Payment frequency is not the major factor in reducing the amortization
period of your mortgage. Principal reduction is! But what about all the talk
of bi-weekly payments taking 5 years off your amortization period.
Although you will save some interest making your payment bi weekly,
ultimately it is the fact that your total payments each year are higher that
results in the significant reduction in amortization. For instance, when a
client chooses a bi weekly payment of $ 500 over a monthly payment of $ 1000,
in fact they are choosing to pay an extra $ 1000 annually. In most cases a
bi weekly payment is simply a monthly payment divided by two.
Even if you have had a bankruptcy, Florida
foreclosure, collections, and/or other credit situations, we may be
able to help. Ft Walton Florida residents check now for the best real
estate mortgage loans available.
