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Wednesday, October 28, 2015

Saving Money on your Mortgage

Let's take a step out of Walt Disney World for just a minute, long enough to talk about saving a little money. I mean really we are all just trying to pay off our mortgage early so we have more money to take more vacations anyway, right?! Just kidding...maybe.

I learned something new this week and I just HAVE to share it with you! Yes, I'm an Accountant and I probably should have already known this. But I didn't. So maybe you don't know either, or I've just been living under our mortgage rock.

Did you know that many times your mortgage company will allow you to structure your monthly mortgage payments bi-weekly?

Wait, what am I talking about?

Instead of paying your mortgage payment in one lump sum, monthly, you will pay half of your mortgage payment every two weeks.

What does this mean for me?

You will be saving a substantial amount of money that would have been paid in interest over the life of your loan.

It also means that you are making 13 payments a year instead of 12 and you don't even realize it. That extra payment goes straight towards the principal you owe on your house. Thus, you are paying off your house faster and shaving years off of your loan.

Mind blown. Our mortgage company offers this service for free! I wish we had known this when we built our house years ago.

As an Accountant and self-proclaimed {saver of all the money} I would highly recommend you at least crunch a few numbers and check in to it.

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