Mortgage Payment Calculator

monthly mortgage payment calculator

WHAT ARE ACCELERATED WEEKLY AND BI-WEEKLY PAYMENTS?In a nutshell it amounts to you making thirteen monthly payments in a twelve month calender year.

For example the monthly payment for a $ 100,000.00 mortgage amortized over 25 years at an interest rate of 4.55% is $ 556.26.Thus to accelerate your payment schedule you will pay 13 monthly payments of $ 556.26 or $ 7,231.33 per annul.

If you choose the accelerated weekly option then every seven (7) days you will have a mortgage payment of $ 7231.33 divided by 52 weeks or $139.065

If you choose the accelerated bi-weekly option then every fourteen (14) days you will have a mortgage payment of $ 7,231.33 divided by 26 ( 52 weeks divided by 2 ) bi-weekly periods or$278.13

By paying more than the monthly amount you will pay down your mortgage quicker (lower the amortization) and reduce the amount of overall interest.

Refer to www.jemmortgage.com and become familiar with how either one of these accelerated payment options will both lower your amortization and the amount of interest paid.

Now that you understand the accelerated payment options that most people are familiar with take a look at the real accelerator payment option that we call the preferred payment option.

In the example above the monthly mortgage payment was $ 556.26. But what if you feel comfortable making a preferred monthly payment of $ 700.00?

Go to the calculator and try it out.Isn't it nice to realize that you can make the decision about what is best for you and not the lender who obviously wants you to take the longest time possible to repay your mortgage.