Posted on: 09th Mar, 2010 03:53 pm
I was told if I made two payments per month towards my mortgae it would payoff sooner.
Example:
$1,000 monthy mortgage
Two payments of $500.
Would the two $500 payments payoff my mortgage sooner than the one payment of $1,000?
Example:
$1,000 monthy mortgage
Two payments of $500.
Would the two $500 payments payoff my mortgage sooner than the one payment of $1,000?
Hi rdbhome,
I personally do not feel that two payments of $500 per month in place of $1000 once a month will help you in paying off the mortgage sooner. As far as I can understand this would be considered as a semi-monthly or bi-monthly payment plans. These plans don't achieve the same results as the biweekly payment plan and thus, they are rarely used. If you opt for this plan, the maximum that you would be able to save is a month's interest.
Thanks
I personally do not feel that two payments of $500 per month in place of $1000 once a month will help you in paying off the mortgage sooner. As far as I can understand this would be considered as a semi-monthly or bi-monthly payment plans. These plans don't achieve the same results as the biweekly payment plan and thus, they are rarely used. If you opt for this plan, the maximum that you would be able to save is a month's interest.
Thanks