The biweekly mortgage has been around for years but with the recent media attention to the real estate industry in general and the mortgage industry in particular, the biweekly has been getting thousands of home owners to use this simple, yet powerful, way to speed up the principal payment process. Why is this so popular? How does it work? How can I do this?
Here is why this is so popular to hundreds of thousands homeowners. It is an easy and effective way to increase the equity in a home. It can also shorten the life of the mortgage substantially. It does this with just about the same mortgage payment that one usually makes per month so it is affordable to anyone who owns a home. The biggest obstacle is just doing it.
Biweekly means that the homeowner will make a payment every two months instead of once per month. Basically what you do is take your monthly payment, cut it in half and then make that payment every two weeks. So how does this save money? Well, by paying every two weeks you will actually end up paying more off the principal every year because:
1. There are 52 weeks in a year.
2. That means you make 26 payments a year.
3. With the monthly payments you would make the equivalent of 24 payments a year.
4. The 2 payments extra would go towards your principal.
5. This accelerates the payment of the loan and each month the principal gets paid by an ever increasing rate.
The great thing about this is because each month is only a few days over 28 days ( 4 weeks) the biweekly mortgage payments are not a hardship on any home owners. The most extra days in a month are 3 and some months have 0 or just 1 extra day.
So why wouldn't everyone just do this? I think much of it has to do with either they don't know about it or they think " I can just pay extra off my principal anytime I want. Why pay biweekly?"
But the problem is that a large percentage of people don't ever make any extra payments to their principal. They think about it but don't do it. There is always other more important things to use the money for, even though the actual money they need every month to make a big difference is quite low.
Discipline is a key factor here. If someone has enough discipline it really isn't necessary to use a biweekly mortgage plan. This doesn't mean that people who don't use a biweekly aren't disciplined. Only those who want to pay down their mortgage principal but never seem to be able. So, in a way the biweekly is just a formula to help homeowners, who are usually very busy with other parts of there life, become more disciplined and make them pay off the mortgage principal more quickly. With today's prices, a homeowner can save over $50,000 and cut 5 years off the life of the mortgage!
___________________________________________________________________
Copyright 2005 By Tim Phelan
Tim Phelan is a full time internet marketer who has been self employed for the last 12 years. Real estate, the environment, art, world culture, politics are some of his other interests. For a totally free biweekly mortgage manager visit this link: TimPhelansblog. mortgagemanager
email nalehpmit@yahoo.com
Blog timphelansblog.blogspot.com
A house is just that, a house, until someone lives... Read More
Raising capital is integral for growth and expansion of an... Read More
There has been so much fraud discovered in the FHA... Read More
Self-employed mortgages, as the term implies are mortgages designed for... Read More
Finding a good lender to help you with refinancing your... Read More
Commercial mortgages are similar to residential mortgages. Usually taken by... Read More
Before you start shopping around for a mortgage, you need... Read More
An Interest Only Mortgage is one where the repayments are... Read More
Online home mortgage quotes are very similar to the quotes... Read More
When buying a home, you need to take a home... Read More
Here is a useful guide to the different types of... Read More
Home equity loans and lines of credit are useful tools... Read More
As with all of my articles this will be based... Read More
If your mortgage company is threatening foreclosure, there are things... Read More
The biweekly mortgage has been around for years but with... Read More
If you are among the millions with less than perfect... Read More
You've undoubtedly heard or seen ads for mortgages with very... Read More
If you're looking for a good home improvement loan rate,... Read More
Searching for a mortgage refinance company can be a daunting... Read More
Maybe you've heard the expert advice that your debt to... Read More
It can happen to anyone, the roof is leaking, the... Read More
Refinancing your mortgage after bankruptcy is actually the same as... Read More
Tuition costs are climbing, housing costs are climbing, it seems... Read More
Here in Spain the concept of a mortgage period of... Read More
Are you looking for the best buy to let mortgages... Read More
When going to refinance or get a mortgage loan quote,... Read More
The term 'mortgage' is assumed really controversial by people when... Read More
A capped mortgage is a variable rate mortgage with a... Read More
Perhaps you're a homeowner in need of some quick cash.Maybe... Read More
Hopefully your ego has never had to experience the words,... Read More
Real estate lenders now offer mortgage loan quotes and application... Read More
For years, mainstream banks and financial advisors have been recommending... Read More
Like a big brother keeping notes of the erring behaviour... Read More
Give yourself time to rebound. Whether you had to turn... Read More
Being self employed has many benefits. When you are self-employed,... Read More
I continue to see the same For Sale signs in... Read More
Commercial mortgages are similar to residential mortgages. Usually taken by... Read More
The term 'mortgage' is assumed really controversial by people when... Read More
Interest-only loans are quickly becoming a mainstream loan product. Borrowers... Read More
You've finally found that dream home that you have always... Read More
Home equity loans are a popular way for homeowners to... Read More
A 2nd mortgage is a secured loan on your property,... Read More
Buying a Home for the first time can be a... Read More
In the US today more households have mortgages than ever... Read More
Online homeowner loans have been growing in popularity in recent... Read More
Having poor credit alone cannot hold you back from getting... Read More
Rising home prices, particularly on the East and West coasts... Read More
With so many lenders out there, it can be hard... Read More
There are two broad types of home equity loans:Term loans:... Read More
There are great mortgage loans for people with poor credit,... Read More
Your equity is the amount your home is worth, on... Read More
Refinancing a mortgage is simply taking out a new mortgage.... Read More
A few notes of importance: This only applies to... Read More
Are you looking for the best buy to let mortgages... Read More
Refinancing your mortgage after bankruptcy is actually the same as... Read More
With mortgage rates near 20-year lows, competition in the mortgage... Read More
Home mortgage interest rates hit record lows in 2004 and... Read More
Presently council tenants are able to purchase their rented property... Read More
Have you been turned down for a home loan recently... Read More
The popularity of stores like Home Depot and Lowe's show... Read More
"I've been renting for years now; I've always paid my... Read More
Texas was one of the last states to allow homeowners... Read More
The best home improvement loans usually aren't going to be... Read More
Interest rates are on the rise and many home owners... Read More
Before I go further, let me ask a question- if... Read More
Before you go looking at houses, you'll need to find... Read More
Mortgage Refinance |