Biweekly Mortgage Calculator
In order to eradicate a loan, a borrower pays much more importance than the principal that he borrowed. If someone tells you that you can make thousands of dollars in interest payments, savings and reduction pay off by approximately eight years (in the case of a 30 year mortgage) maybe it sounds like magic. Well, it's really not. The method is logical and simple, provided you have the necessary financial discipline.
To take advantage of this benefit, you must shift from monthly payments to bi-weekly payments. Now, bi-weekly doesn't mean two payments per month. You 26
payments in any given year instead of 12 monthly payments. Each bi-weekly episode would half the monthly payment.
For example, instead of a monthly payment from, say, $ 1000, you pay $ 500 per two weeks. This means that instead of $ 12,000 under the monthly schedule, you actually $ 13,000 in a year, or an additional payment of $ 500 each pays half a year. The lender must be dedicated to credit this amount against the loan principal, and not of interest.
Strictly speaking it is not essential to choose from bi-weekly payment of this benefit. You could send a check for $ 500 half-yearly to the lender with the necessary instructions. Or one-twelfth of the amount could be added to the monthly payment. But many people find this impractical and bi-weekly method preferred.
$ 1000 per year may sound too small to observable effect, but it does and is also easy. Your total interest expense is reduced significantly and your mortgage 30 years could be paid off in about 22 years. And your equity in the House is increasing rapidly.
There are service providers who deal with bi-weekly payments for a fee. That assistance is not really necessary if you have a bit of effort.
Mortgage payments provides detailed information on Mortgage Payments, use biweekly mortgage calculator, bi-weekly Mortgage Payments, mortgage payment protection and more. Mortgage payments is connected to the online mortgage Lending.