How my mortgage payment amortization schedule changes with extra monthly payments and bi-weekly repayment plan?


The mortgage payment amortization schedule is greatly influenced by additional monthly payments made towards the principal. If you combine extra payments with a bi-weekly plan, you are doubling the gain.

Bi-Weekly payment and extra payments cut mortgage payment amortization term significantly.

If you make additional monthly payments of $100 for a mortgage of $200,000 at 6% and 30-year term and use bi-weekly repayment schedule, your mortgage payment amortization table will show interest savings of around $80,000 and 9 years shorter loan.

If only biweekly mortgage payment amortization plan was used, total interest savings are $48K and 5 years and 4 months shorter amortization term.

If $100 were applied each month towards the principal, you would gain pretty much the same interest savings and term reduction.

Increasing the additional monthly mortgage payment will speed up amortization significantly. Should you apply a biweekly plan at that, the gains are really great.

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