Question:

What different mortgage payment options exist?

Answer:

There are several mortgage payment options that borrowers could use when repaying their mortgage. The standard monthly PITI payment, biweekly plans, bi-monthly plans, extra amount paid on a monthly or yearly basis - these are all mortgage repayment options borrowers could use when planning on early mortgage amortization.

The Most Effective Mortgage Payment Options

With the standard monthly mortgage PITI payment your mortgage will amortize on time - no sooner.

The bi-monthly mortgage payment option doesn't work effectively in reducing your mortgage balance and term. A true bimonthly mortgage payment is in fact your mortgage payment sent in twice a month. The benefit is one-month mortgage payment and term reduction.

The truly effective early amortization mortgage payment options are the bi-weekly plans and the extra principal payments applied every month or once a year. Note: sometimes a bi-weekly and bi-monthly payment will be mistaken, which is wrong.

A bi-weekly mortgage payment option has immediate huge effect on your mortgage amortization. Your payments are sent in every two weeks and an additional monthly mortgage payment is accumulated during the year and applied towards the principal.

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