Considering paying mortgage every two weeks instead?

[Sophie Sawyer]

My friend who used to work at a mortgage company recommended I pay mortgage twice a week, with half of what a monthly mortgage payment would have been. So instead of paying $1000 a month, we pay $500 every two weeks. He said we can save half of the interest in the long run, but most mortgage company don't like to advertise it because they lose their interest income in the long run. This makes perfect sense in theory. However, I'm surprised that I haven't heard any real estate investor doing this. What's the catch? Why aren't you doing it? Or is it because I don't have enough investor friends 😅

[Wayne Brooks]

It’s no secret, or great trick. Any time you pay extra on a mtg you pay it off early. In case you didn’t realize......when you “pay half the monthly payment every two weeks”......there are 52 weeks in a year so you are making 26 half payments, or 13 full payments.....hence the savings because you are making one extra full payment per year, which is where the savings come from, not because you are paying every two weeks instead of once s month.