![]() ![]() If a borrower wants to make an extra payment to accrue the benefit of a biweekly mortgage plan, then they can simply send a payment every two weeks instead of the payment due every 30 days. It is simply unnecessary to involve the lender in changing the loan terms so that a borrower must make a payment every two weeks instead of the normal payment due once a month, explains Reischer. In general, you wont need to involve your lender in order to start making payments this way, according to David Reischer, attorney and CEO of. ![]() If your monthly payment is $2,000, for instance, you can send $1,000 biweekly. If your lender allows biweekly payments and applies the extra payments directly to your principal, you can simply send half your mortgage payment every two weeks. Recommended Reading: How Much Interest Will I Pay Mortgage Calculator How To Set Up A Biweekly Mortgage Payment Plan Any time you receive some extra cash, such as a tax refund or year-end work bonus, apply it to your principal. Instead of sending the exact payment amount say, $1,235.50 round it up to $1,300 and apply the extra amount to the mortgage principal. To reduce your mortgage balance more aggressively, one trick is to continue paying your previous monthly payment amount and instructing your lender to apply the extra cash to your principal. Its possible to refinance your existing mortgage and get a new loan with a lower interest rate and monthly payment. Even $50 can help reduce the principal and the total amount of interest you pay on the mortgage. Review your budget to see if you have extra cash to apply to the mortgage principal. Fortunately, there are alternative ways to pay your mortgage faster, including: Switching to biweekly mortgage payments may not be right for everyone. Alternatives To Biweekly Mortgage Payments If you have questions on how you can start biweekly payments through Rocket Mortgage®, you can talk to a Home Loan Expert today for more information. As with any major financial decision, its important that you weigh the pros and cons of paying your mortgage more frequently. The Bottom Line: Are Biweekly Payments Right For Youįor the right type of borrower, biweekly payments can help you save on interest and quickly add equity into your home.
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