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?

Asked by Tony

1 Answer

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Answered by Chad Freeman, Branch ManagerPRO+ in Bethesda, MD
Hi Tony:

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
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