Ms. Towne is buying a home for $250,000 and is putting down 20% cash on the purchase. She is financing the rest with a 30-year, fixed rate mortgage with a rate of 4.625% but is considering an option that would allow her to make biweekly payments. How much interest would the biweekly payment option allow her to save over the life of the loan and how long would it take to pay off the loan?

Answer rating: 100% (QA)

To calculate the interest saved and the time it takes to pay off the loan with biweekly payments we need to compare the total interest paid and the lo... View the full answer