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What Are The Best Mortgage Payment Plans?

The three basic needs for every human being are food, clothing and shelter.  You will live a very uncomfortable and unfavorable life if you lack any of the three. Food and clothing are much more affordable and easier to come by; shelter on the other hand is not as easy. However, there are various ways for fulfilling your shelter needs.

You could buy yourself some land and start building a house on that piece of land, you could buy a house that someone else has already built, or you could choose to live in a rental house, where you will have the obligation of paying the owner of the house a certain fee every month. The rental scheme is very tedious since you are under the authority of someone and you cannot literally say that you own the place.

A mortgage plan comes in handy to combine the second and third option thus assuring you a home of your own but at the same time paying a certain fee regularly until you clear the required fee. Getting into a mortgage plan works for the best, since it allows an individual to own a place and one does not have to pay the whole amount (which is usually so high) all at once. Below are a few ways that one can make mortgage payments:

1. Monthly payment

This is usually the most common form of payment. In this payment scheme, you pay a certain fee every month. Many people opt for this since they also get their income monthly and so they are able to cut the fee immediately after pay. This is the longest duration of pay possible. However, the time allocated for fully paying the mortgage is usually in terms of complete years. Therefore, if you are under a ten-year paying scheme, then it means you will be paying a certain fee for the next one hundred and twenty months (10 years x 12 months each).

2. Semi-monthly payment

While monthly payment is once a month, semi-monthly payments are done twice a month, meaning in a whole year you make 24 payments. Therefore, in this, you pay the fee regularly after averagely every fifteen days (since a month has averagely thirty days).

3. Bi-weekly payment

Many view this form of payment and that of semi-monthly similar but they are very different. In this form of payment, you make payments after every two weeks. A year has 52 weeks; and so you make payments 26 times in a year (52/2). This means that you technically have an extra month (two more weeks of a semi-monthly payment scheme) to give in your dues in a year.

4. Weekly payment

This entails you to make payments after every single week. This is the shortest possible duration of payment for mortgages.

For every mortgage plan, there is the stipulated time with which you are expected to complete repaying the mortgage loan and the interest rate as well. These are the two major factors considered in determining the regular fee to make, according to the duration you choose, from weekly to monthly. The more frequent the payments, the lesser interest you pay. Likewise, the shorter the total period (usually in years), the lesser interest you pay.

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