paying off mortgage in 5 years

paying off mortgage in 5 years
Some mortgage companies you can order your mortgage, so that the payments two weeks. This allows you to pay off your mortgage at a much faster. While certainly not for everyone, here are some things that You need to know why you can consider how to two weeks with mortgage payments.

The most positive two weeks payment option, which is a true two weeks mortgage payment plan, the payment every two weeks. Yes, they want the automatic payments - probably better for you, also, that you not worry about late payments. The first payment is half of the monthly mortgage payment, and then the second is half price. All together, you will have paid the equivalent of 13 months of payments in just 12 months.

The difference in the programs every two weeks, the payments are actually a difference in how much you pay at the end. This means that you need to understand what happens to the payments if the company gets them. What you want is that your lender to pay the mortgage on the day that they receive. This gives you a nice reduction in interest.

Other lenders, not wanting to lose that interest in some of the sweet, place your payment in another account, and then, if they have a full payment for each month to pay for this month. Even at the end of the year when the full 13th Payment, then it will be applied. What a difference it will over the years in the interest that you pay if the lender to fool them with your money. What you want is for the payment to your account if your payment.

A similar effect can, if you have an extra payment each year on their own, but the savings are not quite so good. Is that a true BI-weekly payment plan, you can pay off a 30-year mortgage in approximately 18 to 22 years, the potential savings are enormous. It is possible to over $ 34,000 for each, that 100,000 U.S. dollars is owed.

Anytime that you make additional payments on your mortgage - the effect is the same - the interest rates. Bi-Weekly payments can be found on your big savings on the mortgage, and will continue to build equity in your home much faster.

If you already have a mortgage, your lender may not allow you an easy way to payments by two weeks. Since it is more work for them, they may not want to be bothered and can not even offer such a program. Even if they have it, about the only way, some lenders allow you to make the change would be for you to refinance your mortgage and then apply all fees, including points.

A bi-weekly payment mortgage is also a little higher, because of the added value for the mortgage lenders. Make sure that all charges that may be, and then compare offers thoroughly before you buy.

Joe Kenny writes for the Loans Store, offering mortgage, or the latest interest only mortgages on NationsFinance.co.uk.