How To Save Thousands in Interest on Your Home Mortgage!
by: Sameer S Panjwani
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!
- Insurance Quotes
Get free insurance quotes from the leading insurance companies in Africa . Compare and save money. - Small business
Spend your money wisely by investing it into a small business. If you do not have yet the idea of which business to invest, then you are already on the right place. - Insurance Directory
Insurance-dir.net is a human edited insurance directory containing vast collection of insurance links and resources of various categories such as auto insurance, home insurance, life insurance, travel insurance etc. - Insurance company
Using those comparison websites can be of big help when looking for the best car insurance quotes, as through these websites you will get to have an idea about each of the insurance companies. - Insurance companies
With the aim to help everyone get informed about insurances and its benefits, the author has shared his knowledge to all his friends online. Being in the field for more than five years, the author has enough knowledge about the different insurances like car insurance, health insurance, life insurance, and a lot more. - Finance blog
Having trouble with your finances and wanted to have something to cling on to solve it, then, simply browse all the articles this finance author has for you. - finance blog online
The finance blog provides a great deal of information on different financial issues covering the banks, stock markets, credit cards, insurances and business ventures. You will get varied tips on how to improve your business and where to invest in the stock market. A visitor can also post his ideas on the web page. - business finance blog | Forex trading blog
- beltsville personal injury lawyer
- FOREX BROKER
Fxstay Management is an international team that specializes in the Forex Trading. - Find Financial Help in Anchorage
We help you to find Financial Help in Anchorage. - access your UK pension
How to succesfully get access to your UK pension. Ideal for Expats or anyone who has worked in the UK before and paid into a private pension.