pay mortgage in 5 years

wipe out a loan, a borrower pays more interest than the principal that he had borrowed. If someone says that you can save thousands of dollars in interest payments, and reduce the pay off by about eight years (in the case thirtieth year-old mortgage) It sounds like magic. Well, actually it is not. The method is logical and easy, provided you have the necessary financial discipline.

To exploit this advantage, you need to shift from monthly payments to two weeks payments. Now, two weeks does not mean that two payments per month. It represents 26

Payments in one year instead of 12 monthly payments. Every two weeks, the rate would be half of the monthly payment.

For example, instead of a monthly payment of, say, $ 1000, you pay $ 500 every two weeks. This means that instead of $ 12,000 as part of the monthly scheme, which you actually pay $ 13.000 in one year, or an additional payment of $ 500 every six months. The lender must be instructed to credit this amount against the amount borrowed, and not to interest.

Strictly speaking, it is not important to select every two weeks to the payment of this benefit. You can send a check for $ 500 half-yearly financial reports for the lender with the necessary instructions. Or one twelfth of the amount could be added to the monthly payment. But many people find it impractical and prefer twice weekly method.

$ 1000 per year sounds too small to make a noticeable impact, but it works and is also very simple. Your total interest burden is significant and your mortgage in 30 years could be paid off in about 22 years. And your equity in the house quickly increased.

There are providers, with two weeks for a fee. This assistance is not really necessary if you have a little trouble.

Mortgage Payments provides detailed information on mortgage payments, calculate mortgage payments, Bi-Weekly mortgage payments, mortgage payment protection and much more. Mortgage payments should be read in conjunction with online mortgage lending.