Bi-Monthly Mortgage
Usually, mortgages are paid on a monthly basis. However, there are some alternative payment schedules (See Also: Bi-Weekly Mortgage).
One of these other possibilities is a bi-monthly mortgage. Under this program, a homeowner pays half a mortgage payment two times a month instead of paying the full payment once. These plans often come with lower interest payments, so the mortgage borrower ends up paying less over the course of the loan.
However, programs like these have to be set up with the lender to get any savings. Merely splitting your mortgage payment in two on your own won't lead to any decrease in the interest rate. Unfortunately, some banks extract additional fees for setting up a bi-monthly plan, which eliminate any interest savings. Still, a savvy shopper can sometimes get a deal by finding a good bi-monthly option.
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Finance: What is a second mortgage?4 Views
Finance allah shmoop What is a second mortgage Okay you
know what a first mortgages it's otherwise cleverly named what
is called it is called oh yeah Mortgage it's Just
a loan on a house You paid four hundred grand
for this baby Hundred grand down two hundred fifty grand
in a first mortgage And they're still fifty grand You
owe well where's that fifty large coming from the bank
wouldn't loan you any more on a first mortgage that
was costing you six percent a year Tio you know
to rent that money So you had to get a
second mortgage which should things go awry and you become
a statistic Well that's it's fully behind the first mortgage
in the priority stack of payback So in a bankruptcy
situation the first mortgage first what's called a first mortgage
get it fully paid along with any fees associated with
it and back interest accrued and any other things that
are associated with that first mortgage it stands in line
first in priority Then any cash leftover gets attributed to
that second mortgage So not surprisingly second mortgage money costs
a lot more to rent then first mortgage money because
the risk of non payment in a bad situation is
meaningful E higher especially when the borrowed does this for 00:01:25.136 --> [endTime] a living
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