Many Charlotte homeowners are starting to opt for a second type of option on their home loans. Its known as a bi-weekly mortgage payment. The type of payment allows homeowners the ability to make 13 payments per year rather than the typical 12. This extra payment cuts additional time off the loan by paying down the principal and interest quicker than normal.
So what's the catch? Many lenders will charge a setup fee of anywhere between $200-$400 to get you started. Here's the upside. If you're just as disciplined you can accomplish the same thing on your own. How can you not be disciplined in todays age? Most homebuyers bank online to begin with. These banks allow their clients the ability to automatically deduct from their account the mortgage payment however often they like. You can set it up to deduct once, twice, or however many times per month you choose.
Let's take for example a loan that is $100,000. You could potentially save over $42,000 over the life of the loan by choosing the bi weekly mortgage option! Not bad huh? So next time you're out shopping for a Charlotte real estate mortgage think twice about how much you can afford to save and how much you can afford to apply to an extra payment.
|
