PAYMENT OPTIONS
The three most common payment frequencies are monthly, bi-weekly and weekly.
Increasing the frequency of your payments can allow you to pay off your
mortgage sooner and reduce the total amount of interest paid.
You should select a payment frequency based on what is convenient for
you. You may want to match your payments to your pay periods. If your
goal is to pay off your mortgage quickly, consider accelerated weekly
or bi-weekly payment plans. You'll make the equivalent of 13 monthly payments
each year, rather than 12, and realize significant interest savings. Other
options are to choose a shorter amortization period or take advantage
of prepayment privileges.
Example: If you have a $100,000 mortgage, 8% interest rate, 25 year
amortization
| Payment Frequency |
Payment |
Mortgage Paid off |
| Monthly |
$763.21 |
25 years |
| Bi-weekly |
$381.60 |
19 years |
|
