Soon after the thrill of getting your dream home comes the reality of paying your mortgage. Most people carry on with a traditional loan payment plan, not realizing the time and money-saving benefits that a biweekly mortgage payment strategy can offer.
Many people wrongly assume that making biweekly mortgage payments requires paying twice as much. That‘s incorrect! In fact, the extra payment each month amounts to about 1/12th of your typical monthly payment: If your payment is $1,200, you’ll only add on about an additional $100 each month.
If you like the idea of saving cash and extinguishing debt quickly, let’s take a closer look at a biweekly payment plan and how using the AutoPayPlus biweekly mortgage calculator can show you the way to save a lot of time and money on your home loan.
How AutoPayPlus Biweekly Payments Operate
With the AutoPayPlus biweekly mortgage program, you’re debited one-half of your typical monthly mortgage payment every two weeks. Since there are 52 weeks each year, that means 26 half-payments will be withdrawn out of your account, adding up to one extra payment toward the principal per year. This shortens the life span of the loan and decreases the total amount of interest paid over time. Use those extra debt-free years to more fully enjoy life or create a financial safety net for the future.
With AutoPayPlus you can schedule automatic biweekly payment withdrawals, and learn how to add in extra installments that can help you pay off your loan even faster and save much more money.
Using the AutoPayPlus Biweekly Mortgage Calculator
It’s straightforward and simple — go to the AutoPayPlus mortgage savings calculator and follow the easy instructions. Let’s use an example of a $250,000 30-year mortgage at 4.25% interest.
Enter 250000.00 for the full loan amount, 30 years for the term (or put in the number of months until your loan matures) and 4.25 for the interest. Make sure you enter the exact date that your loan begins, or the date it started if it’s an existing loan. Then hit the calculate button to see your final results: You’ll be able to pay off the loan 52 months early and save more than $31,000!
The calculator will show you new biweekly payments, your debt-freedom date and interest saved. Clear the fields and experiment with different scenarios to see how adding extra payments can dramatically increase your savings on interest and get you out of debt even sooner.
AutoPayPlus will help you pay down debt faster. Withdrawals from your account every other week match conveniently with paychecks and your monthly budget — and an additional half-payment twice a year toward principal reduces interest over the life of the loan. Please visit this useful website to learn even more about using a biweekly mortgage payment calculator and all your money-saving, debt-eliminating options!