Re: mortgage prepayment and calculator

From: Randy Barnes <rbarnes@mindspring.com>
Subject: Re: mortgage prepayment and calculator
Date: Sun, 06 Dec 1998 08:05:54 -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

Mark,

Most mortgage servicers won't apply your payments but once a month, so
this takes a long time to work. The key is really in the extra
principle. Biweekly equals 13 payment per year rather that 12, and
that'll help in the long haul. If you have ANY othe debt, or if you
aren't maxing out you're 401k and other sheltered investments, you'll
gain more wealth by investing there instead. 

For the world's best mortgage calculator (java) try this: 
http://www.jeacle.ie/mortgage/

Happy Holidays!

- -Randy Barnes

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