The so-called "biweekly repayment" means that the personal mortgage loan is changed from the traditional monthly repayment to biweekly repayment, and the repayment amount is half of the original monthly payment. Due to the change of repayment method and the increase of repayment frequency, the total repayment amount of the borrower has been effectively reduced, the repayment period has been significantly shortened, and customers can save a lot of interest during the repayment period. At present, "biweekly mortgage" is mainly suitable for mortgage and mortgage loans of future houses, such as mortgage loans for first-hand houses and second-hand houses and mortgage loans for repayment.
take for example
The customer borrowed 500 thousand yuan from the bank. According to the loan term of 30 years and the benchmark interest rate of 6. 12%, the traditional monthly payment method is chosen, and the monthly repayment is 3036 yuan. If "Biweekly Repayment" [1] is selected, the repayment amount every two weeks is 15 18 yuan, which is equivalent to half of the original monthly payment. However, due to frequent contributions, the reduction of principal has been accelerated. Finally, the borrower can save interest expenses 1 15 186 yuan, and the interest saved ratio is as high as 19.42%. At the same time, due to frequent contributions, the reduction of principal is accelerated, and the repayment is about 26 times a year (equivalent to 13 months' monthly payment), and the borrower can pay off the loan in only 24.7 years, which is 5.3 years shorter than the ordinary repayment [2].
2. What is the biweekly repayment method in mortgage?
Biweekly repayment shortens the repayment period, and the repayment frequency is higher than the original monthly repayment, which leads to the reduction of loan principal and interest.
, will be far less than the monthly repayment of loan interest, the speed and cycle of principal reduction are shortened, and it also saves the borrower's total choice. Biweekly payment is still very suitable.
3. What is the biweekly repayment method in mortgage?
Usually, ordinary repayment is once a month, once a year 12 times. Biweekly payment means repayment once every two weeks. Repayment is about 26 times a year. Due to the fast repayment speed of biweekly loans, the loan interest is relatively small. However, for banks, the actual income is better than ordinary monthly payment, because the rate has increased.
What do you mean by biweekly mortgage payment? Introduction of repayment method!
Nowadays, more and more people are buying houses, and most of them are buying houses for the first time, so it is inevitable that they are unfamiliar with relevant knowledge. In fact, mortgage has a lot of knowledge and ingenuity. Reasonable choice and modification can make your mortgage pressure lighter, and everyone can adjust it according to their own situation. Today, we will introduce the related contents of biweekly mortgage payment.
What does biweekly mortgage payment mean? Everyone knows that the mortgage is paid on time every month. In fact, there is another way to repay the mortgage once every two weeks. Simply put, it is to pay the mortgage once every two weeks, which is different from the time when we paid the mortgage once a month before. The principle of biweekly payment mainly lies in higher repayment frequency and shorter repayment period, thus reducing the total repayment amount accordingly. Judging from the statistical repayment cycle, the interest paid every two weeks is much lower than the monthly interest. If the family income is stable, this repayment method is very suitable. Please consult the bank staff for details. For example, if you spend 500,000 yuan to buy a house and mortgage for 30 years, you can choose the biweekly interest rate 1500 for each repayment, and choose to repay about 3,000 yuan per month. As the number of biweekly repayments has greatly increased, the principal has decreased rapidly, and the repayment period has been shortened from the previous 30 years to, and the mortgage has been repaid in advance. In this way, during the repayment period, the biweekly repayment amount is less than the monthly payment of 1 10,000 yuan, which almost saves the interest of 1/5, which is enough to buy an economical car. "Biweekly mortgage" is mainly applicable to mortgage and mortgage loans of future houses, such as mortgage loans for first-hand houses and second-hand houses and mortgage loans for mortgage repayment.