mortgage payment schedule
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Modeling Structured Finance Cash Flows with Microsoft Excel: A Step-by-Step Guide.Book & CD-ROM $43.15 A practical guide to building fully operational financial cash flow models for structured finance transactionsStructured finance and securitization deals are becoming more commonplace on Wall Street. Up until now, however, market participants have had to create their own models to analyze these deals, and new entrants have had to learn as they go. Modeling Structured Finance Cash Flows with Micros… |
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Monthly Interest Amortization Tables $5.19 Loan amounts of $50 to $300,000. Interest rates of 2% to 25.75%. Terms up to 40 years…. |
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The Mortgage Payment Handbook: Monthly Payment Tables and Yearly Amortization Schedules for Fixed-Ra $0.02 This handy guide enables you to determine monthly loan and mortgage payments at a glance. Its easy-to-read tables present payment schedules for loans with interest rates from 3% to 26% for terms ranging from one to forty years. Loans from $10,000 to $1,000,000 are covered. The Mortgage Payment Handbook also includes annual amortization schedules that enable you to instantly see the interest and pr… |
Monthly Payments on Mortgage and Saving Money by Restructuring Them
Someone told me he was saving lots of money because he switched his mortgage payment schedule to biweekly. He said it was a really great plan and his mortgage would be paid, in full; several years ahead of his monthly payment schedule and it would save him over $70,000!
I told him I thought it was a great deal and then asked him how much it cost to convert to the biweekly plan. He said, “Nothing!” and then proudly stated, “and there is only a $19 charge added on to each payment!” Ouch! I didn’t want to go into this more deeply, so, I just smiled, said “so long” and moved on.
Paying to convert to biweekly
Here’s the problem. Since I know his house is almost brand new; I figure he has 28 years left on his mortgage. The $19 charge he’s paying every month to convert to the biweekly plan is costing him: 26 (payments per year), times 28 (years left to pay), times $19 (per payment). This adds up to a total cost of $13,832 for something he could have done for free!
Most lenders, especially the high profile ones, don’t charge $13,000 for a biweekly mortgage conversion. More commonly, there is an upfront charge of anywhere from $800 to $1,300. However, there are companies who actually pay your mortgage every month while collecting payments from you on a biweekly basis.
These are the scoundrels who charge you monthly fees.
These “middleman” type companies charge on the fly, so to speak. Your mortgage never changes hands; the company just handles your mortgage payment distributions. Not only are these companies expensive to deal with, but also the potential for mischief is enormous! I advise staying away from them.
The secret to biweekly payments
In fact, I advise staying away from biweekly mortgage payment plans altogether. It’s not that the numbers don’t work out to your advantage when you pay biweekly, it’s just that you don’t need to pay anyone to convert to this plan because you can do one on your own any time you want.
There are 26 two-week periods in a year. So, 26 biweekly payments equal 13 yearly payments. This works out to the same as paying 1 and 1/12th payments each month. Of course, paying this extra fraction of a payment every month, is the real secret to how biweekly plans work.
The plain and simple fact is; if you pay 1/12th of a monthly payment extra every month, you will pay off your mortgage in the same number of payments it would take to pay off the mortgage with the biweekly plan.
A case study
Here’s exactly how that would work in the case of a family who has 28 years left on a mortgage when they currently owe exactly $200,000 and the interest rate is 7%.
When converting to a biweekly plan, they would pay $679.61 every 2 weeks. This is exactly one-half the monthly payment they had been paying which is $1,359.22. A biweekly mortgage calculator tells us $679.61 every 2 weeks will have the mortgage paid in 22 years and 6 months. This results in a savings of more than $58,000!
However, since paying $679.61 every 2 weeks is the same as making 1 extra $1,359.22 monthly payment each year, there is another way you could simulate the biweekly plan.
Divide $1,359.22 by 12 and you come up with $113.27. Add this amount to each monthly payment and, as an early payment mortgage calculator will tell you, you also will have the mortgage paid in full in 22 years 6 months and will save more than $58,000.
Conclusion
So, what is the difference between switching to a biweekly payment plan and paying 1/12th of the payment extra each month? Nothing! Except you will not pay any extra fees and you will retain total control over your payments.
So don’t be caught off guard if approached by a salesperson who is intent upon converting your mortgage to a biweekly plan. Restructuring the way you make your payments will save you money if you pay more principal upfront. However, converting to a biweekly plan is just a sneaky way to do that. The downside is, it also gets you to pay somebody commissions.
