As you make your monthly mortgage payments, you might be wondering if there are ways to pay off your loan faster under your existing loan terms.
For example, you may have considered making biweekly payments rather than monthly payments.
Let’s take a look and see if this is an option and how it might work.
A biweekly payment means that you send in half of your monthly mortgage payment every 2 weeks instead of the full payment once a month. In theory, this would reduce the loan balance quicker, meaning that you could pay off your loan in a shorter amount of time and reduce the amount of interest you pay on the loan in the end.
It’s standard to pay monthly mortgage payments, so you might wonder if biweekly is really an option. Here are some possible biweekly mortgage payment options:
*There are cautions with all of these options, so be sure to read the full article!
When you make biweekly payments instead of monthly payments, as long as they are processed when received, you will pay down your principal faster. Here are a couple of benefits to consider regarding biweekly payments:
While there are multiple ways that you may be able to make biweekly mortgage payments, it’s important to be aware of the cautions.
If making biweekly mortgage payments isn’t really an option for you, there are a couple of ways you can still pay down your mortgage faster.
Calculate the amount of one extra mortgage payment and divide by 12. Then try one of the following options:
Biweekly mortgage payments can be a great option compared to monthly mortgage payments if the situation is right and your lender allows them. Be sure to check out all of the conditions and cautions before changing the way you pay your mortgage.
APM is here for you and happy to help answer your questions as you consider your home loan options. Contact one of our friendly loan advisors today!