How to budget for monthly salary, biweekly mortgage
September 29, 2018 8:54 AM   Subscribe

I get paid twice a month, 24 times a year. I pay my mortgage every two weeks, 26 times a year. How do I budget for this? Is there a spreadsheet that accounts for the different frequency?
posted by Frenchy67 to Work & Money (4 answers total) 2 users marked this as a favorite
Add up your 26 mortgage payments, divide total by 24. Take that number and work out the difference to your mortgage payment. That amount has got to go into your mortgage savings account every time you get paid so you can cover the two unmatched payments.

Mortgage = 300 *26= 7800



> 25*24= 600 = two mortgage payments
posted by koahiatamadl at 9:12 AM on September 29, 2018 [2 favorites]

Is your question about budgeting correctly? I have a separate account from which my mortgage is paid. You want to gross up your semi-monthly contributions by 1/13 (roughly 7.5%) to cover the extra two months that will have three payments vs two. Do yourself a favour right now and sit down with a calendar to figure out when the next instance of this is as you’ll need to seed the difference as it’ll likely be some period less than 12 pay periods.
posted by dismitree at 9:17 AM on September 29, 2018 [1 favorite]

Won't your financier provide a new payments schedule to allow you to pay your mortgage in 24 instalments, rather than 26? That would be my first move. Otherwise Dismitree has it.
posted by GeeEmm at 2:07 AM on September 30, 2018 [1 favorite]

I did something like what GeeEmm says:at one point my lender offered me a deal: I paid them 1/2 the agreed monthly payment, every two weeks. For those two months of he year when there where three payments in the month, the third payment was applied directly to the principle. This was going to help us pay off the mortgage a couple of years early, had we not been forced to sell out for other reasons. They also gave us a little token percent discount or something that was not part of the deciding factors for us.

Now that I rent, I've continued the practice of setting aside the money like this: 1/2 month rent from every paycheck. The extra payments now go to savings. I look at my roommate who treats the three-paycheck months like she won the lottery, and I feel much more safe than she seems to.
posted by buildmyworld at 3:09 PM on October 1, 2018 [1 favorite]

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