Ditech : Save Thousands on Your Mortgage

Most people are accustomed to making one mortgage payment each month, usually on or about the 1st day of the month. Did you know that you can save thousands of dollars over the life of your mortgage by making one-half of your payment every two weeks instead of your whole payment once per month? It sounds simple and it is. It's called bi-weekly mortgage payments.

When you pay your mortgage once per month, you’ll make 12 payments during the year. By paying your mortgage every two weeks, you’ll make 26 bi-weekly payments or the equivalent of 13 monthly payments. You’ll be making one extra monthly payment per year which shortens the term of your mortgage and saves you thousands of dollars.

The savings using a bi-weekly payment schedule can be substantial. Assuming a $200,000, 30-year mortgage at 6.5%, your savings would total over $60,000 and the term of your loan would be reduced by six years.

Many financial institutions offer bi-weekly mortgage payments if you ask about them. While an extra mortgage payment each year may sound like a lot, when you consider that most people get paid every two weeks, it's an easy way to reduce your mortgage quickly.

Call your credit union or bank about bi-weekly mortgage payments.