Posted on: 09th Dec, 2009 09:20 am
How effective is a 13th mortgage payment?
You seem to be asking about making one extra payment per year.
If your $170,000 mortgage is at 6.25% and you paid one twelfth of that extra every month, that would be paying $87.22 extra every month.
The 30 year mortgage would then pay off in about 290 months or 24.42 years.
If your $170,000 mortgage is at 6.25% and you paid one twelfth of that extra every month, that would be paying $87.22 extra every month.
The 30 year mortgage would then pay off in about 290 months or 24.42 years.
Generally there are plans as monthly or biweekly payments.There are 12 numbers of payments in a year.
But in bimonthly payment condition lender spltes payement in biweekly mode and thus it resulats into 13th months payments. That means 26 payment schedule.
Making 1/12 extra also results in one 13th mortgage payment annually.
But in bimonthly payment condition lender spltes payement in biweekly mode and thus it resulats into 13th months payments. That means 26 payment schedule.
Making 1/12 extra also results in one 13th mortgage payment annually.
