I’ve checked, and my bank has a program for bi-weekly mortgage payments (2 times/mo). I’ve heard that this will help me pay my mortgage faster…too good to be true?
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I don’t see how it would help you pay your mortgage faster, assuming you’re still paying the same total amount per month.
One thing some people don’t realize is that mortgage interest is what’s called amortized, which means the bank adds up all the interest you will pay over the course of the mortgage, divides it by your total payments, and incorporates it into the payment itself.
If you were paying down a credit card, you would benefit from paying it down faster because interest would not build up as quickly, but that’s not the case with a mortgage.
If you owe the bank $2,000 per month, giving them $1,000 twice a month isn’t going to make any difference toward how quickly the mortgage is paid off.
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