Mortgage Hack #19
How It Works: The biweekly payment strategy involves making a half-payment every two weeks instead of a full payment once a month. By doing this, you make 26 half-payments per year, which equals 13 full monthly payments instead of the usual 12. This extra annual payment helps reduce your principal balance faster, resulting in significant interest savings and a shorter loan term.
Benefits to Seller
Attractive to Buyers: Promoting this payment option can appeal to financially savvy buyers.
Reduced Foreclosure Risk: Buyers with better financial stability are less likely to default.
Maintains Property Value: A lower foreclosure risk helps keep the property value stable.
Benefits to Buyer
Interest Savings: The extra payment each year reduces the principal balance faster, leading to substantial interest savings.
Shortened Loan Term: This strategy shortens the mortgage term, allowing homeowners to achieve full ownership sooner.
Easier Budgeting: Splitting payments into more manageable biweekly amounts helps with budgeting, especially for those paid biweekly.
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