Loans and mortgages – Split payment for huge savings

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Another way to pay less interest is to split your monthly mortgage payment in half, and pay that amount every two weeks. By making biweekly payments instead of monthly payments, you’ll make an extra mortgage payment by the end of the year.

For example, if your monthly payment is $2,000, and you pay that amount 12 times a year, that’s $24,000. On the hand, if you pay $1,000 every two weeks, or 26 times a year, you’ve paid $26,000 at the end of the year. That’s a difference of $2,000 – an entire mortgage payment.

Check first to see of your lender charges a pre-payment fee. And don’t get involved in a “biweekly prepayment program,” where the lender charges you an annual management fee or an even bigger set-up fee with monthly service charges. It’s not worth it.



All the best,



Timben