blueyz0602 asked:
If your mortgage/PMI/Property taxes amount to $1000/month, and you pay $500 on the 1st of the month and $500 on the 15th, will this help you gain equity on the house faster and, in turn, pay off the loan quicker? Or will it work out to be the same as making one lump sum each month?
Claudia
If your mortgage/PMI/Property taxes amount to $1000/month, and you pay $500 on the 1st of the month and $500 on the 15th, will this help you gain equity on the house faster and, in turn, pay off the loan quicker? Or will it work out to be the same as making one lump sum each month?
Claudia
Cecil
It will .. ultimately you would like to make your full mortgage payment on the first of the month. That would be the better solution.
Jacob
No, that will do nothing. What you are supposed to do is pay $500 every two weeks…not twice per month. Here is the difference…
Twice per month = $12,000 per year
Every 2 weeks = $13,000 per year
Got it?
Bernard
the mortgage company has to allow it. and some only apply the extra payments at the end of the year. My mortgage company lets me pay extra principal each month, so I send along an extra $30 or so. This gets applied to the principal the next month, not at the end of the year – in 2 yrs, I’ve already cut a couple of payments off the back end of the mortgage-actually, I have 2 mortgages and a new investment property mortgage starting soon and a land loan and I pay extra on all of them every month to pay them off quicker
Sandra
yes it will.
better yet, I saved lots of money when I took advise from someone is to pay an additional 10% of ur monthly payment every month
Sarah
It will do nothing. What you may be thinking is some mortgage companies will allow you to pay half of your payment, every other week. They usually charge extra to do this. But all this does is to get you to apply one extra pay a year (26 *.5 = 13).
Any additional you pay over and above your monthly payment will pay your loan off early, and save you interest in the long run, and theoretically, increase your equity faster.
You can increase your equity in two ways, pay off your loan faster, or increase the value of your home.
Grace
bi monthly mortgages are a scam. do not get involved. always try to obtain a standard plain vanilla 30 fixed rate mortgage and your life will be so much better.
Oscar
Most companies will charge you a fee to make bi-monthly or bi-weekly payments. I’d just add extra to your once-a-month payment.
If you owe $1,000 per month but pay a $2,000 payment per month, the loan will be paid off in about 6 years.
Clifford
If your mortgage company will allow you to do this, it will save you interest. That would not be bi-monthly payments–it would be semi-monthly payments. To start this, however, you would have to make $1,000 on the 1st of the month and then $500 on the 15th of that month. And then $500 on the 1st of the next month. Otherwise you would be paying late.