Real Estate Pro Articles
Real Estate Pro Articles Author Photo    

A Painless Way to Shorten Those Painful House Payments!

[Valid RSS feed]  Category Rss Feed -
By : Chad and Robyn Link    99 or more times read
If you are like the average American your home is your largest investment and your largest expense. Over the course of a 30-year fixed rate loan you will pay hundreds of thousands of dollars in interest alone. Remember the moment when you were signing the documents to purchase your house and realized how much you were going to pay just in interest? Fortunately, there is a pain free way to shorten the length of your house payments, prevent the bank from taking more of your hard earned money, while keeping more of your money in your pocket!

So what is this magical solution that will shorten my house payments you ask? The solution is simply a magical case of mathematics called a bi-weekly payment plan. The majority of Americans are paid by their employer every two weeks. Therefore, you split your monthly house payment in half, for example a $1,400 payment would be $700 and you pay that amount every two weeks when you get paid. As a result, over the course of an entire year you will make one additional house payment. The good thing about this additional house payment is that it is being used to pay down the principal amount of the loan, not the interest.

By paying half of your house payment every two weeks you are actually putting your mortgage on a diet and trimming away all of that interest. The next question to be answered is how much will the bi-weekly payment plan shorten my payments and how much will it save me? By making bi-weekly payments you will shorten the payoff time on your home loan from 30 years to between 22-24 years on average. In addition, you will also be saving tens of thousands of dollars on interest payments alone. Back in school you may have hated math, but the bi-weekly payment plan is one formula where you will love the answer.
Link Real Estate Group
"Your One Stop LINK to Success!"

Warning: include(): http:// wrapper is disabled in the server configuration by allow_url_include=0 in /home/onlineb1/public_html/realestateproarticles/articledetail.php on line 105

Warning: include( failed to open stream: no suitable wrapper could be found in /home/onlineb1/public_html/realestateproarticles/articledetail.php on line 105

Warning: include(): Failed opening '' for inclusion (include_path='.:/usr/local/php56/pear') in /home/onlineb1/public_html/realestateproarticles/articledetail.php on line 105

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles