How would you like to shave 7 years off your mortgage?  Sounds pretty good and it is extremely easy to do by taking advantage of bi-weekly mortgage payments.

The majority of home owners make a mortgage payment once a month.  However, if you take a different route and make a mortgage payment every two weeks you will end up making 1 extra mortgage payment a year.  This extra payment will allow you to pay off your mortgage is 23 years compared to the standard 30 years.

Here’s the math.  If you have a 30 year $200,000 mortgage at 7% fixed interest rate your monthly mortgage payment would be $1330.60.   If you decided to pay bi-weekly you would pay $665.30 every two weeks.  Since there are 52 weeks a year you would end up making 26 payments per year and in turn end up making 13 full mortgage payments.

How much will this save you?  Based on the above mortgage, if you paid once a month you would end up paying $279017.80 in interests over the course of 30 years.  However, by paying bi-weekly you would end up paying only $207917.46 in interest, for a savings of $71,1003.40 in interest!

How hard is this to do?  Not very hard at all.  Most people get paid every two weeks so all you need to do is make a mortgage payment every time you get paid.  Almost all lenders now offer bi-weekly mortgage payments with no fee.  Just simply call your lender and let them know that you would like to switch to a bi-weekly mortgage and you are all set.

One of the best feelings is having a home that is paid off.  By switching to a bi-weekly you will accomplish that in 23 years instead of 30 years. Not to mention you will build up equity in your home much faster by using a bi-weekly mortgage.