Biweekly Mortgage FAQ

Frequently Asked Questions

Q: What are the eligibility requirements for a biweekly mortgage?

A: The eligibility requirements are as follows:

1. Existing mortgage/loan must exist on residential property/dwelling only (businesses please call for details)

2. Must be a four family unit or less (if over four units, please call for details)

3. Property/Dwelling must have been purchased between 1991-present

4. There are no credit restrictions, but mortgage payments can not be in default

5. Privately held and adjustable rate mortgages may not qualify (please call for details)

Q: What if I am only staying in my home for a few years?

A: You will have an increase in equity and a smaller loan balance to pay off when you sell your current home.

Plus, you have the ability to easily transfer your biweekly mortgage to your new mortgage.

Q: What is a biweekly mortgage interest rate?

A: A biweekly mortgage builds equity faster and pays off your mortgage years earlier. Due to this, you pay back

interest on a smaller loan balance and for a shorter period of time. The result is a significant interest savings

over the life of your mortgage. For Example: a 7.5% fixed rate is equivalent to a 4.75% biweekly interest rate.

Q: How do I make my mortgage payments with a biweekly mortgage and can you explain the details to me?

A: A biweekly mortgage is simply a change in how you make your mortgage payment. Your current mortgage

payments are cut in half and paid on a biweekly basis (every two weeks). For Example: if your current monthly

mortgage payment is $1,000, your biweekly mortgage payment would be $500. This process is accomplished

through an automated payment system which reduces your mortgage term and payments, while increasing the

equity build up in your home.

Q: Can I see an example?

A: Yes. On a $175,000, 7.5% fixed rate, 30 year mortgage, you would save a total of $156,993 in mortgage

payments and your mortgage would be paid off in 19 years, instead of 30 years. Plus, your biweekly equivalent

interest rate would be 4.75%. For details, please click here.

Q: How does a biweekly mortgage do all of this?

A: By paying more affordable half mortgage payments instead of whole mortgage payments, over the course of

one year, additional money accumulates. This extra money is applied to your principal, which will reduce the

term of your mortgage and accelerate the equity build up in your home.

Q: Can't I just prepay my mortgage on my own?

A: Yes, but most people find it rather difficult to stay on a payment schedule that is not automatic and systematic.

Let's take a closer look. If your employer told you that starting on your next payday, he/she will no longer

contribute any money to your pension. But instead, he/she will give you this extra cash to invest on your own.

Would you be able to save and invest all of this extra cash, that is now in your pocket, into your own selected

pension plan every single week, week after week without spending one dollar of it on your family, bills, vacation

or a new car? Just about everyone can use some extra cash. That is why an automatic and systematic pension

program works. A portion of your paycheck is contributed to your pension every payday. That is also why a

biweekly mortgage works. It is based on the same concept as a pension. It is also automatic and systematic.

Just as your pension will ensure an income for you at retirement. A biweekly mortgage will ensure an early

retirement from your mortgage.

Q: Will a biweekly mortgage change or alter my mortgage in any way?

A: No. Other then saving money, paying off your mortgage years earlier and building equity faster, your mortgage

is not changed or altered in any way at all.

Q: What if I enroll in a biweekly mortgage and then decide that it is not for me?

A: You are under no obligation. You can terminate your enrollment at any time.

Q: How can I enroll in a biweekly mortgage?

A: Click here

Additional Information

To view an illustrative example click here.

For more information click here.

To receive free counseling and an illustrative detailed report click here.