What do you think of biweekly mortgage payments?

Best video I have seen explaining this mortgage payment method! Thank you so much! 🙏🏼👍🏼😃

@MarriageKidsandMoney

Жыл бұрын

Thanks so much Luna! I'm glad it was helpful!

I use a strategy called give all my money to the bank instead of going on vacation 😂. I’ve paid off 9% of my 30 year mortgage this year alone and it’s only July.

@MarriageKidsandMoney

Жыл бұрын

Solid strategy!

Sounds good! Thanks for explaining that so simply! 😊

@MarriageKidsandMoney

11 ай бұрын

Glad you enjoyed the video!

I do biweekly payments plus $150 extra per payment. It’s great for budgeting as well as knocking down the interest. Thanks for the video!!!

@MarriageKidsandMoney

2 жыл бұрын

Your plan sounds awesome Ramona! Keep us posted on the paydown process!

Thanks, you made this very easy to understand.

@MarriageKidsandMoney

2 жыл бұрын

Glad to hear that Jessy!

I pay bimonthly but don't be fooled. The bank takes your money but does not apply the partial payment until the second payment is made. Not sure how banks get away with this but if the partial payments were applied the day they were withdrawn from your account , you'd pay even less interest. Banks are no different than organized crime

@madhuryamaa

Жыл бұрын

Wow... Had no clue... Because car payments aren't like this. Guess it may be better to just go in manually and make extra payments to the principal?

@Jose-we5cj

3 ай бұрын

What a shady practices they do! I just noticed that on my statements and was so upset about it. In fact, I called but they were so busy I could not talk to them and said to myself, "In the meantime, look it up, perhaps that is the practice to crew the customer." And unfortunately I found your comment. Grrrr! Thanks though.

@mandypdx

2 ай бұрын

My lender required a form to be completed and auto-payment to be set up. If i were to have just paid manually, it would have been as you described. They also required to be one months ahead.

@Tryp-j9d

Күн бұрын

Because YOU, DUMBBELL that you ARE, agreed to MONTHLY payments!!!

by paying by-weekly, you are just making an extra monthly payment per year. This will shave years of your loan, but you can pay monthly and also make an extra payment per year to achieve basically the same result.

@mackredenbarger

3 ай бұрын

Yeah but why not do both! Pay bi weekly and extra payments so your money works even harder for you:)

@alexross5714

2 ай бұрын

@@mackredenbarger The whole concept of saving interest by paying off your mortgage faster seems like mind games to me. You're not actually saving money; you're actually spending MORE money but doing it in such a way that you don't notice it. Here's one reason NOT repay your mortgage early. Let's say I have $50k of principal outstanding on my mortgage. By lending me that money at 3.5%, which is typical for people who bought a home in recent decades, the bank enables me to invest that $50k elsewhere, and most investment vehicles will have a return of greater than 3.5%. If I repay the loan early, my monthly housing payments will end, but I will also lose that $50k, which the bank had been lending me so cheaply, and I'll miss the opportunity to invest that money more profitably elsewhere.

Cool info. Thanks!

@MarriageKidsandMoney

Жыл бұрын

Of course!

Great explanation, thanks!

@MarriageKidsandMoney

6 күн бұрын

Glad it was helpful!

So I just started paying ahead of time each month plus a little extra and they keep sending me a new statement quicker and quicker which this next one today will be two months ahead. I’m figuring every time I make them recalculate the interest it’s now on a lower amount each time so paying it earlier(if you have it) has to help in the long run. Credit score wise paying early helps too.

I liked the graphs and charts

Great Info got me seriously thinking of going bi weekly

@MarriageKidsandMoney

Ай бұрын

Glad to hear it was helpful!

Great idea, biweekly, increased payment and lumpsum.

@MarriageKidsandMoney

2 жыл бұрын

It works!

i have Pennymac and they said if i do bi-weekly payment i can't add extra to principal payment but with monthly i can, do you know why i can't add extra principal payment on biweekly? and if so which is better? i plan on adding extra principal whenever i want so which you recommended ?

Thanks!!

@MarriageKidsandMoney

5 ай бұрын

Glad it was helpful!

time to do some research. thanks

@MarriageKidsandMoney

2 жыл бұрын

Good luck Sean!

nice!

But how I do the by weekly, paying exactly half of the monthly payment, interest and principal?

@raczyk

Жыл бұрын

also intersted.

I prefer no payments. $722K left. But started at $903K in January. Will be at $636K by January. Kind of daunting, but making progress.

@MarriageKidsandMoney

2 жыл бұрын

That's a big hill to climb! Based on your income, you've got this ...

@todd2456

2 жыл бұрын

@@MarriageKidsandMoney Thanks, you guys!

@n0c_n0c

Жыл бұрын

Wow! What do you do for a living? That is Amazing!

