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Mortgage Smarts: Choosing the Best Payment Plan and Why






1. Monthly mortgage payment

Your mortgage payment is withdrawn from your bank account on the same day of every month (i.e. on the 1st). You make 12 payments per year.


2. Bi-weekly mortgage payment

A bi-weekly mortgage payment is your monthly mortgage payment multiplied by 12 months and divided by the 26 pay periods in a year. You make 26 payments per year.


3. Accelerated bi-weekly mortgage payment

An accelerated bi-weekly mortgage payment is your monthly mortgage payment divided by two and the amount is withdrawn from your bank account every two weeks. With an accelerated bi-weekly mortgage payment, you still make 26 payments per year but the payment amount is slightly more than a regular bi-weekly mortgage payment.


4. Weekly mortgage payment

A weekly mortgage payment is your monthly mortgage payment multiplied by 12 months and divided by 52 weeks in a year. You make 52 payments per year.


5. Accelerated weekly mortgage payment

An accelerated weekly mortgage payment is your monthly mortgage payment divided by four and the amount is withdrawn from your bank account every week. You still make 52 payments per year but the payment amount is slightly more than a regular weekly mortgage payment.


The difference between regular and accelerated payments

The one major difference between regular and accelerated payments is how the payment is calculated. With an accelerated payment option, you end up making roughly one extra payment a year. It’ll cost you a little more on a monthly basis, but will save you thousands in interest and pay off your mortgage sooner.


Example: Based on a $200,000.00 mortgage balance with a 5.00%, 5 yr term and 25 year amortization, principle paid and interest paid at the end of a five year term.


Monthly Payments: $1163.21

  • Mortgage Principal Paid $22,984.99, Interest Paid $46,807.61

  • Semi-Monthly Payments: $581.01

  • Mortgage Principal Paid $22,984.99, Interest Paid $46,735.81

  • Bi-Weekly Payments: $536.27

  • Mortgage Principal Paid $22,984.99, Interest Paid $46,730.29

  • Bi-Weekly Accelerated Payments: $581.60

  • Mortgage Principal Paid $29,663.41, Interest Paid $45,945.24

  • Weekly Payments: $268.01

  • Mortgage Principal Paid $22,984.99, Interest Paid $46,697.18

  • Weekly Accelerated Payments: $290.80

  • Mortgage Principal Paid $29,704.11, Interest Paid $45,904.54



Check out our great Mortgage App to determine if you are in the best mortgage payment plan. https://app.canadianmortgageapp.com/app/mercer-mortgage




Contact The Mortgage Missus Inc. today to learn more!


Tonia Mercer | The Mortgage Missus Inc.



About the author,

Tonia Mercer is an independent mortgage broker. She has been in the industry for 15 years, in 2021 she launched her own brokerage The Mortgage Missus Inc. 

Tonia is passionate about financial education and believes that working with independent experts is the best way to get unbiased, professional advice. She has joined forces with local independent home and auto, financial advisor, legal, appraiser and real estate service providers.Effectively creating a concierge service for all things financial and real estate.

Tonia donates a portion of all mortgage revenue to Mercer's Mission, a street dog and cat feeding mission in the Dominican Republic. https://www.facebook.com/mercersmission 

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