A BiWeekly Mortgage can save you money.
Use our handy bi weekly mortgage amortization calculator to see how much money you can save by paying your mortgage every two weeks instead of monthly. This doesn't mean paying the mortgage payment twice. It means dividing the payment and paying half every two weeks! Do you know that after paying 15 years on a 30-year mortgage, you can still owe 90% of the amount that was borrowed?
When you utilize a bi-weekly mortgage, you can easily:
Discover for yourself how much money you can save with this
quick, easy to use biweekly mortgage calculator.
How does a Bi-Weekly Mortgage work?
It’s really very simple! Instead of making a monthly mortgage payment, you make a payment every two weeks. This automatically adds an extra payment every year, which really reduces the principal on your loan.
For example, on a $100,000 mortgage at 7% interest…..Your principal and interest payment would be approximately $665 monthly. Cut this in half and pay $332.50 every two weeks. You will then have one extra payment at the end of the year to apply directly to your principal. It’s unbelievable that this would reduce your 30 year mortgage to a 23-year mortgage…..and save almost $35,000.00 in the process. The larger the loan, the more dramatic the savings will be.
If you are interested in having a bi-weekly loan amortization mortgage, call your lender and ask for the cash management department…..or someone that can help with payment inquiries. Ask about their options for a bi-weekly mortgage. But always make sure that the extra payment is applied directly to your principal balance. (It wouldn’t hurt to keep a record of the call and the person’s name that you spoke with….just for future reference). If your lender doesn’t have a provision for this option, contact us and we can help with more options.
Another way to pay off your mortgage early is simply to look at your amortization schedule and determine how much of any given payment is being applied to your principal. Just add that amount to your monthly payment and you will begin to see a decrease in your principal balance. For many years, the amount being applied to your principal will be very small indeed…..but paying even this tiny amount can make a huge difference in the term of your loan.
Remember to always read the fine print in your loan documents. Make sure there’s no pre-payment penalty. Doing your research will really pay off. And a biweekly loan amortization mortgage program will also pay off - big time! The Nashville Real Estate Authority offers Real Estate University, where you can learn more about homebuying.
We're here to help you today! You can contact us by e-mail or call us toll free at 615.428.8500 or 615.206.8445. You'll be glad you did! We promise!!
Remember - You've got a friend in Nashville! We're Buyer's Agents - working ONLY FOR YOU to find the perfect home for your family!
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