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Read on to learn more about his approach tosave time and money on your mortgage.
Seo recommended paying your mortgage once every two weeks instead of making one monthly payment.
Each biweekly payment should equal half your usual monthly payment amount.
Thats one more payment than youd pay with monthly payments (only 12) each year.
Check with your lender to ensure it allows biweekly payments.
If you switched to biweekly payments, you would pay $997.95 every two weeks.
The simple swap to biweekly instead of monthly payments would save you over $100,000.
This trick is effective because months are longer than precisely four weeks.
It adds up to an entire extra monthly payment.
Since 2% is a small increase, youre not going to feel it, according to Seo.
Sample Comparison
Say you took out a 30-year mortgage for $240,000 at 7%.
If you increased your payments by 2% yearly, youd pay only $226,599 in interest.
Youd save over $108,000 in interest.
Increasing your payment amounts would enable you to pay off the loan eight years earlier in this example.
Inflation is working for you, he said.
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