After the thrill of buying your dream home comes the reality of paying your mortgage. A lot of people stay with the typical monthly loan payment terms, not realizing the time- and money-saving advantages offered by a biweekly mortgage payment program.
Many homeowners wrongly assume that making biweekly mortgage payments implies they’ll be paying twice as much. Not true at all. In reality, the extra money each month amounts to about 1/12th of the standard month-to-month payment: If your payment is $1,200 a month, you’ll only pay about an additional $100 a month.
If you like the thought of saving cash and eliminating debt quickly, let’s take a closer look at the biweekly payment plan and see how using the AutoPayPlus biweekly mortgage calculator can offer you a strategy to save big on your home loan.
How AutoPayPlus Biweekly Payments Help You Save
With the AutoPayPlus biweekly mortgage plan, you’re debited one-half of your regular month-to-month mortgage payment every two weeks. Because there are 52 weeks in a year, that means 26 half-payments will be withdrawn out of your account over 12 months, and you’ll be making the equivalent of one extra monthly payment to principal per year. This shortens the life span of your loan and decreases the total amount of interest paid over time. You can use these extra debt-free years to more fully appreciate life, or set some money away to build financial security for the future.
With AutoPayPlus you can schedule automatic biweekly payment withdrawals, and even add extra payments to pay off your loan even quicker and save a lot more on interest.
Using the AutoPayPlus Biweekly Mortgage Calculator
It’s really simple — go to this mortgage savings calculator and follow a few easy steps. Let’s use the example of a mortgage of $250,000 for 30 years at 4.25% interest.
Enter 250000.00 for the complete loan amount, 30 years for the term (or put in the number of months until your loan matures) and 4.25 for the interest. Be sure to enter the exact date that your loan starts, or the date it began if it is an existing loan. Then hit the calculate button to find out your results: You’re able to pay off the loan 52 months early and save more than $31,000!
In the results, you’ll see your new biweekly payments, your debt-freedom date and interest saved. Clear the fields and play with different scenarios to view how adding more payments beyond biweekly ones can dramatically improve your savings on interest and get you out of debt even quicker.
AutoPayPlus can assist you in paying down debt faster. Withdrawals out of your account every other week fit conveniently with paychecks as well as your monthly budget. Plus, that extra half-payment twice a year toward principal reduces interest over the life of the loan. Visit this informative website to use a biweekly mortgage payment calculator and get more tips and tools to save on your loans and debts!