Mortgage Calculator Extra Payment

Free Mortgage Calculator Extra Payment

Perhaps the most practical way to make extra payments on your mortgage is to make bi-weekly payments.

Instead of making one payment on your mortgage each month, you simply start making payments of 1/2 of your monthly payment.

You can either pay them twice a month (semi-monthly) or you pay every other week (bi-weekly). The bi-weekly option will result in 26 bi-weekly payments and consequently you will have paid 1 extra month per year.

EXAMPLE:

mortgage calculator extra payment

The lender will receive an additional payment. If you set up the payments through direct deposit, you will make it easier for you as the homeowner. The payments are not overlooked or missed as they are withdrawn on the same day every two weeks.

There are significant benefits to using this system for mortgage pay-offs. By doing this, you will pay less interest on the balance.

In fact, up to 1/3^rd of the interest can be reduced over the length of the loan. An original 30 year biweekly mortgage could be potentially paid off in 22 years.

Another benefit of biweekly payments is the fact that the equity (or value) of your home will increase more quickly as the balance is paid down.