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Cost saving tip to consider!
11/10/2023
By: Tami Budreau
If you are paid every other week this might be a tip you should consider.
- Paying on your home loan every other week makes house payments more convenient and less overwhelming.
- This method results in 2 calendar months you’ll actually get in 3 half payments making an extra annual payment. You would make 13 full payments each year instead of just 12.
- Paying every other week, one never experiences a huge reduction in the checking account.
I calculated potential savings with this convenient technique:
- If you had a $150,000 loan at 6.5% originally set up on 30 years – your principal and interest portion of the payment would be $948.61/month. However, if you paid the half payments ($474.30) every other week; you would pay this 30 year note off in 23 years 10 month (6 years and 2 months earlier!) The interest savings would be $46,173.48 over the life of the loan.
- If you had a $250,000 loan at 6.5% originally set up on 30 years – your principal and interest portion of the payment would be $1,581.01/month. However, if you paid the half payments ($790.50) every other week; you would pay this 30 year note off in 23 years 10 months (6 years and 2 months earlier!) The interest savings would be $76,864.30 over the life of the loan.
- If you had a $350,000 loan at 6.5% originally set up on 30 years – your principal and interest portion of the payment would be $2,213.42/month. However, if you paid the half payments ($1,106.71) every other week; you would pay this 30 year note off is 23 years 11 months (6 years and 1 month earlier!) The interest savings would be $$106,316.44.
We would love to show you your potential savings, stop by or give us a call!