Advantages of Bi-weekly Mortgage Payments
Now, in our current economic downturn, it is more important
than ever to consider options such as bi-weekly mortgage
payments. The advantages of bi-weekly mortgage payments
will be more than apparent after using the method for
only a year. A person who makes monthly payments of
$1,000 will, of course, pay a total of $12,000 towards
his mortgage annually. If he converts those monthly
installments to bi-weekly payments of $500, he will
make 26 payments over the course of a year, for a total
of $13,000. This means that he will add $500 towards
principal every six months. During the course of the
average extended loan, the borrower has the potential
to save over $50,000. Shifting payments to a bi-weekly
system can shorten the mortgage by close to eight years.
It also allows a person to build equity in his home
two to three times faster than he would by making monthly
payments. This makes it easier to get out of debt and
it makes it possible for a homeowner to increase his
net worth.
The Best Way to Utilize the Advantages of Bi-weekly
Mortgage Payments
It is one thing for a person to say he will make payments
every two-weeks, it is an entirely different thing for
him to do so. There are companies that offer conversion
services. They will set it up so that the mortgage payments
are automatically made.
"Money taken out without my involvement. . .?"
A lot of people get nervous about having money taken
directly from their accounts, but it is the one surefire
way to guarantee that all the advantages of bi-weekly
mortgage payments will be taken advantage of. A person
can closely monitor his debits and he can see the progress
he is making on a regular basis.
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