Check to see how your interest is calculated.
Many banks only calculate you interest and amortization twice a year... meaning that if you accelerate your payments (as Syl described or via bi-weekly payments) you are giving the bank an interest free loan for 6 months on the amount that your payments exceed your amortization schedule.
If this is the case, you are wiser to deposit monthly (or bi-weekly) into a short-term interest vehicle (like an MMF but consult your financial advisor) and then make a semi-annual lump payment towards your mortgage principal.
This strategy will provide you with additional capital to apply against your oustanding mortgage and allow you to pay down the loan faster.
Best regards,
~bug
Last edited by firebug; 02-06-2007 at 03:48 PM.
Reason: Spalling Misteaks
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