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Paying a loan twice monthly versus once a month will save you BIG TIME!

Posted by Anonymous   + Show Post

I recently purchased a new vehicle.  I went online to a loan calculator and figured out how long the loan would take to pay off while making a single, monthly payment versus making two smaller monthly payments, and it will save me nearly 16 months off of the life of my loan, and save me hundreds of dollars in interest.

also, just by paying $10 more per payment saves me even more in the maturity of my loan, and saves in interest.

The bank I went through for my car loan has online loan payment scheduling to automatically come out each paycheck I have, throughout the life of the loan.

You can do this if you have a home mortgage, or even a business mortgage.  We figured if we do two smaller monthly payments on our home, it saves a CRAP LOAD in extra interest, and shaves off nearly SEVEN YEARS of our loan!

http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx

Try it!  Use the link above to plug in your current numbers, then plug in your twice-monthly numbers to see how much you'll save!

Posted by Anonymous on Jan. 7, 2013 at 12:58 PM
Replies (11-12):
CoolRelax
by Platinum Member on Jan. 7, 2013 at 1:15 PM

We do that with our mortgage - every 2 weeks.  We end up making one full payment extra a year.   

elijahXmom
by on Jan. 7, 2013 at 1:19 PM

Your talking about combined interest. With other types of interest this way of pay offing will not save you a dime but will help pay off the debit faster. 

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