Bi-weekly and weekly payments
Most mortgages have the option to allow payments
to be made on a weekly or bi-weekly basis. This
option may be desirable for two reasons. The first
is it can save you money as you can expect to pay
off your mortgage about 4 years sooner. This can
save you dramatically over the life of your mortgage.
The other reason why these options are so popular
is that if your employer pays you on a weekly or
bi-weekly basis, you can simplify your budgeting
by making the payment line up with the way you paid.
Making Extra payments
Paying extra amounts on your mortgage can make
a big interest saving over time. When we select
a mortgage company, privilege payments options are
something that we look for. A 20% privilege payment
will allow you to pay off up to $20,000 per year
on a $100 000 mortgage. It is important that the
privilege payment also be flexible to allow you
to pay smaller payments on the mortgage and as often
as you wish. An extra $1000 periodically paid on
a mortgage can help you become mortgage free faster.