Prairie Village‑based Fountain Mortgage is offering a straightforward strategy that Johnson County homeowners can use to lower the total cost of their mortgage. By switching from a traditional once‑a‑month payment schedule to a biweekly plan, borrowers make 26 half‑payments each year – the equivalent of 13 full payments – without feeling a larger cash‑outlay.
How the biweekly schedule works
Under a standard mortgage, borrowers remit 12 full payments annually. With the biweekly method, the monthly amount is divided in half and paid every two weeks. Because there are 52 weeks in a year, this results in 26 half‑payments, or one extra full payment each year. The extra payment is automatically built into the schedule, so homeowners do not need to save a lump sum for a year‑end “bonus” payment.
Numbers that matter to families
Fountain Mortgage illustrated the impact with a sample loan of $300,000 at a 4.5% interest rate. A monthly payment of $1,520.06 totals $18,240.72 per year. Switching to biweekly payments reduces the monthly amount to $760.03, paid 26 times for an annual outlay of $19,760.78 – only $1,520 more each year, but it includes the extra payment.
The long‑term effect is significant. The traditional 30‑year schedule would result in roughly $119,000 of interest, bringing the total cost to about $419,000. The biweekly plan cuts the loan term to roughly 25 years and 10 months, slashing total interest to about $100,000 and the overall cost to roughly $400,000 – a savings of more than $19,000.
Why this matters for Johnson County families
For many families, the prospect of paying off a mortgage sooner aligns with the community’s emphasis on financial stewardship and providing for future generations. The biweekly approach does not require a larger monthly budget; instead, it spreads the same amount across more frequent, smaller payments, making budgeting easier for households that receive biweekly paychecks.
How to get started
Homeowners interested in the biweekly schedule can contact Fountain Mortgage directly. The lender can set up the payment plan through automatic bank drafts or a third‑party service that handles the timing. There are no hidden fees for the basic biweekly structure, though borrowers should confirm any processing costs if a third‑party processor is used.
Fountain Mortgage emphasizes education as a core part of its mission, helping clients understand how payment timing can affect loan amortization. By adopting the biweekly method, Johnson County residents can take a proactive step toward reducing debt, freeing up resources for other family priorities such as college savings, home improvements, or charitable giving.
Key takeaways
- Biweekly payments create one extra full payment each year without a noticeable cash‑flow hit.
- Potential interest savings exceed $19,000 on a typical 30‑year loan.
- The loan term can be shortened by roughly five years.
- Fountain Mortgage offers guidance and setup assistance at its Prairie Village office.
Original reporting: Johnson County Post (Overland Park) — read the source article.
