this even if it means borrowing thousands of dollars to be paid back over a 30 year period. It’s quite an obligation to make 360 payments month after month with the bulk of the money going toward interest, at least in the beginning.
The interest on an average home over a 30 year period can account for twice the cost of the home. Interest is working against you 24/7/365. Wouldn’t it be wonderful if you could pay off your debt years sooner and save thousands of dollars?
You can. It just takes discipline and perhaps a little budget adjusting. It’s no secret that paying the mortgage twice a month, instead of only once will save you thousands and pay off your debt years sooner. Some call it the bi-weekly mortgage plan.
For example: Let’s say you paid $80,000 for your home and got a 7% loan for 30 years.
If you divide the payment in half and pay it every two weeks you should save $25,000 in interest payments and reduce the term by 8 years.
Not bad for a little extra work. Of course, the higher the loan and interest, the more you save. You’re paying less interest and more on the principal. The extra payments bring down the principal and interest faster.
Can just setting up a shorter mortgage term in the beginning accomplish the same thing? Essentially yes. But many people cannot qualify for a shorter term mortgage because of the higher payment. With the bi-weekly plan, you can take control yourself and enjoy the flexibility.
There are many companies who will set this up for you for a fee ranging from $100 to $400. Or, some will do it free but charge a transaction fee each time you make a payment.
Can you do it yourself? Yes, but talk to your lender and read the fine print in your contract. You may have a pre-payment penalty for paying off the loan ahead of time. Some lenders also tack on a service fee each time you make the extra payment.
Banks can also provide you with a bi-weekly calculator to let you determine how much you would save and how soon you would actually own your home. You’ll also save on private mortgage insurance (PMI) by paying off the loan early.
By paying bi-weekly, you’re actually paying one extra payment a year and that makes the difference. You can accomplish the same thing by making an extra payment whenever you can of any amount. When you do this, write a separate check with a note that states the money should be applied to the principal and not the interest.
Most financial institutions are happy to help you with saving money on your mortgage but it’s up to you to get the financial ball rolling. For about the cost of dinner and a movie for you and your family each month you can be debt free years sooner and save thousands of dollars.
About the Author
This article was written by Arek Zbikowski. For more advice on how to save money on your mortgage feel free to visit my site at www.atozmortgageguide.com.
should I pay my car note bi-weekly?
Would paying my car note bi weekly have an effect on my credit like paying my mortgage bi weekly?
As far as your credit score goes, no, it’s still unsecured debt. As far as the money your going to save in interest, obviously.
|
|
Calculated Industries 3405 Real Estate Master IIIX Real Estate Finance Calculator $33.49 Calculate complete P&I, PITI and FHA payment solutions, amortization, and more (view larger). Calculate complete payment solutions, amortization, combo loans, ARMs, rent versus buy comparisons, and much more with the Real Estate Master IIIX finance calculator (model 3405) from Calculated Industries. Designed for real estate and mortgage professionals, the Real Estate Master IIIX perform… |
|
|
Calculated Industries 3415 Qualifier Plus IIIX Real Estate Finance Calculator $47.89 Gain instant access to P&I, PITI and FHA Payments, and complete buyer qualifying(view larger). Qualify home buyers right on the spot with the versatile, easy-to-use Qualifier Plus IIIX real estate finance calculator from Calculated Industries. Perfect for all real estate finance professionals, including agents, brokers, bankers, mortgage originators, title officers, trainers, and more. The… |
|
|
Calculated Industries 3430 Qualifier Plus IIIFX Real Estate Finance Calculator $48.50 Calculate multiple cash flows and internal rate of return (view larger). Qualify home buyers right on the spot with the versatile, easy-to-use Qualifier Plus IIIFX real estate finance calculator (model 3430) from Calculated Industries. Perfect for all real estate finance professionals, including agents, brokers, bankers, mortgage originators, title officers, trainers, and more. The Qual… |
