Bi-Monthly Mortgage Payments Won’t Save You Much Money
Here’s a fascinating article we found on Life Hacker. It’s called Twice-Monthly Mortgage Payments Won’t Save You That Much Money.
It’s an excellent analysis piece that gives us insights on mortgage payment schemes. Here’s one that really got us thinking:
Most home mortgages have monthly calculated interest. So when you split your monthly payment into two parts, it doesn’t reduce your principal faster than interest accrues. Instead, your mortgage company typically holds on to your half payment, waits for the second half to come through, and then applies the full payment.
To get to know more about this in-depth, check out the rest of the article on the website linked below…