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Choosing a Payment Frequency

General Trevor Bumstead 11 May

When it comes time to select the frequency of your mortgage payment there are several factors to consider which will determine what option is right for you. When making that decision, here are a few things to remember.

  1. Select a payment frequency that best aligns to your household budget and lifestyle.
    • If you’re used to paying monthly (ex: rent) then a monthly schedule could be best for you.
    • If you are paid bi-weekly, matching your mortgage payment may help with budgeting and cash flow.
  2. Monthly, Semi-Monthly, Bi-Weekly, and Weekly all pay the mortgage down at the same rate. Despite what you may have heard, there is no interest advantage compared to each another.
  3. If your intention is to pay your mortgage off faster, there are two options.
    • Utilize the lender’s Prepayment Program while keeping your monthly payments low; Frequent or lump some payments are applied directly to the principle.
    • Increase your regular payment’s using accelerated bi-weekly or accelerated weekly options; Payments are increased to a higher locked in amount where you are making an additional 1 months worth of payments over the course of the year, evenly spread throughout the year.

In the end, it all comes down to personal preference and how you manage your household budgeting. There is no wrong choice.

If you have questions about mortgages or would like to discuss payment options in more detail, please don’t hesitate to reach out for a no-obligation review. I’m here to help.

Be well and talk again soon.