Mortgage Reduction goes by many different names such as:

- accelerated mortgage,
- biweekly or bi-weekly mortgage,
- prepayment mortgage reduction,
- equity acceleration, and others.

Over 90% of mortgage holders in America have heard of mortgage reduction.
Yet less than 20% of mortgage holders have actually used it. WHY?

A mortgage is the single largest burden (purchase) you will ever make in your lifetime -
It’s also the most priceless thing you will ever own because it’s your home.

We’ve all heard of a bi-weekly mortgage. In a nutshell, this is how a bi-weekly works.
Let’s say for example, your mortgage is $1,000 per month. On the first of the month,
you will write a check for $1,000 and send it to your mortgage holder.

With a bi-weekly program, you simply change the way you make payments.
Instead of writing the check for $1,000 on the first of every month,
$500 is deducted from your checking account every 2 weeks.

Since there are 52 weeks in a year, you will end up making 26 payments of $500 each,
for a total of $13,000 per year.

If you were paying your mortgage the conventional way, you would write a $1,000 check
on the first of the month each month for 12 months for a total of $12,000 per year.

The advantage of the bi-weekly is that over the course of a year, you are making an
extra $1,000 payment which then gets applied to the principle of your mortgage.
This reduces your principle balance and reduces the amount of interest you will pay.

Just this one change alone in the way you pay your mortgage will…
Eliminate 7 years of payments off your 30 year mortgage.

This will reduce your total payments (over the course of your loan)
by a whopping $84,000.

Using the above $1,000/mo. example - that‘s $12,000/year x 7 years = $84,000.

On a $2,000/mo mortgage the savings would be double - $168,000.
On a $3,000/mo mortgage the savings would be triple - $252,000.

You would SAVE over a Quarter Million Dollars in interest payments.

Whether you have a $100,000 mortgage or a $1,000,000 (million dollar) mortgage,
A bi-weekly program will take 7 years off your mortgage payments.

This entry was posted on Sunday, October 28th, 2007 at 10:27 am and is filed under Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.