|
|
Calculated Industries 43430 Desktop Qualifier Plus IIIFX DT Real Estate Finance Calculator $54.95 Advanced residential real estate finance calculator with cash flow and complete buyer qualifying.The Qualifier Plus IIIFX is the ideal tool for real estate investors agents and mortgage lenders. In addition to both common and advanced real estate finance problems it calculates multiple cash flows and internal rate of return (IRR) as well as net present and net future values (NPV/NFV). Provide f… |
|
|
A Homeowner’s Guide to Mortgage Acceleration $14.95 Save thousands in interest costs. Reduce the term, build equity faster, and own your home “free and clear”. Turn your mortgage into an investment tool…. |
|
|
Weekly, Bi-Weekly and Semi-Monthly Mortgage Payments 7% to 25 3/4 %: Interest Compounded Semi-Annually … |
|
|
Financial Bi-Weekly and Weekly Handbook for Accelerated Mortgage Paybacks $27.50 … |
|
|
Acroprint Weekly/Bi-Weekly Time Card $19.99 0% 09-9110-000 250 / Pack Weekly/Bi-Weekly Time Card is designed for use with Acroprint Electronic Time Clock Model ATR120. Card is printed on one side for weekly pay period and bi-weekly on the other. Acroprint Acroprint Time Recorder Company Beige Bilingual Double Side No Time Card Weekly/Bi-Weekly Time Card www.acroprint.com |
|
|
Acroprint Weekly/Bi-Weekly Time Cards $12.99 0% 250 Pack Weekly/Bi-Weekly Time Cards fit the fast and easy-to-use Electronic Time Clock Model ATR120 with automatic card positioning. Cards are printed on one side for weekly pay period, biweekly on the other. ATR121 Acroprint Acroprint Time Recorder Company Beige No Single Side Time Card Weekly/Bi-Weekly Time Cards www.acroprint.com |
|
|
09-9110-000 – Acroprint Weekly/Bi-Weekly Time Card – 250 / Pack $12.4 weekly/bi-weekly Time Cards Fit The Fast And Easy-to-use Electronic Time Clock Model Atr120 With Automatic Card Positioning. Cards Are Printed On One Side For Weekly Pay Period, Biweekly On The Other. [ACP099110000] UPC: 033297199010 UNSPC: 44103205 1.5 LB |
|
|
Tops Bi-Weekly Time Clock Card $19.99 0% 1275 500 / Box 9″ Length x 3.50″ Width Manila Double Side Time card features a bi-weekly, two-sided format. Use with machines that register 23 hours in 10ths or 100ths. Record time in and out with area to calculate regular hours, extra hours, deductions, gross and net pay per week. Seven-day time period can start on any day. Extra-heavy material is made of 150 lb. stock. Time card replaces CH-107-2 and is designed for use with Acroprint 125R, 150R, ES700, ESP108, and 175TR. Bi-Weekly Time Clock Card No Time Card Tops www.tops-products.com |
|
|
Mortgage Billboard $14.99 Mortgage Billboard – Premium Poster |
|
|
Little Mortgage $24.99 Walter Dendy Sadler Little Mortgage – Art Print |
|
|
1275 – Tops Bi-Weekly Time Clock Card – 9 inch X 3.5 inch Sheet Size – Manila – 500 / Box $24.43 time Card Features A Bi-weekly, Two-sided Format. For Use With Machines That Register 23 Hours In 10ths Or 100ths. Record Time In And Out With Area To Calculate Regular Hours, Extra Hours, Deductions, Gross And Net Pay Per Week. Seven-day Time Period To Start On Any Day. Replaces Ch-107-2. Made Of Extra-heavy 150 Lb Stock. [TOP1275] UPC: 025932127519 UNSPC: 44103205 5.8 LB |
|
|
Planner,Weekly $12.99 PLANNER,WEEKLY |
|
|
Definition of Mortgage with Magnifying Glass $29.99 Definition of Mortgage with Magnifying Glass – Photographic Print |
|
|
Weekly Weigh-In $24.99 Weekly Weigh-In – Photographic Print |
|
|
Argosy Weekly $12.49 Argosy Weekly – Masterprint |
|
|
Bi Chance - $34.99 Bi Chance - |
|
|
Couple Applying For Mortgage, Talking To Clerk $24.99 George Marks Couple Applying For Mortgage, Talking To Clerk – Photographic Print |
|
|
Weekly Abstract $224.99 Julianna Weekly Abstract – Framed Art Print |
|
|
Mortgage Stressbusters $16.62 No Synopsis Available |
|
|
Mortgage Confidential $12.71 This book is in New – Excellent condition |
|
|
The Mortgage Encyclopedia $16.46 This book is in New – Excellent condition |
|
|
Mortgage-Free! $22.5 This book is in New – Excellent condition |
|
|
Body Mortgage $1.97 This book is in Good Used condition |
|
|
The Mortgage Kit $14.96 This book is in New – Excellent condition |
|
|
Before the Mortgage $11.21 This book is in New – Excellent condition |