Simple Terms for Bi-weekly Mortgage Payment

1
Difference Between Regular and Biweekly Mortgage
Payment Plans

• All Western Mortgage

2
Monthly Mortgage Payment 
A typical mortgage repayment plan expects you to
make one mortgage payment each month, which is
equal to 12 payments per year. If you have a
fixed rate mortgage for 30 years, it would take
360 payments to repay the loan in
full. ? Mortgage installments are always split
into 2 parts - the principal and the interest.
The principal portion reduces the amount owed to
the lender and the interest portion covers your
cost of borrowing. In the initial years of the
mortgage, the majority portion of your monthly
installments covers the interest and just an
insignificant portion goes towards the balance.
This is the reason why even after 5-8 years, the
balance of your loan barely gets reduced.
3
The Biweekly Mortgage Payment
A bi-weekly mortgage payment plan short circuits
your loans amortization schedule. Under the
bi-weekly plan, you make mortgage payments every
couple of weeks instead of making one payment per
month. When you add this up, it amounts to 13
installments a year. ? This additional 13th
payment covers your principal balance of the loan
and this is how the biweekly mortgage payments
work. With each additional payment your loan
balance gets reduced by the amount of the payment
and thats how you shorten the term of your loan
along with saving big bucks on the interest. In
simpler terms, bi-weekly payments allow you to
save thousands of dollars on interest and reduce
your loan term by 4-6 years.
4
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If you want to find out how much money exactly
youll save on your mortgage by switching to a
biweekly payment plan, you can use All Western
Mortgages biweekly mortgage calculator here.
Apart from the bi weekly mortgage calculator, All
Western Mortgage has developed various other
state of the art and easy-to-use calculators that
will help you plan your mortgage budget better.
Check them out today!
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All Western mortgage Address 8345 W Sunset Rd,
Suit 380 Las Vegas, NV 89113. Phone [phone]
Fax[phone] Email info_at_awmlending.com