Money and Loans
I noticed that time seems to move faster as we get older and I have come to the determination that this sense is due to monthly bills. As we accumulate more debt we find ourselves saying, “My bills are due already? That month flew by!” You may wonder why someone like me would want a bi weekly mortgage payment. You would think that this would really make time soar. However, I chose this approach for a simple reason: principal. A person who pays a bi weekly mortgage payment will pay less interest throughout the life of the loan. More money is added to the principal that shrinks relatively quickly compared to its monthly counterpart.
However, finding a bank that was willing to give me a bi weekly mortgage payment was a little challenging. Way back when I worked for a loan company. I was taken back by the amount of interest people pay over the course of a loan. This really made me do my homework on making the right selections for myself. Not only did I want to score a fixed interest rate.
I wanted a low interest rate and I wanted a bi weekly mortgage payment. My interest in the bi weekly mortgage payment started while I was at work at the loan company. One of our customers personally delivered his bi weekly mortgage payment every other week. The principal on his loan shrunk much quicker than the principal on regular monthly options. Granted, I was only a clerk who processed payments but I stilled learned a great deal about interest. However, I also discovered that not all loans are created the same. Some bi weekly mortgage payment plans really do little to shrink interest over the course of the loan. Also, some banks do not allow customers to split the payments into smaller increments. If you consider your own traits and personality you can decide if a bi weekly mortgage payment is right for you. Some of us prefer to write two smaller checks every two weeks rather than building the strength it requires writing out one big check at the beginning of the month.
Many of us can’t remember to make payments that are spread too far apart. One of the things that are appealing about a bi weekly mortgage payment is that I can pay my mortgage right after I deposit my paycheck. This is a great approach to insuring that even the most forgetful in these fleeting times remembers his mortgage. .