The Only Mortgage Loan Options Guide You Need was written for you. Knowledge is power, and we want you to become a powerful home buyer in today's housing market. Download the 12-page guide below to discover your home financing options.
The typical arrangement for mortgage holders is for them to pay it off with monthly payments adding up to 12 payments in a year. There is an option though and it is splitting monthly payments into bi-weekly payments. This kind of arrangement is known as a bi-weekly mortgage and it has some benefits. The main advantage is that such an arrangement can save you thousands of dollars by cutting off years off your loan duration.
Any time a person sets a standard mortgage plan, he/she makes a single monthly payment and a total of twelve payments in a year. With a bi-weekly mortgage payment, however one makes payment equal to a half of the standard payment e very two weeks. This is equivalent to 26 half payments in a year. A bi-weekly mortgage payment allows a person to make an extra full payment each year, this takes a full month off the payment schedule each year he/she uses the bi-weekly mortgage payment.
There are several different options to pay off a mortgage more quickly. Bi-weekly mortgage payments can be made or extra principal can be added to the normal monthly mortgage payment.
Many homeowners consider switching to bi-weekly mortgage payments schedule at some point. They perceive that these payments carry some magic with them that lowers the interest expense. We do not want to discourage you but let's face it: The only magic is that of equal 13 monthly payments annually.
A house is one of the best and also most costly personal assets one can acquire. It is therefore only prudent to do everything possible to reduce mortgage costs. One of the best ways to do this is with bi-weekly mortgage payments.
Bi-weekly mortgage payments have become a favored strategy by many homeowners looking to shorten the length of their contract obligation and save some money while doing so. The process is a fairly simple one. Rather than making a single monthly mortgage payment, as is most typical, one arranges with their mortgage lender (a rare occurence with most lenders) to make a one-half payment every two weeks instead.
A major consideration one makes when taking any kind of loan is the interest payable. Interest rates are the major determinant of the cost of a loan. Any way to bring down interest is therefore welcome. When it comes to mortgages, bi-weekly mortgage payments are one way to do this. But be cautious - this is something you can do yourself with no fees or extra, third-party servicers.
Okay, so you've heard a lot of buzz lately about the purported advantages of Bi-Weekly Mortgage Payments - paying your home mortgage every two weeks instead of the traditional monthly time frame. Buzz is one thing. Facts are another.
If you get a weekly or bi-weekly paycheck, and you pay a mortgage, here is a way to save yourself a huge amount of money. Make weekly or bi-weekly mortgage payments and you will pay off your mortgage sooner, give yourself more equity in your home and cut thousands of dollars of interest cost over the life of your mortgage. This plan will have the effect of making one entire mortgage payment extra each year. Instead of the majority of your mortgage payment being interest, the entire extra payment will go to reduce your principal balance. That, in turn, will reduce your future interest payments. Overall you can pay off your entire mortgage six to eight years early, and cut your interest costs by thousands of dollars in the process.
Paying off your mortgage early is a great thing, and you can do it relatively easily and painlessly. You don't need to pay to join a service (sometimes a couple hundred dollars) then pay a continuing fee to have a third party company pay your mortgage payment. You can do this yourself. Bi-weekly mortgage payments work in a general sense, but the pay-services do not.
Real Estate Blogs Directory - Directory of real estate blogs and blogs of industries affiliated with and serving the real estate industry.
© 2013 Amerifirst Home Mortgage. NMLS ID 110139.