Are you searching for the best way to reach your early mortgage repayment goal quickly? Do you want to know how you can repay your mortgage as soon as possible? Do not search further; this write-up will provide you with the information that will help you make the best decision possible.
Everyone desires to own a house, but it comes at a cost, which is why many people are discouraged when their real estate agent tells them the price. Furthermore, many people dream of paying off their mortgage early, but this dream is short-lived if the proper strategy is not used. However, you can achieve your early mortgage payment dream by choosing a bi-weekly payment plan.
The bi-weekly payment plan allows you to make two payments in one month and a total of 13 payments in a year. With a bi-weekly payment plan, you do not necessarily need a lump sum of money for a mortgage; you can contribute toward it.
How Bi-weekly Mortgage Payments Can Help Reach Your Goals
Before going further, it will help to consider how your goals can be achieved using the bi-weekly mortgage payments. Below are some of the ways bi-weekly mortgage payments can help you:
1. Faster Mortgage Pay-off
A bi-weekly payment allows you to make an extra payment in a year, which makes paying off the mortgage faster. If it takes 30 years to pay off your mortgage using the traditional payment plan, you can complete the payment in less than 25 years if you choose the bi-weekly payment.
2. Build Equity
The bi-weekly mortgage payment also allows you to build equity, which is a financial value in the home. With bi-weekly payments, the additional mortgage payment is your equity. Your equity in a house increases as you make extra payments.
3. Easier to Budget
It is very simple to budget for a bi-weekly mortgage payment because you can automate the payment by asking your banker to schedule the payment to your mortgage. You can budget the payment without any difficulties or confusion.
4. Saving on Interest
By making extra payments, you will pay off your principal much faster than estimated. As a result, you will save on the overall payable interest, which may be worth thousands of dollars. You can channel the money you save from interest payments into a retirement plan.
Contact your real estate agent to ask for the price of your dream home so you can start planning for home buying. This will also give you an idea of how much you would need to budget for the bi-weekly mortgage payment. Meanwhile, you should consider taking advantage of bi-weekly payments for your mortgage plan.