I was recently introduced to the concept of Biweekly Mortgage Payment, and am completely amazed with it. I am really surprised to see that biweekly mortgage payment plan can reduce the mortgage tenure so much.

Biweekly_Mortgage_PaymentHere is an example:
Let’s say you have $225,000 mortgage at Rate of Interest of 6.5%. If the original tenure of mortgage is 30 years for monthly payment option, then just switching to biweekly payment option would reduce it to 24 Years! A reduction of complete six years. Isn’t that amazing.

Biweekly Mortgage Payment option simply means that instead of making your payments monthly, you make your mortgage payments biweekly.

So, if you were paying $1000 monthly, then you would be paying $500 after every 2 weeks. Its as simple as that. This simple step to change your mortgage payment plan to Biweekly Payment option would help you in repaying your mortgage so fast.

Let’s see why Biweekly Mortgage payment option is so advantageous:

1) You have to pay lesser interest, as you are making a new payment after every 2 weeks.

2) The main reason is that you actually manage to sneak in one extra installment each year by just switching to biweekly mortgage option.

For example, let’s say you were paying $1000 monthly. Then, you paid $12000 for whole year. However, in case of biweekly option, you pay $500 every 2 weeks, so are able to pay $500*26 = $13000 per year. That’s one whole extra installment in there

The best part is that you do not feel that you are paying that extra money as essentially it gets divided over 26 biweekly installments that you will be making.

Also, because you get your salary every 2 weeks, you are able to align your mortgage payment with your salary.

Here are a few calculators for Biweekly Mortgage Payment Calculation. Try these out, and see your savings.

What do you think of this payment option? Have you tried it? Share in comments.

Technorati Tags: Biweekly-Mortgage Biweekly-Mortgage-Payment Biweekly-Mortgage-Option

Enjoy this Post? We'd love your vote!

One Response so far.

  1. […] This is a collection of Best Biweekly Mortgage Payment Calculators that are available on the web. All these are completely free of cost, and you can use these Biweekly Mortgage Calculators to find your Biweekly Mortgage Payments: […]

Fill the Captcha ↓ and then click here ->