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Step
2
Learn how the EquityCorp Mortgage Payoff Acceleration Program (MPAP)
can help you.
MPAP
is a biweekly mortgage payment program that electronically debits
homeowners' accounts every two weeks through the Automatic
Clearing House (ACH) System by participating FDIC banks
in the Federal Reserve System.
The biweekly debits are equal to at least one-half of the real property
owner's existing mortgage payment. Thus, if the monthly payment
is $1,000, then $500 would be debited every two weeks. Through this
method, 26 payments are made over the course of the year, the equivalent
of 13 monthly payments rather than 12. All of the extra payment
is applied exclusively toward a reduction in the principal of the
mortgage.
For
example, take an average $100,000
mortgage for 30
years at 8.5% interest.
Making regular monthly payments, a homeowner would pay $176,813.55
total interest. With a biweekly payment plan, you would
not only reduce the term by 7 years,
4 months, you'd pay only $126,163.02
in interest - a savings of $50,650.53!
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