Weekly Finance Vlog/BlogFollow
I see a lot of you are buying houses lately (congratulations by the way), but that means a lot of you have mortgages now. Something I wish I had known sooner was that if you just split your mortgage payment in half, pay biweekly instead of monthly, you can cut 5 years off your 30-year mortgage.
Essentially what you're doing is making one extra payment per year:
Monthly Payment: 12 months = 12 full payments
Bi-weekly Payment: 52 weeks/2 = 26 half payments or 13 full payments
By paying your mortgage bi-weekly instead of monthly, you'll avoid paying around $30,000 in interest over the life of your loan.
Stay tuned for more 2020 tips in 20 seconds or less. See you next time.