Why Should I
Consider a Bi-Weekly
Mortgage?
by Craig Romero, Mortgage
Analyst
Homeowner’s
all over the nation
are changing the way
they pay their
mortgages.
While
monthly payments
used to be the
standard way the
average household
paid their house
payment, more and
more homeowners are
changing to a
bi-weekly mortgage
payment plan.
Why?
The answer is quite
simple, and quite
surprising.
Homeowners who are
using this up and
coming payment
method are saving
tens of thousands of
dollars and paying
their mortgages off
years in advance.
Think
it sounds like a
fairy tale? It’s
not. By paying your
mortgage every other
week, instead of
once a month, you
are making the
equivalent of one
extra mortgage
payment per year,
and are shaving
years off your
mortgage while
saving thousands of
dollars in the
process. How
significant are the
savings? Take a
thirty-year mortgage
of $100,000 at 7.875
percent interest. By
paying this mortgage
bi-weekly, instead
of monthly, the
homeowner will have
their mortgage paid
off approximately
seven years earlier
than if paying a
normal monthly
payment and will
have saved over
$40,000 in interest
over the lifetime of
the loan. That’s a
brand new luxury
car!
There
is absolutely no
reason why
homeowners
shouldn’t take
advantage of the
savings this method
has to offer them.
Homeowner’s who
use the excuse that
they don’t have
the money to pay a
consultant or firm
to set up the plan
for them probably
don’t realize the
plan is rather
simple and with the
proper tools, they
can do it
themselves.
If
you’re reading
this article and
you’ve never heard
of a bi-weekly
payment method, you
might be wondering
if it’s really as
good as it sounds;
and if it is, why
you’ve never heard
of it before. It’s
surprising how few
people know about
bi-weekly payment
methods. It could be
that banks don’t
want consumers
knowing about it,
because while it
saves consumers
thousands of
dollars, that’s
thousands of dollars
of profit that the
lenders won’t ever
see. Profit lost
isn’t something
banks normally look
favorably upon.
Now
that you know the
option is out there,
you may want to look
into taking
advantage of it.
Discover how to
quickly build a
minimum of $40,000
worth of home equity
and pay your
mortgage off in 10
years or less
without making
biweekly mortgage
payments. Visit: www.wisemortgageinfo.com
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