Increasing your payment frequency to biweekly accelerated can save you a significant amount of interest over the term of your mortgage and help you pay your mortgage off faster.
Most lenders offer the following payment options:
- Monthly
- Biweekly
- Biweekly Accelerated
- Weekly
- Weekly Accelerated
How do biweekly payments save you interest over the life of your mortgage?
Let’s look at an example:
If your monthly mortgage payment was $1000 / month, the table below demonstrates monthly, biweekly and accelerated biweekly payment options.
|
Frequency |
Payment |
|
Total Annual |
|
Monthly |
12 x $1000 |
|
$12,000 |
|
Biweekly |
$12,000/26 = $461.59 |
26 x $461.59 |
$12,000 |
|
Accelerated Biweekly |
$1,000/2 = $500 |
26 x $500.00 |
$13,000 |
You save money with a biweekly accelerated payment plan because you pay the equivalent of 13 monthly payments per year. On this schedule over the life of your mortgage you will reduce your mortgage amortization from 25 years to 22 years and 3 months.
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Our Rates
| Term | Bank Rate | Our Rate |
|---|---|---|
| 6 Month | 7.85% | 7.50% |
| 1 Year Closed | 7.84% | 6.74% |
| 2 Year Closed | 7.39% | 6.09% |
| 3 Year Closed | 6.94% | 5.14% |
| 4 Year Closed | 6.74% | 5.19% |
| 5 Year Closed | 6.79% | 4.94% |
| 7 Year Closed | 7.00% | 5.70% |
| 10 Year Closed | 7.49% | 6.09% |
| VRM Closed | 7.65% | 6.25% |
| Line of Credit | 8.20% | 7.70% |
