Benefits of the Bi-weekly Mortgage

A bi-weekly mortgage can take years and thousands of dollars off the total cost of buying your home. Each year you make 13 payments on your mortgage instead of 12. Add that up and you’ll see that after just 6 years you will be 6 ½ years closer to owning your home. You will find vendors offering you a bi-weekly mortgage for an administrative fee of a couple hundred dollars up to $500.00. Don’t be fooled. You can get this service at no cost.
Read the fine print on your mortgage and see what options you have. 

If you cannot change your existing loan you may want to start looking for another vendor that will offer a bi-weekly mortgage payment schedule. Depending on your mortgage agreement that might mean you will have to wait until its anniversary to pay it out and re-mortgage with a bi-weekly plan.
You might want to consider talking to your financial institution to see about consolidating all your services. You might be surprised to see the money you can save by having your mortgage, insurance plans, chequing and savings accounts, lines of credit and charge accounts all with one vendor. 

If you have a less restricted mortgage agreement you should speak with the vendor and arrange a bi-weekly plan. Most of us are paid bi-weekly so saving money can be as simple as dividing your monthly principal and interest payment in half and sending that amount to your lender every two weeks. Or if you prefer to make one payment per month but still benefit, simply divide your monthly principal and interest by twelve and add that amount to your monthly payment.

Anytime is a great time to save and with a bi-weekly mortgage you will save thousands of dollars and own your home that much sooner.

Won’t it be nice to have no payments at all and to achieve it years earlier? Yes it sure would. So get out there and speak to a mortgage broker or your banker today and see if there is a better deal to be had. You might be surprised at the money you will save over time. It can be massive! You can use that money to go on vacation or buy those nice toys you've had an eye on. Your friends will wonder where you got the extra money. Tell them so they can benefit too and look like a hero in their eyes.