Lowering Your Effective Rate Of Interest With Biweekly Mortgages
Biweekly Mortgages Reduce Your Effective Rate of Interest
This short video helps explain how your interest rate is affected by the use of biweekly mortgages. You will learn that the note rate, or the actual interest rate on your loan was agreed to at closing and cannot be changed. You will also learn that you can minimize the amount of interest you pay back to your lender, and create an enormous amount of savings for you and your family.
Biweekly Mortgages Cause you to Save On Interest Charges
While these program cannot effect the original “note” rate of your mortgage they can and do reduce the amount of interest you pay back over the life of your loan, and therefore reduce the “effective” rate of interest you pay back. For More information on how you can save and to find out what your effective rate of interest may be use our biweekly mortgage calculator.
By paying less interest with biweekly mortgages you can lower the “effective interest rate” over the life of your loan.
In most cases you can eliminate 25-30% of the amount of interest you are charged on a 30 year mortgage by repaying your mortgage with one of these plans. That could easily mean a savings of $40,000 or more on a $200,000 mortgage.
So in summary, these programs cannot your interest rate you agreed to when you closed your loan with your lender. But you can lower the amount of interest you pay over the life of your loan and therefore your effective interest rate with biweekly mortgages.
No Comments