Become Debt-free Sooner With Biweekly Refinance Programs?
You may wonder how you can get rid of those mortgage payments and finally own your
property fully without owing anything to any lender with your home guaranteeing that loan. A good solution to that situation is to obtain a biweekly refinance program that can accelerate repayment of your home loan significantly and aid you in becoming debt-free sooner.Bi-weekly repayment programs consist on payments every other week which implies 26 payments every year instead of 12. Of course, each of these payments has a lower amount than those of monthly payments but even if it is half the amount, you still would have an additional month of repayment thus accelerating your repayment a month every year.
Biweekly Repayment Programs
These repayment programs work seamlessly for those who want to repay their mortgages sooner. Each year of loan repayment is divided into 26 biweekly payments instead of 12 monthly payments. A Year has 52 weeks and payments are made every other week which results on 26 payments each year.
The amount of the monthly payments is defined according to your budget and needs. Some choose to destine higher amounts than the equivalent to half a monthly payment on a traditional repayment program. But even if you just leave them at half the amount of monthly payments, 26 biweekly payments are equivalent to 13 monthly payments. Thus, each year you will be repaying an additional month. This means that after 12 years of repayment you will have gained an additional year.
Save Money In The Meantime
Another benefit of this kind of repayment programs is that by choosing a biweekly repayment program you are continually reducing the capital on a higher rate than with monthly payments. The second payment each month will be calculated with a lower principal and since interests are calculated over the principal you will be saving money.
It may not sound significant on a monthly basis but over the whole life of the loan, it represents savings of thousands of dollars just by spreading the repayment of the loan on 26 biweekly payments instead of 12 monthly payments. As you can see, though it may seem more complicated, it is well worth the trouble.
The Interest Computing Issue
There is however an issue that may arise when interest calculations are made. You need to make sure that interests are calculated also on a biweekly basis because some lenders though offer biweekly payments, still calculate interests on a monthly basis which annuls the benefits you can obtain from a reduction of the amount of interest repayment through sooner principal cancellations.
Thus, when selecting the loan and lender, you need to be very careful and read the contract thoroughly. Make sure that the lender states that interests are computed biweekly too and preferably, you should require a written statement. When requesting loan quotes from different lenders, dont forget to require information regarding the different repayment programs and the calculation of interests on each one of them so you can rest assured that you wont close on a deal that is not to your advantage.
by: Melissa Kellett
#
2
CBD exceeded my expectations in every way thanks. I've struggled with insomnia in the interest years, and after demanding CBD like in the course of the key mores, I for ever knowing a full eventide of pacific sleep. It was like a arrange had been lifted off my shoulders. The calming effects were merciful after all intellectual, allowing me to roam free naturally without sympathies groggy the next morning. I also noticed a reduction in my daytime anxiety, which was an unexpected but welcome bonus. The cultivation was a minute shameless, but nothing intolerable. Overall, CBD has been a game-changer inasmuch as my slumber and solicitude issues, and I'm grateful to have discovered its benefits.
2024-5-29 08:18
reply
Deficiency Judgment Foreclosure - Know Its Different Forms Reverse Mortgages Upfront Fees Drop What An Effective Hardship Letter Needs To Include Your Mortgage Refinance Lender Waiting For You Canada Offers Mortgage Insurance, Must You Go For It? 5 Financial Questions To Ask Before Your Make A Decision About Your Underwater Mortgage Texas Reverse Mortgage Loans - Liberty Mortgage Knowing These 5 Myths Makes Wealth Building Easier Influences of Online Mortgage Rates On Regular Loan Consultants 3 Ways To Save Money On Your Next Mortgage A Plain Guide To Remortgages And Secured Loans Your Rights And Responsibilities With Private Mortgage Insurance Phoenix Short Sales Make It Possible For Homeowners to Get Out From Under Their Mortgage