Calculating the remaining number of payments on your mortgage can be a bit tricky, especially if you are making bi-weekly payments instead of the traditional monthly payments. However, with a few simple calculations, you can determine how many payments you have left on your mortgage. In this article, we will guide you through the process and answer some frequently asked questions about bi-weekly mortgage payments.
To calculate the number of payments remaining on your mortgage when you make bi-weekly payments, follow these steps:
1. Determine the total number of payments for your mortgage. This information can typically be found on your loan documents or by contacting your lender.
2. Divide the total number of payments by 2. This is because bi-weekly payments mean you are making half of your monthly payment every two weeks.
3. Calculate the number of bi-weekly payments you have made so far. Multiply the number of years you’ve been paying by 26 (the number of bi-weekly periods in a year).
4. Subtract the number of bi-weekly payments you’ve made from the total number of payments calculated in step 2.
5. The result is the number of payments you have left on your mortgage.
Now, let’s address some frequently asked questions about bi-weekly mortgage payments:
1. Can making bi-weekly payments save me money on my mortgage?
Yes, by making bi-weekly payments, you can make an extra payment each year, which can help you pay off your mortgage sooner and save on interest.
2. How can I set up bi-weekly payments?
Contact your lender to inquire about setting up bi-weekly payments, or you can simply divide your monthly payment by two and pay that amount every two weeks.
3. Are there any drawbacks to making bi-weekly payments?
Some lenders charge a fee for setting up bi-weekly payments, so it’s important to check with your lender beforehand.
4. Can I switch from monthly to bi-weekly payments mid-mortgage?
This depends on your lender’s policies. Contact them to discuss the possibility of switching.
5. Will making bi-weekly payments affect my credit score?
No, as long as you make your payments on time, it will not negatively impact your credit score.
6. Can I make extra payments on top of my bi-weekly payments?
Yes, you can make additional payments to further reduce your mortgage balance.
7. Will my monthly payment decrease if I switch to bi-weekly payments?
No, your monthly payment will remain the same, but you will make 26 half-payments instead of 12 full payments per year.
8. Is it worth it to make bi-weekly payments?
Making bi-weekly payments can save you money on interest and help you pay off your mortgage faster, so it can be worth it in the long run.
In conclusion, calculating the number of payments left on your mortgage when making bi-weekly payments requires a few simple calculations. By following the steps outlined in this article, you can determine the remaining number of payments and gain a clearer understanding of your mortgage repayment timeline.