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Mortgage Payment Options

Libro offers a variety of mortgage payment options. Your choice will depend on your unique mortgage goals.

Payment Frequency Options

You can request one of six mortgage payments to match your cash flow or payroll day:

  1. Weekly Payment
  2. Accelerated Weekly Payment*
  3. Bi-Weekly Payment
  4. Accelerated Bi-Weekly Payment
  5. Semi-Monthly Payment
  6. Monthly Payment

Is an Accelerated Payment a good idea?

The benefit of selecting an accelerated payment vs. a regular payment is that you end up making the equivalent of 1 extra monthly payment per year. This extra payment goes directly to the principal of your mortgage and will help to reduce your overall amortization period for the mortgage.

Let’s compare a regular Monthly or Weekly mortgage payment to an Accelerated Weekly mortgage payment option:

Regular Monthly Payment Weekly Mortgage Payment Accelerated Weekly Mortgage Payment
Mortgage Payment Amount $1,000 $230.76
($12,000 / 52 weeks)
($1,000 / 4 weeks)
Total Annual Mortgage Payments $12,000 $13,000

*An Accelerated Weekly Mortgage Payment would work like this:

  • You take your monthly mortgage payment and divide it by 4.
  • Using the above example of a $1,000 monthly mortgage payment - the weekly payment would be $1000 / 4 = $250.00
  • $250 weekly payments * 52 weeks = $13,000 total mortgage payments in one year

There is an extra $1,000 in mortgage payments using an accelerated weekly payment vs. a regular monthly payment ($13,000 vs. $12,000 in the total mortgage annual payment).

Other Mortgage Payments

Wan to be mortgage free sooner? Here’s some other mortgage payment options available:

  • 20:20 Penalty-free Pre-Payment: You can pay up to 20% of the original mortgage balance on the mortgage anniversary date and reduce your interest costs. You can also increase your regular mortgage payment amount by up to 20% each year.
  • Double-up your Payment: You can make extra complete payments on any regular payment day. These payments go directly to your principal.
  • Portability Option: If you have to move before your mortgage term is up, there will be no penalty to transfer your existing mortgage* as long as the mortgage transfer is with Libro. We can increase your mortgage amount and blend your previous and your new rate. The mortgage balance and interest rate will move along with you into your new home.

*Since scenarios vary by individual, please talk to a Libro Coach to talk about your specific home buying goal. For example, if you are planning to downsize into a smaller home this would mean carrying a smaller mortgage amount. A downsizing decision might include different mortgage transfer arrangements and costs.

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