According to a survey, Bi-Weekly payment is the best painless ways to pay down a mortgage. Now most of institutions offer Bi-weekly payment in USA, I would strongly recommend in all the bi-weekly payment because what happened effective when you choose bi-weekly payment, you are actually make in thirteen month without payments over of on your period rather than twelve months. So that extra principle amount will go of your principle and effectively will dues amortization of your mortgage.
So generally you are making monthly payment on a mortgage so it switched bi-weekly payment and the extra money that your payment actually goes to principle not the interest. Few institutions are allow you to make a merely once period where is don’t exits of thirteen percentage. For example, when you have a two hundred thousand dollar mortgage and you have a ten percent prepayment privilege you actually can make mountable prepayment, join a calendar year is only seek don’t exit ten percents or equals. For example equal twenty thousands. Join the term of mortgage any time in the join of term of your mortgagee. And the Bank allows you a thirteen percents per year of each term of your mortgage. That means it is not limited, you will possibly turn back term of mortgage any time.
Benefits of prepayment
If you make a prepayment, every due your principle and effectively every dues interest of your mortgage. So here is common question that, dues your payment actually go down? No, be actually payment is don’t changes, what happened to your amortization and life of your mortgage actually gets you dues.