@todd2456

Жыл бұрын

@@n0c_n0c lawyer and artist.

@felixagustin9573

7 ай бұрын

Go for it!!!

I pay accelerated weekly payments. And pay an additional 1k per month towards the principle on top of my regular payments.

@MarriageKidsandMoney

17 күн бұрын

You'll enjoy that forward thinking in the long run!

But those 2 extra payments you make dontn they incur interest? I was thinking of doing monthly and make 1 extra lump sum payment at the end of the year that would go Right to the principal.

@zazk07

8 ай бұрын

The interest rates are the same regardless of if you pay monthly or biweekly. You are correct. If you make an extra payment directly to the principal, you will get a similar result.

@LittleMopeHead

5 ай бұрын

I am thinking the most optimal way might be pay monthly amount + (monthly amount/12 to principal) every month. Maybe breaking it in chunks every month saves in more interest than a lump sum at the end due to "compound interest".

Bro what's even better is pay your regular payment every month take that so called extra month payment divide it by 12 and just pay that directly to your principal that's faster than what he is saying 😮

I used a calculated 72 month loan at 2.9% for $37000. If I pay $1k/mo, that 72 month loan will be paid in 23 months! thanks for the rabbit hole! :)

@MarriageKidsandMoney

4 ай бұрын

Anytime! Best of luck to you!

@jaegermane2833

3 ай бұрын

2.9 in this economy?

What is the difference bt paying biweekly and adding a little bit each month to equal an extra payment every year?

@MarriageKidsandMoney

2 жыл бұрын

I don’t think there is anything wrong with either approach … the more you pay toward the principal and the earlier you do it, the quicker your mortgage disappears

@robertflynn5821

2 жыл бұрын

Thank you. I've been adding the equivalent of an extra payment and it projects to save about 5.5 years worth of payments

@lovealwaysjasmine

Жыл бұрын

I get paid on the 25th and mortgage is due the first. How do I pay since I can’t do biweekly

Correct me if I'm wrong, but isn't there more to gain by paying bi-weekly than what the video alludes to? Specifically, if I pay 1/2 my mortgage payment 2 weeks before it's due, the compounded amount is lower for the 2 weeks that follow than it would be otherwise.

@jimross2101

24 күн бұрын

Depends on your bank's calculations of the extra funds you send them and how they are applied.

1. How much insterst do you save by paying bi-weekly? 2. Is each bi-weekly payment contain same proportion of interest/principal payment as a monthly payment?

We pay our mortgage weekly (52 payments per year) and our bank charges no fee to do so, however, the weekly payments are made in advance of the monthly due date and held aside by the bank until it is applied to the loan on the monthly due date. The bank calls the weekly payments "unapplied funds" until the sum reaches the sufficient monthly amount. So, are we really saving any money?

@Kgoutdoor

Жыл бұрын

Doesn’t sound like it. I’m wondering if it makes sense for me to go bi weekly.

@christopherrobinson8676

11 ай бұрын

No. The bank is screwing you out of all the savings you should be earning

now do a video on how to scrouge 3000 extra a month when your net monthly income is 3000 thanks

I just set up by biweekly payment. In my letter from my mortgage company it said they would be holding the first biweekly each month until the second one is received and then they would apply i guess to the loan. Is this normal?

@MarriageKidsandMoney

2 жыл бұрын

Each lender tends to have their own way of doing things. If you feel uncertain about it going to the right place, you could also skip the biweekly payment idea and just manually make extra payments toward your principal each month (or when you have the extra money). That's what we did. We became mortgage free in less than 5 years doing that. Here's how we did it: kzread.info/dash/bejne/oISMuqqNfavSqKQ.html

I still don't understand. How do you divide $24,000 by 26 and get $1000/fortnight? I get $923.

@begley09

10 ай бұрын

it's not 24,000.00 it's actually 26,000.00. He's saying the extra $2000.00 goes towards principal.

What’s the point of paying down interest if you’re just going to refinance in a few years unless you have a low payment even then are you only getting money back in 20years that you could buy another house with?

@kimberiysmarketstrategy

3 ай бұрын

No point

I don’t plan on living in my house longer than 10 years.

What about paying two extra mortgage payments per year written towards interest?

@MarriageKidsandMoney

10 ай бұрын

If your goal is to become mortgage-free, you should focus extra payments on the mortgage principal.

❤

Sounds a lot like Owen Wilson 😂

@MarriageKidsandMoney

3 ай бұрын

I've heard that more than once since I started this channel! I'll take it as a compliment!

@brittanydever4122

2 ай бұрын

Now I can't unhear it ....

You still have to pay home insurance and property taxes 🤣🤣🤣

@MarriageKidsandMoney

10 ай бұрын

Very true! You don't want to stop paying either of those for sure.

❤