Thursday, January 14, 2010

Bi-Weekly Mortgage Payments

No time to edit and make it look good so I will just post an email conversation I had with a friend.


I'm always going back and forth about whether to
pay the house off or keep the money in an account to pay the house
off. I definitely see both sides to Ramsey's vs Edelman's argument.

The bank has to be willing to receive payments for this and their is usually a fee to set it up.

This is not magic.
You are simply paying 1 extra payment a year.

If you are going to go this route you should try and put more down on your house at the beginning. As the bank makes most its money off of you in the first 5 years. And most people only hold their house for 7 years.

The negative side.
The faster you pay it off, the less you can deduct on taxes.

I'm not sure why I reply to your emails.
I already know you know this.



So one of the most amazing things I have
learned about investing is is Bi-Weekly mortgage payments.
This can easily take 7-10 years off your 30 year
payment plan.

Please take a look at my favorite website of financial

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