It is obvious that weekly payments abridge mortgage payments by 3 ½ years, when compared to monthly payments. However, weekly payments involve a higher annual payment of 581 $ in comparison to annual monthly payments. It is therefore quite normal that the amortization period is shorter.
However, if we compare equal annual payments, we quickly notice that the savings on weekly payments is no more than 2 months, thus 1 256 $ after 21 years. Conclusion: It is not the method of payment that is important but rather the amount paid annually.
And now, you may be asking why there is so little difference regarding the final amortization period between the monthly accelerated payment and monthly payment. The interests on mortgage payments are calculated SEMI-ANNUALLY, thus 2 times per year.
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