Bi-Weekly Mortgage Payments in the LBI Real Estate Market
- High Tides Digital Marketing
- Nov 5, 2020
- 2 min read
Long Beach Island Real Estate Bi-Weekly Mortgage Payments
Long Beach Island Real Estate Mortgage Payments
For many buyers in the Long Beach Island real estate market, a mortgage is an essential part of their transaction. There are many lending options available and one of them is a bi-weekly mortgage payment. Bi-Weekly Mortgage Payments in the LBI Real Estate Market occur when a borrower will make additional payments on a loan, every 2 weeks instead of once a month, which can save a great deal of interest and reduce the length of the loan. There are several different types of bi-weekly payments, and there are pros and cons associated with them, so all buyers in the LBI real estate market have to understand these kinds of programs before signing up.
Bi-Weekly Mortgage Payments in the LBI Real Estate Market
Bi-Weekly Mortgage Payments in the LBI Real Estate Market can offer a great deal of savings in the market. On average, they can also shave off around 5 years on the length of a loan which is significant. That said, there are pitfalls to be aware of. Some lenders will offer a free option to make bi-weekly payments, but not all do. If there is not a free option available, a borrower may have to use an outside firm that can charge an expensive setup fee and month charges. This can reduce, if not eliminate, the benefits of making these bi-weekly payments. There is another option to replicate the benefits of bi-weekly payments and that is simply paying more principal on every payment. Much of the benefit in a bi-weekly mortgage comes from the simple fact that you are making 13 payments in a year rather than 12. By taking the extra principle and applying it to every monthly payment, the mortgage will be paid down sooner and the interest charged will be reduced. Just make sure there are no pre-payment penalties!
Buying in the Long Beach Island Real Estate Market with a Mortgage
We have been in a cycle of low-interest rates so the appeal of obtaining a mortgage has been very high. Mortgages can make a lot of sense for buyers, even if they do not need to obtain a loan to purchase a home on Long Beach Island. All buyers should familiarize themselves with the types of loans and programs available to them so they can better understand the best way to buy a home on LBI. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
