Commercial Mortgage Broker Advice: Be on a Biweekly Mortgage Payment

If your commercial mortgage broker tells you that with a biweekly mortgage payment, you can settle your mortgage obligations fast, would you consider it?

Yes, common sense will tell you that you will benefit from this payment schedule. It is a given, by doing simple math, that a bi-weekly or fortnightly mortgage payment will indeed help you finish paying your mortgage faster. However, you also need to be aware that there are some stumbling blocks along the way that might keep you from doing so. The secret to getting past these perceived barriers lies in knowing everything there is to know about completing your mortgage payments fast.

Many people today are not even aware that banks can sometimes become very scheming too in the sense that they can actually hinder you from completing your mortgage payments early and if they are getting a hunch that you are trying to get ahead of your mortgage payments, they can inconspicuous ways to keep you out of focus. This can happen to anyone of us, and the sad part is we are not even aware of it. One common mistake that people have is that they never try to avoid the ‘trap’ that their banks have put up against them. Your best defense against this, though, is nothing less than knowing exactly the proper way of doing your bi-weekly payments.

You should start by making regular payments of your mortgage on the same day, every 2nd week of every month. If you will just remain faithful to this routine and keep up with it, you would be surprised that by year end, you would have paid more than half of what you are supposed to pay with whatever monthly payment schedule you are trying to observe.

And since not all the months have 31 days, what you can do instead is to map out your bi-weekly schedule so you’d know in advance when you are supposed to make payments again. It’s as simple as that. If you are still not convinced, you may want to make some calculations on your own. It will help if you can see that by end of the year, if you make use of a bi-weekly payment method, it will show you have paid more than you are supposed to. You should now see that even if there are possible risks of a spike in interest rates at any given time of a year, it can still work.

To give you an idea on how you can go about this method seamlessly, you need a closer look into your entire mortgage and determine the total amount that you will owe for that year alone. Next, you have to cut in half the amount of money that you owe for each month. Then multiply it by 26, and once done you would see that you would have paid $2000 more as opposed to your original annual payment schedule.

In a given situation when you are encountering financial difficulty, missing out once or twice in your payment schedule would not hurt you significantly. If that happens you can just make up for the lost opportunity by just settling your next schedule and doubling it up when your finances have become more stable. Finding the right commercial mortgage broker, though, is crucial here because such a professional has all the needed expertise in this field. He can help you understand the implication of every action you may have in mind.