My bank says I can reduce my mortgage by paying half of it every two weeks instead of the whole amount every month.
Can you explain how this works?
Great question! Most of the world pays their mortgage every month, i.e., 12 payments. However if you split that into a payment every 2 weeks, you get 26 "half payments" and have thereby made at least one extra mortgage payment for the year. This helps reduce your principal at a faster rate. Good luck! | 02.04.14 @ 23:08