Advanced English Dialogue for Business – Bi weekly mortgage loan

Listen to a Business English Dialogue about Bi weekly mortgage loan

Martin: Hi Riley, have you heard about bi-weekly mortgage loans?

Riley: Yeah, I think it’s a payment plan where you make half of your monthly mortgage payment every two weeks instead of once a month.

Martin: That’s right. By making bi-weekly payments, you end up making 26 half-payments a year, which is the equivalent of 13 full monthly payments.

Riley: Does making bi-weekly payments save you money in the long run?

Martin: Yes, because you’re essentially making one extra payment per year, you can pay off your mortgage faster and save on interest costs over the life of the loan.

Riley: Are bi-weekly mortgage loans suitable for everyone?

Martin: They can be beneficial for those who have the financial discipline to make the extra payments consistently, but they may not be the best option for everyone depending on individual financial situations.

Riley: Can you switch to a bi-weekly payment plan if you already have a mortgage?

Martin: It depends on your lender and the terms of your mortgage agreement. Some lenders offer bi-weekly payment options, while others may require you to refinance to switch to this payment schedule.

Riley: Are there any drawbacks to bi-weekly mortgage loans?

Martin: One potential drawback is that some lenders may charge fees for setting up or processing bi-weekly payments, so it’s essential to carefully review the terms and costs involved.

Riley: Thanks for explaining that, Martin. Bi-weekly mortgage loans sound like a smart way to pay off your mortgage faster.

Martin: No problem, Riley. They can indeed help you save money on interest and pay off your mortgage sooner if managed effectively.