What is all the fuss about the Bi-Weekly mortgage payment?
We have all heard of it and seen the mailer (from the bank who holds our loan): Pay a small set up fee + between .25 – $2.00 by weekly withdraw and they will cut the interest over the life of your loan.
So, here is what I found while working up some numbers for a client.
On a $114,400 loan amount paid on a 30 year schedule, the interest at the end of the loan would be $118,081.09. Set up a bi- weekly payment plan and that drops to $95,856.64.
But have you heard the old saying “divide your mortgage payment by 12, and add that to your mortgage each month”? For my calculations- click here-