Read This Before You Get A Bi-Weekly Mortgage.

Lately, everyone’s gotten really excited about bi-weekly mortgages and how they help pay off your loan so much faster, but have no clue what a bi-weekly mortgage is and how it’s saving you thousands of dollars on interest. Before you get a bi-weekly mortgage you need to understand what a bi-weekly mortgage does and other ways you can get the same effect without refinancing or paying someone a fee.

A bi-weekly mortgage pays your mortgage every two weeks instead of once a month resulting in one extra payment per year. You know how every few months it works out so that you receive an extra paycheck for the month? Well a bi-weekly mortgage takes that money and pays off your mortgage with it. So to answer the question of how does a bi-weekly mortgage work? It makes 13 payments every year instead of 12.

The only difference between a traditional mortgage and a bi-weekly mortgage is one payment a year. If you have enough money in your bank account then it could be as simple as writing a check and making a payment, just like that you saved yourself thousands of dollars in accrued interest. Any extra money you can put towards your mortgage now will have a ripple effect and multiply as time goes on.

You could also use a bonus from work or your income tax return as a way of saving money on your mortgage or something as simple as paying an extra 1/12th of your payment every month.

It all comes down to discipline and giving any extra money you have towards your mortgage. Consider it an investment in yourself – an extra $100 dollars now can save you thousands of dollars over the course of 30 years.

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