Bimonthly Versus Monthly Mortgage Payments

Bimonthly Versus Monthly Mortgage Payments

Did you know bi-monthly payments can take 8 years off of your mortgage?? That's right, make half of you payment twice a month you can save 18-30% in interest during the life of your loan.  Essentially you are making 13 payments instead of 12 because of 52 weeks in a year, and 26 half payments annually, or 13 monthly mortgage payments instead of 12.  You will get extra principle paid.
Do not just start sending in your payments bi-monthly though! You will need to see if your lender offers this option so it can easily be set up and applied correctly. Many do offer this option upfront. Otherwise, your extra payments will not be credited to principal, you would only be paying ahead. If your lender does not offer this option, you can do it yourself a couple of ways.... You can add 1/12 of your monthly payment  to each payment as additional principal, or you can pay an additional payment during the year and advise the lender to apply to your principal.
An easy way to cut years from your mortgage!

Ginger Smith Headshot
Phone: 803-932-8155
Dated: February 12th 2015
Views: 1,081
About Ginger: Hello, I am Ginger Smith with Exit Midlands Realty. We serve areas of Columbia, Lexington, Chapin, N...

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EXIT Midlands Realty
200 Clark St PO Box 807
Chapin, SC