Mortgage Payment Quiz

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Mortgage Payments Quiz

It could save you thousands

Paying $1,000 per month toward my mortgage is the same as paying $500 every two weeks.

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$500

$1000

Q1: True or False?

TRUE

FALSE

Wrong! False. Paying bi-weekly (every other week) gives you a full extra payment per year. So what? Let’s say you have a $200,000 mortgage and pay 4.375% APR. In 30 years, you save $27,522 in interest just by paying bi-weekly.

HINT

There are 52 weeks in a year

Q2: True or False?

Bi-weekly payments are the same as semi-monthly payments.

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TRUE

FALSE

Right! False. Semi-monthly payments break your monthly payment in half. This may help budgeting, but 24 half-size payments still equal 12 full-size payments. Paying bi-weekly results in 13 full-size payments per year. This could save you tens of thousands over the life of your loan (see answer 1 for an example).

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= 24 Semi monthly payments in a year

= 26 Bi-Weekly payments in a year

Q3: True or False?

Since it’s easy to automate your mortgage payment, it’s always best to pay extra toward your mortgage before you pay off credit cards, personal loans or higher-interest debt.

TRUE

FALSE

Right! False. Before engaging in a debt reduction strategy, consult your financial advisor or accountant. Paying down your mortgage may make sense, but it may be better to pay high-interest loans (like credit cards) first. Sometimes it even makes sense to take out a larger mortgage to pay off higher-interest debt and lower your total monthly payments.

HINT

Which one has a higher interest rate? Meaning that you'll pay more over the long run.

Set up reminders to ensure you continue to pay down your high-interest debt regularly at the same time while keeping up with regular mortgage payments.

Right! False. Paying bi-weekly (every other week) gives you a full extra payment per year. So what? Let’s say you have a $200,000 mortgage and pay 4.375% APR. In 30 years, you save $27,522 in interest just by paying bi-weekly.

HINT

Click the links above to show on calendar

Wrong! False. Semi-monthly payments break your monthly payment in half. This may help budgeting, but 24 half-size payments still equal 12 full-size payments. Paying bi-weekly results in 13 full-size payments per year. This could save you tens of thousands over the life of your loan (see answer 1 for an example).

Wrong! False. Before engaging in a debt reduction strategy, consult your financial advisor or accountant. Paying down your mortgage may make sense, but it may be better to pay high-interest loans (like credit cards) first. Sometimes it even makes sense to take out a larger mortgage to pay off higher-interest debt and lower your total monthly payments.

Q4: True or False?

Monthly payments on a 15-year mortgage are usually higher than a 30-year loan of the same amount. But a 15-year loan could save a lot in interest.

TRUE

FALSE

Right! True. Our 15 vs. 30-Year calculator is a great place to compare. In some cases, refinancing to a 15-year mortgage could make sense, especially if you can afford the payments and don’t have higher-interest debt. It all depends on your individual circumstances, so call 855-216-3952 to talk with a licensed Loan Advisor to learn more.

Wrong! True. Our 15 vs. 30-Year calculator is a great place to compare. In some cases, refinancing to a 15-year mortgage could make sense, especially if you can afford the payments and don’t have higher-interest debt. It all depends on your individual circumstances, so call 855-216-3952 to talk with a licensed Loan Advisor to learn more.

HINT

Which one has a higher interest rate? Meaning that you'll pay more over the long run.

Q5: True or False?

Signing up for paperless statements could save me money each month

TRUE

FALSE

Right! False. You may not save money, but you’re doing your part for the environment. Did you know if every Freedom Mortgage customer signed up for paperless statements, together we could save at least 3,000 trees per year? Help us go green, while you enjoy the convenience of 24/7 access to your statement each month. Login to sign up.

Results

Wrong! False. You may not save money, but you’re doing your part for the environment. Did you know if every Freedom Mortgage customer signed up for paperless statements, together we could save at least 3,000 trees per year? Help us go green, while you enjoy the convenience of 24/7 access to your statement each month. Login to sign up.

Your Results

Correct

Incorrect

500

1.5K

Principal & Interest

PMI

Taxes & Insurance

Paperless Statement

HINT

Try out our 15 vs. 30 Year Mortgage Calculator

VIEW RESULTS

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