Do you groan with despair when you check out your mortgage statement wondering if you'll ever be rid of your debt?  Fear not -- there's a strategy that will pay your mortgage off years in advance saving you thousands of dollars in interest!

Making bi-weekly accelerated payments is one of the easiest ways to make your mortgage a thing of the past.  Most of us make mortgage payments each month even though we're paid every two weeks.  Accelerated bi-weekly payments can put thousands of dollars back in your pocket without the need to save up lump sum payments.

It's easy!  Just divide your monthly payment by two and pay that amount every two weeks.  For example, if your monthly payment is $1,454, your bi-weekly payment would be $727.  There will be 26 payments over the course of the year -- equivalent to 13 monthly payments.  You'll be slipping in an extra payment each year without ever realizing.  The additional amount directly pays down the principal and the more you apply to the principal, the faster you pay off the loan which saves a fortune in interest.

Check this out!  On a mortgage of $250,000 amortized over 25 years with 5 year interest terms of 5%, you'd save over $31,000 and pay your mortgage off nearly 4 years sooner with an accelerated bi-weekly payment schedule as opposed to traditional monthly payments.  It may seem a long way off now but imagine how amazing it would feel if someone unexpectedly knocked on your door with a cheque for thirty grand!

Companies such as gyms sometimes use this payment tactic but in reverse.  For example, a gym may say the membership's $24 every two weeks so in your head you think "that's only $48 a month" but in fact, it's actually going to cost you $52 a month because of the extra two payments a year.  By taking advantage of the accelerated bi-weekly plan, you'll be pulling a fast one on the bank!

We all want pay off our mortgage and start enjoying financial freedom.  Accelerated bi-weekly payments are one of the best ways to accelerate your goal.  Most banks don't charge fees or penalties for this payment option but make sure you ask up front just in case.  It's definitely worth investigating your options -- you have nothing to lose, just thousands to gain!

For more information on Ajax real estate, Whitby real estate, Oshawa real estate, Courtice real estate or Bowmanville real estate, please call Lindsay Hawkins at (905) 619-9500 or send an e-mail to LindsayH@sutton.com.