Mortgage Payment Intervals Math 11 Essentials

Times What do the following mean? Annually Monthly Weekly Bi Weekly Daily

Mortgages A lot of people pay their mortgage monthly, so they payment comes out once a month on a set date Bi-weekly is also common where it comes out every 2 weeks

Mortgages What’s an advantage to monthly payments? Only one payment to worry about Disadvantage? Have to keep the money if you get paid biweekly It’s a larger amount being paid each time You pay more in interest What’s an advantage to biweekly payments? Comes out as you get paid so you don’t spend it Cheaper per payment Pay less interest Some companies allow you to pay it off earlier Disadvantage? You have it coming out of every pay

Calculations: Your mortgage payment is $745 a month. If you had this payment for 35 years, how much was the mortgage taken out for? $745 x 12 = $8940 $8940 x 35 = $312,900

Calculations: If the payment is $900 a month, how much would it be bi-weekly? Remember there aren’t 4 weeks in a month $900 x 12 = $10,800 $10,800 / 26 = $415.39

Calculations: If you put away money daily for your mortgage payment, how much would you set aside if it costs $856 a month? $856 x 12 =$10,272 $10,272 / 365 = $28.14

Calculations: If the mortgage costs $444 biweekly, how much do you pay in a year? $444 x 26 = $11,544