The Power of Bi-Weekly Payments
Most homeowners pay their mortgage once a month, totaling 12 payments a year. However, by switching to a bi-weekly schedule—paying half of your monthly amount every two weeks—you end up making 26 half-payments, or 13 full payments per year.
Why does this matter?
That one extra payment per year goes 100% toward your principal balance. Over the life of a 30-year loan, this simple trick can shave anywhere from 4 to 6 years off your mortgage term and save you tens of thousands of dollars in interest, without requiring a drastic change to your budget.
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Check with your Lender
Before starting this strategy, contact your lender. Ensure they apply the extra payments to the "principal" immediately and do not hold the funds in a suspense account until the end of the year.