A doubled mortgage is not a good term, since there is no such thing as a biweekly mortgage in the United States.
Other countries, such as Canada, do have a biweekly two-week mortgage type. Even Canada has Monthly, Weekly, Bi-weekly, Weekly, Accelerated two weekly and Accelerated types.
Lenders in the United States will only receive monthly payments, they will not receive partial or bi-weekly payments; except for extra money to apply to monthly payments included in monthly payments . There are NO mortgage loan repayment plans in the United States where the borrower makes payments on principal and interest every two weeks instead of once a month. Regulation allows mortgage lending companies to not receive partial payments. It is our government's response to the mortgage lending company's claim to compensate for the loss of the right to charge a prepaid penalty. Government compromises. All other loans can be paid every two weeks. The monthly payment will pay the interest and pay the principal, the second payment made two weeks later (whatever amount you want) will go directly to the loan principal and will save the consumer a large sum of money paid only for interest. This biweekly saving plan or the Double Equity development plan does NOT pay half the mortgage payments every two weeks. (I have to finish this later)
Two weekly payments exactly one and a half of the monthly payout amount. Although it depends on other factors such as the interest rate on the loan, the biweekly repayment plan often saves consumers money during the loan period.
For example, a 30-year mortgage of $ 200,000 with an interest rate of 6.5% would require a monthly payment of $ 1,264.14. When this mortgage is converted to a biweekly mortgage payment plan, payments will be $ 632.07 paid every two weeks. Paying a mortgage in this way will result in a paid mortgage paid off nearly 6 years sooner and will result in savings of $ 58,747.11.
The main difference between a biweekly mortgage payment plan and a traditional mortgage payment plan is that instead of making 12 full payments each year, 26 half of payments - equivalent to 13 full payments - are made annually. On a biweekly mortgage payment plan, several months will require 3 payouts or 1 and one half traditional payments. Financing companies use this pattern to their advantage. Financial companies charge interest per diem, not monthly. Consumer payments are scheduled each month. This allows the finance company to collect 2 extra weeks of interest each year. The two-week payment of payment allows the consumer to eliminate any additional accrued interest expense.
Most lenders do not offer a real two-week payment program and rely on 3rd party processors primarily because they do not receive partial payments from customers. While there are some costs involved, the biweekly program available for online registration can save consumers on mortgages and reduce the amount of time it takes to repay the loan. Some biweekly payment processors do not charge upfront and instead cut the cost of the savings earned by following a biweekly pattern.
Two weekly payments are also offered on other types of loans. The two-week payment for car loans has become increasingly popular.
Video Biweekly mortgage
Criticism
Many real estate experts argue that maintaining an existing monthly mortgage payment and making one additional payment each year will result in the same savings as a Second Mortgage payment plan. They also argue that some mortgage companies charge large amounts of services to convert a mortgage into a two-week payment plan, and this may be an indecent business practice on behalf of this mortgage company. Another argument against a biweekly mortgage is that lenders and third party processors place the first half of monthly payments into holding until the second half of monthly payments are applied. This system allows banks to minimize the loss of profitability of the program. The biweekly mortgage payment program will be much more real, profitable, and less misleading if interest and principal are applied to the account every two weeks.
Maps Biweekly mortgage
References
Source of the article : Wikipedia
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