We have a 15 year fixed mortgage with a bi-monthly (26 payments) payment plan. How fast can we expect to pay off our mortage?
2007-12-01 09:36:41 · 7 answers · asked by momof4 3 in Business & Finance ➔ Personal Finance
I lost the paperwork!! We first took out a fixed 15 year mortgage, now we have added a bimonthly payment. Every two weeks we pay half. Which works out to be an extra payment every year.
2007-12-01 11:13:10 · update #1
If this is how you signed for it, it will take 15 years to pay it off.
This method simply saves you interest over the life of the loan
If you are making the second payment in addition to the required payment you will pay it off much much earlier. You can use this site to figure it out. http://www.bankrate.com/brm/amortization-calculator.asp
2007-12-01 09:55:31 · answer #1 · answered by moonman 6 · 0⤊ 1⤋
Well without running the numbers. I give you an example, my mortage is a 30 year simple interest Fixed loan. I also elected to pay by the Bi-weelky payments. By simply paying Bi-weekly payment it will knock off 7 years and 3 months off my mortage. I also pay an extra $100 on every payment which will knock off an extra 6 years. So I am looking at my 30 year loan to be paid off in 16 year and 9 months. So you should be looking at about 11.5 - 12 years. I saw answers this will not knock time off your loan, oh ok do the math people
2007-12-01 10:59:11 · answer #2 · answered by jeffery d 5 · 1⤊ 0⤋
Is this a trick question? If it was set up with bi monthly payments, then 15 years. If you switched to bi-monthly payments or paid some silly "mortgage payment" service then you would have to calculate the exact numbers, as they may charge some fees, or actually hold your payment and make one payment each month.
In general if you paid an extra 10% per year, of about 1 extra payment per year, the term would go from 180 to 155 months.
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2007-12-01 09:50:24 · answer #3 · answered by Gatsby216 7 · 0⤊ 0⤋
Is your bi monthly mortgage equivalent to what you would pay in 1 month or is split in half. If it paid in full i.e 1000 per month mortgage and you pay 1000 every two weeks it would take you 8 years to pay it off. If it is fixed at 15 years and your paying half every two weeks it will be the full 15 years.
2007-12-01 09:43:57 · answer #4 · answered by vanallenbelt1 2 · 0⤊ 1⤋
All of those solutions could nicely be labored out utilising a economic calculator. each and every calculator comes with an education ebook on a thank you to choose amortization schedules and private loan circumstances. desire this facilitates.
2016-12-10 09:21:10 · answer #5 · answered by bowker 4 · 0⤊ 0⤋
It would depend on your interest rate and other factors included in your contract. You need an amortization schedule. Do a Google search for amortization calculator.
2007-12-01 09:45:08 · answer #6 · answered by Dave W 2 · 0⤊ 1⤋
Uh, if you don't know then you shouldn't have the mortgage.
2007-12-01 09:41:12 · answer #7 · answered by Anonymous · 0⤊ 1⤋