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From: singhal@hound.UUCP (S.SINGHAL)
Newsgroups: net.consumers
Subject: Re: Semi-monthly mortgage repayments
Message-ID: <1472@hound.UUCP>
Date: Wed, 13-Nov-85 15:49:59 EST
Article-I.D.: hound.1472
Posted: Wed Nov 13 15:49:59 1985
Date-Received: Thu, 14-Nov-85 20:34:32 EST
References: <1389@decwrl.UUCP>, <10961@ucbvax.BERKELEY.EDU>
Organization: AT&T Bell Labs, Holmdel NJ
Lines: 10

In the semi monthly mortgage plan you pay every second week instead of twice a
month.  Since there are 52 weeks in a year, you make 26 payments each equal to
half the monthly payment.  Consequently you make 13 monthly payments a year
instead of just 12.  This extra payment, along with some interest savings,
enables you to pay off a 30 year mortgage in just 18 years or so.

Don't be misled by the banks trying to convince you that the early liquidation
of the mortgage is simply due to interest savings !

---Sharad Singhal