How does biweekly payment on mortgage work - tradeprofinances.com

How does biweekly payment on mortgage work

## How Biweekly Mortgage Payments Work

Are you looking for a way to pay off your mortgage faster and save thousands of dollars in interest? If so, you may want to consider making biweekly mortgage payments.

Biweekly mortgage payments are made every two weeks, instead of the traditional monthly schedule. This means you’ll make 26 payments per year, instead of 12. By making more frequent payments, you’ll reduce the amount of interest you pay over the life of your loan.

## How Much Can You Save?

The amount of money you can save by making biweekly mortgage payments depends on a number of factors, including the amount of your loan, the interest rate, and the loan term. However, you can typically save thousands of dollars over the life of your loan.

For example, let’s say you have a $200,000 mortgage with a 4% interest rate and a 30-year loan term. If you make monthly payments, you’ll pay a total of $119,760 in interest over the life of your loan. However, if you make biweekly payments, you’ll pay a total of $99,240 in interest. That’s a savings of $20,520!

## How to Make Biweekly Mortgage Payments

Making biweekly mortgage payments is easy. Simply divide your monthly mortgage payment by two and make a payment every two weeks. You can set up automatic payments with your lender, or you can manually make payments online or by mail.

## Is Biweekly Mortgage Payment Right for You?

Biweekly mortgage payments can be a great way to save money on your mortgage, but they’re not right for everyone. Here are a few things to consider before switching to a biweekly payment schedule:

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* **Make sure you can afford it.** Biweekly mortgage payments require you to make 26 payments per year, instead of 12. This means you’ll need to have a budget that can accommodate the increased frequency of payments.
* **Check with your lender.** Some lenders may not allow biweekly mortgage payments. If your lender does allow biweekly payments, make sure you understand any fees or restrictions that may apply.
* **Consider your other financial goals.** Biweekly mortgage payments can help you save money on your mortgage, but they may not be the best use of your money. If you have other financial goals, such as saving for retirement or paying off debt, you may want to prioritize those goals before making biweekly mortgage payments.

## Conclusion

Biweekly mortgage payments can be a great way to save money on your mortgage and pay off your loan faster. However, before switching to a biweekly payment schedule, make sure you can afford it and that it’s the best use of your money.

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