Welcome to Home Mortgage
Calculator Home Mortgage Rate Refinance Uni Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
How To Save Thousands In Interest On Your Home Mortgage
from: Sameer S PanjwaniSo you have a mortgage on your home or planning to get one? Here’s something to consider if you want to reduce your interest payment and save on thousands of dollars. Consider going in for a bi-weekly mortgage payment plan.
So, what is a bi-weekly mortgage payment plan? The difference in this type of mortgage plan lies in the frequency of payments. Out here you make your payments every two weeks instead of every month. By going in with such a payment plan, you end up paying for the 52 weeks in a year, i.e. 1 month more than the otherwise 12 payments you would make with the monthly plan (52 / 4 = 13 payments in a year). You may think why pay extra? But the benefits are there for all to see. By going in for such a mortgage plan, you are reducing the tenure of your loan as well as continuously reducing the principal and interest which has to be repaid.
An illustration to show what we mean - Suppose you were to go in for a mortgage of $150,000 for a term of 360 months at an interest rate of 6%, your monthly payment would work out to $899.93 and your total interest through out the tenure of the loan would work out to $173,757. Now consider the same mortgage taken on a bi-weekly payment plan. Your bi-weekly payments would be of $449.67 while your total interest for the entire tenure would work out to only $135,294 + you end up completing the loan in 24 years instead of 30. Huge difference!
The savings from such a payment plan are huge and are worth considering if you can afford to make the payments every two weeks. At least, keep it as an option!
About the Author
Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com - Real estate listings of homes on sale and rent.
Calculator Home Mortgage Rate Refinance Uni News
Housing Bust, Baby Bust - National Journal
Housing Bust, Baby Bust National Journal The link between home values and family values is borne out by complex mathematical formulas developed by two University of Maryland economists, Lisa J. Dettling and Melissa Schettini Kearney. It starts with the simple calculation that every ... |
Wonkbook: Mitt Romney, (accidental) class traitor? - Washington Post (blog)
Wonkbook: Mitt Romney, (accidental) class traitor? Washington Post (blog) I'm talking about providing a cheap, streamlined and simple way to refinance fixed-rate mortgages backed by Fannie Mae and Freddie Mac, which own about half the nation's mortgages and are now effectively owned by the federal government. |
Medical Properties Trust, Inc. Reports Fourth Quarter and 2011 Results - MarketWatch (press release)
Medical Properties Trust, Inc. Reports Fourth Quarter and 2011 Results MarketWatch (press release) This estimate does not include the effects, if any, of real estate operating costs, litigation costs, debt refinancing costs, acquisition costs, new interest rate hedging activities, write-offs of straight-line rent or other non-recurring or unplanned ... |
The year in bankruptcy: 2011 - Lexology (registration)
The year in bankruptcy: 2011 Lexology (registration) The highest court in Massachusetts rules against Wells Fargo & Co. and US Bancorp in two foreclosure cases that cast doubt over whether some home loans were properly handled when securitized. The defeat provides ammunition to mortgage-bond investors ... |