weekly and accelerated bi-weekly payment options are
calculated by taking a monthly payment schedule and
assuming only four weeks in a month. We calculate an
accelerated weekly payment, for example, by taking your
normal monthly payment and dividing it by four. Since
you pay 52 weekly payments, by the end of a year you
have paid the equivalent of one extra monthly payment.
This additional amount accelerates your loan payoff
by going directly against your loan's principal. The
effect can save you thousands in interest and take years
off of your mortgage.
The accelerated bi-weekly payment is calculated by dividing
your monthly payment by two. You then make 26 bi-weekly
payments. Just like the accelerated weekly payments
you are in effect paying an additional monthly payment