Mortgage Tips - Pay Your Mortgage Weekly
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
Mortgage Tips: Why You Should Pay Your Mortgage Weekly
Summary:
The numbers are clear?"paying your mortgage weekly can lead to significant savings. I've crunched the numbers so you don't have to. Here's what you need to know to make the most of your mortgage payments.Is It Better to Pay Weekly, Bi-Weekly, or Monthly?
1. Weekly Payments Save Money: By paying your mortgage weekly, you can save $1,294.12 on a $200,000 mortgage amortized over 25 years at a rate of 5.4%. It's a simple change that doesn't require you to increase your payments, yet it puts money back in your pocket.
2. Higher Interest Means Greater Savings: As interest rates rise, the savings from weekly payments increase exponentially. Doubling the interest rate makes savings 7.08 times larger, highlighting the strategy's power.
3. Weekly vs. Bi-Weekly: Choosing weekly payments leads to 43% more savings than bi-weekly payments.
Boost Your Savings with Accelerated Weekly Payments
Many people are turning to accelerated weekly mortgage payments to save even more. By slightly increasing your weekly payments, you can make significant savings over time.
- How It Works: Divide your monthly mortgage payment by four to get your weekly payment amount. Since there are about 4.33 weeks in a month, this results in four extra payments per year.
- Example: On a $200,000 mortgage at 5.4% over 25 years, an additional $23.25 per week can help you pay off your mortgage 3.7 years early, saving you $23,173.78 in total.
The Bottom Line
Paying your mortgage weekly, especially with accelerated payments, is a smart move. The savings on your capital can be equivalent to a 7.52% return on investment?"a great guaranteed return!
Saving money doesn't need to be complicated. Start with weekly payments and, if possible, increase them slightly. If weekly payments aren't feasible, opt for bi-weekly. It's not as effective as weekly payments, but it's better than sticking with monthly payments!
You can find the original non-AI version of this article here: Mortgage Tips - Pay Your Mortgage Weekly.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.