Paying Off Your Mortgage With Bi-weekly Payments
So you want to pay off your mortgage fast? Well there is no better way to do it than with by making Bi-weekly payments
. Though Bi-weekly payments can help you in paying your mortgage a lot faster, there are some barriers that might try to keep from doing so. Knowing everything that you need to know to pay your mortgage off a lot faster can help you to get past these barriers and is a great practice for keeping you ahead of the game.
One of the barriers that you might face when you are trying to pay off your loan a lot faster is the fact that some banks can make a way to stop you from getting ahead with your payments. You dont wont to try to avoid the traps of the bank first which is something that many people opt to do, but you need to understand how the bi-weekly payments work first so that you will know how to make the payments. If you pay half of your mortgage payment on the same exact day of every second week of the month, then towards the end of the year, it will show that you paid more money than the original amount that you were supposed to pay.
It is apparent that this will work to where you are paying more is because some months only have 28 days, some 30, and others 31. If you just use a calendar to map out of the bi-weekly payments that you will be making you will see that you will be indeed paying more money each year once its all added up. So now if you are wondering if this method will work every time even if the interest rate changes then the answer is yes it will.
All you will need to do is look at how much you owe in total for your entire mortgage and then take a look at the minimum that you will owe for that year. You will then cut the amount of money that you owe per month in half then multiply it by 26 and you will see that you ended up paying two thousand dollars more than your original yearly payment. If it helps, you can even round the payment amount up to the nearest even dollar which will cause you to be paying even more money.
by: Jamie Francis
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