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Experts Commend Biweeklies

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Financial experts from these six major publications have expressed unanimous support favoring the biweekly schedule as a means to saving tens of thousands of dollars in interest on home mortgages, and becoming "mortgage-free" years earlier than possible with traditional mortgages. Consumer Reports
USA Today
The New York Times
The Wall St. Journal
Parents Magazine

Mortgage Comparison Tables
Prepayment Habits & Delays

The Impact of a Biweekly Schedule on Mortgages

The Wall Street Journal
January 18, 1989

"When repaid on a biweekly schedule a $70,000 mortgage
at 10.5% annual interest produces a savings of $60,000
compared with a standard 30-year payback."

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The New York Times
October 22, 1988

"A Biweekly mortgage is best for financially 
sophisticated home buyers, for move-up home owners
and for anyone who wants faster equity build-up. ... 
The idea of biweekly mortgages is simplicity itself. 
... It's a great disciplinary tool.  ...it's like a 
Christmas Club. ...biweekly mortgages [are] 
'pro-consumer'. "

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USA Today
November 12, 1986

"What started out as a mortgage lender's marketing
gimmick is on its way to becoming the hottest home loan
of the decade.  It's the biweekly mortgage....   
The attraction:  Biweeklies reduce interest expense and
build home equity faster.   ...the idea behind a biweekly
mortgage...because you pay off the principal faster, 
you build up more equity earlier."

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Consumer Reports
June 1988

"Whether you already have a mortgage or are 
in the market for a new loan, you can probably save 
tens of thousands of dollars by 'investing' in your
mortgage.  If you took out a $100,000 biweekly mortgage
instead of a regular 30-year mortgage at 10.5 percent
interest, you could save nearly $86,000 in interest 
over the life of the loan."

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April 1988

"The biweekly mortgage...The result on a 
$100,000, 30-year mortgage at 10%, for example, 
is that you can burn your mortgage in just under
21 years and save $78,359 in interest...."

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Parents Magazine
December 1986

"The simple fact is that a biweekly mortgage
not only saves the home buyer a bundle, but makes
him or her a homeowner much sooner than the 
traditional monthly mortgage does."

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Tables showing comparison between fixed rate and biweekly mortgages.

Mortgages: biweekly vs. fixed
Source: USA Today

What an $80,000 mortgage at 10% interest would cost:
Years Total Term Payment to payoff interest _________________________________________________________ 30-yr. biweekly $351.03 20 yrs., 10 mos. $110,007.11 30-yr. fixed $702.06 30 years $172,741.60 15 yr. biweekly $429.85 12 yrs., 5 mos. $ 62,378.52 15-yr. fixed $859.69 15 years $ 77,010.82 _________________________________________________________

The real cost of a mortgage
Source: Consumer Reports, June 1988

Monthly payments for a $100,000 fixed-rate mortgage.
Shorter-term loans usually have slightly lower 
interest-rate charges.
 Type of  Interest  Months   Monthly   Total
  mortgage   rate      paid    payment   finance
                               amount    charges
  10-year    10.25%    120    $1335.00   $60,247 
  15-year    10.25     180     1090.00    96,191 
  20-year    10.25     240      982.00   135,594 
  30-year    10.50     360      915.00   229,306 
  Biweekly*  10.50     246      457.00   143,462 
*Biweekly payments on a 30-year, fixed-rate mortgage.

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Prepayment Habits and Delays

Of homeowners holding the U.S.'s 52 million mortgages,
more than 97% don't prepay their mortgages for more than
12 months on their own initiative.

Julie Garton-Good answers consumer real estate questions in her column in The Herald. One Miami, FL, homeowner expressed shock when he and his wife learned that their mortgage prepayments were held by their lender for 60 days before they were applied to their loan.

Mortgage-prepaying consumers need a guarantee that prepayments are processed quickly. One way to guarantee quick prepayment processing is through The Mortgage Medics' Program.

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