Take Advantage of Biweekly Mortgages

Buying a new home is a powerfully exciting time for any person. A home is a large and personal investment that will likely cost you payments for a very long time - but does it have to? Many banks are offering their borrowers different options to lower the time that they have to spend in paying off their home. Ideal for those who plan on spending a long time in a home or who want to use it as an investment for greater profit sooner rather than later, these options include quick term mortgages designed to be paid off in 20 or 15 years rather than the traditional 30, and the biweekly mortgage payment.

Why Biweekly Mortgages are Better

The advantage of a Biweekly mortgage is in a simple math calculation and also deals with the interest that a lender charges a borrower for buying money. When a traditional mortgage is taken out, the first few years of payments (12 total) are largely eaten up by the interest (since the money paid each month is applied to the interest due on the loan first and it is initially nearly 100% of the loan value).

With a biweekly mortgage, rather than paying 12 payments per month, you will pay 26 (there are 52 weeks in the year which means that for two separate months through the year you will actually make three payments rather than two). The simple math advantage can be illustrated by pointing out that if you had a $1,000 monthly payment on a normal mortgage, over the course of a year you would wind up paying exactly $12,000 on that mortgage. If you had a bi-weekly mortgage of only half of that $1,000 and paid $500 every other week, you would actually pay $13,000 in that same year to the mortgage. While $1,000 may not seem like a lot initially, imagine over a 20 year period, you will have paid an additional $20,000 to the loan - nearly two years worth of normal payments, and at 6% interest, saved more than $1,200 in interest payments.

Finding the right biweekly mortgage lender isn't as simple as signing a regular mortgage and sending in the payment in halves every month - many banks will not accept this practice without pre-arrangement and if it isn't in your contract, they will refuse to accept (credit) your payments more than once per month. You must actually apply for and be approved with a lender that works with biweekly mortgages and will work with you to make the schedule and savings work.

Here on this site you can get information on biweekly mortgage lenders from all over the country instantly. They will quote you for a mortgage in competition with each other in order to earn your business and save you money. By filling out the simple, free, no-obligation form on this site you will receive in return, quotes from qualified lenders that are ready and able to assist you.