What's the deal with bi-weekly mortgage payments? Click here to find out!

 Homes for sale in Myrtle Beach

www.BuyMyrtleBeachForeclosures.com

 

I get a fair number of questions about bi-weekly payments.  A bi-weekly payment plan is really simple.  Instead

of paying your mortgage payment once a month, you pay half of it every two weeks.  Most months, we only collect

 two half payments - so nothing is different.  We take those two half payments and we apply one payment - just like

 everyone else.  However, twice a year, we end up collecting 3 payments (because there are 26 half weeks a year and

 26 divided by 2 = 13 payments).  So, we apply that extra half of a payment on those months.  Because you are

 paying that extra payment each year - you pay your loan off faster.


But, it's important to know that there is nothing magical about a bi-weekly payment.  Again, it only shaves

 interest and time off of your loan because you are paying extra.  I absolutely detest those companies out there that

 market a bi-weekly option to new loans.  These firms collect the payment (plus a fee) from the client and then they

 make that payment to the mortgage servicer.  The client could do this themselves.

 

 

There are a bunch of other easy payment options that have the same effect as a bi-weekly as well.  

  If you make one extra payment a year - you get essentially the same interest and time savings

 as a bi-weekly.  In fact, if you make your one extra payment at the beginning of each year - you save even more than

 if you paid bi-weekly.  Or, you can add 1/12 to each payment (if your payment is $1,000 - just add $1,000/12 = $83 and

 pay $1,083 each month) and you'll get an almost identical interest and time savings as if you paid bi-weely

 

Check out Homes in Myrtle Beach on our website at www.SCRealEstatePartners.com 

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