Payment Frequency Options with Tammy Wandzura

Payment Frequency Options

Selecting the right mortgage payment frequency can greatly influence the life and interest of your loan. Here’s a comprehensive guide to help you make an informed decision:

  1. Payment Frequency Choices: Lenders are flexible with payment options. Choose from:
    • Monthly: A consistent payment made once every month.
    • Semi-Monthly: Payments made twice a month, totaling 24 for the year.
    • Biweekly: Payments made every other week, totaling 26 annually.
    • Weekly: Payments made every week, resulting in 52 payments a year.
    • Accelerated Biweekly and Accelerated Weekly: Faster-paced payments that help in reducing the mortgage tenure.
  2. The Accelerated Advantage: Accelerated payment options can significantly reduce the years (or amortization) on your mortgage. Over time, this choice can save you a considerable sum in interest.
  3. Flexibility in Payment: You aren’t locked into your initial choice. You can modify your payment frequency directly with your lender throughout the mortgage term.
  4. Crucial Differences:
    • Monthly: The same payment on a specific date every month.
    • Semi-Monthly: Two consistent payments every month on specified dates.
    • Biweekly/Weekly: Payments made every other week or weekly but on the same day of the week. Dates may vary.
  5. Financial Implications of Accelerated Payments: Opting for accelerated payments means a slightly higher average monthly payment. For instance:
    • Monthly: $1559.12/month
    • Accelerated Biweekly: $779.56/payment x 26 payments/12 months = $1689.04/month. Be prepared for three mortgage payments during longer months, which occurs three times a year

Your specific mortgage payment frequency options will be presented to you upon receiving full lender approval. Choosing wisely can make a notable difference in how quickly you achieve mortgage freedom.

  • Understand the process…work very efficiently.

    Tammy and her staff always make sure you understand the process and take the time to explain numbers. They work very efficiently to make sure your mortgage goes as smoothly as possible! Highly recommended their services

    M Sanders

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