It’s important to understand the benefits of biweekly mortgage payments because the savings are significant.
A lender will collect about 3 times the amount of the mortgage loan you borrowed from the interest. This can equate to hundreds of thousands of dollars in interest you pay. Ouch! The best way to eliminate a lot of the interest you pay to your lender is by setting up your mortgage payments on a biweekly schedule.
Here is a real example of the savings when paying your mortgage biweekly:
Loan amount is $200,000 and the interest rate is 5% on a 30 year loan. The total amount of interest saved is $34,356.58 and the term is reduced by 4 years and 9 months.
Here is a biweekly mortgage calculator you can use to see the savings on your personal mortgage loan: Biweekly Mortgage Calculator.
One of the best things about a biweekly payments is that you can start at anytime. Even if you have 10 years left on your mortgage, the amount of interest you save in 10 years is still very significant.
Here is a site to educate yourself about the benefits of biweekly payments and see what industry experts have to say.