advice
Mortgage Payments
When you buy a home and take out a mortgage, you need to make regular mortgage payments. Libro offers a variety of mortgage payment options, and your choice depends on your unique mortgage goals.
Mortgage Payment Frequency Options
Weekly Payment
With a weekly mortgage payment, your monthly mortgage payment is multiplied by 12 months and divided by 52 weeks of the year, resulting in 52 mortgage payments per year.
Accelerated Weekly Payment*
With this payment option, you still make 52 mortgage payments per year, however, the payment amount is slightly higher than weekly mortgage payment. Your monthly mortgage amount is divided by four and paid every week.
Bi-Weekly Payment
With a bi-weekly mortgage payment, you make 26 payments a year — your monthly mortgage payment is multiplied by 12 months and divided by 26 pay periods in a year.
Accelerated Bi-Weekly Payment
With an accelerated bi-weekly mortgage payment, you still make 26 mortgage payments per year, however, the payment amount is slightly higher than a regular bi-weekly payment. Your monthly mortgage payment is divided by two and the amount is paid every two weeks.
Semi-Monthly Payment
If you have a semi-monthly mortgage payments, you make payments twice a month, for example, on the 1st and 15th of each month. Semi-monthly payments are different than bi-weekly payments because if you pay on two dates per month — you make 24 annual payments.
Monthly Payment
With a monthly mortgage payment, you make 12 payments each year — the payment is withdrawn from your bank account on the same day of every month, for example, the 1st or last day of each month.
Other Mortgage Payments
Want to be mortgage free sooner? Here’s some other mortgage payment options available:
- 20:20 Penalty-Free Pre-Payment: You can pay up to 20% of the original mortgage balance on the mortgage anniversary date and reduce your interest costs. You can also increase your regular mortgage payment amount by up to 20% each year.
- Double-up your Payment: You can make extra complete payments on any regular payment day. These payments go directly to your principal.
- Portability Option: If you have to move before your mortgage term is up, there is no penalty to transfer your existing mortgage* as long as the mortgage transfer is with Libro. We can increase your mortgage amount and blend your previous and your new rate. The mortgage balance and interest rate move along with you into your new home.
*Since scenarios vary by individual, please talk to a Libro Coach to talk about your specific home buying goal. For example, if you are planning to downsize into a smaller home this would mean carrying a smaller mortgage amount. A downsizing decision might include different mortgage transfer arrangements and costs.
Frequently Asked Questions
Down Payments
If you have been thinking of buying your first home and looking at different properties, you might be wondering “How much can I afford?” A Libro Coach helps you answer this question and many more! An important part of this conversation is the amount you are planning to use as a down payment for your home purchase. The higher the amount of the down payment, the faster you are be able to achieve mortgage-free prosperity.
Here are three things to consider about mortgage down payments. Talk them over with your Libro Coach to see how they apply to your plans to own a home.
Ready to buy your first home with Libro, or have questions?
To start your pre-approval, Libro will require information about your current financial situation, including these topics:
- Income
- Outstanding debts, such as personal loans, student loans, credit cards, etc.
- Monthly expenses
Ready to buy your first home with Libro, or have questions?
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