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How Does a Bi-Weekly Loan
Work?
The concept is simple! 1/2 of the client's monthly loan
payment is electronically debited from their checking account every 2 weeks.
Because there are 52 weeks in a year, the client will make 26 half payments
instead of 12 monthly payments. This generates an additional payment over
the course of a year without the client actually feeling it. This extra money
is applied directly to the principle portion of the loan. By simply changing
the way your client makes their loan payment and providing a disciplined
system to accomplish their goal, the Interest Savings System will
have a tremendous effect on their loan.
Your client will now..
- Build
equity two to three times faster
- Pay
off their loan 8-10 years sooner, and
- Save
$50,000 to $80,000 in unnecessary interest payments!
The example below is based on:
Mortgage
Amount:
$125,000 Initial Interest Rate: 8%
Current Term:
30 year Bi-Weekly Payment: $500.00
Monthly Payment:
$1,000.00 (Includes PITI)
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Normal Monthly
Payment |
Bi-Weekly Payment |
Extra $25 every two weeks |
Extra $50 Every two weeks |
|
Years to pay off |
30.0 |
22.6 |
19.8 |
17.6 |
|
Total Interest
Saved |
$0.00 |
$59,749 |
$81,365 |
$96,826 |
|
Total Interest Paid |
$205,183 |
$145,434 |
$123,817 |
$108,356 |
|
Total Cost of Loan |
$330,183 |
$270,434 |
$248,817 |
$233,356 |
|
Percentage of
Interest Saved |
0% |
29% |
39% |
47% |
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Net Equivalent
Interest Rate |
8% |
6.022% |
5.262% |
4.699% |
Why Does My Client Need a
Bi-Weekly Loan?
It is no secret that anyone can prepay a loan. Many of
you have been telling your clients this for years, but how many of your clients
actually do?
Our company was built on the realization that if your client has any extra
money at the end of the year, the last place that they will ever put it, is
toward their 30 year loan. You know it and so does your client! The Interest
Savings System is a systematic, disciplined pre-payment program that
can be viewed as an
investment program for their loan. Your client's loan is typically the
largest investment that they will ever make. Now you can show them how to
treat it that way. No matter what financial goal a person is striving to
achieve, discipline and consistency are always the keys to success.
The Interest Savings System provides those desperately needed keys!
Even if your client has an
interest only loan, they can still use the Interest Savings
System as a convenient payment program that ensures timely
payments and a reduction of the principal amount at the end
of the Interest Only period. They can also transfer the
program to a new loan for free!
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