Biweekly Mortgage

Biweekly mortgages are available for anyone who wishes to pay off their home mortgages earlier than their loan terms require. It may seem like a daunting task to pay off a 30-year home loan. Still others have fallen victim to those 40-year loans that seem to sap everything the homeowner can make while never touching the principle. A homeowner may have paid down their mortgage and would like to accelerate the pay off to coincide with retirement by beginning to pay on a biweekly mortgage. This payment option provides a money saving, realistic way to significantly pay down the home loan and reap the benefits of home ownership earlier than through a traditional loan.

With a 30-year mortgage, consumers will pay three times the loan value by pay off time. This understanding has made many homeowners think much more seriously
about biweekly mortgages. Payments twice a month can limit the interest payments as well as the number of months paid on a home loan. Considering it will take about 23 years to pay off only one half of a 30-year, a biweekly mortgage holds great appeal to anyone who really wants to save money. It seems unreasonable to let the bank receive $200,000 in interest and charges for a mere $100,000 loan over a 30-year period, when the homeowner can pay off significantly earlier with payments twice per month.

Borrowers can come up with a plan for paying on their home loan twice per month or they can receive professional financial help through mortgage companies and lending sources. Those who decide to activate a biweekly mortgage plan themselves will need to make extra payments without legal motivation. Biweekly mortgages set up legally through mortgage companies, offer the same discipline as one's 30-year home loan. Many homeowners are excited about changing payment schedules because paying twice a month really is a manageable, boosted pay off plan that generally does not strap most financially stable households.

Consumers can restructure a conventional loan to a biweekly plan without changing interest rates. The interest payments will change as payments are accelerated to reduce the loan balance. Biweekly mortgages simply change the payment plan from one full payment a month to half a payment every two weeks. This payment schedule ends up adding an extra month every year to payment towards the home loan. For instance, on a 30-year loan, the homeowner can pay the home loan off in 22 years if they make payments twice per month from the start. The savings can be incredible depending on how early the borrower starts. Anyone can convert to a biweekly mortgage plan through many mortgage company sources available online. "Owe no man anything, but to love one another..." (Romans 13:8a)

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