When you set up your mortgage payment repayment plan, you can choose between a standard repayment plan or a fortnightly repayment plan. With the standard plan, it would take you 30 years to repay the loan while a fortnightly plan will take 25 years and 3 months. This will save you 4 years and 9 months. But, the savings doesn’t end there.
If you took out a $250,000.00 loan with an interest rate of 5.000%, you can expect to pay $1,342.05 per month, while a fortnightly payment plan will call for a payment of $671.03 every other week. As a result, you will pay only $189,734.44 in interest with the fotnightly schedule rather than $233,139.46 with the standard payment plan. This means that you will save a total of $43,405.02 with the fortnightly plan.