Save Big by Paying Your Mortgage Biweekly

Mortgage Questions Answered

Over the lifetime of your mortgage a huge chunk of your payments goes towards interest. Here is a quick tip on how to save a significant amount of those interest and fees. If your not already doing so, simply set up your mortgage payments on a biweekly basis. Most banks will offer this payment option and it will help you save thousands of dollars in interest plus pay off your mortgage early.

How it works is they just divide your monthly mortgage payment in half and you make your payments every other week. There are 52 weeks in the year, so by paying every other week you are making 26 half payments which is equivalent to 13 full payments. You will barely feel the difference because it is spread out over the year and this extra annual payment will save you quite a bit over the lifetime of your mortgage. For example, if you have a $200,000, 30 year mortgage at 5% you would save $33,000 and pay of the loan 5 years early.

If you are interested in doing this just contact your mortgage lender and see if they have a program. Just be sure to check if they charge a fee for it. Most don't if you set up automatic withdraw from your account. If you have any other mortgage questions or your own tips please leave a comment. There are lot's of tips and tricks to help people save money.