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Save
Thousands of dollars in Interest and Build Equity Faster!
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Step 1
Learn about simulated biweekly mortgages.
Imagine what would happen if, instead of making
12 monthly payments in a year, the
equivalent of 13 payments were made, with the
13th payment being applied entirely
toward reducing the unpaid balance. Let's use our
same mortgage example of a
30-year, $100,000 mortgage at
8.5% interest. Without
the 13th payment, the unpaid balance would only be reduced
by about $755.92
during the first year. By making that
13th payment the unpaid
balance will reduce by an additional
$768.91, which
in turn will reduce the amount of interest charged in
subsequent months. The bottom line is: if this example
were your
mortgage,
you would save $50,650.24 in
interest and pay off your mortgage in 22 years, 9 months
instead of 30 years!
This is how the Mortgage Payoff
Acceleration Program works. Every two weeks,
one-half of your monthly payment is electronically
transferred from your bank (depending upon the state you
live in) to either a trust account held at two of
America's largest consumer banks,
CitiBank and
Bank One (or assigns or
successors), or a new checking account established in your
name at Cape Coral (Florida)
National Bank. Once a month, one week prior to
the due date, the monthly payment is automatically sent to
the mortgage lender. |
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