Step 2: Calculate your biweekly payment amount. To do this, divide your monthly mortgage payment by two. This is the amount you will pay biweekly.
Step 3: Set up automatic payments. Most lenders will allow you to set up automatic payments from your bank account. This ensures that your payments are made on time and that you don’t forget.
Step 4: Make sure your payments are applied correctly. When you make a biweekly payment, make sure that it is applied towards the principal balance of your loan. Otherwise, you won’t see the full benefits of biweekly payments.
Disadvantages of Biweekly Payments:
• It requires more discipline to make biweekly payments.
• You may have to pay a fee to set up automatic payments.
• It can be difficult to budget for biweekly payments.
Consequences of Incorrect Payments:
• Late fees.
• Higher interest rates.
• Negative impact on your credit score.
Categories: Mortgage Payments, Disadvantages, Consequences