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Bi-Weekly Benefits Without A Bi-Weekly Loan
Question: Is there a way to get the benefits of a bi-weekly mortgage without bi-weekly payments?
Answer: If you have the right to prepay a loan in whole or in part at any time and without penalty, then you can achieve the same results by merely increasing your monthly payment. Just take your monthly payment for principal and interest, multiply by 13, and then divide by 12. That should give you roughly the same pay-off benefits as a bi-weekly mortgage but with 14 fewer checks. For specifics, please check with your lender and also use a computerized amortization program to see how additional payments would lower your interest costs.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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