texas mortgage rates
Your Texas Mortgage Rates
Lending Source

10721 Jackson Lane, Frisco TX 75035

Phone: (214) 387-0683       Fax: (214) 387-0185       Email Us

 
 
 

Biweekly Mortgage

A Mortgage with Affordable Payments and Faster Principal Reduction

Let the calendar work for you! With a Biweekly Mortgage, you make a mortgage payment every 14 days, instead of once a month. The result? By making smaller payments more frequently, you will pay off your mortgage sooner and save thousands of dollars in interest over the life of the mortgage.

 

Biweekly Mortgages are similar to traditional fixed-rate, level-payment, fully amortizing mortgages, except the borrower’s payments are made every 14 days instead of once a month. Each payment is applied immediately to the loan’s principal balance, which means that the Biweekly Mortgage will be paid off much sooner, resulting in significant interest savings over the life of the loan.

 

A Biweekly Mortgage gives you the stability of a fixed-rate mortgage and the convenience of having payments automatically deducted from your checking, savings, or other deposit account.

Key Features

  • By making more frequent payments, you pay off the mortgage much sooner. For example, with a Biweekly Mortgage, a loan that normally takes 30 years to pay off will take 22 years to pay off at current interest rates. You will then own the home debt free and have saved 8 years' worth of interest payments!

     
  • Your mortgage payment is deducted automatically from your checking, savings, or other deposit account every 14 days--26 or 27 times a year in all. Many people find this an easy way to manage payments, especially if they pay their mortgage at the same time as they receive a biweekly paycheck. The Biweekly Mortgage requires no additional monthly fees, either.

 

The Target Audience for the Biweekly Mortgage

Consumer interest in retiring mortgage debt earlier makes the Biweekly Mortgage an attractive option for first-time home buyers, trade-up borrowers, borrowers nearing retirement, borrowers who are paid every two weeks, or borrowers seeking the benefits described below:

 

For borrowers who:

 

The Biweekly Mortgage delivers:

Seek faster equity buildup 

The more frequent payment schedule helps pay down loan principal much faster than a traditional 30-year fixed-rate monthly payment mortgage.

Value a shorter loan term

Loans that ordinarily take 30 years to amortize when paid monthly will pay off in approximately 22 years at current interest rates; at higher rates, the actual term declines even further. This means a borrower can own their home debt-free much sooner.

Want substantial interest savings

Due to faster loan amortization, the borrower pays interest on a smaller loan balance and for a shorter period of time, resulting in significant interest savings over the life of the mortgage.

Prefer convenient payments 

Borrowers enjoy the convenience of having payments drafted automatically from their bank accounts.  Biweekly payment drafts may be timed to coincide with payroll deposits for easier budgeting.

 

 

Eligibility Criteria for Biweekly Mortgages

Loan Purpose

Purchase, limited cash-out, and cash-out refinances

Loan Type/Term

Fixed-rate, level payment, fully amortizing mortgages only, based on monthly payment terms of 15-, 20-, and 30-years (10-year original term mortgages on a negotiated basis).

Biweekly Mortgages are allowed for Expanded Approval™ Levels I and II on a negotiated basis.

Property Eligibility

One- to four-unit owner-occupied principal residences, one-unit second homes, and one-to-four-unit investment properties.

Units in approved condominiums, co-ops, and PUDs are eligible. Eligible manufactured housing is allowed.

Maximum LTV/CLTV

(at origination) 

Same as those for comparable fully amortizing, fixed-rate, monthly payment mortgages, as detailed in Part 7 of the Fannie Mae Selling Guide, Exhibits 1 and 2.

Amortization

Interest due is calculated by amortizing the mortgage every 14 days (rather than every 30 days), using a 365-day (not 360-day) basis year.

 

 

2006 Conforming Loan Limits

Number of
Units
Maximum original
principal balance
Alaska, Guam, Hawaii,
and U.S. Virgin Islands only
1 $417,000 $625,500
2 $533,850 $800,775
3 $645,300 $967,950
4 $801,950 $1,202,925

 

 

  Correcting Your Credit  
  Credit Advice  
Prepare Your Credit Before Buying A Home
Preparing Your Credit For Life's Changing Needs
Victim Of Identity Theft
Buying Vs. Renting
What If My Application Gets Rejected?
 
Equal Credit Opportunity Act
What Is A Mortgage
Fixed Rate Mortgage
Adjustable Rate Mortgages
Down Payment
  Mortgage Programs  
  Home Equity Loans  
The Cost of A Loan
Balloon Payments  
Other Fees And Closing Costs
High LTV Loans
Bad Credit Mortgage
 
The Good And Bad Aspects
Refinancing Home Equity Loans
Interest Only Mortgages
Necessary Paperwork
Pre-Qualification Vs. Pre-Approval
  Types of Loans  
  Miscellaneous  
Buying and Selling a Home at the Same Time
Other Types Of Mortgage Loans
Should you get an interest only mortgage?
Private Mortgage Insurance - PMI
Home Mortgage Refinancing
 
Mortgage Scams
Canceling Your Mortgage
ITurn Your ARM into a Fixed Rate
Things To Consider
Mortgage Closing Costs

Mortgage Glossary4


 

Mortgage Rates Apply Online Credit Basics

Home Equity Basics

Mortgage Basics

Contact Us

About Us

Mortgage News  Helpful Articles

Mortgage Calcultator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

         

OPEN MORTGAGE
10721 Jackson Lane, Frisco TX 75035

PHONE:
214-387-0683EMAIL: info@brown-lending.com

 

"Your reliable Dallas Mortgage Broker and specialist on Texas Mortgage Rates and Home Mortgage Loans."

 

 

Fixed Rate Mortgage