The Pros and Cons of making a biweekly mortgage payment

Have you ever considered paying off the mortgage on your home in two biweekly payments rather than one monthly payment? It might seem like this wouldn't make a difference, but the truth is that biweekly payments really do add up more quickly.   Since there are 52 weeks in a year you will end up making 26 payments in total – which is equal to 13 months rather than 12. This means that your mortgage will be paid off more quickly and you will save money on interest payments in the long run.  This arrangement might be the best for you when it comes to paying off your mortgage quickly and saving money, but it’s important to consider the possible disadvantages before you make the decision.

Cons of a Biweekly Mortgage Payment
  • ·                  Often lenders do not offer biweekly services free of charge. You will be required to pay a registration fee as well as paying biweekly charges.
  • ·                  If your budget doesn’t allow the room to pay more toward your mortgage every year, this could be a foolish move. Don’t neglect the importance of having an emergency savings fund or paying your bills.
  • ·                  If you have your mortgage payment set up via direct debit from your bank account, taking out a payment every two weeks could catch you out if the funds are not there, especially if you are only paid once per month. This would result in charges for insufficient funds from both your lender and your bank.

Pros of a Biweekly Mortgage Payment
  • ·                  Some people find that paying their mortgage biweekly fits better into their budget because it’s easier to plan for a smaller payment amount – especially if they are paid every two weeks.
  • ·                  By shaving years off the length of your mortgage, you are reducing the amount of money you will pay over the long run.
  • ·                  You will also be speeding up the time it takes to build equity in your home.
  • ·                  You will be compelled to make an extra mortgage payment per year, enforcing good habits on yourself that will eventually pay off.

·                  These are just a few factors to consider before deciding whether you should make biweekly payments on your mortgage. If you don’t want to commit to biweekly payments on your home mortgage, you can always save up your money and make a lump sum payment at the end of the year.
For more tips and advice,  Let me know you need some questions answered and I will get you in touch with the right people.   Getting a mortgage is one of the biggest financial obligations you will do, so doing your research is very important.  

Popular posts from this blog

Living a Life of Gratitude

Image
What are you grateful for?  How do we live life and be grateful every day? I am always trying to live my life with Gratitude but always need a reminder. Well, I am sure you have heard a few really good tips to living a grateful life like;  Keep a journal near your bed and either before you go to bed or right as you wake- write 4 to 5 things that you are grateful for.   Keep an empty jar nearby your work area and write down something you’re grateful for every time you feel stressed out (or perhaps when you say a certain phrase). Vow to not complain, criticize, or gossip for 30 days at a time-- If you slip, rally your willpower and keep going. Notice the amount of energy and TIME you were spending on negative thoughts and actions. We all have said it; “time is precious”, “time is money”, “time goes so fast when you are having fun” And many wise people have tried to warn us; Time is what we want most, but... what we use worst. ~William Penn  ...
Read more

Tips to get your home staged to sell- 2021

Image
 In this day and age- with HGTV and all the fuss made about homes it is so important to have your home staged... so here are a few tips from the pros to get the most bang for your buck!   Maximize Curb Appeal Getting them through the front door starts at the curb. Manicure the lawn, trim the trees and shrubs. Pull weeds and plant some colorful flowers. Clear the walkways. Fix peeling paint and wind up that hose. Paint the address number on the curb. Make Repairs to Visible Blemishes Is there something that’s an eyesore, but an easy fix? If looking at it bothers you, it could bother a potential buyer and reduce the appeal of your home. Replace burnt out light bulbs, fix that loose door handle, make needed paint touch-ups. Make a Buyer’s Entrance Inviting Freshly paint the front door with a color that contrasts the house. Add a new welcome mat. Hang a fresh wreath on the door. Let the Light Shine In Removing heavy window coverings to let in the natural light we all cra...
Read more

Things you can write off on your taxes when buying a home

Image
  Buying a home can be very expensive. First there's the down payment. Then there are closing costs, including fees for an appraisal, inspection, and title search. And once you own it, the expenses continue to add up, with everything from maintenance to taxes and insurance. There are some tax benefits to owning a home, though. Tax-deductible homeowner costs can reduce the amount of income tax you have to pay. What is a tax-deductible expense? A tax-deductible expense is one that you can deduct from your adjustable gross income (AGI) when you file your taxes for the year. Deducting these costs reduces your taxable income, and the lower your taxable income, the less you'll pay in taxes. When looking at potential homeowner tax deductions, it's crucial to know the differences between standard and itemized deductions. A standard deduction is a specific dollar amount that reduces the amount of income on which you're taxed, based on your filing status, age, and other...
Read more