Journey Wealth Management, LLC
Roy Y. Gagaza
RFC®, CEP®

CONNECT

Address:

Waipahu Office
94-229 Waipahu Depot St. #502
Waipahu, HI. 96797
808 469-4361 Office
808 676-6016 Fax


Honolulu Office
Waterfront Plaza (Old Restaurant Row)
7 Waterfront Plaza
500 Ala Moana Blvd. Suite 400
Honolulu, HI 96813
808 469-4361 Office
808 676-6016 Fax

California
Manteca, CA Office
903 W. Center St. #7
Manteca, CA 95337
209 825-8888 Office
209 825-9955 Fax

Phone:

Biweekly Mortgage Offer

What Advantages Does a Biweekly Mortgage Offer?

Most homeowners make their regular mortgage payments every month for the duration of the loan term, and never think of doing otherwise. But prepaying your mortgage or making biweekly payments can reduce the amount of interest you'll pay over time.

Under a biweekly mortgage, instead of making the payments once a month, you make half your normal monthly payment every two weeks. For example, if your mortgage is $1,000 per month, under a biweekly system it would be $500 every two weeks.

If you maintain the biweekly payment schedule you'll make an extra month's payment over the course of each year (26 payments per year, which is the equivalent of 13 full monthly payments rather than 12). You'll also pay less interest because your payments are applied to your principal balance more frequently.

The effect of biweekly mortgage payments can be dramatic. For example, if you currently have a $150,000 loan at 8 % fixed interest, you will have paid approximately $396,233 at the end of 30 years. However, if you use a biweekly payment system, you would pay $331,859 and have it completely paid off in 21.6 years. You would save $64,374 and pay the loan off 8.4 years earlier!

 

The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2018 Broadridge Investor Communication Solutions, Inc.

 

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