MORTGAGES TVM SOLVER.notebook
MORTGAGES TVM SOLVER.notebook
June 03, 2013
1
MORTGAGES TVM SOLVER.notebook
June 03, 2013
How much did she pay over the life of the mortgage?
How much interest was charged over the life of the mortgage?
1
2
MORTGAGES TVM SOLVER.notebook
June 03, 2013
ACCELERATED PAYMENTS Since many people are paid bi-weekly, some opt to ACCELERATE their mortgage payments -- pay BI-WEEKLY. With this method of payment, the bi-weekly payments are HALF the monthly payments, but you pay 26 TIMES A YEAR (since there are 52 weeks in a year, bi-weekly is half that) --- this works out to 13 MONTHLY payments. This extra payment results in paying off the mortgage faster-- hence the term ACCELERATED
EXAMPLE: If Ms. Chan switches to accelerated bi-weekly mortgage payments, how much will she save over the life of the mortgage?
Each BI-WEEKLY Payment is HALF the monthly payment
How long will it take to pay off the mortgage with accelerated payments? Use the TVM SOLVER 537 BIWEEKLY PAYMENTS TO PAY OFF MORTGAGE HOW MANY YEARS IS THIS?
2
3
MORTGAGES TVM SOLVER.notebook
June 03, 2013
3
4
June 03, 2013
1
MORTGAGES TVM SOLVER.notebook
June 03, 2013
How much did she pay over the life of the mortgage?
How much interest was charged over the life of the mortgage?
1
2
MORTGAGES TVM SOLVER.notebook
June 03, 2013
ACCELERATED PAYMENTS Since many people are paid bi-weekly, some opt to ACCELERATE their mortgage payments -- pay BI-WEEKLY. With this method of payment, the bi-weekly payments are HALF the monthly payments, but you pay 26 TIMES A YEAR (since there are 52 weeks in a year, bi-weekly is half that) --- this works out to 13 MONTHLY payments. This extra payment results in paying off the mortgage faster-- hence the term ACCELERATED
EXAMPLE: If Ms. Chan switches to accelerated bi-weekly mortgage payments, how much will she save over the life of the mortgage?
Each BI-WEEKLY Payment is HALF the monthly payment
How long will it take to pay off the mortgage with accelerated payments? Use the TVM SOLVER 537 BIWEEKLY PAYMENTS TO PAY OFF MORTGAGE HOW MANY YEARS IS THIS?
2
3
MORTGAGES TVM SOLVER.notebook
June 03, 2013
3
4
