Why pay mortgage bi-weekly?
Answer:When you pay mortgage bi-weekly your loan amortizes faster and you drastically reduce the amount paid in interest. The bigger the loan, the longer the term, the more effective paying mortgage bi-weekly turns out.
Consider a jumbo loan of $700,000 at 8.125 for 25 years. When paying mortgage bi-weekly, this jumbo will amortize in 20 years, instead in 25, and you will save $230,000 in interest. This is huge.
Accelerated biweekly mortgage payment is a very effective tool in paying off mortgage loans. The only problem is whether your lender actually agrees to have your loan repaid with bi-weekly mortgage payments, as not every lender will accept accelerated repayment of a loan.
Final piece of advice: Monitor your credit report and score regularly, to ensure there are no inaccuracies or unauthorized activity. Your credit report and score are the two major methods that creditors and lenders use to make a credit decision about you. Higher scores usually mean lower interest rates, which will save you money.
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Common misspellings: mortage and morgage