New York Mortgage Company

Archive for the ‘Bi-Weekly Payments’ Category

Bi weekly plan loans are loans in which the payment schedule is structured to make payments on the mortgage every 2 weeks instead of every month. If your 1 month payment is $1,000 dollars a month then your biweekly payment would be about half of that amount, let’s just say it would be $500 to make it simple. On a monthly plan of paying $1,000/ month you would pay $12,000 a year. Since on a bi weekly payment plan you’re paying every 2 weeks, in a 52 week year you would make 26 payments. 26 payments of $500 would equal $13,000 a year. In essence you are making an extra payment a year. Biweekly payment plans help you pay down you principal faster and save you 10’s of thousands in interest over the life of the loan. See our Refinancing your Mortgage section for more ideas and examples.