Nationwide Biweekly Administration

Interest Minimizer Plan with Nationwide Biweekly Administration –

For most people, the biggest investment they will make during their lifetime is the purchase of a home.  For most homeowners their biggest bill every month is their mortgage bill, but in today’s economy, many people are seeing other bills pile up and they are looking for solutions that can help them get out from under their debt.  Many banks and other lenders can be reluctant to help out because they are still making money on the interest payments that borrowers are making every month.  Sometimes it takes a third party such as Nationwide Biweekly Administration to provide a solution like their Interest Minimizer Plan.  By making smaller payments more often, you can more quickly find your way out from the debt you have accumulated.

Some claim that bi-weekly payment plans are nothing but a scam and it couldn’t possibly work, but all you have to do is look at the math to see that it gets results. Let’s look at a mortgage of $100,000. Over the 30-year life of the loan, you will pay 5% interest on the loan.  If you make the “normal” payment every month, you will make 360 payments totaling $192,255 in principal and interest. Alternatively, if you made bi-weekly payments the total principal and interest you paid would be $176,077. That means that you would save over $17,000 in interest payments over the lifetime of the loan. And, rather than taking the full 30 years to pay off your mortgage, it would take you just over 25 years to do it.  Depending on the amount of your loan and the interest rate that you are paying, many people find they can shave six to eight years off of their mortgage.

So how does this work?  Many people think you just cut your monthly mortgage payment in half and make 24 payments instead, but that is not the case. There are 52 weeks in a year, so if you make a payment every two weeks you would make 26 payments. The two “extra” payments you make every year work to drive down the loan’s principal and enable you to pay off your loan sooner. Of course because you pay it off sooner, you end up paying less interest over the life of the loan. Hence, the Interest Minimizer Plan.

The Interest Minimizer Plan can also assist people with their overall monthly budgets. If you are like most people you get paid twice a month, or maybe even bi-weekly. Suppose your mortgage (or any loan payment) worked the same way and you could “pay” the lender on a similar schedule. Your payment would take a smaller bite out of two paychecks rather than one big bite out of a single paycheck. That would enable you to better budget for regular items, or surprises, as they arose during the month.

One of the added benefits of the Interest Minimizer Plan is that it doesn’t just work for mortgages. It also works for car loans, second mortgages, student loans, credit card loans, and any other loans you may have accumulated. The same principal of making a payment bi-weekly instead of monthly will drive down your principal more quickly. Many people use different banks or lenders for the different loans or credit cards they have. The Interest Minimizer Plan isn’t concerned with that and can work with all kinds of lending institutions. All transactions are handled through the Federal ACH Banking System, so there’s no need to worry about writing a bunch of different checks every month. Just work within their plan to determine your bi-weekly payments and be on your way to paying off your debts sooner than you could have imagined.