Mortgage Tips Pay Your Mortgage Weekly

Mortgage Tips Pay Your Mortgage Weekly



Mortgage Tips - Pay Your Mortgage Weekly
It’s official .​
The math does not lie – you​ should pay your mortgage WEEKLY .​
I​ have just completed all the​ math that you​ do not want to​ go through to​ find the​ truth.
I wanted to​ know the​ best way to​ pay a​ mortgage to​ save as​ much money as​ possible .​
Here are the​ conclusions that you​ want to​ take away from my studies.
Was it​ better to​ pay you​ mortgage weekly,​ bi-weekly or​ monthly?
-> Paying you​ mortgage weekly would save you​ 1294.12$ on​ a​ 200 000$ mortgage amortized over 25 years (rate of​ 5.4%) .​
Now that’s not a​ ton of​ money but it​ does not cost you​ anything .​
You do not have to​ increase your payments at​ all to​ save .​
So take the​ saving and run with it.
-> the​ higher the​ interest rate the​ more you​ will save .​
If we double the​ interest rate,​ the​ savings are 7.08 times larger .​
That means that there is​ an​ exponential factor that increases,​ power of​ this strategy.
-> Paying your mortgage weekly generates 43% more savings than paying your mortgage bi-weekly.
How to​ increase your savings by weekly accelerated payments?
Recently many people have started to​ use a​ strategy called weekly accelerated mortgage payments .​
That means that they not only save money by paying weekly but they also make their payments a​ little bigger and save a​ lot of​ money.
To do this they simply take their monthly mortgage payment and divide it​ by 4 .​
Since there is​ a​ little more than 4 weeks in​ a​ month (actually there are 4.33) they end up making 4 weekly payments more every year.
-> on​ a​ 200 000$ mortgage (rate 5.4% amortized over 25 years) the​ extra payment would only be 23.25$ per week.
-> you​ would pay out the​ mortgage 3.7 years earlier
-> the​ total savings would be 23 173.78$ .​
Not bad! (for details visit the​ resource box)
Paying your mortgage weekly and accelerated is​ worth it! the​ savings on​ the​ capital you​ use to​ increase your payments is​ equal to​ having a​ return on​ investment of​ 7.52% .​
Not bad for a​ guaranteed return!
Saving money does not have to​ be complicated: pay your mortgage weekly .​
If you​ can accelerate your payments a​ little,​ you’ll save more .​
If paying your mortgage weekly is​ not possible then pay it​ bi-weekly .​
It’s not as​ good as​ paying weekly but it’s better than paying monthly!




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