accelerated payments


Mortgage loan payments made bi-weekly or weekly instead of monthly.

Accelerated payments typically result in you paying more principal each year than you would with regular monthly payments, which results in repaying your mortgage loan sooner.

For example, if your monthly payment was $1000, that would mean you were paying a total of $12,000 per year. With bi-weekly accelerated payments, you make a payment of $500 every two weeks, which totals $13,000 per year. (With weekly accelerated payments, you would make a payment of $250 every week, for the same result of $13,000.)

The 'acceleration' is actually a result of repaying more of the principal each year, which could also be accomplished with bigger monthly payments.

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