"Save Thousands of Dollars With Bi Weekly Mortgages"

With a bi weekly mortgage you can adjust your mortgage payments and save THOUSANDS OF DOLLARS in interest payments over the life of your loan. Here is how it works. 

With bi-weekly mortgages, you make half-payment every two weeks instead of a full payment every month. If you pay half the regular monthly amount every 14 DAYS, that means at the end of the year, you would have made 26 mortgage payments, the equivalent of 13 full payments, or one payment every 28 days rather than just 12 payments. Two weeks always equals 14 days, and four weeks is always 28 days. By making a full payment every 28 days instead of once month, you are making more mortgage payments that convert that YOUR 30-year mortgage into a 24-year mortgage.

How does that translate into savings THOUSANDS OF DOLLARS in interest payments?

Let's assume you have a 30-year home loan. Your mortgage is $200,000 at 6%. Your monthly payment would be $1199.10, which includes interest and principal. If you make the regular 12 payments a year for 30 years you will pay off your loan of $200,000 plus $115.838 in interest. But if make 13 payments a year and your total interest payment will be $129,819.02. That's a savings of $31,035.44. And your mortgage will be paid in 24 years. If you make bi-weekly payments, you would make half a payment every two weeks in this case, $431.74. Those 26 half-payments add up to 13 monthly payments every year.

If you can afford half a mortgage payment every two weeks, there are a few ways you can pay it. First, check with your lender. Although most mortgage companies do not accept partial payments, some lenders do offer biweekly payment programs you can join. There also are separate companies that will "warehouse" your biweekly payments and make them with whatever mortgage company you choose, usually for a fee.

If you decide to use a separate service to handle your biweekly payment, check their terms carefully because they can vary widely. Some will charge you a start-up fee for the payment service; others charge you a per-payment or monthly fee. Some charge both. Fees and costs can range from just a few dollars a month to a start-up fee of hundreds of dollars. Some companies may. Why? Because they have use of your money for two weeks out of four.

If you want to avoid possible fees and don't mind the extra effort, you can make 13 payments a year on your own for free, or even better you can simply send more money every month, which will be applied to your principal. You will reach the exact the same goal.  It still will help reduce the term of your loan and your total interest payments, even if you only do it occasionally. Check with your mortgage company first to ensure they will accept periodic additional principal payments and make sure you designate the added amount on the loan payment coupon as payment toward principal. Otherwise, it might be credited toward interest.

Biweekly mortgages make sense if you can afford half a payment every two weeks. If you can stick with a biweekly program, it can cut years off the life of a mortgage and save you thousands of dollars in interest payments. When I say THOUSANDS I mean TENS OR HUNDREDS OF THOUSANDS OF DOLLARS.