Well, while I smoke, eat fast food, and make a pretty good living off of gambling this is good advice, especially the bi-weekly mortgage payments. I don't recall exactly how much you end up saving over the course of a loan but it's quite a bit. I believe you can also apply the standard rules for shortening your loan to this as well. It will run you a little bit more every month of course but you can shave off I think 7-8 years on a 30 year mortgage using just the standard principles.

 

Obviously paying more than the amoritized mortgage payment will mean less in interst later on in the mortgage, but can someone show me an amoritized schedule of the before and after on making bi-monthly mortgage payments? The amoritized schedule is set up for 360 payments (30 year loan) for $X/month. How does paying 1/2$X twice a month net less payments since the principle at the end of each month, when the interest is calculated, will still be the same?

 

by paying bi weekly you actually pay 13 payments a year rather than 12, and over the life of your loan....... that is where you save.

 

52 weeks in a year...Bi-weekly = every two weeks...You meant 26 payments a year.. or am I missing something?[&:]

 

here is a link with a pretty good explanation

http://realtytimes.com/rtcpages/20020401_biweekly.htm

 

This crazy math..I never understood bank math..in this case that's stupid as ****..

The part that lost me was the 52-2 = 26...[sm=nerd.gif]What's up with dat?

 

It looks to me like it was supposed tobe 52/2=26, and 26/2=13. This would make sense in that you would actually gain a month's payments every year compared to 12 calander moth payments. I get paid every two weeks, so the 26 every other week paydays makes sense versus the 24 twice a month paydays of a 1st and 15th schedule. Now the logic makes sense to me.

 

The domino principle hit me when we bought this house....

example:

We wanted a new bedroom set....
the headboard wouldn't go up the staircase...
I took out the ceiling in the staircase....
I found the shower in the master bedroom leaking....

Every project I do around here is 3 mini projects...

Hang in there... having hard times will make you appreciate what you have more.