Most likely you’ve received your Mortgage Interest Statement, Form 1098, in the mail. This form shows the amount of interest you paid last year on your mortgage. Most people look at this statement with a sigh, seeing how much is going to interest rather than the balance of the loan.

If you’re looking for a way to reduce the amount of interest, and pay your mortgage off sooner, you might want to consider a Bi-weekly Mortgage. This is a fixed rate mortgage that is scheduled for payment every two weeks instead of the normal once-per-month schedule.

The bi-weekly payment is half of the monthly payment, so most months you pay the same amount as you would with a monthly payment. However, paying every two weeks means you make 26 payments – or two extra payments – at half the amount, instead of just 12 per year.

You will reduce the interest amount paid, which results in a larger savings in interest payments. Also, the additional payments allow for a faster repayment of the loan amount, thus building up equity faster.

If you’re considering a new mortgage, check with a professional mortgage broker. We, and I’m confident others, will welcome the opportunity to apply your numbers and show you the results of a regular, 30-year fixed mortgage and a bi-weekly mortgage. Then, with the knowledge in hand, you can make the decision that is best for you and your financial situation, as well as your long-term goals.