This topic comes up frequently. Most lenders will not set up a biweekly mortgage payment
Making a biweekly mortgage payment is incredibly beneficial when considering the longer term interest costs over the life of a loan. It’s not uncommon to be able to shave many years off the payoff time by simply making a biweekly mortgage payment. However as cumbersome as it may be with your servicier, to try to set up that type of payment arrangement- there is an easier way.
Make the 13th mortgage payment per year
Simple enough right? Simply doubling up a payment one month during each fiscal year, effectively that will have the affect on your interest savings and principal balance pay-down as making a biweekly mortgage payment every two weeks.
Here’s another way…
Make a 13th payment…
For example let’s say your mortgage payment is $2500 per month, that’s $30,000 in mortgage payments you make annually.
$2500 ÷ 12=$208.33 per month. If you were to make a payment at $2708.33 per month, that is effectively the same thing as a biweekly mortgage payment or 13th payment each year.
Looking to save money on a new mortgage? Start today by getting a complementary rate quote for your situation. We can even run scenarios for you showing you what the net tangible benefit savings could do by prepaying your mortgage over time.
RELATED MORTGAGE ADVICE FROM SCOTT SHELDON
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