Go For a Bimonthly Mortgage if You Can Get One

A bimonthly mortgage is a type of mortgage in which you make half of your normal mortgage payment two times per month. Here are the basics of the bimonthly mortgage and why you should consider getting one.

Bimonthly Mortgage

This is a type of mortgage that many people get confused with a biweekly mortgage. With a biweekly mortgage, you are actually going to be making a payment every two weeks instead of twice a month. When you do a biweekly mortgage, you are actually going to be making one full mortgage payment more per year. With a bimonthly mortgage, you are going to be making 24 half payments per year instead of making 26 half payments per year.

Savings

One of the big benefits of using a bimonthly mortgage is that you will be able to save money on interest. When you make your first half payment of the month, they are going to apply the payment to your account immediately which is going to reduce part of the principal on the loan. Since you are making more frequent payments to the principal, the interest is going to be less every time that it is calculated on the principal. 

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