Paying your mortgage monthly works for many homeowners, but did you know that making biweekly payments can actually save you money and help you pay off your loan faster? Let’s explore the benefits of switching to a biweekly mortgage payment plan:
1. Reduces the Total Interest Paid
One of the key benefits of a biweekly payment plan is that it can help reduce the total interest you pay over the life of the loan. Since you’re making payments every two weeks, you’ll end up making 13 full payments in a year instead of 12. This extra payment goes directly toward reducing your principal balance, which in turn reduces the amount of interest you pay.
2. Helps You Pay Off Your Mortgage Sooner
By making biweekly payments, you’re effectively paying off your mortgage ahead of schedule. The extra payments add up over time, shortening the term of your mortgage. This can save you years of payments and help you become mortgage-free faster.
3. Easier to Budget With Smaller Payments
Biweekly payments split your monthly mortgage into smaller chunks, which makes budgeting easier. Instead of paying a large lump sum each month, you’re paying a smaller amount every two weeks. This can make it easier to fit your mortgage payment into your regular budget, especially if you’re paid on a biweekly schedule.
4. Builds Equity Faster
As you pay down your principal faster with biweekly payments, you build equity in your home more quickly. This can be especially beneficial if you plan to refinance or sell your home in the future.
If you’re considering a biweekly payment plan, Life Planner’s Loan Tracking and Amortization features can help you monitor your progress and see how these changes impact your mortgage over time. You can also use Life Planner’s Savings Goal Tracking to set aside extra money for additional payments and see your equity grow.
Interested in taking control of your mortgage and other financial goals? Download the Life Planner app today! With its Budgeting Tools, Loan Tracking, and Financial Reports features, Life Planner can help you track your mortgage payments, set savings goals, and stay on top of your finances.
Download the Life Planner app today and start managing your mortgage payments more efficiently! The app is available on both Google Play and the App Store.