You’re likely looking for the best way to pay off your mortgage. Although monthly mortgage payments are the easiest way to pay off your mortgage, they are not the best. However, many homeowners are finding that biweekly payments work better.
Is a biweekly installment the best option? What payment strategy is best for you? Here are the facts.
Biweekly payments: Get your mortgage paid off faster and save on interest
For a variety reasons, biweekly payments have become more popular. A biweekly payment will allow you to pay less interest over the life of your entire mortgage and also make it easier for you to pay off your mortgage faster.
Because they are synchronized with your paycheck, biweekly payments make it easier for you to budget for your mortgage. Additionally, the biweekly system makes it more difficult to pay extra towards your principal.
However, biweekly payments have their disadvantages. You might not be able to afford extra payments if you have a very expensive home. You may be required to pay a $300 setup fee and a processing fee for each installment by your lender.
Monthly payments: Larger Homes are easier to afford
For many reasons, paying your mortgage on a monthly basis is the norm.
If you are an independent contractor, it may be easier to manage your monthly payments. You don’t get paid every two weeks.
Owners of larger homes are likely to be able to afford lower monthly mortgage payments.
You can also make one lower payment per year by setting up a monthly payment plan. This is a great way to save money for people who are tight on their budget.
While monthly mortgage payments used to be the norm, many homeowners now choose to make biweekly mortgage payments to help pay down their mortgages quicker and better manage their money. For a variety reasons, monthly payments are still very popular.
Which one is best for you? Beverly Hills Mortgage Brokers can help you decide the best course of action. For more information about your mortgage payment options, call your local mortgage broker.