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baddestbunny
18:46
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Simple English definitions for legal terms
biweekly mortgage
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A quick definition of biweekly mortgage:
A biweekly mortgage is a way to pay for a house where you make payments every two weeks instead of once a month. This means you make 26 payments a year instead of 12. It can help you pay off your mortgage faster and save money on interest in the long run.
A more thorough explanation:
Biweekly mortgage is a type of mortgage payment plan where the borrower makes payments every two weeks instead of the traditional monthly payment schedule. This means that instead of making 12 payments a year, the borrower makes 26 payments a year, which can help them pay off their mortgage faster and save money on interest.
Let's say you have a mortgage of $200,000 with a 30-year term and an interest rate of 4%. If you make monthly payments, your payment would be $954.83. However, if you choose to make biweekly payments, your payment would be $477.42 every two weeks. By making biweekly payments, you would pay off your mortgage in 25 years and save over $30,000 in interest.
Another example would be if you have a mortgage of $300,000 with a 15-year term and an interest rate of 3.5%. If you make monthly payments, your payment would be $2,144.65. However, if you choose to make biweekly payments, your payment would be $1,072.33 every two weeks. By making biweekly payments, you would pay off your mortgage in 13 years and save over $20,000 in interest.
These examples illustrate how biweekly mortgage payments can help borrowers pay off their mortgage faster and save money on interest over the life of the loan.