EMPP In The News
Check here regularly for news and articles about EMPP, the Early Mortgage Pay-Off
Plan, and mortgage-related issues in general.
Financial Guru Endorses Biweekly Programs
In his book, The Automatic Millionaire, David Bach tells his readers that a homeowner's
primary goal is to discover ways to pay off the home mortgage early, and that one
of the best ways to do this is through a biweekly mortgage payment plan. Bach is
quoted in an interview with a financial industry magazine:
"I don't think there is anything wrong with a 30-year mortgage, but I do think paying
for your home over 30 years is silly," he comments. "If you take 30 years to pay
for a $250,000 home, you'll spend over $400,000 in interest."
What's the solution? "What I suggest to people who have a 30-year mortgage is to
make bi-weekly payments," Bach replies. "You split your monthly mortgage payment
in half and pay half every two weeks. A biweekly mortgage shaves your 30-year mortgage
down to between 25 and 22 years," Bach explains. "On a $250,000 mortgage, you'd
save about $119,000 in interest payments. In my experience as a financial adviser
over decades, people who pay off their homes early retire five to ten years sooner."
— Rough Notes Magazine (www.roughnotes.com), May 2004