Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the vamtam-consulting domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/woollammortgag22/public_html/wp-includes/functions.php on line 6121

Warning: Cannot modify header information - headers already sent by (output started at /home/woollammortgag22/public_html/wp-includes/functions.php:6121) in /home/woollammortgag22/public_html/wp-content/themes/vamtam-consulting/vamtam/classes/enqueues.php on line 403
Accelerated Mortgage Payments – The Woollam Mortgage Team

Accelerated payments will be a little higher than the non-accelerated options, which is how they are beneficial. By simply accelerating your payments, you’ll be making the equivalent of roughly one additional monthly payment per year, which is applied 100% towards your principal. This alone will knock a 25-year amortization down to approximately 22 years, 9 months*, which is why accelerated payments are so popular. You’re immediately slashing 2 years 3 months off your mortgage.

Accelerated biweekly

Accelerated biweekly payments are calculated simply by dividing your monthly payment in half, which is then paid every two weeks. Both biweekly options have a total of 26 payments each year, however, the accelerated payment will be a little higher.

Accelerated weekly

Instead of dividing your monthly payment in half as you would with accelerated biweekly payments, the accelerated weekly payment is your monthly payment divided by four, which is then made every week. Again, the accelerated payment will be a little higher than the non-accelerated version. Both weekly and accelerated weekly payments will have a total of 52 payments per year.

There is a negligible benefit to accelerated weekly vs. accelerated biweekly. On a $500,000 mortgage at 1.59% amortized over 25 years, you’d save only $22.15 over the FULL 25-year amortization by choosing accelerated weekly over accelerated biweekly payments. Less than $1 per year.

Let’s take a look at how the payments will vary for each payment frequency on a $500,000 mortgage at 1.59% amortized over 25 years:

FREQUENCY PAYMENT # OF PAYMENTS TOTAL ANNUAL PAYMENTS EFFECTIVE AMORTIZATION
Monthly $2,019.65 12 $24,235.80 25 years
Semi-Monthly $1,009.49 24 $24,227.76 25 years
Biweekly $931.82 26 $24,227.32 25 years
Accelerated Biweekly $1,009.83 26 $26,255.58 22 years 9 months
Weekly $465.84 52 $24,223.68 25 years
Accelerated Weekly $504.81 52 $26,250.12 22 years 9 months
by: