A simple switch in how often you make payments on your mortgage can save you tens of thousands of dollars in interest over the life of your loan. You also can trim the time it takes to completely pay off your mortgage.
In a biweekly payment plan, you pay half your monthly mortgage every other week. With the biweekly plan, you:
- End up making one additional full mortgage payment every year. That extra payment goes directly toward the principal of the loan.
- Reduce the amount of interest charged over the life of the loan.
Be sure to check with you lender to make sure that it accepts biweekly payments and credit them immediately. If the lender waits until receiving the next patent before crediting both payments to the loan you won’t see the financial benefit.