What is a mortgage of double weeks?
double weeks' mortgage is a housing loan in which the debtor pays half a monthly payment every two weeks. The reason for this type of loan is that it allows the debtor to pay a mortgage faster. Instead of making 12 monthly payments, the debtor carries out 26 half salaries annually because it is 52 weeks in the year. By making two -week payments, the debtor pays 13 monthly payments every year.
The advantage of this payment plan is that by paying more every year, the debtor can realize savings from the total amount of interest paid, because the principal of the loan is paid faster. Depending on the size of the loan and interest rates, debtors can shorten the repayment period by several years and save thousands of dollars in interest. For owners who do not plan to stay in the house for more than five or six years, there is no real benefit in receiving a mortgage by double weeks.
Another advantage of mortgages of double weeks for some Borrowers has comfort. For those who are paid two -weekEnforcement, it may be more convenient to divide your payments and pay your mortgages for the same schedule. Before receiving a formal arrangement with the creditor, debtors should be sure that they can afford to pay an additional amount required each year.
Themortgage with two -week weeks can best be considered a budget tool. Some mortgage creditors and third -party companies offer debtors the opportunity to pay twice a day for a fee. Some companies charge establishment for adjusting the traditional mortgage on a mortgage of double weeks. Some companies also charge transaction fees for automatic deduction of double the amount from the debtor's bank account.
It is not necessary to accept a formal arrangement, such as a mortgage with a two -week mortgage to achieve the same type of savings. In fact, it may be cheaper and cost -effective for the debtor to simply pay a little more tOward Mortgage every month. The simplest method is to divide the monthly mortgage installment of 12 and add this amount to the payment of each month. For example, if a monthly mortgage repayment, main and interest, is $ 1,200 per month, the debtor can share this amount by 12, equal to $ 100. Adding an additional $ 100 to the monthly payment will have the same effect as the Payment Mortgage Plan of double weeks because it is like paying an extra month every year. Debtors must certainly be instructed by the bank to use any additional amount paid for the principal of the loan.