Re: Mortgage repayment software that handles biweekly payments

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Mortgage repayment software that handles biweekly payments
Date: Thu, 3 Dec 1998 18:50:06 -0500

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>I've recently been told (and it should have been obvious)
>that if you pay your mortgage off in a biweekly manner
>instead of with monthly payments, you can save yourself
>a significant amount of interest.

FWIW, it's not because your paying it bi-weekly (in fact, many
lenders only use the month's starting balance for computing the
month's interest), it's because paying bi-weekly means that in the
course of a year you make 26 one-half payments, or 13 payments.

So, let's say that your monthly principal+interest payment is $1200.
At some point in the year, simply make an extra $1200 payment.  Or
pay an extra $100 a month (or $400 a quarter, or...).

This can be done with any mortgage that doesn't have a pre-payment
penalty.


>Anyone know of any software (preferably free) that
>can calculate such savings?

Most web mortgage calculators should be able to do this.

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 4.2

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