Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10 5/3/83 based; site hound.UUCP Path: utzoo!watmath!clyde!cbosgd!ihnp4!mhuxn!mhuxr!mhuxt!houxm!hound!singhal 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