(SPOILER ALERT!) Around 6 yrs ago, I wrote an article showing some simple but effective math to explain this. I’m constantly getting emails from my readers asking me what they should do..obviously, a popular topic.
Let me also say, there is merit to paying bi-weekly…I’ll explain further on.
HISTORY OF BI-WEEKLY PAYMENTS
Back in the mid 90’s, there was a huge marketing blitz by the Big Banks that promoted making bi-weekly payments instead of the traditional monthly payments. The sales pitch was that you could save huge amounts of money and pay your mortgage off much faster….save 4 or 5 years off your amortization…. Sound familiar? Well, BI-WEEKLY PAYMENTS DON’T REALLY SAVE YOU ANYTHING!
And I’ll prove it…. here’s the straight facts! Read the rest of this entry »