The Benefits of Bi-Weekly Mortgage Payments

Q. Rates are great and I want to refinance my home for a shorter term.  Could you explain the benefits of a Bi-weekly loan?

A. A bi-weekly loan is a great option for reducing the term of your mortgage.  The basic premise of the loan is the more often you make payments the faster your principal decreases making your interest payments less over the term of the loan.  The Bi-weekly payment plan is set up to have you make 26 Bi-weekly payments as opposed to 12 month installments.  A thirty-year loan would be paid off in 23 years or less and a 15 year loan would be paid off in about 13 years.  With so many employers switching to bi-weekly periods, it makes financial planning simple.  Check with your loan officer to see if this option is available to you.

If you are not refinancing you can still set up biweekly payments on your own.  Contact your lender to see if they offer this option.

If you need a referral to a Lender or Loan Officer please contact me.

Published in: on February 4, 2010 at 11:25 am  Leave a Comment  
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