Become Mortgage Free Faster

Posted on 09 January, 2014

Home finance is not a simple "one size fits all" solution. Changing some key variables in your financing can make a difference.When it comes to saving on your mortgage, there are some strategies to help out.

By switching to accelerated bi-weekly payments versus monthly, not only will you sav on interesdt but you will have your Mortgage paid off sooner. For example if you have a $250,000 mortgage for a 25 year amortization at 4% interest, over the mortgage term you will be paying $144,515 in interest. By switch your payments to bi-weekly for the same mortgage you will be paying $124,058 in interest and have your mortgage paid off in 22 years. By increasing your payments from monthly to accelerated bi-weekly for this particular mortgage scenario there is a savings of $20,457 in interest, and in addition it paid the mortgage off 3 years sooner. To switch payment frequency contact your mortgage broker or financial institution and let the savings begin!

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