Over the course of the year, you will have paid the additional month. Instead of paying twice a week, you can achieve the same results by adding 1/12th of your mortgage payment to your monthly payment. There are 26 bi-weekly periods in the year, but making only two payments a month would result in 24 payments. Payments are made every two weeks, not just twice a month, which results in an extra mortgage payment each year. One of the most common ways that people pay extra toward their mortgages is to make bi-weekly mortgage payments. Even making small extra payments over time can shave years off your loan and save you thousands of dollars in interest, depending on the terms of your loan.Įarly Loan Repayment: A Little Goes a Long Way After all, what's the point? Unless you're doubling up on your payments every month, you aren't going to make a significant impact on your bottom line - right? You'll still be paying off your loan for decades - right? You might not even think about trying to pay off your mortgage early. When you sign on for a 30-year mortgage, you know you're in it for the long haul.
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