REPAYMENT OPTIONS

How you pay your mortgage has a dramatic effect on the amount of interest you pay…

AMORTIZATION:

The gradual repayment of a debt by means of partial payments on the principal at regular intervals. The amortization period is the time required to repay the debt completely.
The amortization period has a dramatic effect on the amount of interest paid over the length of the mortgage.

Consider the following example:

$150,000 mortgage with an interest rate of 8.00%*

Amortization  years	Monthly Payments	Savings  in Interest
25	$1144.82
20	$1242.54	$45,236.40
15	$1,422.23	$87,444.60

* The example assumes the interest rate will remain constant through out the whole amortization period.

PAYMENT SCHEDULES:
Most mortgages have very flexible payment alternatives. Weekly, bi-weekly, or monthly payments are most common. These choices also have a great effect on the overall interest payments. 

Consider the following example:

$150,000 mortgage with an interest rate of 8.00% over a 5 year term.
 

	Payment	Remaining balance at end of term
Weekly	$ 286.21	$130,987.21
Bi-weekly	$ 572.41	$131,057.47
Monthly	$ 1,144.82	$138,203.66

* The example assumes the interest rate will remain constant throughout the whole amortization period.