About the Author
Ed Lathrop is a successful Real Estate investor. He has developed EzCalculator, a Mortgage Calculator that shows you how to save $100,000 on your mortgage. Come visit this free site at Free Financial Calculator. Also, find out how to get your amortization schedule and use it to save big money at: Amortization Schedules Free. These sites are not owned by any lender, so no one will harass you for visiting!
mortgage payment schedule Questions
Why do financial institutions take forever to debit your account?
When I schedule a payment to be made to electric company, mortgage, car payment or whatever they almost never take it on the date scheduled???
To me it seems obvious that they are banking on you spending your money first so they can over draft you, but any working in this field please explain!!!
Electronic transfers are slow but cheap. Wire transfers are fast but expensive.
To keep the costs down, banks are required to start the electronic transfer process during the early morning hours. So at about 2 am, the bank will batch all the requests to the clearing house. The clearing house starts to receive requests from around the US at that time and starts to process the clearing operations. Usually the clearing operations are done during the day and the request to the destination bank cannot be done until the early morning hours of the next day. During the early morning hours, banks start to receive the requests but may not be able to process the requests before the high activity hours so will delay processing until the early morning hours of the next day. Once the request is processed, the account is updated and a notification is sent back to the origination bank which may not be processed until the next day.
It is done that way to keep traffic and computer usage down during the high activity periods during the day. If they didn’t do it this way, ATM and other transactions may slow down significantly during high activity hours.
Are there such things as miracles?
I have three children, I recently had my third child 8 months ago. I had to give up my job in order to be able to have a schedule that was flexible for my children. With the economy like it is I did not find another job until November, Now christmas is quickly approaching and I hear I want this for Christmas I want that for Christmas, I stress to my two oldest ones that Jesus is the Reason for the Season. My minister said to stress that importance but we should also buy them a few things. Here is my dilemma I have no money to be able to get them anything. I am three months behind on my mortgage payment 1 month behind on my utilities. I need a miracle. Is there such as thing as a miracle? I have faith but it is wearing out little by little day by day,
Eight years ago, I left my steady, fairly well-paying job where I had worked for 10 years to move with my family to another state in the Sunbelt. Since then I have not had a job that paid half as much.
I have regularly run out of money to fulfill my duties as a responsible parent. I have lowered my standard of living, cut my spending, reduced driving, eaten lower on the food chain, and done what I can to try to survive.
I have lost a lot of stuff, I don’t drive a nice car anymore, but I’m not complaining. Things have been less than rosy for me, but I’m still here.
Somehow, some person or opportunity has always arrived. Usually, they are very small occurrences, but taken together, it is a true miracle of survival.
Look for the small things.
“Mommy, I love you,” or
“I made this for you.”
I’m sure you know what I mean.
Raw survival is scary and sometimes painful,
but the little blessings along the way are the true miracles.
mortgage payment schedule Videos
Do I have to report the rent income on a home I own if it is less than the mortgage payment?
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TurboTax Basic Federal + e-File 2010 – [Old Version] $4.99 The Intuit TurboTax Basic Tax Year 2010 Software automatically double-checks to help make sure your return is accurate. It features downloadable Audit Support Center, which provides guidance on everything you need to do if you are contacted by the IRS. And finally, it files your return electronically and prints it on plain paper…. |
|
|
Snap! Mortgage Master (Jewel Case) $19.95 Save wear on your sanity and your wallet with Snap!Mortgage MasterProduct InformationThe educational software tool that easily guides you through the oftennerve-wracking process of home financing. Totally secure andself-contained this practical tutorial covers all the bases – from calculatinghow much house you can afford to comparing your renting vs. buying savings. Youcan even determine you… |
|
|
Modeling Structured Finance Cash Flows with Microsoft Excel: A Step-by-Step Guide.Book & CD-ROM $43.15 A practical guide to building fully operational financial cash flow models for structured finance transactionsStructured finance and securitization deals are becoming more commonplace on Wall Street. Up until now, however, market participants have had to create their own models to analyze these deals, and new entrants have had to learn as they go. Modeling Structured Finance Cash Flows with Micros… |
|
|
Monthly Interest Amortization Tables $5.19 Loan amounts of $50 to $300,000. Interest rates of 2% to 25.75%. Terms up to 40 years…. |
|
|
The Mortgage Payment Handbook: Monthly Payment Tables and Yearly Amortization Schedules for Fixed-Ra $0.02 This handy guide enables you to determine monthly loan and mortgage payments at a glance. Its easy-to-read tables present payment schedules for loans with interest rates from 3% to 26% for terms ranging from one to forty years. Loans from $10,000 to $1,000,000 are covered. The Mortgage Payment Handbook also includes annual amortization schedules that enable you to instantly see the interest and pr… |
