What's the fastest & cheapest form to pay mortgage? monthly? bi-weekly? or? Show w/ amortization schedule.

Question

Doesn't have to be a amort. table, just some form of calculation.

Answer 1

Mortgage companies tend to charge you for bi-monthly payments. However, not all apply the payment immediately. They wait till the end of the month to apply all payments. Thus you don't save any interest.

Bi-weekly payments would create 13 months in a year. This reduces principle and would save interest.

However, if you want to pay your mortgage off faster without paying extra processing fees to the mortgage company, just add money to your montly payment, earmarked for principle. Even $10 or $20 a month would be effective.

Answer 2

The fastest way is bi-weekly. Because you are making 26 payments vs 12. However your payments may be higher but in the long run you will shave off several years of your mortgage. There is another way. Pretend your house payment is $600 per month. Start paying $650 per month and you will be making an extra payment per year or pay $700 that is two extra payments. You will pay off your mortgage sooner. The more you pay towards your principal the less interest you will pay. I am sure your local bank (loan department) can show you some interesting calculations.

Answer 3

Skip the bi-weekly you will end up in foreclosure becasue many time the mortgage company will not credit 1/2 of a payment and hold it until the second half arrives making the payment into the penalty phase. If the penalty has not been accounted for in the payment then you are behind on your payments.

If you want to pay the loan off early make an extra principal payment each month with a separate check and make sure it is labeled toward the principal of the loan.

Answer 4

The fastest way to pay your mortgage with little or no change in your monthly payments or spending habits is to play the same game the banks play. Since mortgage interest is calculated on a daily basis, you pump your entire paycheck into the mortgage payment, then use credit cards or a HELOC (or whatever that allows you to make interest differed payments within a grace period) to pay for your living expenses, such as groceries and going to the movies. Then with your second paycheck, you pay off the credit cards in full.
You need to have positive cash flow to make this work.

You can pay off your 30 yr mortgage within 8-12 years. Do a search on "mortgage accelerator" in a search engine to see an example of this.

Regards

Answer 5

If you are not paying any extra on the home, it will take as long as the loan is scheduled for. The fastest and cheapest is the fifiteen year mortgage. It generally has a .25% discount offf of a thirty and takes 15 years to pay. If you plan on paying extra sometimes, but can not afford to make a fifteen yearloan payments. Then getting a standard thirty year and paying as much extra as you can in the early months can save you the most. Paying one extra dollar in the first year saves you about five dollars in the long run. Paying an extra dollar about halfway through saves you around 1.50.

Answer 6

As others said....set up extra principle payment monthly. I pay an additional $100 and it really adds up.

Answer 7

bi-weekly or make more principle payment.

am schedule can be shown here:
www.hsh.com

this will be resourceful because you can see everything yourself and make the adjustments to your needs. it's a lot easier to read the chart then trying to understand this verbally.

Answer 8

it stands to reason that the more money you pump into the payments the sooner they will end. you do the math.