What is the monthly payment amount for accelerated bi-weekly payments?

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To find the correct monthly payment amount for accelerated bi-weekly payments, it's essential to understand how this payment system works. Accelerated bi-weekly payments involve making half of the monthly payment every two weeks. This results in 26 payments per year, which is equivalent to 13 monthly payments, effectively helping to reduce the principal balance faster and resulting in overall interest savings.

For example, if the monthly payment for a mortgage is calculated to be around $1,349.78, making bi-weekly payments would require dividing that payment in half, leading to a bi-weekly payment of approximately $674.61. This method allows borrowers not only to pay off their mortgage faster but can also help in reducing the total interest paid over the life of the loan.

In essence, when considering the context of the question and the calculations involved, the amount of $674.61 accurately reflects the bi-weekly payment derived from a monthly payment setup, confirming its appropriateness as the monthly payment amount for the accelerated bi-weekly payment schedule.

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