BOULDER, CO, Mar 28, 2024—If you're looking for a way to pay off your mortgage faster and dodge some of that hefty interest, you may want to consider a biweekly mortgage, according to Phil Boren, Broker Associate of RE/MAX of Boulder, Inc..
"The biweekly mortgage has become increasingly popular in recent years, as more people favor paying off their home loan early and reducing interest charges," Boren explains. So how does it work? Instead of making a monthly payment, you will instead split your payment in half and make it every two weeks.
How does this save you money in the long run? "Because there are 52 weeks in a year, you actually have 26 half-payments, or the equivalent of 13 monthly payments per year instead of 12," explains Boren. That extra payment a year can really add up.
"Under the biweekly payment plan, a homeowner can save tens of thousands of dollars in interest and pay off their loan balance in less than 30 years," notes Boren.
Other ways to pay your mortgage off early and reduce your overall interest is to pay more than the minimum each time, and tack on an extra full payment once a year - say, after you get your tax return or land that annual bonus.
"By being smart about your payments, you can save big in the long run with small tweaks throughout," says Boren. Before making a switch, contact your financial advisor and your mortgage lender to make sure a biweekly mortgage is a good idea for you.
For information on real estate, please contact RE/MAX of Boulder, Inc. at philboren@gmail.com, 303-441-5647, or RE/MAX of Boulder, Inc..
Phil Boren is a 26-year veteran real estate Broker and Realtor, specializing in consulting with buyers and sellers in Boulder, CO and along the Front Range of Northern Colorado. Held Real Estate Broker's license in Texas, California and Colorado; Managing Broker for over 200 agents and Brokers for Century 21 and RE/MAX franchises. Award-winning Realtor with experience in management, sales, marketing, relocation, appraisal, REO, BPO's, foreclosures, short sales; previously held the MAI designation from the Appraisal Institute. Experienced in both residential and commercial real estate and achieved the No. 14 individual ranking in the 5-state, Mt. States Region for RE/MAX International in 2001, based on sales volume. Received my BSBA in Finance and Real Estate from the University of Arkansas in Fayetteville, where he was a 4-year starter and 4-year football letterman for Hall-of-Fame coach, Lou Holtz.