Most lenders offer a variety of mortgage payment schedules. Some options allow you to pay down your mortgage quicker than others thus, saving you money. Generally, the faster you pay down your mortgage, the less interest in the long run.
Below is a table showing how payment frequency affects the long-term cost of your mortgage.
There is no solution that meets the needs of every family. When selecting your payment schedule consider your financial goals, current commitments and your monthly cash flow.
Ex: For a 5 year fixed mortgage of $100,000 mortgage at 2.99%:
|Payment Frequency||Amount||Amortization Yrs||Total Interest Paid||Interest savings vs. Monthly Payment|