All property owners know about the traditional 30 years standard mortgage . The newer concept of biweekly mortgage has triggered a number of debate as to which one is superior to another. For us to understand the complexity of how these types of mortgages work and which one is more beneficial than the other we have to analyze the basics of each type of mortgages.
The traditional mortgage has been there for a long period. The lenders loans the principal amount on the mortgaged property and also the borrower is expected to pay the loan amount together with interest as monthly installment for a specific amount associated with years. The standard loans vary from 10, 15, 20 to 30 years with respect to the principal amount and the credit history of the customer. It goes without saying that the borrower usually eventually ends up paying more than the principal amount by the end from the loan term.
Bi-weekly mortgage is a newer concept; this is gaining immense popularity among many people as they believe that this is actually the easiest way to pay back their mortgage. The mortgage working is rather simple the lender loans the principal amount on the actual mortgaged property. Unlike the traditional mortgage, the borrower pays half just as much every two weeks. In a whole year, there tend to be 52 weeks. As a result there will be 8 weeks a year when the home owners can make three payments rather than two. As a whole, per annum there will be 13 monthly obligations made. Since the payment is bi weekly and the total amount comparatively low, home owners firmly believe that this is the most painless way to repay their mortgage loan. The most important advantage of bi-weekly mortgage is that it allows home owners to repay the mortgage faster, and also since the principal loan amount is paid a lot more rapidly than the traditional loan home owners can save lots of money by the end of the mortgage period.
On the actual outset, the bi-weekly mortgage definitely looks better than conventional loans. However, there are many aspects the home owners fail to recognize before they decide to choose a bi-weekly mortgage plan. The first and foremost thing is the upfront charge which most money lenders expect the home owners to pay to be able to avail the bi-weekly mortgage plan. Before opting for bi-weekly mortgage plan it is usually advisable to consult a mortgage broker who can provide you with complete details on how these loans operate. It is also necessary for the home owners to ask about the various upfront fees that need to be paid in order to avail bi-weekly mortgage loan.
The traditional mortgage has been there for a long period. The lenders loans the principal amount on the mortgaged property and also the borrower is expected to pay the loan amount together with interest as monthly installment for a specific amount associated with years. The standard loans vary from 10, 15, 20 to 30 years with respect to the principal amount and the credit history of the customer. It goes without saying that the borrower usually eventually ends up paying more than the principal amount by the end from the loan term.
Bi-weekly mortgage is a newer concept; this is gaining immense popularity among many people as they believe that this is actually the easiest way to pay back their mortgage. The mortgage working is rather simple the lender loans the principal amount on the actual mortgaged property. Unlike the traditional mortgage, the borrower pays half just as much every two weeks. In a whole year, there tend to be 52 weeks. As a result there will be 8 weeks a year when the home owners can make three payments rather than two. As a whole, per annum there will be 13 monthly obligations made. Since the payment is bi weekly and the total amount comparatively low, home owners firmly believe that this is the most painless way to repay their mortgage loan. The most important advantage of bi-weekly mortgage is that it allows home owners to repay the mortgage faster, and also since the principal loan amount is paid a lot more rapidly than the traditional loan home owners can save lots of money by the end of the mortgage period.
On the actual outset, the bi-weekly mortgage definitely looks better than conventional loans. However, there are many aspects the home owners fail to recognize before they decide to choose a bi-weekly mortgage plan. The first and foremost thing is the upfront charge which most money lenders expect the home owners to pay to be able to avail the bi-weekly mortgage plan. Before opting for bi-weekly mortgage plan it is usually advisable to consult a mortgage broker who can provide you with complete details on how these loans operate. It is also necessary for the home owners to ask about the various upfront fees that need to be paid in order to avail bi-weekly mortgage loan.
