• Skip to main navigation
  • Skip to content
  • Skip to footer

Quick Search

Parkland FL Homes for saleParkland FL Homes for sale

Search homes for sale in Parkland and surrounding areas

  • Home
  • Search
    • Advanced Search
    • Featured Properties
    • Newest Homes for Sale
    • Upcoming Open Houses
    • My Account / Login
  • Area
    • Parkland
    • Boca Raton
    • Coconut Creek
    • Coral Springs
    • Margate
    • Tamarac
  • Buy
    • Steps to Buying
    • Mortgage Calculator
  • Sell
    • Free Home Valuation
    • Marketing Your Home
    • Selling your Home with Jon Klein
  • Reviews
  • Contact
SearchClose

Should You Pay Your Mortgage Bi-weekly or Monthly? Let’s Take a Look

Should You Pay Your Mortgage Bi-weekly or Monthly? Let's Take a LookMost homeowners look at their monthly mortgage payment as their largest cost per month, and something they must do to maintain a good credit history. However, you may have heard of bi-weekly mortgage payments and their ability to lower your debt load and help you pay off your mortgage more quickly. If you’re wondering if bi-weekly payments are too good to be true, here’s some information worth consideration.

What Difference Does Bi-Weekly Make?

Making a bi-weekly mortgage payment may seem to mean that your interest will be automatically reduced, but because the lender is not necessarily receiving that payment until the end of the month, this is not necessarily the case. However, while a typical monthly payment will equate to 12 mortgage payments per year, a bi-weekly payment means 26 half payments will be made each year, which equates to 13 months of payments and an additional month. As a result, this can reduce the amount of interest paid on the principal.

Consider More On A Monthly Basis

Bi-weekly payments have the ability to shave a bit off the principal and thereby lower overall interest, but that doesn’t mean you have to switch to paying every two weeks. Instead of bi-weekly, consider dividing your monthly mortgage amount by 12 and adding that amount to your monthly payment. This will bump up your mortgage cost per month, but it will also reduce the total amount you owe. For example, if your mortgage payment is $1200 per month, divide it by 12 to get $100, and add this to your payment, bumping it up to $1300 each month.

Be Aware Of The Options That Work For You

In the event that you decide to make bi-weekly payments, be aware that there may actually be additional fees associated with this offering that will nullify your money savings. As a homeowner, it’s important to stay aware of changes on the market and new mortgage offerings that can benefit you. However, it’s also important to ensure that whatever you choose, you’re aware of the risks involved so they can make for a positive financial shift.

Making a bi-weekly payment on your mortgage may have the benefit of lowering your overall home cost, but you may be able to get this benefit from simply bumping up your monthly payment. 

Posted in: Home Mortgage Tips Tagged: Home Mortgage Tips, Mortgage

Post navigation

« 4 Common Problems Home Sellers May Try to Hide
What’s Ahead For Mortgage Rates This Week – December 12, 2016 »

Contact Jon Now

Parkland FL REALTOR®Jon Klein, REALTOR®, P.A.,GRI

954-415-5595 Direct

954-449-9325 Office

954-827-0464 Fax

jon@jonklein.com

5691 Coral Ridge Drive
Coral Springs, FL 33076

RE/MAX 1st Choice Logo, Coral Springs, FL
Jon Klein Team Logo, Parkland, FL

Connect with Us

© 2023 · RE/MAX 1st Choice, Jon Klein · Direct: 954-415-5595 · Fax: 954-827-0464 · Sitemap · IDX Sitemap · IDX XML Sitemap · Parkland FL Homes for Sale · Privacy Policy | Accessibility Statement

Disclaimer - All Rights Reserved by RE/MAX 1st Choice, Jon Klein
Direct: 954-415-5595 | Find me on Google | Directions to Jon Klein

Log in · Real Estate Websites by Real Estate Websites by YourSiteNeedsMe.com