How to save money on your mortgage with bi-weekly payments
If you're like most homeowners, you probably focus on making your monthly mortgage payment on time. However, did you know that you could save a lot of money on your mortgage by switching to bi-weekly payments instead? Here's how it works and how you can start saving today.
What Are Bi-Weekly Mortgage Payments?
A bi-weekly mortgage payment is one where you pay half of your mortgage amount every two weeks instead of paying the full amount once a month. By doing this, you'll end up making 26 payments per year instead of 12. And since there are 52 weeks in a year, you'll effectively be making one extra monthly payment each year.
How Can Bi-Weekly Payments Save You Money?
By making one extra payment per year, you'll end up paying off your mortgage faster. This means you'll pay less interest over the life of your mortgage, which can save you thousands of dollars in the long run. Plus, since you're making smaller payments every two weeks instead of one large monthly payment, you'll be less likely to miss a payment or pay late fees.
How to Switch to Bi-Weekly Payments
If you're interested in switching to bi-weekly payments, there are a few things you should do:
Contact your mortgage lender to see if they offer bi-weekly payment options. Some lenders may charge a fee, while others may offer it for free.
Calculate how much you'll need to pay bi-weekly instead of monthly. You can use an online calculator to figure out how much you need to pay to match your current monthly payment.
Set up automatic payments so that you don't forget to pay on time. Most lenders will let you set up automatic payments from your bank account or credit card.
In conclusion, switching to bi-weekly mortgage payments is a simple way to save money on your mortgage in the long run. By making one extra payment per year, you'll pay off your mortgage faster and pay less interest overall. Contact your lender today to see if this payment option is available to you!