Question 1

What is a Balloon Payment?

Accepted Answer

A Balloon Payment is when the outstanding balance is added to the payment in your regularly scheduled mortgage payment, and the balance is now paid in full.

Question 2

What options do I have for my mortgage payment?

Accepted Answer

Set a payment frequency that works for you

Once you secure a mortgage, you will start making payments to repay the loan. Most lenders give many different frequency options for your mortgage payment. A homeowner has the following options -

Monthly Payments - One payment per month (12 payments per year)
 Semi-Monthly - Two payments made on the 1st and the 15th (24 payments per year)
 Bi-Weekly Payments - One payment every 14 days (26 payments per year) 
 Accelerated Biweekly - One payment every 14 days. The calculation of this helps to pay down your mortgage more aggressively. 
 Weekly - One payment every seven days (52 payments per year) 
 Accelerated Weekly One payment every seven days. The calculation of this helps to pay down your mortgage more aggressively.

Most lenders will give you a commitment with the payment frequency set to monthly. Ask your mortgage broker to explain your options. Also consider how you are paid from your employer and what makes the most sense for you!

Question 3

Do accelerated bi-weekly payment really help pay off my mortgage faster?

Accepted Answer

Payoff your mortgage faster with accelerated bi-weekly payments

YES! Yes, accelerated bi-weekly payments defiantly help. 
The theory is simple, take your monthly mortgage payment, divide it by two and make that payment every two weeks. You will make a total of 26 payments per year. This results in making one extra mortgage payment per year, paying off your mortgage faster! With an accelerated bi-weekly payment schedule, you pay more down directly towards principle.

PAYMENTS

What is a Balloon Payment?

What options do I have for my mortgage payment?

Do accelerated bi-weekly payment really help pay off my mortgage faster?