Friday, October 7, 2016

The Bi-Weekly Mortgage Program simplified



An easy way to make bi-weekly mortgage payments to pay off your loan up to 5 years sooner than later.


A bi-weekly mortgage payment program is done to shorten your loan's amortization schedule.
An easy way to make bi-weekly mortgage payments to pay off your loan up to 5 years sooner than later. jon arpon
Instead of taking 12 payments per year, the bi-weekly payment plan asks for one payment every two weeks, which is 13 payments per year essentially.

With a mortgage, you pay an amount of interest on an annual basis and that amount is in your first twelve payments. The 13th payment, gets applied to your principal balance; the amount that you still owe to the bank or the lender.
And, this is how a bi-weekly payment plan works. With the "13th payment", your loan balance is reduced by the entire amount of the payment. You will reach your payoff date much sooner.
At today's mortgage rates, bi-weekly payments shorten your loan term by 4 to 5 years and allows you to own your home at a much faster rate than paying your normal mortgage payment.

An easy way to make bi-weekly mortgage payments to pay off your loan up to 5 years sooner than later. jon arpon

Is it worth it? Depends what your goals are, like all things, some people want the lowest payment possible, and some people want to pay their mortgage off as fast as possible. This is a simplified break-down of the mortgage bi weekly-payment mortgage program.
The reason I wrote this because I've always had the philosophy of "It takes an idiot to make something simple complicated, it takes a genius to take something complicated and make it simple."
If you have any questions in regards to this I am a full-time mortgage banker and would be happy to assist you with anything you need. Add me on FacebookInstagram, and LinkedIn if you have any questions.

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