Any Benefit of Weekly Home Mortgage Payments?

A bi-weekly schedule beats a monthly one in terms of shortening the term of a home mortgage. Weekly payments, however, make little difference.


Typical borrowers make their mortgage payments monthly. Some, however, make bi-weekly payments to reduce the term of their loans. Could weekly mortgage payments speed the payoff even further?
The answer in some cases is yes—but usually not much more than with bi-weekly plans.
Converting to any schedule that increases payment frequency reduces the principal loan amount faster, resulting in less interest owed and a shorter mortgage term, says Jack Guttentag, professor emeritus of finance at the Wharton School of the University of Pennsylvania. The biggest benefit of weekly payments, however, is not cost savings, but convenience for people who are paid weekly and like to handle bills accordingly, he adds.


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The Easterbrook Team with Sierra Pacific Mortgage
806 Bidwell Street
Folsom, CA 95630
916-850-6050
EasterbrookTeam@spmc.com


John Easterbrook
NMLS# 226555
916-224-7653
John.Easterbrook@spmc.com


Patty Aguon
NMLS# 994635
916-833-5063
Patty.Aguon@spmc.com

Mortgage Calculator for Faster Principal Reduction

Would you like a copy of our FREE mortgage calculator that shows you how to reduce your principal balance at an accelerated pace?   It shows you that paying even an extra $100 per month toward your monthly mortgage payment can save you a lot of money.  This calculator will work for FHA loans, VA loans, conventional loans, and jumbo loans.  This is one of the best ways for a first time home buyer to build equity fast.   Also, if you’ve had a bankruptcy or foreclosure and have lost everything, paying down your mortgage is a strategic way to reacquire wealth.  If you refinance and combine the power of extra payments for faster equity reduction, you’ll have even more equity quickly.

If you have a high loan to value and are wanting to accelerate your mortgage principal reduction to get rid of mortgage insurance on your home loan, our FREE mortgage calculator can help you too.  Just call or email us for a FREE copy. 

You can call the Easterbrook Team at (916) 224-7653 or (916) 833-5063 or email us at easterbrookteam@spmc.com.