What is a bi-weekly or accelerated mortgage payment plan?

A bi-weekly or accelerated mortgage payment plan is a payment plan that allows homeowners in New York to make their mortgage payments every two weeks instead of once a month. This payment plan can help homeowners pay off their mortgage faster and save money on interest over the life of the loan. With the bi-weekly or accelerated mortgage payment plan, each payment is half of the amount due each month. The extra payment each year reduces the principal balance, resulting in a significant savings on interest. Some lenders automatically apply the extra payment to principal; however, some require the homeowner to specify that the extra payment should be applied to principal. The bi-weekly or accelerated mortgage payment plan can be a great way to save money over the life of the loan and can be a great tool for budgeting. It can also help homeowners pay off their mortgage in a much shorter period of time than with a traditional mortgage payment plan. Before entering into any plan it is important for homeowners to review their loan documents and understand the terms of their mortgage. It is also important to make sure that the lender is able to accept bi-weekly or accelerated payments. Before signing any documents or agreeing to a payment plan, homeowners should review the plan to make sure that it is the right decision for their financial situation.

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What is a bi-weekly or accelerated mortgage payment plan?

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