Payment Frequencies with the Canadian Mortgage App
Are you looking for a better way to see all mortgage payment frequencies? You’ll be happy to know that the Canadian Mortgage App has a built-in feature for this. Let’s look at mortgage payment frequencies and how the app helps you.
What is a Payment Frequency?
Mortgage payment frequency is how often you make your mortgage payments. The default option with most lenders is monthly, although you usually change it to something else. Besides monthly, the other most common payment frequencies include weekly, biweekly and semi-monthly.
There’s a misconception that paying your mortgage more often helps you save a boatload of interest. That isn’t true. You’ll barely save anything at all where you get actual savings by paying your mortgage on an accelerated basis.
An accelerated basis is just a fancy way of saying that the mortgage payments that you will pay will be higher than usual. You can usually choose to pay weekly and biweekly on an accelerated basis.
When you pay your mortgage on an accelerated basis, it’s the same number of payments. The only difference is that the payments are slightly higher. When you do that, you’re paying the equivalent of 13 months of mortgage payments instead of only 12 months. Of course, there aren’t 13 months in a year, so your payments are slightly higher to account for this.
How the Canadian Mortgage App Can Help
Using the Canadian Mortgage App’s purchase calculator, you can see payment frequency in an all-new way.
To change and see the payment frequency, you would want to go to the payment field. Once you find that, you can click the current default payment frequency of monthly. When you do that, you can choose a different payment frequency, such as weekly or biweekly. Once you select the new payment frequency, the Canadian Mortgage App will display the new payment frequency amount.
This is quite handy. Seeing the new payment frequency helps you from a budget perspective. You can see if you can afford the new payment frequency before switching to it. But that’s not all. You can compare mortgage payment frequencies. To do that, click on “compare.”
The comparison screen in the purchase calculator is quite handy. Unlike most mortgage calculators that only show one mortgage payment frequency amount at a time, you’ll see all the corresponding mortgage payment frequency amounts on screen at the same time. This helps you better choose the payment frequency that’s right for you.
On top of that, you can change the mortgage rate to see how that affects the mortgage payment amounts for the various frequencies. You do that by dragging the rating button that appears on the screen.
If that wasn’t enough, the app even displays how much each mortgage payment is going toward the principal and how much is going toward interest. It doesn’t get any better than that!
What are you waiting for? Download the Canadian Mortgage App today to try it out.