Search
Recommended Sites
Related Links
FREE EMAIL
Email Login
Password

Looking for a
FREE EMAIL


 





   

Informative Articles

20 Gas & Electric Money Savings Tips
Did you get sticker shock when you opened your last utility bill? If you did, you're not alone. People have reported huge increases in their energy bills. My gas bill went up about 40%, so I decided to make my home more energy efficient....
Health Savings Accounts: An Alternative to Traditional Health Insurance?
A Health Savings Account offers people a second choice when it comes to signing up for health insurance. It's not a replacement for health insurance, but instead, combines aspects of personal savings with the complete coverage offered by a health...
How to Decide on Chequeing and Savings Accounts
Choosing the right bank accounts can be a difficult task... after all, you're making major decisions that can directly affect your finances. Unfortunately, there isn't a catch-all way to look at choosing different types of bank accounts......
Use Child Tax Credit For Tax Savings
Now, here's a real tax savings to the individual taxpayer with dependents. The child tax credit is a direct federal income tax credit based on the number of dependent children in your family. This federal tax credit is available to provide credit...
When to Link Chequeing and Savings Accounts
Have you ever had an overdraft cheque? It can be a major inconvenience, especially if the overdraft was only by a small amount. To help consumers to avoid the problem of minor overdrafts, a number of banks offer a link between chequeing accounts...
 
True Savings With Biweekly Mortgage Payment Plans

You can save a lot of money paying off your mortgage earlier. A typical borrower can cut ten years off of a 30 year mortgage loan just by paying one extra payment each year. There are several ways to do this. Biweekly payments, one extra payment/year, or several lenders offer automatic biweekly plans.

Some of the extra fees they tack on can be way too much to pay for the chance to have a paid off mortgage early. Some are total scams, you should never pay $1000 fees or even monthly fees just to make two payments a month.

Sending two payments a month will equal one months extra payment each year and save you 10 years interest. But not all lenders will let you do this for free.

A better solution is to pay your 30 year loan on a 15 year payment plan for free.

Most mortgage loans today have no prepayment penalties. You can do it yourself for free. Just add extra to your monthly check, use the additional principal box on your payment form. You can find the amount you need to add by simply checking an online amortization schedule. Just look for your 30 year mortgage and run the same numbers on a 15 year schedule. Add the extra amount to each months payment and you will be paid off in about 15 years.

This is much safer in the event something happens and you can't afford the 15 year payments. You can always revert to 30 year payments.

A major benefit of paying additional principal each month is the added equity you build up. It is much faster than paying on a 30 year plan. Not to mention you can save $90,000 or more in interest by cutting 15 years off your mortgage loan. That is money that stays in your pocket, money you don't have to work hard for just to give to a
banker.

Try making 15 year payments on your 30 year loan for awhile, it doesn't hurt your budget that much. You are only talking about adding $200-300 each month. And you can hold off for a month if things get tight. The benefits are well worth it.

About the Author

M. Johnsona runs www.mortgage-loans-and-refinancing.com A website of tips and insider

secrets for the mortgage loan seeker.
href="http://www.mortgage-loans-and-refinancing.com>Mortgage Loans Info

About the Author
M. Johnsona runs www.mortgage-loans-and-refinancing.com A website of tips and insider secrets for the mortgage loan seeker.