1. Biweekly mortgage programs are being advertised
everywhere. Many of these services charge large
fees to set this up for you. What many people don't
know is that you do not need one of these services
to take advantage of these benefits.
mortgage calculator
2. In essence, a biweekly mortgage allows you to pay one extra payment a year
thus saving you thousands of dollars in interest and paying off your mortgage
early Let's examine this a little deeper The bi-weekly mortgage process is
really simple once you see how it all works
3. Most homeowners have a fixed rate mortgage with 12 monthly payments per
year To get started let's look at a calendar Now that you have a calendar let's
get started
4. Start by circling every other Friday for a whole year Now go back and count
all the circled Fridays As you will see there are 26 of them
5. Let's consider these Fridays as your new payment dates If Fridays are not
good for you, choose another day of the week The process is the same for all
of them
6. Now divide your monthly mortgage payment in half This half payment is now
your new bi-weekly mortgage payment Look back at the calendar and you will
see that two of the months have three payment dates
7. The two months where you pay mortgage calculator three biweekly payments
rather than two make up the 13th mortgage payment This one additional
payment is credited towards the principal mortgage balance and will save you
a lot of money on interest and allow you to pay off your mortgage on average 7
5 years sooner
8. Call your mortgage lender and ask them about setting up biweekly payments
for you Many banks and mortgage lenders will gladly set this up for you via a
bank draft at no charge or you can simply mail the biweekly payment in just as
you would your full monthly payment In Closing A biweekly mortgage
calculator is an easy to use tool that will demonstrate for you how much money
you can save by making these payments as scheduled
9. Finance News Today offers a free bi-weekly mortgage calculator that will
calculate payments and interest savings
