Charter One Realty - Office A
Neil Castellane, Charter One Realty - Office APhone: (843) 338-6345
Email: [email protected]

Bi-Weekly Payments: Can It Pay Off Your Mortgage Faster?

by Neil Castellane 11/17/2019

The dream of paying off your mortgage fast may seem like an overwhelming task. After all, it is money that is involved. And it is not just an amount you can sneeze at; it is thousands of dollars. In this modern era of financial distractions, being able to pay such amount of money within a snap of your fingers is not common.

However, if you wish you to pay off your mortgage fast, you can do so by switching to a biweekly payment plan.

What is a bi-weekly Payment?

When you are dealing with your debt, and you are trying to pay it off, a monthly structure is available. This monthly structure includes interest which you deal with and, it pays off every month.

The point of you getting out of debt on time is to live your life and pursue your dream so you need to use the tools and the knowledge available to you that you can implement right away - bi-weekly payment is one. 

A biweekly mortgage is like your traditional mortgage. What makes it different is that you will need to structure your payments. In other words, you won’t be making one payment at the start of a new month; you will be making half of your payments every two weeks.

Bi-weekly Payment Are Not Twice a Month Payment

The main difference between a fortnightly payment and twice a month payment is that you have to pay an extra month payment at the end of a year. So, there are 12 months in one year. At the end of the 12th month, you would have paid 13 months of payment without spending more than you are already paying every month.

With a bi-weekly payment, you only have to split your mortgage in half. You take care of the first half after the first 14days and the second half at the latter 14 days, so nothing is changing in your monthly payments. The only difference with bi-weekly payments is that you have to make sure your money is going towards the principal and not the interest charge balance.

How Does Bi-weekly Payment work?

- 52 weeks a year/ 2 bi-weekly payment in a month = 26 payments a year

- Divide 26 payment by 2 to get the picture of what a “full month’s payment” would be. 1 full month payment = 1 month

- 26 payment per year/ 2=13 full payments (13 months) instead of 12 monthly payment in a year.

You will make an additional loan payment per year without any extra effort. Bi-weekly payment can help you pay off your mortgage fast, but you will need to consult a mortgage advisor to know if it will suit you. 

About the Author
Author

Neil Castellane

About Neil

I have been selling Real Estate in the Lowcountry for over 21 years. With sales of over $100 Million and hundreds of transactions under my belt, I have the knowledge, experience and proven track record to help you find a new home or sell your property. I am a member and former board member of the Hilton Head Area Association Realtors. I am also a member of community service based organizations including VanLandingham Rotary and have spent multiple years on the board, and am a founding member of the the local Civitan organization.  

About Larry

I have been working with buyers and sellers on Hilton Head for 30 years. I know the Island and the Lowcountry area and have been tuned into the dynamics and changes that have taken place here over these many years. I have specialized in new construction and ocean oriented property in the Lowcountry. However, I have represented clients in over a quarter of a billion dollars in sales all over Hilton Head Island and Bluffton and in all types of property.  I am a member of the Hilton Head Area Association of Realtors and a lifetime member of the Distinguished Sales Award.  My wife, Dawn, and I have 3 children - Jonathan, Stephen, and Abigail.  All of us enjoy being involved in the community, primarily through sports, school, and church. I came down here to sell real estate and have never looked back.  I can’t imagine a better place to live and raise a family.  I can help you with villas, golf-oriented properties, plantation homes, oceanfront or rental opportunities.  Call me today for any and all of your real estate needs in the Hilton Head Island, Bluffton and Lowcountry area or e-mail me at [email protected].

My Promise to you

Contact me today and get the representation you need to find property on Hilton Head Island and the surrounding Low Country. Get the facts: Rental quotes, costs and hidden fees, past sales, floor plans, current MLS and FSBO listings, even properties that are not currently listed for sale yet. I have the knowledge and experience to give you ONLY the BEST service and all at NO COST TO YOU!!! My record speaks for itself and my clients will tell you, ALL OF THEM!!! Desire...that sums up my persona in one word. The desire to accomplish goals in the work place, in the community, and in my personal life. Since moving to Hilton Head Island and working with the Charter One Realty, that concept is stronger than ever. A resident for over 21 Years, I have already established a foot hold in the community.