Real Estate Term of the Day: Biweekly Loan
BIWEEKLY LOAN – a mortgage which requires principal and interest payments at two-week intervals. The payment is exactly half of what a monthly payment would be. Over a year’s time, the 26 payments are equivalent to 13 monthly payments on a comparable mortgage loan. As a result, the loan will amortize much faster than loans with monthly payments (Barron’s Dictionary of Real Estate Terms)
See also: AMORTIZATION: LOAN, SCHEDULE, TERM
For example, the monthly payment on a $200,000 mortgage with a 30 year term at 6% would equal approximately $1199.10/month (not including taxes & insurance). By requesting a biweekly mortgage you would save over $47,000 in interest payments and reduce the life of the loan by 5.17 years.
Check out my FREE mortgage accelerator calculator to see how you a biweekly loan could save you $$.
LESLIE MONACO REAL ESTATE 