The Motley Fool reviews a tried and tested technique for shaving 4 years off your mortgage and saving thousands of dollars.
Pay half of your monthly mortgage payment every 2 weeks (biweekly), and you will shave a little over 4 years off your 30 year mortgage.
Read The Motley Fool article for an explanation of how this technique works, and example of the money you will save: 1 Way To Shave 4 Years Off Your Mortgage.
At first, biweekly and monthly payment plans may sound like the exact same amount of money coming out of your pockets, especially to new homeowners. However, there is one big difference.
We all know there are 52 weeks in a year, right? So, if you pay every two weeks, you’re making a total of 26 payments each equal to half of your monthly payment. 26 divided by two is 13, so by using a biweekly payment plan you are actually making 13 full monthly payments each year, one more than you normally would.