Should You Pay Your Mortgage Biweekly?

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The inscription mortgage as a reminder of the payment for the purchase of a house or apartment. Should You Pay Your Mortgage Biweekly?
The inscription mortgage as a reminder of the payment for the purchase of a house or apartment

Making biweekly mortgage payments can save you money on interest and pay off your mortgage faster. This is because a biweekly payment is equivalent to 12 monthly payments divided by 2, plus one extra payment. So, over the course of a year, you will make 13 payments instead of 12.

The inscription mortgage as a reminder of the payment for the purchase of a house or apartment.Should You Pay Your Mortgage Biweekly?
The inscription mortgage as a reminder of the payment for the purchase of a house or apartment

For example, if your monthly mortgage payment is $1,000, then your biweekly payment would be $500. Over the course of a year, you would make 26 biweekly payments, for a total of $13,000. This is $1,000 more than you would pay if you made 12 monthly payments of $1,000 each.

The extra $1,000 that you pay each year goes directly to your principal balance, which means that you will pay off your mortgage faster. Depending on your interest rate, you could save thousands of dollars in interest over the life of your loan.

Of course, there are some potential drawbacks to paying your mortgage biweekly. For example, you may have to pay a fee to your lender for setting up the biweekly payment plan. Additionally, if you miss a biweekly payment, you may be subject to late fees.

Overall, paying your mortgage biweekly can be a great way to save money on interest and pay off your mortgage faster. However, it is important to weigh the pros and cons before you decide if this is the right option for you.

Here are some additional things to consider when deciding whether or not to pay your mortgage biweekly:

  • Your interest rate: The higher your interest rate, the more you will save by paying biweekly.
  • Your monthly budget: Can you afford to make an extra payment each month?
  • Your lender’s policies: Some lenders charge a fee to set up a biweekly payment plan.
  • Your personal preference: Do you prefer to make one large payment each month or two smaller payments?

If you decide that paying your mortgage biweekly is right for you, there are a few things you need to do:

  • Contact your lender: Ask your lender if they offer a biweekly payment plan and what the fees are.
  • Set up a direct deposit: You can set up a direct deposit from your checking account to your mortgage account. This will make it easy to make the biweekly payments.
  • Track your payments: It is important to track your payments so that you know that you are making them on time.

By following these tips, you can start saving money on your mortgage and pay it off faster by paying biweekly.

Read more: WHAT IS AN FHA LOAN?

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