Biweekly Mortgage Payments Money Saving Tip

If you decide that paying off your mortgage early is right for you, you may want to consider biweekly mortgage payments. Biweekly mortgage payments let you pay half of your mortgage every two weeks. When you do this, you are effectively making 13 months worth of payments each year, allowing you to pay down your principal balance faster and save you money on interest charge.

The advantages include: (1) you can pay off your 30-year mortgage six to eight years earlier, and (2) the payments coincide nicely with your paycheck schedule. However, if your bank or mortgage servicing company charges you a high fee to do this, you may want to consider another stragtegy. For instance, you might consider prepaying an additional 1/12th of your normal payment toward the principal. For example, if your payment is $1,200 per month, pay 1/12th or $100 more.

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