bi weekly mortgage payment

From: BOB FORD <BOB_FORD@compuserve.com>
Subject: bi weekly mortgage payment
Date: Fri, 4 Dec 1998 22:50:43 -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.  Since my paychecks do me little good in my checking
>account, when I buy a house I'd like to be able to pay back the
>loan in biweekly payments.
>Anyone doing this?  Anyone care to comment?
>Anyone know of any software (preferably free) that
>can calculate such savings?
>Thanks!
>Mark
 =

Forget this biweekly payment idea.  If you want to save money
when you buy a house, pay the maximum amount you can with
each monthly payment.  That will reduce the total amount you pay
to own your house.  Any amount you pay monthly over the amount
you owe for interest will reduce what you owe therefore reducing
the interest you must pay next month.  The maximum amount you
will pay for a house is the sum of all the monthly payments if you
make the minimum monthly payment.  You will need a financial
calculator to determine the length of time (number of months) it
will take to pay off a loan if you pay a different amount that the
required payment.  The math can get complicated if all of your
payments are not the same amount.

If you need more information, let me know.

BOB FORD
Editor of the 57-56-55 CHEVY LIST and TURBOGLIDE
REGISTRY

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