When you make biweekly payments to your mortgage loan, it will have a tremdous impact on interest savings.
Here is an example using a current mortgage rate and a typical loan amount:
A $150,000 mortgage loan at 30 years with a 5.0% interst rate will cost you $139,883.68 in interest. That same loan, while maying biweekly payments, will only cost you $114,116.24 in interest. That’s a savings of $25,767.24.
The numbers don’t lie and what’s great is that most people are paid biweekly, so it’s easier to manage a half payment on each payday.
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