 |
 |
 |
           |
 |
 |
 |
|
 |
 |
|
|
|
 |
Biweekly Mortgage
The biweekly mortgage has been around for years but with the recent media attention to the real estate industry in general and the mortgage industry in particular, the biweekly has been getting thousands of home owners to use this simple, yet powerful, way to speed up the principal payment process. Why is this so popular? How does it work? How can I do this? Here is why this is so popular to hundreds of thousands homeowners. It is an easy and effective way to increase the equity in a home. It can also shorten the life of the mortgage substantially. It does this with just about the same mortgage payment that one usually makes per month so it is affordable to anyone who owns a home. The biggest obstacle is just doing it. Biweekly means that the homeowner will make a payment every two months instead of once per month. Basically what you do is take your monthly payment, cut it in half and then make that payment every two weeks. So how does this save money? Well, by paying every two weeks you will actually end up paying more off the principal every year because: 1. There are 52 weeks in a year. 2. That means you make 26 payments a year. 3. With the monthly payments you would make the equivalent of 24 payments a year. 4. The 2 payments extra would go towards your principal. 5. This accelerates the payment of the loan and each month the principal gets paid by an ever increasing rate. The great thing about this is because each month is only a few days over 28 days ( 4 weeks) the biweekly mortgage payments are not a hardship on any home owners. The most extra days in a month are 3 and some months have 0 or just 1 extra day. So why wouldn't everyone just do this? I think much of it has to do with either they don't know about it or they think " I can just pay extra off my principal anytime I want. Why pay biweekly?" But the problem is that a large percentage of people don't ever make any extra payments to their principal. They think about it but don't do it. There is always other more important things to use the money for, even though the actual money they need every month to make a big difference is quite low. Discipline is a key factor here. If someone has enough discipline it really isn't necessary to use a biweekly mortgage plan. This doesn't mean that people who don't use a biweekly aren't disciplined. Only those who want to pay down their mortgage principal but never seem to be able. So, in a way the biweekly is just a formula to help homeowners, who are usually very busy with other parts of there life, become more disciplined and make them pay off the mortgage principal more quickly. With today's prices, a homeowner can save over $50,000 and cut 5 years off the life of the mortgage! ___________________________________________________________________ Copyright 2005 By Tim Phelan Tim Phelan is a full time internet marketer who has been self employed for the last 12 years. Real estate, the environment, art, world culture, politics are some of his other interests. For a totally free biweekly mortgage manager visit this link: TimPhelansblog.mortgagemanager email nalehpmit@yahoo.com Blog timphelansblog.blogspot.com
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
Stopping Foreclosures If you as an investor understand the process, you will be able to help more people!Foreclosure is tuff on folks it's all about losing!Your customer loses their home and the lender loses money!If you can get your focus going in the right direction, you can create a Win - Win scenario for all involved.Writer and philosopher Johann Wolfgang von Goethe said, "Kindness is the golden chain by which society is bound together. The Zero Down 80/20 Mortgage This is an excellent loan for those that are lacking the down payment required for other types of mortgages.The 80 20 mortgage is simply two loans for 100% of the purchase price. Mortgage Basics for First Time Home Buyers Anyone planning to take out a mortgage for the first time will most likely find the job a little daunting, not least because the financial jargon can often be very difficult to make sense of. As with any major financial decision, it is essential to fully understand every aspect of a mortgage plan before making a commitment. Bad Credit Mortgage Loans - Are You Killing Your Chances of Getting Approved? When you have poor credit, your list of lenders that will approve you for a home loan can shrink down very small. You want to make sure that you are doing everything in your power to keep your credit rating as high as you can. Home Mortgage Lenders - How to Find A Good Mortgage Broker Online Mortgage lenders have set up shop online, but they aren't all reputable mortgage brokers. To find a good mortgage lender you need to compare rates and research to find reputable companies. Home Mortgage Refinancing - What's in Your Contract? Are you one of the millions of Americans who will be refinancing their home mortgage loan this year? When you sign your contract and the other papers for your refinance, will you know what your signing?Your Contract: This one is simple, but I would guess very few people do it. READ THE ENTIRE CONTRACT. Should You Refinance? There are several reasons that might make someone consider refinancing their existing mortgage. One would be to get a lower interest rate than what they currently have, thereby reducing monthly payments and lowering the overall cost of the mortgage. A Home Loan Can Help You Own Your Dream Home Owning your dream home need not just be a dream. You can own it with a home loan offered by any number of financial institutions to help meet the shortfall between the purchase price of the home and the down payment that you provide. Repayment Remortgages is The Cure For Outdated Endowment Policy If bulls and the bears of the stock market have no effect on your mortgage plan then you must apply for endowment to repayment remortgage. An endowment mortgage is a financial product offered mainly in the UK. Refinance After Bankruptcy Refinancing your mortgage after bankruptcy is actually the same as replacing it with an entirely new mortgage. The most common reason for refinancing your mortgage after bankruptcy is to get a lower interest rate and save money over the length of your mortgage. Home Equity Loans - A Big Benefit Or A Big Mistake? When the bills are piling up and there doesn't seem to be any way out, a home equity loan can seem like the answer to your prayers. Home equity loans can also be a great way to jumpstart a business or investment portfolio. Mortgage Cycling - Brilliant or Risky With mortgage rates near 20-year lows, competition in the mortgage industry is fierce. It seems like every day a new mortgage loan strategy comes out that is suppose to be the best thing since sliced bread. Bad Credit Loans Authenticate What Is Positive About Bad Credit This might not be the front page news but it is now out in the open! 'Bad credit is getting loans - all kinds of loans'. Lending institutions, banks and other financial constitutions are coming forward to provide loans for bad credit. Reverse Mortgage - Be Sure You Need It Before Applying For One Reverse mortgages used to be considered the last resort of desperate retirees who needed to borrow against their home equity in order to pay for medical expenses. With home prices across the country rising at astonishing rates, more and more retirees, aged 62 and over, are taking out reverse mortgages to fund better retirement living. Doing a California Refinance Online Californians are passionate people. I know. Secured Loans For Home Improvement - When You Can't Buy A Luxury Home A house is just perfect with chipped walls and broken taps. Is it? If you don't think so, then home improvement loans is what you should be looking for. Subprime Mortgage Loans Online - What To Expect Applying for a subprime mortgage loan online can seem intimidating at first. With so many lenders to choose from, it can appear difficult to find the best mortgage loan. Multi Family Property Living While most multi family properties are designed to allow the peaceful coexistence of many families within their separate units, some apartments and houses give you the feeling that you're actually living in one big family. Things like sharing one washer and dryer between five families means you never know whose underwear you'll have to fish out of the washer before you start your own laundry. The Top 5 Reasons to Buy a Home 1. Save on your income tax. A Personal Mortgage Experience I don't know what the mortgage situation is around the world but here in England the mortgage industry is a constant point of debate. It used to be that everyone aspired to having a mortgage on a nice home - you know the kind of house with enough rooms to cater for the average family with 2.
|
 |