How A Bi-Weekly Mortgage Calculator Can Help You Save Money
How A Bi-Weekly Mortgage Calculator Can Help You Save Money
There are many bi-weekly mortgage programs all over the internet. But you do not need to sign up for one of these services and pay the fees to take advantage of the benefits of a biweekly mortgage.
A biweekly mortgage helps you pay an additional monthly payment per year easily. This process is easier than most people realize and when implemented can save you thousands of dollars in interest charges and allow you to pay off your mortgage loan early.
Let's examine how this process works. A standard fixed rate mortgage has 12 regular monthly payments. Now let's get out a calendar and review how the bi-weekly mortgage process works.
Get out a calendar and circle every other Friday for one full year. Now count the circled Fridays and you'll find that there are 26 total. Think of these Fridays as your payment dates. If you don't want a Friday payments then choose any day, it works for all of them.
Now divide your monthly mortgage payment in half. This half payment is now your new bi-weekly mortgage payment. Look back at the calendar and you will see that two of the months have three payment dates.
The two months where you pay one additional biweekly payments equates out to you paying one additional monthly payment per year. This additional payment saves you thousands of dollars in interest and shaves off on average 7.5 years off your mortgage.
Call your mortgage lender and ask them about setting up biweekly payments for you. Many banks and mortgage lenders will gladly set this up for you via a bank draft at no charge or you can simply mail the biweekly payment in just as you would your full monthly payment.
Final Thoughts
A biweekly mortgage calculator is an easy to use tool that will demonstrate for you how much money you can save by making these payments as scheduled. Finance News Today offers a free bi-weekly mortgage calculator that will calculate payments and interest savings.
