Mortgage payments misconception
Updated: Jul 10, 2018
Deciding on right payment frequency can save you interests at the first place
When it comes to Mortgage payments, most of us think that there is much can be saved by only converting Monthly payments to Weekly or Bi-Weekly. However, this is one of the biggest misconceptions as it does not make any much difference whether you pay Weekly or Bi-weekly instead of Monthly. Typically the Mortgage amount $610,000 @ 3.69% interest rate for 30 years. What you could save is between 0.1 to 0.3%, and this applies to any size of the mortgage. For any of the following method of payment, the potential savings may be close to zero.Monthly mortgage payment $2795
Semi-monthly mortgage payment $1396
Bi-Weekly payment $1285
Weekly payment $698