Mythbusting Weekly vs Monthly Mortgage Payments ⎜Ep 891⎜Property Academy

In this episode, we discuss whether homeowners and property investors really can save thousands of dollars by paying off their mortgage on a weekly basis, rather than monthly.

This includes an analysis of when the payments are made and whether paying your mortgage off weekly really does result in extra payments.

We run all our calculations through this spreadsheet, which you can download by clicking the link:

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[ShevelYar]

Why did you divide month by 4? In accounting and finance we always use 4.333 since there are 52 weeks in a year…

[Happydeon]

Is their anyway to determine which extra payment is going to the full primary
1st week or the 4th week?

And if it’s the 4th payment couldn’t you pay like 100$ each week and on the 4th week pay the remainder to the full primary

[adrianwillis]

I pay $200 per week extra on my morgage, it's going into my offset account is this going off my principal

[sherricooper]

Here in Canada, we can also do rapid weekly, rapid bi-weekly, it does make a difference

[bananian]

I think people think if you pay more often, then the interest would be calculated based on a lower principal on the next payment sooner. But im guessing thats not how it works.. but then how does it work?

If frequency doesnt matter, why dont i just pay a lump sum at the end of the year instead of making monthly payments assuming cash flow isnt a problem?

[CoolGear]

What if you have an off set account? Does additional weeks payments still make a difference

[hannahmoulden]

You guys are incredible! 😂 LOVE the show

[MsDutchess]

Is there a penalty for paying off the mortgage early?

[jonnynz]

Seems like most people looking at these types of quick fixes focus on cutting costs around the margins. Short of If they put that same effort or more into sustainably growing income/profit will end up much better off over time.

[donniethesportsguy]

Im thinking your buddy meant to say extra weekly payments on principal on top of regular monthly scheduled payments 😂