Making bi weekly mortgage payments will pay your principal balance faster while reducing the amount of interest you will pay.
To Sum this up.... You are actually making one additional payment a year. In Example S, you are paying $21,583.80 a Year and In Example A, you are paying $23,382.58, There are 52 weeks in a year making a payment every other week is making 26 payments at half the monthly mortgage amount vs. making 12 payments at the monthly mortgage amount.
Along with reducing your interest you also reduce the amount of time it will take to pay the loan.
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.