Updated: Wednesday, 16 Jan 2013, 7:26 AM EST
Published : Wednesday, 16 Jan 2013, 7:26 AM EST
Grand Rapids, MICH (WOTV) - Here’s the key to saving thousands of dollars off your mortgage … simply schedule your payments to occur bi-weekly rather than monthly! Even if you pay the same amount you would on a typical monthly payment, but just schedule half of your monthly payment to be made every other week rather than one time monthly, you’ll be amazed at the long term savings!
In calculating the savings of a $150,000 mortgage over a life of 30 years at an interest rate of 4.00% APR, bi-weekly payments of $358 rather than monthly payments of $716 shaved 5 years off the life of the mortgage, along with $18,000 in interest over the life of the loan.
Check with your mortgage lender to see if they are able to set you up with bi-weekly payments rather than monthly payments. If not, then consider another option – just add $100 to your payment due each month. In calculating the savings of adding $100 to the same mortgage example shown above, paying $816 each month rather than the $716 required payment shaved 6 years off the life of the mortgage and over $25,000 in interest payments!
Talk to your credit union to learn more about low rate mortgage options available, and what you could do to save thousands of dollars over the life of your loan!
For more information on mortgages check out First Community Federal Credit Union's website.
All topics for informational purposes only and are not intended to provide legal advisement.