If you are currently shopping for a mortgage, you may have heard about how your payment frequency can affect your amortization and save you money in the long-run. For example: 

The main difference between regular bi-weekly payments and accelerated bi-weekly payments is the number of payments you make per year. When you pay bi-weekly, you make a payment twice per month - giving you a total of 24 payments made in one year. With the accelerated bi-weekly option, you make a payment every two weeks, which turns out to be 26 payments in one year. 

How Much Can I Save?

At first glance, making 26 payments per year as opposed to 24 might sound like it would not make much of a difference. Consider the following scenario:

If you had a $350,000 mortgage and made a 10 percent down payment, chose a 25 year amortization and secured an interest rate of 3 percent, you would end up paying $135,390 in interest if you made regular bi-weekly payments. By switching your payments to accelerated bi-weekly for the same mortgage, you would be paying $118,755 in interest and have your mortgage paid off in 22 years.

By increasing the payments from regular bi-weekly to accelerated bi-weekly for this particular mortgage scenario, there is a whopping $16,635 of savings and the ability to be mortgage free almost 3 whole years sooner.

For more details on payment frequency and what your best options are, contact us today.

Get in Touch

Someone from our office will personally get in touch with you within 1 business day.

Current Rates

as of November 19th, 2017

2.641 Year
2.542 Year
2.843 Year
2.994 Year
2.975 Year
3.447 Year
4.0910 Year
2.29ARM/Variable
3.70HELOC
Innovative Mortgage
Nov 07We are answering the most frequently asked questions starting with "What is a Mortgage Broker?" Stay tuned each wee… https://t.co/i2vxxlCOwlFollow Innovative Mortgage
Contact Us Today

Payment Frequency

Our team can help you pay off your mortgage faster

Contact Us Today