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What The Experts Are Saying
Biweekly programs are becoming increasingly popular because they provide a high level of automation, convenience, and savings. Countless independent organizations, including the Oprah Winfrey Show (link to the video) and CBS evening news, have endorsed this payment option as a useful and effective financial planning tool. Below is a collection of comments from various publications:
The New York Times
“A biweekly mortgage is best… for anyone who wants faster equity buildup. The idea of biweekly mortgages is ‘simplicity itself’… The result: a reduced term, substantial savings in interest and an acceleration of equity.”
The Wall Street Journal
“A $70,000 mortgage at 10.5% annual interest produces savings of $60,000 when repaid on a biweekly schedule.”
USA Today
“What started as a mortgage lenders’ marketing gimmick is on its way to becoming the hottest home loan of the decade. It’s the biweekly mortgage, and it’s as simple as paying half a monthly payment every two weeks. The attraction: Biweeklies reduce interest expense and build home equity faster”
Bankrate.com
“Paying half of your mortgage every two weeks coincides evenly with many paycheck schedules. Plus, buyers can pay off the mortgage six to eight years early.”
Business Week
“You can save considerable amounts of money” with a biweekly program.
Consumer Reports
“Whether you already have a mortgage or are in the market for a new loan, you can probably save tens of thousands of dollars by ‘investing’ in your mortgage. If you took out a $100,000 biweekly mortgage instead of a regular 30-year mortgage at 10.5 % interest, you could save nearly $86,000 in interest over the life of the loan.”
Money Magazine
“The result [of a biweekly plan] on a $100,000, 30-year mortgage at 10%, for example, is that you can burn your mortgage in just under 21 years and save $78,359 in interest.”
The Wall Street Journal
“The Federal National Mortgage Association (Fannie Mae) believes this type of mortgage could appeal to many homebuyers who want to reduce interest payments over the life of the loan, and build up equity faster… a bi-weekly program establishes a structure for speedier payments.”
