Biweekly Mortgage Payments Can Help You Plan for Retirement

Have you thought about your retirement goals? Do you want to be liberated from debt with increased wealth; travel more; enjoy your golden years stress-free in your entirely paid off home? To live easily in retirement, you may no longer be able to rely solely on Social Security to live long and prosper. And company pension plans that pay a secure income for life are near extinction. That’s why, no matter your age, it’s essential to plan to build that retirement nest egg right now.

Find out what your current financial picture is and if you’re on a solid path to financial security in retirement. Do you have IRAs, 401(k)s or other possessions to liquidate in retirement? If not, begin now with smart strategizing and investing. Your remaining years on the job are your last chance at saving money in tax-advantaged retirement accounts and building an emergency fund for unexpected payments.

Many senior borrowers are uncomfortable about their income dropping when they retire while their mortgage payment stays constant. What if there was a way to not have a mortgage payment at all? One good option just might be to pay off your home loan in advance, before you retire, and save the money that previously went to paying the mortgage. If you plan with sufficient years before retirement, you can do that by implementing a biweekly mortgage payoff strategy.

Instead of shelling out the usual monthly premium, having a biweekly mortgage payment plan can help pay off loans with improved savings and financial security in retirement. Biweekly mortgage payments also can be used with other categories of debt, such as auto loans or credit cards.

Here’s how it works: You’ll make half your regular monthly mortgage payment every two weeks. As a result, you’ll make 13 payments annually instead of twelve (52 weeks divided by two equals 26 periods), but pay just a bit more with each biweekly payment. Withdrawals from your account every other week fit conveniently with paychecks and your monthly finances, while an additional half-payment twice a year toward principal lowers interest over the life of the loan — browse AutoPayPLus.com for all the specifics.

If you have a 30-year mortgage for $272,000 at 4.5%, this single strategy by itself can save you more than $37,000 over the life of the loan. Additionally, you’ll retire your debt 53 months in advance utilizing biweekly mortgage payments.

Use the AutoPayPlus auto loan calculator as a tool for determining how much extra money you need to apply to your debts with biweekly payments for the quicker loan payoff you want. Clear the fields and recalculate various payment scenarios to see how a biweekly mortgage strategy can help you reduce debt earlier, grow wealth and achieve your objective of a golden, financially stable retirement.

Use a biweekly mortgage plan to pay off your home loan faster and save more for the retirement you’ve always imagined.