Advantages and Disadvantages Of A Reverse Mortgage Betty and John, are in their mid-seventies and are currently weighing the advantages and disadvantages of a reverse mortgage as a way of freeing up some cash. The couple purchased their home 45 years ago for about $14,000 since then home values have skyrocketed and recent single family homes in their neighborhood have been selling for a minimum...

True Savings With Biweekly Mortgage Payment Plans

M Johnsona

You can save a lot of money paying off your mortgage earlier. A typical borrower can cut ten years off of a 30 year mortgage loan just by paying one extra payment each year. There are several ways to do this. Biweekly payments, one extra payment/year, or several lenders offer automatic biweekly plans.

Some of the extra fees they tack on can be way too much to pay for the chance to have a paid off mortgage early. Some are total scams, you should never pay $1000 fees or even monthly fees just to make two payments a month.

Sending two payments a month will equal one months extra payment each year and save you 10 years interest. But not all lenders will let you do this for free.

A better solution is to pay your 30 year loan on a 15 year payment plan for free.

Most mortgage loans today have no prepayment penalties. You can do it yourself for free. Just add extra to your monthly check, use the additional principal box on your payment form. You can find the amount you need to add by simply checking an online amortization schedule. Just look for your 30 year mortgage and run the same numbers on a 15 year schedule. Add the extra amount to each months payment and you will be paid off in about 15 years.

This is much safer in the event something happens and you can't afford the 15 year payments. You can always revert to 30 year payments.

A major benefit of paying additional principal each month is the added equity you build up. It is much faster than paying on a 30 year plan. Not to mention you can save $90,000 or more in interest by cutting 15 years off your mortgage loan. That is money that stays in your pocket, money you don't have to work hard for just to give to a
banker.

Try making 15 year payments on your 30 year loan for awhile, it doesn't hurt your budget that much. You are only talking about adding $200-300 each month. And you can hold off for a month if things get tight. The benefits are well worth it.

About the Author

M. Johnsona runs www.mortgage-loans-and-refinancing.com A website of tips and insider

secrets for the mortgage loan seeker.
href="http://www.mortgage-loans-and-refinancing.com>Mortgage Loans Info

About the Author

M. Johnsona runs www.mortgage-loans-and-refinancing.com A website of tips and insider secrets for the mortgage loan seeker.

Yahoo! News Search Results for mortgage

Mortgage rates remain below 5%, fall to 4.95% (USA Today)
Mortgage rates held below the 5% threshold for the second straight week, a report said Thursday, weeks before a government program that has been keeping rates low is scheduled to expire.
Average 30-year mortgage rate drops to 4.95%, Freddie Mac says (Los Angeles T...
The average interest rate on a 30-year fixed-rate mortgage dropped to 4.95% this week from 4.97% last week, Freddie Mac said Thursday.
Lloyds Banking to Allow Extra Mortgage Repayments Until 2011 (BusinessWeek)
Lloyds Banking Group Plc, Britain?s biggest home-loan lender, will allow customers to increase mortgage repayments without penalty, as the bank seeks to cut its 1.03 trillion-pound ($1.55 trillion) balance sheet.
Man accused of masterminding mortgage fraud is denied bail reduction. (The Pr...
James B. Duncan, accused of masterminding a $142 million mortgage and securities fraud based in Murrieta, Thursday was denied a reduction of his $5 million bail by a judge who said Duncan poses a threat to public safety.
Mortgage Rates Remain Below 5 Percent (ABC News)
Rates on 30-year fixed mortgages fall to 4.95 percent, weeks before Fed exit Mortgage - United States - Business - Financial Services - Connecticut
Yahoo! News Search Results for refinance

Pernod Ricard Plans to Issue Bonds to Refinance Absolut Buyout (Bloomberg)
March 10 (Bloomberg) -- Pernod Ricard SA , the world?s second-biggest liquor maker, is planning to sell six-year bonds to help refinance loans used to buy the Absolut vodka brand in March 2008.
Coal producer ICG prices stock, debt offerings (AP via Yahoo! Finance)
International Coal Group says it's priced stock and note offerings it's using to refinance debt. The Scott Depot-based company says in a regulatory filing Thursday that it's also upped the size of the offerings.
New Article on Fannie Mae, Freddie Mac HARP Mortgage Refinance Program Availa...
In a new article, AimLoan.com explains why Fannie Mae and Freddie Mac?s program to refinance underwater homeowners should be expanded, as lowered mortgage rates are key to economic recovery. (PRWeb Mar 9, 2010) Read the full story at http://www.prweb.com/releases/2010/03/prweb3690424.htm
New Article on Fannie Mae, Freddie Mac HARP Mortgage Refinance Program Availa...
In a new article, AimLoan.com explains why Fannie Mae and Freddie Mac?s program to refinance underwater homeowners should be expanded, as lowered mortgage rates are key to economic recovery.
ICTSI raises $250M from bond offer, sets higher capex for ?10 (Philippine Dai...
Port operator International Container Terminal Services Inc. (ICTSI) successfully raised $250 million from a recent sale of 10-year bonds, proceeds of which will be used to mainly refinance existing obligations.