Should You Use a Bi-Weekly Mortgage or Prepayment to Get Ahead?

So you have decided that you want to buy a house and perhaps have even found the house of your dreams -- now you just need to find the right mortgage to be able to finance it!

If you know how much you need to borrow from a mortgage lender, a mortgage calculator will give you some idea of what the payments are likely to be.

A bi-weekly mortgage allows you to pay your mortgage every two weeks rather than once a month. Check this on a mortgage calculator to see how quickly you will repay your mortgage and save on interest payments.

Although a bi-weekly mortgage may seem a great idea, and the advertisements may seem like you are getting a good deal -- check the figures carefully on a mortgage calculator and read the small print.

It could be that regular payments against your mortgage principal are more financially attractive.

You may have also wondered should I prepay my mortgage? Being in a position to prepay your mortgage is reassuring; however, the penalties and loss of tax breaks, may make it less attractive than opting to invest the money elsewhere.

A prepayment versus investment mortgage calculator can help you start to see where the best alternative may lie.