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The most painless way ever to save money on your N W Indiana mortgage!!

Real Estate Agent with McColly Real Estate

August 05, 2011 06:26 AM

The most painless way ever to save money on your N W Indiana mortgage!!

If I told you I had a fool proof way to save you major money on your N W Indiana mortgage payment each year would you believe me? Well I do and it is the easiest way possible. You just have to take your once a month payment and split it into two payments each month. That's right no pain just one extra step each month and you will save big money over the life of your mortgage.

Here are a couple of charts from my McColly web site <www.MarilynT.com> to illustrate the point.

Biweekly Mortgage Calculation - How much would your loan cost if you made payments every two weeks?

Bi-weekly Mortgage Calculation

Change the below fields as desired:
Principal Loan Balance: 100,000.00
Annual Interest Rate (%): 5%
Amorization Length (years): 30 years

Results

Year	Remaining Standard	Remaining Bi-Weekly
1	98,386.77	97,880.09
2	96,699.44	95,662.79
3	94,934.58	93,343.62
4	93,088.65	90,917.92
5	91,157.92	88,380.78
6	89,138.49	85,727.08
7	87,026.28	82,951.47
8	84,817.05	80,048.36
9	82,506.32	77,011.87
10	80,089.43	73,835.89
11	77,561.52	70,514.00
12	74,917.47	67,039.51
13	72,151.96	63,405.39
14	69,259.40	59,604.33
15	66,233.95	55,628.65
16	63,069.52	51,470.33
17	59,759.72	47,120.97
18	56,297.86	42,571.81
19	52,676.96	37,813.65
20	48,889.72	32,836.91
21	44,928.50	27,631.54
22	40,785.30	22,187.03
23	36,451.76	16,492.40
24	31,919.14	10,536.17
25	27,178.29	4,306.30
26	22,219.64	0.00
27	17,033.20	0.00
28	11,608.49	0.00
29	5,934.58	0.00
30	-0.00	0.00

Where the final summary is
Monthly Payment: $506.69
Total Int: $82,406.71
Avg Int each Month: $228.91

Biweekly Payment: $233.74
Total Int: $82,319.83
Avg Int each BiWeekly Period: $105.54

As you can see by the bottom line in my commparison of a $100,000. mortgage over 30 years you would pay off your mortgage at 25 years. That's great but few people stay that long. What impressed me was the extra dollars earned in 5 years!! All other things being equal if you sold your home after 5 years you would have $2777.00 more in your pocket paying biweekly instead of monthly. After 10 years-you would gain $6235.00. Worth comsidering.

Use auto debit or bank on line and it won't even cost you an extra postage stamp. You do need to let your mortgage company know that you want to do this and you are on your way to saving.