Right after the thrill of purchasing your dream house comes the reality of paying your mortgage. Most people stick with the traditional classic monthly loan payment plan, not realizing the time- and money-saving benefits of a biweekly mortgage payment strategy.
Many people wrongly assume that making biweekly mortgage payments means they’ll be paying twice as much. Not true! In fact, the additional money each month amounts to about 1/12th of your normal monthly payment: If your payment is $1,200 a month, you’ll only add on about an additional $100 a month.
If you like the thought of saving money and eliminating debt quickly, let’s take a closer look at a biweekly payment program and how making use of the AutoPayPlus biweekly mortgage calculator can show you how to save big on your home loan.
How AutoPayPlus Biweekly Payments Work
With the AutoPayPlus biweekly mortgage program, you’re debited one-half of the typical monthly mortgage payment every two weeks. There are 52 weeks each year, so that means 26 half payments will be withdrawn from your account, adding one extra monthly payment to principal per year.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’ll be able to use those extra debt-free years to more fully appreciate life, or put funds away to create financial security for the future.
You can schedule automatic biweekly payment withdrawals with AutoPayPlus. You can even add extra payments to pay off your loan faster and save more on interest.
How to Use of the AutoPayPlus Biweekly Mortgage Calculator
It’s easy — go to the AutoPayPlus mortgage savings calculator and follow a few simple steps. Let’s use a sample 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 till your loan matures) and 4.25 for the interest. Enter the exact date that your loan begins, or the date it started if it’s a current loan. Then hit the calculate button to see your results: You’re able to pay off the loan 52 months early and save up to $31,000!
The calculator shows your new biweekly payments, debt-freedom date and interest saved. Clear the fields to play with different scenarios and to view how adding extra money to your biweekly payment can dramatically boost your savings on interest and get you out of debt a lot faster.
AutoPayPlus can assist you in paying down debt more rapidly. Withdrawals out of your account every other week match conveniently with paychecks and your monthly budget, and an added 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 discover more ways to save money!