Paying every two weeks will not necessarily speed up your mortgage, it really depends how interest is accrued. I have a loan through some government-backed program for first time home buyers. The interest is calculated at the first of every month (as opposed to every day, which is what many loans do). Splitting my payments to twice a month (vs once a month) won't do anything for me.
That aside, paying extra will definitely speed up paying off the end mortgage, though. Let's say you have a $1,000 mortgage payment. $100 is going to principle, $400 to interest, and $500 for taxes / insurance. If you put in an extra $1,000 to the principle, you've just knocked 10 months off the end of your loan. The earlier you pay extra, the better off you are in the long run, since the amount you pay towards principle will always go up and the interest will always go down. If your principle amount is $150, you only knock 6 (and 2/3) months off the end your mortgage. At 04:06 PM 1/5/2006, you wrote: >Subject: Mortgage Suggestions? >From: "Jacob" <[EMAIL PROTECTED]> >Date: Thu, 5 Jan 2006 10:42:09 -0800 >Thread: >http://www.houseoffusion.com/cf_lists/index.cfm/method=messages&threadid=19992&forumid=5#190586 > >"set up your payments to be every two weeks, as you'll end up with more >going towards principal and paying down the loan faster." > >Just DO NOT pay to set this up. They will say you can do if for like a $300 >setup fee and $5 a month. BS! > >You can make 12 payments a year and add 1/12 of the payment to each payment. > >So, if your payments are $1200 a month. Pay the $1200, plus $100 extra to >principal. Works the same way and saves you the BS fees. -- Jeffry Houser, Software Developer, Writer, Songwriter, Recording Engineer AIM: Reboog711 | Phone: 1-203-379-0773 -- My Company: <http://www.dot-com-it.com> My Books: <http://www.instantcoldfusion.com> My Recording Studio: <http://www.fcfstudios.com> Connecticut Macromedia User Group: <http://www.ctmug.com> Now Blogging at <http://www.jeffryhouser.com> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Message: http://www.houseoffusion.com/lists.cfm/link=i:5:190648 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
