European Stars And Stripes (Newspaper) - June 26, 1988, Darmstadt, Hesse Page 20 the stars and stripes sunday june 26,1988 investor s guide by Bill Doyle q. My son recently purchased a is 50.000 Home and � making monthly mortgage pay meals. Be Lieve he could Sarc substantial amount of interest by making pay ments every two necks the Bank holding the Marten re Thorsn t want to bother with biweekly mortgage my son Doyle insist and Hill Here be a saving a. He can insist but the Bank does t have to go along. The mortgage is a contract Between your son and the Bank. Changes in the contract can t be initiated by Jusi one Pany. The Marisa dec would have to be revised perhaps refinanced to accommodate the payment schedule change from monthly 10 biweekly. Most Likely that alsowould1 involve changes in the Hank s computer software. This does t mean it can t be done. U simply needs approval at the Bank. Biweekly payments should rearranged at the time a mortgage is originated. Although they have he come much More popular in re cent years some Banks and other lenders still Don t offer that Type of mortgage. It your son could get such mortgage he certainly would save interest and pay o t the Mort Gage much sooner. By paying every two weeks he would make 26 pay ments a year. If each biweekly pay ment is equal to half of a Normal monthly payment he would make the equivalent of 13 monthly pay ments a year thereby reducing the mortgage balance on which inter est Muil be paid. Even More important each biweekly payment Lowers the Mort Gage balance and the interest to be paid even faster. Because the bal Ance is reduced rapidly a 30-year mortgage can be paid off in 18 years. The interest savings Are sub Stantial. On High interest Mort gages the savings can be fantastic. bought my first Home in May 1986. I Hare a contentions30-year, $69,000 mortgage with a 9.5 percent interest rate. A few months after closing on the House 1received a promotion and a 13 per cent salary raise. Since then with each monthly payment i have Bee sending the mortgage company an extra s50, which is applied to re Duce the principal owed. I know about mortgages with biweekly payments which save inter est and pay off the balance faster. Bui that Type at mortgage would t work or me because i get paid monthly. By sending in the extra 550 month am i not inc same thing just about. Your extra pay ments amount to $600 a year. According to my calculator that smore than your monthly payment Tor interest and principal. So you re probably reducing the Mort Gage balance at roughly the same rate As you would with a biweekly payment schedule. It s impossible to come up with an exact compari son because biweekly payments lower the balance More frequently. King fun tune Voyta walk Newt your Wei. You pm win to in in an the the suit in fit a apr ds211, . Fowl business news Market hits Post collapse High new York up the Stock mar Ket last week celebrated a dramatic surge in the value of he Dollar and sent the Dow to a new Post collapse closing High. The Dow Jones Industrial average which fell 5.33 Friday closed the week Al 2142.96. For the week the Index Rose 38.94 Points or 1.9 percent. On wednesday accompanied by a Sharp Advance in the Dollar Slock prices soared adding 43 Points to the Dow and pushing inc Index to 2152.20, which sur passed the previous Post collapse closing High of213l. Til it 06uilntninw Xiufu 1112oickh a s sol Saffir cd 104 m51& 12h if Smrdl up till epic 12j4uscvb i 64m14. W. B h. 01hl 01 no. ,03 s-.03 1mt u i h Jyh u9 Job Conn flin or twill of. Mu17i will 12 cd no 015364 no is he. 1015 m. 1071 my. 10 11 he lot cd 10 a nit m m.1b he m a i i 1m t3 is 6 is .i9 .01 .4 it .02 up 1949 29.52 31. 1311 i. 11.76 1i7 ,01 12 to iz.71 i 14j714j7 Hijra it. 0? Iun a m14 m i4.lt Jyh 12j3 an .1409 14 of. 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