Shave 63% More Months Off Your Mortgage!

September 7th, 2016 | Bi-Weekly Mortgages

Saving Money - 1 STOP Mortgage Helps

Devise your own Plan for Paying Off Your Mortgage Faster - Part 3 of 3

It's important to remember that agreeing to bi-weekly payments with your lender is a contract. Once that contracts starts, you're
obligated to make those 13 payments per year no matter what.

If you choose to self-manage, though, you can get the same result but without the financial
obligation. For example, if it's the Holiday season and you'd like "skip a month" of extra payments, you can do it because you're
not under contract.

Sometime later, then, you can double-up your payments to get your loan back on track. It's your choice -- not the bank's.

And, if you're still not convinced that bi-weekly programs are wasteful or risky, double-check whether your lender charges a fee to participate in its 13-payments-per-year program. Some banks do, and that's money wasted.

If your bank is charging for its bi-weekly mortgage payment program, just say "no."
Bi-weekly mortgages aren't typically worth the cost or commitment. Thankfully, though, with current mortgage rates low, the best alternative to a bi-weekly mortgage plan may be to refinance into a new home loan completely.

Taking a refinance to lower rates and putting your monthly savings back into your mortgage as "extra payments" each month
accelerates your loan payoff faster than a bi-weekly program ever could.

Assuming a 100 basis point (1.00%) point drop in your mortgage rate, putting your monthly mortgage savings back into your loan
can shorten your loan's term 63% more than any bi-weekly program.

With today's mortgage rates low, a bi-weekly mortgage program may appear to be a smart way to save money on your loan. But, is it really?

Any questions?  Wondering what's best for you and your family? Give us a call at (901) 388-1588!


Serving the Great Mid-South Region
Offices: 901-388-1588 or 901-476-9100 |
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1 STOP MORTGAGE | NMLS#215671 | TN Lic#108931 | 5909 Shelby Oaks Dr, Suite 129, Memphis, Tennessee 38134