When paying a mortgage financial advisors advise you to pay your mortgage every two week instead of monthly y?

You didn't actually ask a question, but the reason paying biweekly can be better than paying monthly is that you are saving half a month's interest on the amount you pay in the middle of the month instead of waiting to pay the entire amount at the end of the month. The savings is small in any given month, but over time it adds up and results in substantial savings over the life of the mortgage.





It's worth looking into, if your mortgage holder allow it and the timing of your paychecks allows you to divide the payments this way.When paying a mortgage financial advisors advise you to pay your mortgage every two week instead of monthly y?
The idea is that you make an extra payment each year.





However, this is not necessarily such a good idea. First, many mortgage companies will not permit you to may half payments every two weeks unless you sign up for their special program -- there is usually a fee in the $300 range.





A better way to accomplish the same thing, is to add 1/12 payment extra to your monthly payment to go to principal only. Actually it will work out better since the extra money will reduce the principal every month, resulting in less interest.When paying a mortgage financial advisors advise you to pay your mortgage every two week instead of monthly y?
your mortgage gets paid off sooner because you're not payings as much in interest. More money goes to principle. Now the two monthly payments should equal the one monthly payment or add a little extra if you have it. In any case as long as you are not paying less a month then when you started it's a good deal.


I'm doing it now.
By paying bi-weekly you make 26 total payment, which is the same as paying 13 payments, as opposed to 12 monthly payments. All of that money for the extra payment go towards principal, so by doing this you would pay your mortgage down faster.