Cookies are required for login! Check our privacy consent banner for more details.
joe has a mortgage at 9.95% compounded semi-annually amortized over 25 years. if joe decides to change his mortgage payments from $1000 a month to $500 every two weeks, what will be the effect on his amortization period?
It will shorten the amortization period from 25 years to about 19 years. In other words, the mortgage will be paid off about 6 years earlier, thereby saving you about=$55,000 in interest.