January 17
SAVE MONEY BY INCREASING THE FREQUENCY OF MORTGAGE PAYMENTS
Besides increasing the amount of your mortgage payments, it is also a good idea to increase the frequency of these payments to save money. Doing this works in the same manner as paying extra on your principal. The basic idea here is that the faster you are able to pay down your mortgage, the sooner you will be able to allocate your funds towards various other investments. Of course, in doing so you will also be saving yourself money that would otherwise be used along the way to simply pay for the interest that you owe upon the mortgage itself. This is why it is so important, whenever you are in the process of buying a new home, to look for a mortgage that offers you the best repayment options.
Once you have a mortgage, you should know that increasing the frequency of the payments that you do make upon this mortgage is going to reduce your overall interest costs. For instance, if you have a bi-weekly mortgage payment plan, this is going to be a lot better for you than a monthly mortgage payment because it will save you a lot more money in interest costs as you are able to pay down the principle much quicker.
