Should You Pay Your Mortgage Bi-weekly or Monthly? Let’s Take a Look

Should You Pay Your Mortgage Bi-weekly or Monthly? Let's Take a LookMost homeowners look at their monthly mortgage payment as their largest cost per month, and something they must do to maintain a good credit history. However, you may have heard of bi-weekly mortgage payments and their ability to lower your debt load and help you pay off your mortgage more quickly. If you’re wondering if bi-weekly payments are too good to be true, here’s some information worth consideration.

What Difference Does Bi-Weekly Make?

Making a bi-weekly mortgage payment may seem to mean that your interest will be automatically reduced, but because the lender is not necessarily receiving that payment until the end of the month, this is not necessarily the case. However, while a typical monthly payment will equate to 12 mortgage payments per year, a bi-weekly payment means 26 half payments will be made each year, which equates to 13 months of payments and an additional month. As a result, this can reduce the amount of interest paid on the principal.

Consider More On A Monthly Basis

Bi-weekly payments have the ability to shave a bit off the principal and thereby lower overall interest, but that doesn’t mean you have to switch to paying every two weeks. Instead of bi-weekly, consider dividing your monthly mortgage amount by 12 and adding that amount to your monthly payment. This will bump up your mortgage cost per month, but it will also reduce the total amount you owe. For example, if your mortgage payment is $1200 per month, divide it by 12 to get $100, and add this to your payment, bumping it up to $1300 each month.

Be Aware Of The Options That Work For You

In the event that you decide to make bi-weekly payments, be aware that there may actually be additional fees associated with this offering that will nullify your money savings. As a homeowner, it’s important to stay aware of changes on the market and new mortgage offerings that can benefit you. However, it’s also important to ensure that whatever you choose, you’re aware of the risks involved so they can make for a positive financial shift.

Making a bi-weekly payment on your mortgage may have the benefit of lowering your overall home cost, but you may be able to get this benefit from simply bumping up your monthly payment.

For more tips on reducing your mortgage debt, give me a call – J.P. Cook – 602-320-4253.

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3710 N Hopi Lane Pine, AZ 85544

$448,900
2 Beds
2 Baths
1,200 SqFt
Status Active
MLS # 6680811
Property Type Single Family Residence
Price Type --
WELCOME TO YOUR NEW HOME IN THE PINES! THIS BEAUTIFUL NEWER WELL CONSTRUCTED SINGLE LEVEL HOME IS ALL READY FOR YOUR WEEKEND GET AWAY OR YOUR NEXT PARADISE HOME IN THE PINES, OUT OF THE BIG CITY. ENJOY THE LARGE FAMILY ROOM WITH SOARING VAULTED CEILINGS & COZY FIREPLACE, TONS OF KITCHEN CABINETS, HUGE MASTER BDRM WITH. EN-SUITE BATH ALONG WITH DUAL SINKS & WALK-IN CLOSET. RETRACTABLE BLINDS, CENTRAL AIR CONDITIONING, DUAL PANE WINDOWS, LARGE GUEST BEDROOM & GUEST BATH, LOTS OF STORAGE. YOU'LL REALLY ENJOY YOUR TREE HOUSE DECK AS YOU HEAR THE WIND WHISTLING THRU THE TOWERING PINE FOREST & GAZE UP AT THE ENDLESS STARS. OR CATCH A GLIMPSE OF THE ROAMING ELK AND DEER. THIS HOME SITS ONE STREET AWAY FROM THE NATIONAL FOREST AND AN AWESOME HIKING TRAIL. PINE, IS AZ'S BEST KEPT SECRET. HURRY! AT THE BASE OF THE BREATHTAKING RIM IN THE QUAINT TOWN OF PINE, FILLED WITH GREAT RESTAURANTS, ANTIQUE SHOPS, LIBRARY, POST OFFICE AND MILES AND MILES OF FOREST AND TRAILS, LAKES AND CREEKS NEARBY. (A BEAUTIFUL SHORT 90 MIN. DRIVE FROM THE VALLEY AND ALMOST 20 DEGREES COOLER AND NO 1-17 TRAFFIC JAMS. (SHOW IT AND YOU SELL IT!

1924 E Osborn Road Phoenix, AZ 85016

$448,900
2 Beds
1 Bath
977 SqFt
Status Active
MLS # 6625790
Property Type Single Family Residence
Price Type --
*SELLER FINANCING AVAILABLE* Remodeled from top to bottom in Loma Linda neighborhood right down the street from Phoenix Children's Hospital. All updates permitted w/ City of Phoenix. Home features new shaker kitchen cabinets w/ stainless steel appliances, tons of storage & island w/ breakfast bar. All new bathroom w/ tile tub surround. Real hard wood throughout including new baseboards. Energy efficient w/ new AC unit, new dual-pane windows & doors, tankless gas water heater & new insulation. Inside laundry room w/ extra storage & folding table. All new recessed lighting & ceiling fans throughout. Home has also been re-plumbed w/ new water & sewer lines. 2-car tandem garage that you can pull through into the backyard if you like. Large lot, block construction, no HOA & move in ready!

15829 W Boca Raton Road Surprise, AZ 85379

$448,900
3 Beds
2 Baths
2,071 SqFt
Status Active
MLS # 6647483
Property Type Single Family Residence
Price Type --
Home sweet home! This immaculate 1-story home has no rear neighbors giving you privacy! Come home to cozy yet elegant living, highlighted by a neutral palette throughout & boasts a well-designed split-floor plan w/ 2,071 sq ft of living space, 3 bedrooms plus a double door entry den, & 2 bath, a formal living/dining combo & the kitchen at the heart of the home overlooking the family room & breakfast nook. The well-equipped kitchen features S/S appliances, gorgeous granite countertop, tons of cabinet storage, pantry & kitchen island w/ a breakfast bar. Primary bedroom has a walk-in closet & ensuite bathroom. Step outside & enjoy your low maintenance backyard & relax in the sparkling pool- an ideal setting for true Arizona living. Close to Downtown Surprise, the Performing Arts Center, shopping, dining & great school

10829 W Melvin Street Avondale, AZ 85323

$448,900 - 3Br/3Ba -  for Sale in Roosevelt Park Phase 1, Avondale
Open House
$448,900
3 Beds
2.5 Baths
2,024 SqFt
Status Active
MLS # 6677982
Property Type Single Family Residence
Price Type --
This is it! Featuring an open floor plan where kitchen, dining and living spaces integrate into one large space. This home is ideal for entertaining! Luxurious finishes throughout, upgrades galore! Nestled in a gated community, this pristine home has it all! Gourmet kitchen is a modern chef's delight, complete with oversized island and breakfast bar, granite countertops, stainless steel appliances, GAS range, and walk-in pantry! OWNED Solar Panels! Whole house water softener plus R/O system for kitchen & refrigerator ice maker! Grand master suite offers a spa-like retreat featuring dual vanities and an oversized walk-in shower with teak wood flooring and bench. Step outside to a feeling of being in a secluded tropical island with a beautiful backyard oasis! Large putting green, new hot tub, lighted Pergola, surrounded by a ''tropical island privacy wall''! 2.25% VA mortgage assumable for qualified buyers! Features: *SOLAR power (OWNED) *Soft water and R/O systems *Refrigerator, Gas stove, microwave and washer/dryer included *Tankless water heater *New Hot Tub *Lighted Pergola *Tropical Island privacy wall *Pre-wired for surround sound in living room, flex room and patio

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