This guy confused the shit out of me,well let me get back to Mike Tysons greatest knock outs.
@felixcorral7267
6 жыл бұрын
You did the math wrong. If your min pay is $477 and you make 2 payments at $220 well you’ll never pay your house off because you’ll always be behind for not making full payments plus the late fees. The trick is to take your $477/2 = $240 and Pat that bi-weekly which equals 26 payments in a 52 week year or 13 monthly payments so basically 1 extra payment. So you pay bi-weekly for 2 reasons. Tricks you into the extra payment but also cuts the build up of daily interest in half by making 2 payments as interest is accrued daily. 25 years later you’ve made 25 extra monthly payments = 2 years worth of payments plus all the interest you’ve saved on those 2 years as those payments have been towards principal 100% in essence and then on top of all that you’ve accrued less daily interest by doing this for 25 years. On average you’ll save 5-7 years off your 30 year mortgage.
@mortgageloancomparisons-sc5115
6 жыл бұрын
Thanks for the comment Felix. Please watch the video again. I think you will benefit if you do the spreadsheet as on this video. You will see that a "TRUE" biweekly loan with 780 payments in 30 years does correctly amortize with $220 payments. Also, the spreadsheet will make it clear that the FREQUENCY of payments contributes VERY LITTLE to the savings. You are correct when you say that you can save 5 -7 years by prepaying your mortgage. Simply pay: one extra payment per year... or send in ONE-TWELFTH of an extra payment each month.
@felixcorral7267
6 жыл бұрын
Mortgage Loan Comparisons - Scott Lucas I think we are both arguing the same point. Do you pay off your loan faster and pay less with bi-weekly payments? Yes. But your video makes it sound as if it’s not true. Also you give people bad information by telling them to take the sum of all of their monthly mortgages payments per year and divide that by 12. If people were to do that they would be in default on their loan and their credit score would be affected. It sounds like your against bi-weekly payments but in the end you do save money even if it is $146.91.
@mortgageloancomparisons-sc5115
6 жыл бұрын
I would truly like you to understand how this works. I will email you the spreadsheet if you text me your address. Cell phone is 443-829-2210. What you could do, when you get the spreadsheet, is visit a community college and speak with an instructor. Let me know.
@mortgageloancomparisons-sc5115
6 жыл бұрын
The primary point is that over 99% of the savings comes, NOT from the "paying more often", but rather because you are making 13 mortgage payments per year. You can do that without paying someone for the service.
@felixcorral7267
6 жыл бұрын
Mortgage Loan Comparisons - Scott Lucas no thanks.
@TheBandoury
6 жыл бұрын
Thank you for explaining it, it took off a lot pressure of me to have to do bi-weekly payments. I have been prepaying my mortgage aggressively. within 6 months I managed to remove PMI. I am looking for ways to pay off my loan fast. I even looking for a second job on weekend
@bealmear2004
6 жыл бұрын
His math is wrong
@ashmechanix9156
4 жыл бұрын
Your absolutely wrong.biweekly stops interest every two weeks.not monthly.take daily per diem interest from what's owed times 14 days not for the whole month.plus the extra payment end of the year.your way off.most computer program can't add the biweekly unless you have the per diem.
@mannydecastro6934
4 жыл бұрын
Sorry,but can you explain what you saying here please with details.
@Smudg
5 жыл бұрын
I didn't see two important factors: (1) The spread of the once every two weeks payments will add an extra payment to the yearly payments, so that would mean in my 10th year, I would have paid 10 extra payments, that would shave of 10 months of the loan life. (2) Every bi weekly payment includes a principal payment and that would mean less principal total to pay interest on for the following payment. was that added in your calculations? I save over $8,000.00 in interest in paying my $145,000.00 loan with %3.375 interest.
@scottlucas3710
5 жыл бұрын
Thanks for the comment Ed. This video was designed to help viewers understand that the third party companies who advertise their services (they charge a fee) to set your mortgages as "bi-weekly" are a scam. The math in this video is correct and has been repeatedly checked. What seems to be happening is that folks don't really understand Excel spreadsheets. If you want to contact me, I will send it to you.
@Smudg
5 жыл бұрын
@@scottlucas3710Thanks for your answer, please email the Excel sheet to me at Sam.Faroun@gmail.com
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