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.
