There are several ways
to implement a Biweekly Mortgage Payment:
- Contact your lender. See if they offer
a bi-weekly program.
- Locate a company that helps borrowers
make bi-weekly payments. The company will
deduct payments from your bank account
every two weeks, but will only pay your
lender once per month. The disadvantage
is that you loose interest on your money
that you otherwise would have made. The
advantage is that it is convenient and
automatic. Be sure to fully investigate
the company's credentials. There have been
scams reported in the industry.
- Do it yourself. Open a bank account and
make bi-weekly deposits. Each month, pay
your lender from that account. You will
earn interest on the money in your account.
- Make monthly
pre-payments. Increase the amount you
pay each month by one-twelfth (8.33%). By increasing your mortgage
payment by just over 8 percent, you
shorten the life of your loan and save
money effectively the same as you would
with a bi-weekly loan.
- Biweekly Mortgage Payment Calculator
Ask
yourself some questions before committing
in writing to a bi-weekly program. Remember, any loan is potentially
a bi-weekly loan. If you have the discipline
to make the extra payment per month or per
year, why enter into a written agreement
or pay someone to help you? If you
use a third party to help you, ask what
their set-up and monthly servicing fees
are, then determine what you're really
saving.
Biweekly Mortgage Payment Calculator |
