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How To Save Thousands in Interest on Your Home Mortgage!
So you have a mortgage on your home or planning to get one?
Here's something to consider if you want to reduce your interest
payment and save on thousands of dollars. Consider going in for a
bi-weekly mortgage payment plan.
So, what is a bi-weekly mortgage payment plan? The difference
in this type of mortgage plan lies in the frequency of payments.
Out here you make your payments every two weeks instead of every
month. By going in with such a payment plan, you end up paying
for the 52 weeks in a year, i.e. 1 month more than the otherwise
12 payments you would make with the monthly plan (52 / 4 = 13
payments in a year). You may think why pay extra? But the
benefits are there for all to see. By going in for such a
mortgage plan, you are reducing the tenure of your loan as well
as continuously reducing the principal and interest which has to
be repaid.
An illustration to show what we mean - Suppose you were to go
in for a mortgage of $150,000 for a term of 360 months at an
interest rate of 6%, your monthly payment would work out to
$899.93 and your total interest through out the tenure of the
loan would work out to $173,757. Now consider the same mortgage
taken on a bi-weekly payment plan. Your bi-weekly payments would
be of $449.67 while your total interest for the entire tenure
would work out to only $135,294 + you end up completing the loan
in 24 years instead of 30. Huge difference!
The savings from such a payment plan are huge and are worth
considering if you can afford to make the payments every two
weeks. At least, keep it as an option!
Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com - Find real
estate listings of homes on sale and rent.
MORE RESOURCES updated Sun. May / 28 / 2023
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The process of obtaining a mortgage or home loan can be
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If you are self-employed, work on a contract basis, or have
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A Self-Certification mortgage is a mortgage designed for
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Many people fret the rising tide of interest rates. You'll
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Applying for a home loan can be overwhelming. You will need
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The most basic distinction between types of mortgages that
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Refinance -- Here is the Answer
I have written many articles on refinancing a fixed rate
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You have probably received refinancing offers in the mail
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There has been so much fraud discovered in the FHA program
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